RLI Reports Second Quarter 2020 Results

PEORIA, Ill,--()--RLI Corp. (NYSE: RLI) – RLI Corp. reported second quarter 2020 net earnings of $92.2 million ($2.04 per share), compared to $40.5 million ($0.89 per share) for the second quarter of 2019. Operating earnings(1) for the second quarter of 2020 were $34.8 million ($0.77 per share), compared to $29.7 million ($0.66 per share) for the same period in 2019.

 

Second Quarter

 

Year to Date

Earnings Per Diluted Share

2020

 

2019

 

2020

 

2019

Net earnings

$

2.04

 

$

0.89

 

$

0.68

 

$

2.35

Operating earnings (1)

$

0.77

 

$

0.66

 

$

1.43

 

$

1.37

(1) See discussion below: Non-GAAP and Performance Measures.

Highlights for the quarter included:

  • Underwriting income(1) of $24.2 million on a combined ratio(1) of 88.4.
  • 1% increase in gross premiums written.
  • Net favorable development in prior years’ loss reserves, resulting in a $21.6 million net increase in underwriting income.
  • Book value per share of $23.39, an increase of 8% (inclusive of dividends) from year-end 2019.

“As we navigate the path forward in this uncertain environment, we remain focused on providing the best support possible to our customers, associates and communities,” said RLI Corp. Chairman & CEO Jonathan E. Michael. “Commitments to those we serve are most easily fulfilled from a position of sustainable strength. Our financial results are a testament to that longstanding foundation. Although COVID-19 related losses were $6 million in the quarter, we achieved underwriting profitability in all product segments and an 88 combined ratio overall. Underwriting results, paired with steady investment income, generated $0.77 of operating earnings per share for the quarter. In addition, a strong rebound in the capital markets contributed to an 8 percent increase in book value for the first six months of 2020. We are prepared to meet any further challenges this crisis may bring and thank all RLI associates for their dedication to our stakeholders.”

Underwriting Income

RLI achieved $24.2 million of underwriting income in the second quarter of 2020 on an 88.4 combined ratio, compared to $14.9 million on a 92.8 combined ratio in 2019. Results for both years include net favorable development in prior years’ loss reserves, which totaled $21.6 million and $17.8 million for 2020 and 2019, respectively.

The following table highlights underwriting income and combined ratios by segment for the second quarter.

Underwriting Income(1)

 

Combined Ratio(1)

(in millions)

 

 

2020

 

 

2019

 

 

 

2020

 

2019

Casualty

 

$

9.7

 

$

6.9

 

 

Casualty

 

92.8

 

95.0

Property

 

 

6.2

 

 

(0.4

)

 

Property

 

86.4

 

101.1

Surety

 

 

8.3

 

 

8.4

 

 

Surety

 

70.6

 

71.2

Total

 

$

24.2

 

$

14.9

 

 

Total

 

88.4

 

92.8

(1) See discussion below: Non-GAAP and Performance Measures.

 

Other Income

Net investment income for the quarter decreased 0.5% to $16.9 million, compared to the same period in 2019. The investment portfolio’s total return was 6.6% for the quarter and 2.0% for the six months ended June 30, 2020.

RLI’s comprehensive earnings were $145.7 million for the quarter ($3.22 per share), compared to $68.3 million ($1.51 per share) for the same quarter in 2019. In addition to net earnings, comprehensive earnings (loss) included after-tax unrealized gains/(losses) from the fixed income portfolio.

Equity in earnings of unconsolidated investees was $5.1 million for the quarter, compared to $8.5 million from the same period last year. For the second quarter of 2020, $2.6 million of the equity in earnings of unconsolidated investees related to Maui Jim, Inc., a producer of premium sunglasses, and $2.5 related to Prime Holdings Insurance Services, Inc., a specialty insurance company. For the second quarter of 2019, equity in earnings of unconsolidated investees from Maui Jim and Prime was $6.5 million and $2.0 million, respectively.

Dividends Paid in the Second Quarter of 2020

On June 19, 2020, the company paid a regular quarterly dividend of $0.24 per share, a $0.01 increase over the prior quarter. RLI’s cumulative dividends total more than $529 million paid over the last five years.

Non-GAAP and Performance Measures

Management has included certain non-generally accepted accounting principles (non-GAAP) financial measures in presenting the company’s results. Management believes that these non-GAAP measures further explain the company’s results of operations and allow for a more complete understanding of the underlying trends in the company’s business. These measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles (GAAP). In addition, our definitions of these items may not be comparable to the definitions used by other companies.

Operating earnings and earnings per share (EPS) from operations consist of our GAAP net earnings adjusted by the net realized gains/(losses), net unrealized gains/(losses) on equity securities and taxes related thereto. Net earnings and net earnings per share are the GAAP financial measures that are most directly comparable to operating earnings and EPS from operations. A reconciliation of the operating earnings and EPS from operations to the comparable GAAP financial measures is included in the 2020 financial highlights below.

Underwriting income or profit represents the pretax profitability of our insurance operations and is derived by subtracting loss and settlement expenses, policy acquisition costs and insurance operating expenses from net premium earned, which are all GAAP financial measures. The combined ratio, which is derived from components of underwriting income, is a performance measure commonly used by property and casualty insurance companies and is calculated as the sum of loss and settlement expenses, policy acquisition costs and insurance operating expenses, divided by net premiums earned, which are all GAAP measures.

Other News

At 10 a.m. central daylight time (CDT) tomorrow, July 23, 2020, RLI management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion through the Internet at https://edge.media-server.com/mmc/p/rnmhrgqa.

Except for historical information, this news release may include forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) including, without limitation, statements reflecting our current expectations about the future performance of our company or our business segments or about future market conditions. These statements are subject to certain risk factors that could cause actual results to differ materially. Various risk factors that could affect future results are listed in the company's filings with the Securities and Exchange Commission, including the Form 10-K Annual Report for the year ended December 31, 2019.

About RLI

RLI Corp. (NYSE: RLI) is a specialty insurer serving niche property, casualty and surety markets. The company provides deep underwriting expertise and superior service to commercial and personal lines customers nationwide. RLI’s products are offered through its insurance subsidiaries – RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company. All of RLI’s insurance subsidiaries are rated A+ (Superior) by AM Best Company. RLI has paid and increased regular dividends for 45 consecutive years and delivered underwriting profits for 24 consecutive years. To learn more about RLI, visit www.rlicorp.com.

Supplemental disclosure regarding the earnings impact of specific items:

 

Operating Earnings Per Share

 

 

2020

 

2019

 

2020

 

2019

 

 

2nd Qtr

 

2nd Qtr

 

6 Mos.

 

6 Mos.

Operating Earnings Per Share(1)

$

0.77

 

 

$

0.66

 

 

$

1.43

 

 

$

1.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Specific items included in operating earnings per share:(2) (3)

 

 

 

 

 

 

 

 

 

 

 

• Net favorable development in casualty prior years' reserves

 

$

0.32

 

 

$

0.26

 

 

$

0.44

 

 

$

0.47

 

• Net favorable (unfavorable) development in property prior years' reserves

 

$

-

 

 

$

(0.01

)

 

$

0.05

 

 

$

0.01

 

• Net favorable development in surety prior years' reserves

 

$

0.06

 

 

$

0.06

 

 

$

0.12

 

 

$

0.12

 

• Net incurred losses related to:

 

 

 

 

 

 

 

 

 

 

 

 

• 2020 storms and civil unrest

 

$

(0.09

)

 

$

-

 

 

$

(0.10

)

 

$

-

 

• COVID-19

 

$

(0.09

)

 

$

-

 

 

$

(0.16

)

 

$

-

 

• 2019 and prior catastrophe events

 

$

-

 

 

$

(0.06

)

 

$

-

 

 

$

(0.07

)

(1)

See discussion above: Non-GAAP and Performance Measures.

(2)

Includes incentive and profit sharing-related impacts which affected policy acquisition, insurance operating and general corporate expenses.

(3)

Reserve development reflects changes from previously estimated losses.

RLI CORP

2020 FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

SUMMARIZED INCOME STATEMENT DATA:

2020

 

2019

 

% Change

 

2020

 

 

2019

 

 

% Change

Net premiums earned

 

$

208,734

 

 

$

207,541

 

 

0.6

 

%

 

$

424,316

 

 

 

$

412,230

 

 

 

2.9

 

%

Net investment income

 

 

16,917

 

 

 

16,998

 

 

(0.5

)

%

 

 

34,695

 

 

 

 

33,563

 

 

 

3.4

 

%

Net realized gains (losses)

 

 

(2,109

)

 

 

4,764

 

 

NM

 

 

 

 

13,043

 

 

 

 

13,832

 

 

 

(5.7

)

%

Net unrealized gains (losses) on equity securities

 

 

74,705

 

 

 

8,810

 

 

NM

 

 

 

 

(55,690

)

 

 

 

42,308

 

 

 

NM

 

 

Consolidated revenue

 

$

298,247

 

 

$

238,113

 

 

25.3

 

%

 

$

416,364

 

 

 

$

501,933

 

 

 

(17.0

)

%

Loss and settlement expenses

 

 

101,202

 

 

 

103,919

 

 

(2.6

)

%

 

 

212,223

 

 

 

 

198,216

 

 

 

7.1

 

%

Policy acquisition costs

 

 

69,463

 

 

 

71,742

 

 

(3.2

)

%

 

 

142,404

 

 

 

 

143,034

 

 

 

(0.4

)

%

Insurance operating expenses

 

 

13,906

 

 

 

16,948

 

 

(17.9

)

%

 

 

28,287

 

 

 

 

33,615

 

 

 

(15.9

)

%

Interest expense on debt

 

 

1,903

 

 

 

1,861

 

 

2.3

 

%

 

 

3,800

 

 

 

 

3,722

 

 

 

2.1

 

%

General corporate expenses

 

 

1,994

 

 

 

3,283

 

 

(39.3

)

%

 

 

3,749

 

 

 

 

6,559

 

 

 

(42.8

)

%

Total expenses

 

$

188,468

 

 

$

197,753

 

 

(4.7

)

%

 

$

390,463

 

 

 

$

385,146

 

 

 

1.4

 

%

Equity in earnings of unconsolidated investees

 

 

5,100

 

 

 

8,468

 

 

(39.8

)

%

 

 

9,614

 

 

 

 

13,782

 

 

 

(30.2

)

%

Earnings before income taxes

 

$

114,879

 

 

$

48,828

 

 

135.3

 

%

 

$

35,515

 

 

 

$

130,569

 

 

 

(72.8

)

%

Income tax expense

 

 

22,713

 

 

 

8,361

 

 

171.7

 

%

 

 

4,616

 

 

 

 

24,629

 

 

 

(81.3

)

%

Net earnings

 

$

92,166

 

 

$

40,467

 

 

127.8

 

%

 

$

30,899

 

 

 

$

105,940

 

 

 

(70.8

)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive earnings, net of tax

 

 

53,571

 

 

 

27,864

 

 

92.3

 

%

 

 

40,540

 

 

 

 

57,165

 

 

 

(29.1

)

%

Comprehensive earnings

 

$

145,737

 

 

$

68,331

 

 

113.3

 

%

 

$

71,439

 

 

 

$

163,105

 

 

 

(56.2

)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

92,166

 

 

$

40,467

 

 

127.8

 

%

 

$

30,899

 

 

 

$

105,940

 

 

 

(70.8

)

%

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized (gains) losses

 

 

2,109

 

 

 

(4,764

)

 

NM

 

 

 

 

(13,043

)

 

 

 

(13,832

)

 

 

(5.7

)

%

Income tax on realized gains (losses)

 

 

(443

)

 

 

1,001

 

 

NM

 

 

 

 

2,739

 

 

 

 

2,905

 

 

 

(5.7

)

%

Unrealized (gains) losses on equity securities

 

 

(74,705

)

 

 

(8,810

)

 

NM

 

 

 

 

55,690

 

 

 

 

(42,308

)

 

 

NM

 

 

Income tax on unrealized gains (losses) on equity securities

 

 

15,688

 

 

 

1,849

 

 

NM

 

 

 

 

(11,695

)

 

 

 

8,884

 

 

 

NM

 

 

Operating earnings

 

$

34,815

 

 

$

29,743

 

 

17.1

 

%

 

$

64,590

 

 

 

$

61,589

 

 

 

4.9

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (trailing four quarters)

 

 

 

 

 

 

 

 

 

 

 

11.8

 

%

 

 

14.2

 

%

 

 

 

Comprehensive earnings (trailing four quarters)

 

 

 

 

 

 

 

 

 

 

 

17.0

 

%

 

 

20.7

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (in 000's)

 

 

45,274

 

 

 

45,219

 

 

 

 

 

 

45,311

 

 

 

 

45,056

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) per share

 

$

2.04

 

 

$

0.89

 

 

129.2

 

%

 

$

0.68

 

 

 

$

2.35

 

 

 

(71.1

)

%

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized (gains) losses

 

 

0.05

 

 

 

(0.10

)

 

NM

 

 

 

 

(0.29

)

 

 

 

(0.30

)

 

 

(3.3

)

%

Income tax on realized gains (losses)

 

 

(0.01

)

 

 

0.02

 

 

NM

 

 

 

 

0.06

 

 

 

 

0.06

 

 

 

0.0

 

%

Unrealized (gains) losses on equity securities

 

 

(1.66

)

 

 

(0.19

)

 

NM

 

 

 

 

1.24

 

 

 

 

(0.94

)

 

 

NM

 

 

Income tax on unrealized gains (losses) on equity securities

 

 

0.35

 

 

 

0.04

 

 

NM

 

 

 

 

(0.26

)

 

 

 

0.20

 

 

 

NM

 

 

EPS from operations(1)

 

$

0.77

 

 

$

0.66

 

 

16.7

 

%

 

$

1.43

 

 

 

$

1.37

 

 

 

4.4

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive earnings per share

 

$

3.22

 

 

$

1.51

 

 

113.2

 

%

 

$

1.58

 

 

 

$

3.62

 

 

 

(56.4

)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends per share - ordinary

 

$

0.24

 

 

$

0.23

 

 

4.3

 

%

 

$

0.47

 

 

 

$

0.45

 

 

 

4.4

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Cash Flow provided by Operations

 

$

89,540

 

 

$

74,560

 

 

20.1

 

%

 

$

83,773

 

 

 

$

105,347

 

 

 

(20.5

)

%

(1)

See discussion above: Non-GAAP and Performance Measures.

NM = Not Meaningful

RLI CORP

2020 FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

 

 

2020

 

2019

 

% Change

SUMMARIZED BALANCE SHEET DATA:

 

 

 

 

 

 

 

 

 

Fixed income, at fair value

 

$

2,075,093

 

$

1,983,086

 

4.6

 

%

(amortized cost - $1,956,137 at 6/30/20)

 

 

 

 

 

 

 

 

 

(amortized cost - $1,915,278 at 12/31/19)

 

 

 

 

 

 

 

 

 

Equity securities, at fair value

 

 

422,198

 

 

460,630

 

(8.3

)

%

(cost - $270,987 at 6/30/20)

 

 

 

 

 

 

 

 

 

(cost - $262,131 at 12/31/19)

 

 

 

 

 

 

 

 

 

Other invested assets

 

 

63,440

 

 

70,441

 

(9.9

)

%

Cash and cash equivalents

 

 

84,797

 

 

46,203

 

83.5

 

%

Total investments and cash

 

$

2,645,528

 

$

2,560,360

 

3.3

 

%

 

 

 

 

 

 

 

 

 

 

Premiums and reinsurance balances receivable

 

 

154,941

 

 

160,369

 

(3.4

)

%

Ceded unearned premiums

 

 

93,679

 

 

93,656

 

0.0

 

%

Reinsurance balances recoverable on unpaid losses

 

 

364,756

 

 

384,517

 

(5.1

)

%

Deferred policy acquisition costs

 

 

87,560

 

 

85,044

 

3.0

 

%

Property and equipment

 

 

52,350

 

 

53,121

 

(1.5

)

%

Investment in unconsolidated investees

 

 

112,662

 

 

103,836

 

8.5

 

%

Goodwill and intangibles

 

 

53,923

 

 

54,127

 

(0.4

)

%

Other assets

 

 

53,880

 

 

50,691

 

6.3

 

%

Total assets

 

$

3,619,279

 

$

3,545,721

 

2.1

 

%

 

 

 

 

 

 

 

 

 

 

Unpaid losses and settlement expenses

 

$

1,590,996

 

$

1,574,352

 

1.1

 

%

Unearned premiums

 

 

543,113

 

 

540,213

 

0.5

 

%

Reinsurance balances payable

 

 

24,777

 

 

25,691

 

(3.6

)

%

Funds held

 

 

84,430

 

 

83,358

 

1.3

 

%

Income taxes - deferred

 

 

57,421

 

 

56,727

 

1.2

 

%

Bonds payable, long-term debt

 

 

149,395

 

 

149,302

 

0.1

 

%

Accrued expenses

 

 

35,998

 

 

66,626

 

(46.0

)

%

Other liabilities

 

 

81,691

 

 

54,064

 

51.1

 

%

Total liabilities

 

$

2,567,821

 

$

2,550,333

 

0.7

 

%

Shareholders' equity

 

 

1,051,458

 

 

995,388

 

5.6

 

%

Total liabilities & shareholders' equity

 

$

3,619,279

 

$

3,545,721

 

2.1

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding (in 000's)

 

 

44,953

 

 

44,869

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

23.39

 

$

22.18

 

5.5

 

%

Closing stock price per share

 

$

82.10

 

$

90.02

 

(8.8

)

%

 

 

 

 

 

 

 

 

 

 

Statutory surplus

 

$

1,019,981

 

$

1,029,671

 

(0.9

)

%

RLI CORP

2020 FINANCIAL HIGHLIGHTS

UNDERWRITING SEGMENT DATA

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

Casualty

 

Ratios

 

 

 

Property

 

Ratios

 

 

 

Surety

 

Ratios

 

 

 

Total

 

Ratios

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

190,047

 

 

 

 

$

69,286

 

 

 

 

 

$

27,820

 

 

 

 

$

287,153

 

 

 

Net premiums written

 

 

152,114

 

 

 

 

 

51,563

 

 

 

 

 

 

26,413

 

 

 

 

 

230,090

 

 

 

Net premiums earned

 

 

135,215

 

 

 

 

 

45,387

 

 

 

 

 

 

28,132

 

 

 

 

 

208,734

 

 

 

Net loss & settlement expenses

 

 

77,651

 

57.4

%

 

 

21,550

 

 

47.5

%

 

 

2,001

 

7.1

%

 

 

101,202

 

48.5

%

Net operating expenses

 

 

47,831

 

35.4

%

 

 

17,670

 

 

38.9

%

 

 

17,868

 

63.5

%

 

 

83,369

 

39.9

%

Underwriting income (loss) (1)

 

$

9,733

 

92.8

%

 

$

6,167

 

 

86.4

%

 

$

8,263

 

70.6

%

 

$

24,163

 

88.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

189,123

 

 

 

 

$

64,360

 

 

 

 

 

$

29,788

 

 

 

 

$

283,271

 

 

 

Net premiums written

 

 

153,636

 

 

 

 

 

49,111

 

 

 

 

 

 

28,343

 

 

 

 

 

231,090

 

 

 

Net premiums earned

 

 

138,344

 

 

 

 

 

39,972

 

 

 

 

 

 

29,225

 

 

 

 

 

207,541

 

 

 

Net loss & settlement expenses

 

 

80,121

 

57.9

%

 

 

22,597

 

 

56.5

%

 

 

1,201

 

4.1

%

 

 

103,919

 

50.1

%

Net operating expenses

 

 

51,284

 

37.1

%

 

 

17,811

 

 

44.6

%

 

 

19,595

 

67.1

%

 

 

88,690

 

42.7

%

Underwriting income (loss) (1)

 

$

6,939

 

95.0

%

 

$

(436

)

 

101.1

%

 

$

8,429

 

71.2

%

 

$

14,932

 

92.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

Casualty

 

Ratios

 

 

 

Property

 

Ratios

 

 

 

Surety

 

Ratios

 

 

 

Total

 

Ratios

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

349,283

 

 

 

 

$

126,007

 

 

 

 

 

$

57,695

 

 

 

 

$

532,985

 

 

 

Net premiums written

 

 

279,291

 

 

 

 

 

92,990

 

 

 

 

 

 

54,912

 

 

 

 

 

427,193

 

 

 

Net premiums earned

 

 

278,635

 

 

 

 

 

89,735

 

 

 

 

 

 

55,946

 

 

 

 

 

424,316

 

 

 

Net loss & settlement expenses

 

 

171,916

 

61.7

%

 

 

37,521

 

 

41.8

%

 

 

2,786

 

5.0

%

 

 

212,223

 

50.0

%

Net operating expenses

 

 

98,309

 

35.3

%

 

 

36,139

 

 

40.3

%

 

 

36,243

 

64.8

%

 

 

170,691

 

40.2

%

Underwriting income (loss) (1)

 

$

8,410

 

97.0

%

 

$

16,075

 

 

82.1

%

 

$

16,917

 

69.8

%

 

$

41,402

 

90.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

341,230

 

 

 

 

$

113,381

 

 

 

 

 

$

59,572

 

 

 

 

$

514,183

 

 

 

Net premiums written

 

 

278,538

 

 

 

 

 

86,433

 

 

 

 

 

 

56,790

 

 

 

 

 

421,761

 

 

 

Net premiums earned

 

 

275,244

 

 

 

 

 

78,718

 

 

 

 

 

 

58,268

 

 

 

 

 

412,230

 

 

 

Net loss & settlement expenses

 

 

160,575

 

58.3

%

 

 

35,530

 

 

45.1

%

 

 

2,111

 

3.6

%

 

 

198,216

 

48.1

%

Net operating expenses

 

 

102,387

 

37.2

%

 

 

35,378

 

 

45.0

%

 

 

38,884

 

66.8

%

 

 

176,649

 

42.8

%

Underwriting income (loss) (1)

 

$

12,282

 

95.5

%

 

$

7,810

 

 

90.1

%

 

$

17,273

 

70.4

%

 

$

37,365

 

90.9

%

(1)

See discussion above: Non-GAAP and Performance Measures.

 

Contacts

Media Contact
Aaron Diefenthaler
Vice President, Chief Investment Officer & Treasurer
309-693-5846
Aaron.Diefenthaler@rlicorp.com

Release Summary

RLI Corp. reported second quarter 2020 net earnings of $92.2 million. Operating earnings for the second quarter of 2020 were $34.8 million.

Contacts

Media Contact
Aaron Diefenthaler
Vice President, Chief Investment Officer & Treasurer
309-693-5846
Aaron.Diefenthaler@rlicorp.com