Baldwin & Lyons Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2012. For the quarter, the company reported operating revenue of $65,468,000 compared to $68,354,000 a year ago. Net investment gains were $302,000 compared to $3,088,000 a year ago. Total revenue was $65,770,000 compared to $71,442,000 a year ago. Operating income was $4,480,000 or $0.30 per diluted share compared to $3,491,000 or $0.24 per diluted share a year ago. Net income was $4,676,000 or $0.31 per diluted share compared to $5,498,000 or $0.37 per diluted share a year ago. Annualized return on average shareholders' equity on operating income basis was 5.8% compared to 4.8% reported a year ago. Annualized return on average shareholders' equity on net income basis was 6.0% compared to 7.5% reported a year ago. Book value per share increased $0.13 per share during the fourth quarter, after the payment of $0.25 per share in regular cash dividends.

For the full year, the company reported operating revenue of $253,113,000 compared to $261,397,000 a year ago. Net investment gains were $9,011,000 compared to net investment losses of $17,803,000 a year ago. Total revenue was $262,124,000 compared to $243,594,000 a year ago. Operating income was $26,062,000 or $1.75 per diluted share compared to operating loss of $16,603,000 or $1.12 per diluted share a year ago. Net income was $31,919,000 or $2.15 per diluted share compared to net loss of $28,175,000 or $1.90 per diluted share a year ago. Annualized return on average shareholders' equity on operating income basis was 8.6% compared to negative return on average shareholders' equity of 5.3% reported a year ago. Annualized return on average shareholders' equity on net income basis was 10.6% compared to negative return on average shareholders' equity 9.0% reported a year ago. For the year, book value per share increased $1.76, after the payment of cash dividends to shareholders of $1.00 per share, with the combination of the increase in book value and dividends representing a 12.9% total return on beginning book value.