SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2016

SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract]

SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT

SCHEDULE II
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Form 10-K
Baldwin & Lyons, Inc.
(Dollars in thousands)
Condensed Balance Sheets
	December 31
	2016			2015
Assets
Investment in subsidiaries	$	409,892		$	405,192
Due from affiliates		3,381			2,945
Investments other than subsidiaries:
Fixed maturities		10,166			12,181
Limited partnerships		205			208
		10,371			12,389
Cash and cash equivalents		14,995			17,934
Accounts receivable		7,602			6,418
Other assets		25,763			21,067
Total assets	$	472,004		$	465,945
Liabilities and shareholders' equity
Liabilities:
Premiums payable	$	11,973		$	21,672
Deposits from insureds		30,087			23,484
Short-term borrownings		20,000			20,000
Other liabilities		5,599			6,291
		67,659			71,447
Shareholders' equity:
Common stock:
Class A		112			112
Class B		532			529
Additional paid-in capital		54,286			52,946
Unrealized net gains on investments		34,051			38,924
Foreign exchange adjustment		(831	)		(1,066	)
Retained earnings		316,195			303,053
		404,345			394,498
Total liabilities and shareholders' equity	$	472,004		$	465,945

SCHEDULE II
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Form 10-K
Baldwin & Lyons, Inc.
(Dollars in thousands)
Condensed Statements of Operations
	Year Ended December 31
	2016				2015				2014
Revenue:
Commissions and service fees		$	27,736			$	23,523			$	22,153
Cash dividends from subsidiaries			20,000				20,000				15,000
Net investment income			134				120				102
Net realized losses on investments			(3	)			(22	)			(27	)
Other			(24	)			(17	)			126
			47,843				43,604				37,354
Expenses:
Salary and related items			17,462				17,616				15,543
Other			10,808				7,297				7,978
			28,270				24,913				23,521
Income before federal income taxes
and equity in undistributed
income of subsidiaries			19,573				18,691				13,833
Federal income tax benefit			(69	)			(350	)			(294	)
			19,642				19,041				14,127
Equity in undistributed income
of subsidiaries			9,303				4,242				15,590
Net income		$	28,945			$	23,283			$	29,717

SCHEDULE II
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Form 10-K
Baldwin & Lyons, Inc.
(Dollars in thousands)
Condensed Statements of Cash Flows
	Year Ended December 31
	2016			2015			2014
Net cash provided by operating activities	$	15,484		$	21,841		$	19,719
Investing activities:
Purchases of long-term investments		(4,000	)		(4,792	)		(6,398	)
Sales or maturities of long-term investments		3,493			4,194			5,253
Net sales of short-term investments		2,165			-			-
Distributions from limited partnerships		-			-			13
Net purchases of property and equipment		(4,278	)		(4,921	)		(6,873	)
Net cash used in investing activities		(2,620	)		(5,519	)		(8,005	)
Financing activities:
Dividends paid to shareholders		(15,803	)		(15,003	)		(14,947	)
Drawings on line of credit		-			-			10,000
Net cash used in financing activities		(15,803	)		(15,003	)		(4,947	)
Increase (decrease) in cash and cash equivalents		(2,939	)		1,319			6,767
Cash and cash equivalents at beginning of year		17,934			16,615			9,848
Cash and cash equivalents at end of year	$	14,995		$	17,934		$	16,615

Note to Condensed Financial Statements - Basis of Presentation

The Company's investment in subsidiaries is stated at cost plus equity in the undistributed earnings of subsidiaries since the date of acquisition.  The Company's share of net income of its subsidiaries is included in income using the equity method.  These financial satements should be read in conjunction with the Company's consolidated financial statements.