RLI Reports Third Quarter 2020 Results

PEORIA, Ill.--()--RLI Corp. (NYSE: RLI) – RLI Corp. reported third quarter 2020 net earnings of $42.4 million ($0.93 per share), compared to $32.3 million ($0.71 per share) for the third quarter of 2019. Operating earnings(1) for the third quarter of 2020 were $19.0 million ($0.42 per share), compared to $25.9 million ($0.57 per share) for the same period in 2019.

 

Third Quarter

 

 

Year to Date

 

Earnings Per Diluted Share

2020

 

 

2019

 

 

2020

 

 

2019

 

Net earnings

$

0.93

 

 

$

0.71

 

 

$

1.62

 

 

$

3.06

 

Operating earnings (1)

$

0.42

 

 

$

0.57

 

 

$

1.84

 

 

$

1.94

 

(1)

See discussion below: Non-GAAP and Performance Measures.

Highlights for the quarter included:

  • Underwriting income(1) of $1.2 million on a combined ratio(1) of 99.5.
  • 9% increase in gross premiums written.
  • Net favorable development in prior years’ loss reserves, resulting in a $24.8 million net increase in underwriting income.
  • Losses from Hurricanes Hanna, Isaias, Laura and Sally, resulting in a $33.2 million net decrease in underwriting income.
  • Book value per share of $24.40, an increase of 13% (inclusive of dividends) from year-end 2019.

“We’ve faced a number of challenges in 2020, including an active hurricane season, which impacted our third quarter results,” said RLI Corp. Chairman & CEO Jonathan E. Michael. “Despite an increase in our combined ratio due to natural catastrophes, we achieved underwriting profitability and grew book value. In particular, our casualty and surety product segments delivered strong results, which drove operating earnings to $0.42 per share. Our financial performance is a testament to RLI’s long-term sustainability, which enables us to be there for customers in their times of need. As always, I want to thank all our associates for their proactive service to our customers during the quarter and throughout the year.”

Underwriting Income

RLI achieved $1.2 million of underwriting income in the third quarter of 2020 on a 99.5 combined ratio, compared to $13.7 million on a 93.5 combined ratio in 2019. Results for both years include net favorable development in prior years’ loss reserves, which totaled $24.8 million and $12.1 million for 2020 and 2019, respectively.

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

Underwriting Income(1)

 

 

Combined Ratio(1)

 

(in millions)

 

2020

 

 

2019

 

 

 

 

2020

 

 

2019

 

Casualty

 

$

14.0

 

 

$

2.4

 

 

Casualty

 

 

90.2

 

 

 

98.3

 

Property

 

 

(19.9

)

 

 

6.2

 

 

Property

 

 

144.0

 

 

 

85.0

 

Surety

 

 

7.1

 

 

 

5.1

 

 

Surety

 

 

74.8

 

 

 

82.4

 

Total

 

$

1.2

 

 

$

13.7

 

 

Total

 

 

99.5

 

 

 

93.5

 

(1)

See discussion below: Non-GAAP and Performance Measures.

Other Income

Net investment income for the quarter decreased 5.6% to $16.5 million, compared to the same period in 2019. The investment portfolio’s total return was 2.2% for the quarter and 4.2% for the nine months ended September 30, 2020.

RLI’s comprehensive earnings were $51.9 million for the quarter ($1.14 per share), compared to $47.7 million ($1.05 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 $8.7 million for the quarter, compared to $4.0 million from the same period last year. For the third quarter of 2020, $6.2 million of the equity in earnings of unconsolidated investees related to Maui Jim, Inc., a producer of premium sunglasses, and $3.3 related to Prime Holdings Insurance Services, Inc., a specialty insurance company. For the third quarter of 2019, equity in earnings of unconsolidated investees from Maui Jim and Prime was $2.8 million and $1.2 million, respectively.

Dividends Paid in the Third Quarter of 2020

On September 18, 2020, the company paid a regular quarterly dividend of $0.24 per share, the same amount as the prior quarter. RLI’s cumulative dividends total more than $532 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

On July 16, 2020, RLI was named as one of the insurance industry’s top performing companies by Ward Group for the 30th consecutive year. RLI is one of only two property-casualty insurers to be recognized as a Ward’s 50® Top P&C Performer every year since the list’s inception in 1991.

At 10 a.m. central daylight time (CDT) tomorrow, October 22, 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/cdqjdegu.

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

 

 

 

 

 

3rd Qtr

 

 

3rd Qtr

 

 

9 Mos.

 

 

9 Mos.

 

Operating Earnings Per Share(1)

$

0.42

 

 

$

0.57

 

 

$

1.84

 

 

$

1.94

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net favorable development in casualty prior years' reserves

 

$

0.34

 

 

$

0.19

 

 

$

0.78

 

 

$

0.68

 

 

Net favorable development in property prior years' reserves

 

$

0.01

 

 

$

0.02

 

 

$

0.05

 

 

$

0.02

 

 

Net favorable development in surety prior years' reserves

 

$

0.05

 

 

$

-

 

 

$

0.16

 

 

$

0.12

 

 

Net incurred losses related to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hurricanes Hanna, Isaias, Laura and Sally

$

(0.58

)

 

$

-

 

 

$

(0.58

)

 

$

-

 

 

2020 storms and civil unrest

 

$

-

 

 

$

-

 

 

$

(0.10

)

 

$

-

 

 

COVID-19

 

$

(0.06

)

 

$

-

 

 

$

(0.22

)

 

$

-

 

 

2019 and prior catastrophe events

 

$

0.04

 

 

$

(0.04

)

 

$

0.05

 

 

$

(0.12

)

(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 September 30,

 

Nine Months Ended September 30,

SUMMARIZED INCOME STATEMENT DATA:

 

 

2020

 

 

 

2019

 

 

% Change

 

 

2020

 

 

 

 

2019

 

 

 

% Change

Net premiums earned

 

$

216,630

 

 

$

211,255

 

 

 

2.5

 

%

 

$

640,946

 

 

 

$

623,485

 

 

 

 

2.8

 

%

Net investment income

 

 

16,543

 

 

 

17,532

 

 

 

(5.6

)

%

 

 

51,238

 

 

 

 

51,095

 

 

 

 

0.3

 

%

Net realized gains

 

 

1,512

 

 

 

3,211

 

 

 

(52.9

)

%

 

 

14,555

 

 

 

 

17,043

 

 

 

 

(14.6

)

%

Net unrealized gains (losses) on equity securities

 

 

28,126

 

 

 

4,906

 

 

NM

 

 

 

 

(27,564

)

 

 

 

47,214

 

 

 

NM

 

 

Consolidated revenue

 

$

262,811

 

 

$

236,904

 

 

 

10.9

 

%

 

$

679,175

 

 

 

$

738,837

 

 

 

 

(8.1

)

%

Loss and settlement expenses

 

 

127,596

 

 

 

108,990

 

 

 

17.1

 

%

 

 

339,819

 

 

 

 

307,206

 

 

 

 

10.6

 

%

Policy acquisition costs

 

 

71,032

 

 

 

71,552

 

 

 

(0.7

)

%

 

 

213,436

 

 

 

 

214,586

 

 

 

 

(0.5

)

%

Insurance operating expenses

 

 

16,850

 

 

 

16,982

 

 

 

(0.8

)

%

 

 

45,137

 

 

 

 

50,597

 

 

 

 

(10.8

)

%

Interest expense on debt

 

 

1,901

 

 

 

1,861

 

 

 

2.1

 

%

 

 

5,701

 

 

 

 

5,583

 

 

 

 

2.1

 

%

General corporate expenses

 

 

2,668

 

 

 

2,583

 

 

 

3.3

 

%

 

 

6,417

 

 

 

 

9,142

 

 

 

 

(29.8

)

%

Total expenses

 

$

220,047

 

 

$

201,968

 

 

 

9.0

 

%

 

$

610,510

 

 

 

$

587,114

 

 

 

 

4.0

 

%

Equity in earnings of unconsolidated investees

 

 

8,745

 

 

 

4,011

 

 

 

118.0

 

%

 

 

18,359

 

 

 

 

17,793

 

 

 

 

3.2

 

%

Earnings before income taxes

 

$

51,509

 

 

$

38,947

 

 

 

32.3

 

%

 

$

87,024

 

 

 

$

169,516

 

 

 

 

(48.7

)

%

Income tax expense

 

 

9,122

 

 

 

6,623

 

 

 

37.7

 

%

 

 

13,738

 

 

 

 

31,252

 

 

 

 

(56.0

)

%

Net earnings

 

$

42,387

 

 

$

32,324

 

 

 

31.1

 

%

 

$

73,286

 

 

 

$

138,264

 

 

 

 

(47.0

)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive earnings, net of tax

 

 

9,550

 

 

 

15,341

 

 

 

(37.7

)

%

 

 

50,090

 

 

 

 

72,506

 

 

 

 

(30.9

)

%

Comprehensive earnings

 

$

51,937

 

 

$

47,665

 

 

 

9.0

 

%

 

$

123,376

 

 

 

$

210,770

 

 

 

 

(41.5

)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

42,387

 

 

$

32,324

 

 

 

31.1

 

%

 

$

73,286

 

 

 

$

138,264

 

 

 

 

(47.0

)

%

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized gains

 

 

(1,512

)

 

 

(3,211

)

 

 

(52.9

)

%

 

 

(14,555

)

 

 

 

(17,043

)

 

 

 

(14.6

)

%

Income tax on realized gains

 

 

318

 

 

 

674

 

 

 

(52.8

)

%

 

 

3,057

 

 

 

 

3,579

 

 

 

 

(14.6

)

%

Unrealized (gains) losses on equity securities

 

 

(28,126

)

 

 

(4,906

)

 

NM

 

 

 

 

27,564

 

 

 

 

(47,214

)

 

 

NM

 

 

Income tax on unrealized gains (losses) on equity securities

 

 

5,905

 

 

 

1,031

 

 

NM

 

 

 

 

(5,789

)

 

 

 

9,915

 

 

 

NM

 

 

Operating earnings

 

$

18,972

 

 

$

25,912

 

 

 

(26.8

)

%

 

$

83,563

 

 

 

$

87,501

 

 

 

 

(4.5

)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (trailing four quarters)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12.5

 

%

 

 

13.0

 

%

 

 

 

 

 

Comprehensive earnings (trailing four quarters)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16.9

 

%

 

21.8

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (in 000's)

 

 

45,426

 

 

 

45,349

 

 

 

 

 

 

 

 

45,339

 

 

 

 

45,192

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share

 

$

0.93

 

 

$

0.71

 

 

 

31.0

 

%

 

$

1.62

 

 

 

$

3.06

 

 

 

 

(47.1

)

%

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized gains

 

 

(0.03

)

 

 

(0.07

)

 

 

(57.1

)

%

 

 

(0.32

)

 

 

 

(0.38

)

 

 

 

(15.8

)

%

Income tax on realized gains

 

 

0.01

 

 

 

0.01

 

 

 

0.0

 

%

 

 

0.07

 

 

 

 

0.08

 

 

 

 

(12.5

)

%

Unrealized (gains) losses on equity securities

 

 

(0.62

)

 

 

(0.10

)

 

NM

 

 

 

 

0.60

 

 

 

 

(1.04

)

 

 

NM

 

 

Income tax on unrealized gains (losses) on equity securities

 

 

0.13

 

 

 

0.02

 

 

NM

 

 

 

 

(0.13

)

 

 

 

0.22

 

 

 

NM

 

 

EPS from operations(1)

 

$

0.42

 

 

$

0.57

 

 

 

(26.3

)

%

 

$

1.84

 

 

 

$

1.94

 

 

 

 

(5.2

)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive earnings per share

 

$

1.14

 

 

$

1.05

 

 

 

8.6

 

%

 

$

2.72

 

 

 

$

4.66

 

 

 

 

(41.6

)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends per share - ordinary

 

$

0.24

 

 

$

0.23

 

 

 

4.3

 

%

 

$

0.71

 

 

 

$

0.68

 

 

 

 

4.4

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Cash Flow provided by Operations

 

$

79,471

 

 

$

81,415

 

 

 

(2.4

)

%

 

$

163,244

 

 

 

$

186,762

 

 

 

 

(12.6

)

%

(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)

 

 

 

September 30,

 

 

December 31,

 

 

 

 

 

 

 

 

2020

 

 

2019

 

 

% Change

SUMMARIZED BALANCE SHEET DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income, at fair value

 

$

2,159,795

 

 

$

1,983,086

 

 

 

8.9

 

%

(amortized cost - $2,030,979 at 9/30/20)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities, at fair value

 

 

455,956

 

 

 

460,630

 

 

 

(1.0

)

%

(cost - $280,337 at 9/30/20)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Other invested assets

 

 

59,988

 

 

 

70,441

 

 

 

(14.8

)

%

Cash and cash equivalents

 

 

70,589

 

 

 

46,203

 

 

 

52.8

 

%

Total investments and cash

 

$

2,746,328

 

 

$

2,560,360

 

 

 

7.3

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums and reinsurance balances receivable

 

 

159,427

 

 

 

160,369

 

 

 

(0.6

)

%

Ceded unearned premiums

 

 

102,902

 

 

 

93,656

 

 

 

9.9

 

%

Reinsurance balances recoverable on unpaid losses

 

 

399,960

 

 

 

384,517

 

 

 

4.0

 

%

Deferred policy acquisition costs

 

 

89,818

 

 

 

85,044

 

 

 

5.6

 

%

Property and equipment

 

 

52,113

 

 

 

53,121

 

 

 

(1.9

)

%

Investment in unconsolidated investees

 

 

128,154

 

 

 

103,836

 

 

 

23.4

 

%

Goodwill and intangibles

 

 

53,821

 

 

 

54,127

 

 

 

(0.6

)

%

Other assets

 

 

59,978

 

 

 

50,691

 

 

 

18.3

 

%

Total assets

 

$

3,792,501

 

 

$

3,545,721

 

 

 

7.0

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unpaid losses and settlement expenses

 

$

1,686,876

 

 

$

1,574,352

 

 

 

7.1

 

%

Unearned premiums

 

 

570,754

 

 

 

540,213

 

 

 

5.7

 

%

Reinsurance balances payable

 

 

31,646

 

 

 

25,691

 

 

 

23.2

 

%

Funds held

 

 

79,774

 

 

 

83,358

 

 

 

(4.3

)

%

Income taxes - deferred

 

 

66,008

 

 

 

56,727

 

 

 

16.4

 

%

Bonds payable, long-term debt

 

 

149,442

 

 

 

149,302

 

 

 

0.1

 

%

Accrued expenses

 

 

46,516

 

 

 

66,626

 

 

 

(30.2

)

%

Other liabilities

 

 

62,145

 

 

 

54,064

 

 

 

14.9

 

%

Total liabilities

 

$

2,693,161

 

 

$

2,550,333

 

 

 

5.6

 

%

Shareholders' equity

 

 

1,099,340

 

 

 

995,388

 

 

 

10.4

 

%

Total liabilities & shareholders' equity

 

$

3,792,501

 

 

$

3,545,721

 

 

 

7.0

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding (in 000's)

 

 

45,055

 

 

 

44,869

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

24.40

 

 

$

22.18

 

 

 

10.0

 

%

Closing stock price per share

 

$

83.73

 

 

$

90.02

 

 

 

(7.0

)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statutory surplus

 

$

1,047,043

 

 

$

1,029,671

 

 

 

1.7

 

%

RLI CORP

2020 FINANCIAL HIGHLIGHTS

UNDERWRITING SEGMENT DATA

(Unaudited)

(Dollars in thousands, except per share amounts)

 

Three Months Ended September 30,

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

Casualty

 

 

Ratios

 

Property

 

 

Ratios

 

Surety

 

 

Ratios

 

Total

 

 

Ratios

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

 

$

204,008

 

 

 

 

 

 

 

$

68,535

 

 

 

 

 

 

 

$

30,320

 

 

 

 

 

 

 

$

302,863

 

 

 

 

 

 

Net premiums written

 

 

 

157,330

 

 

 

 

 

 

 

 

48,895

 

 

 

 

 

 

 

 

28,823

 

 

 

 

 

 

 

 

235,048

 

 

 

 

 

 

Net premiums earned

 

 

 

143,002

 

 

 

 

 

 

 

 

45,380

 

 

 

 

 

 

 

 

28,248

 

 

 

 

 

 

 

 

216,630

 

 

 

 

 

 

Net loss & settlement expenses

 

 

 

78,076

 

 

 

54.6

 

%

 

 

46,874

 

 

 

103.3

 

%

 

 

2,646

 

 

 

9.4

 

%

 

 

127,596

 

 

 

58.9

 

%

Net operating expenses

 

 

 

50,933

 

 

 

35.6

 

%

 

 

18,457

 

 

 

40.7

 

%

 

 

18,492

 

 

 

65.4

 

%

 

 

87,882

 

 

 

40.6

 

%

Underwriting income (loss) (1)

 

 

$

13,993

 

 

 

90.2

 

%

 

$

(19,951

)

 

 

144.0

 

%

 

$

7,110

 

 

 

74.8

 

%

 

$

1,152

 

 

 

99.5

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

 

$

183,420

 

 

 

 

 

 

 

$

63,406

 

 

 

 

 

 

 

$

30,163

 

 

 

 

 

 

 

$

276,989

 

 

 

 

 

 

Net premiums written

 

 

 

144,478

 

 

 

 

 

 

 

 

47,585

 

 

 

 

 

 

 

 

28,649

 

 

 

 

 

 

 

 

220,712

 

 

 

 

 

 

Net premiums earned

 

 

 

140,423

 

 

 

 

 

 

 

 

41,476

 

 

 

 

 

 

 

 

29,356

 

 

 

 

 

 

 

 

211,255

 

 

 

 

 

 

Net loss & settlement expenses

 

 

 

86,587

 

 

 

61.7

 

%

 

 

17,404

 

 

 

42.0

 

%

 

 

4,999

 

 

 

17.0

 

%

 

 

108,990

 

 

 

51.6

 

%

Net operating expenses

 

 

 

51,466

 

 

 

36.6

 

%

 

 

17,870

 

 

 

43.0

 

%

 

 

19,198

 

 

 

65.4

 

%

 

 

88,534

 

 

 

41.9

 

%

Underwriting income (loss) (1)

 

 

$

2,370

 

 

 

98.3

 

%

 

$

6,202

 

 

 

85.0

 

%

 

$

5,159

 

 

 

82.4

 

%

 

$

13,731

 

 

 

93.5

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

Casualty

 

 

Ratios

 

Property

 

 

Ratios

 

Surety

 

 

Ratios

 

Total

 

 

Ratios

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

 

$

553,291

 

 

 

 

 

 

 

$

194,542

 

 

 

 

 

 

 

$

88,015

 

 

 

 

 

 

 

$

835,848

 

 

 

 

 

 

Net premiums written

 

 

 

436,621

 

 

 

 

 

 

 

 

141,885

 

 

 

 

 

 

 

 

83,735

 

 

 

 

 

 

 

 

662,241

 

 

 

 

 

 

Net premiums earned

 

 

 

421,637

 

 

 

 

 

 

 

 

135,115

 

 

 

 

 

 

 

 

84,194

 

 

 

 

 

 

 

 

640,946

 

 

 

 

 

 

Net loss & settlement expenses

 

 

 

249,992

 

 

 

59.3

 

%

 

 

84,395

 

 

 

62.5

 

%

 

 

5,432

 

 

 

6.5

 

%

 

 

339,819

 

 

 

53.0

 

%

Net operating expenses

 

 

 

149,242

 

 

 

35.4

 

%

 

 

54,596

 

 

 

40.4

 

%

 

 

54,735

 

 

 

65.0

 

%

 

 

258,573

 

 

 

40.4

 

%

Underwriting income (loss) (1)

 

 

$

22,403

 

 

 

94.7

 

%

 

$

(3,876

)

 

 

102.9

 

%

 

$

24,027

 

 

 

71.5

 

%

 

$

42,554

 

 

 

93.4

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

 

$

524,650

 

 

 

 

 

 

 

$

176,787

 

 

 

 

 

 

 

$

89,735

 

 

 

 

 

 

 

$

791,172

 

 

 

 

 

 

Net premiums written

 

 

 

423,016

 

 

 

 

 

 

 

 

134,018

 

 

 

 

 

 

 

 

85,439

 

 

 

 

 

 

 

 

642,473

 

 

 

 

 

 

Net premiums earned

 

 

 

415,667

 

 

 

 

 

 

 

 

120,194

 

 

 

 

 

 

 

 

87,624

 

 

 

 

 

 

 

 

623,485

 

 

 

 

 

 

Net loss & settlement expenses

 

 

 

247,162

 

 

 

59.5

 

%

 

 

52,934

 

 

 

44.0

 

%

 

 

7,110

 

 

 

8.1

 

%

 

 

307,206

 

 

 

49.3

 

%

Net operating expenses

 

 

 

153,853

 

 

 

37.0

 

%

 

 

53,248

 

 

 

44.3

 

%

 

 

58,082

 

 

 

66.3

 

%

 

 

265,183

 

 

 

42.5

 

%

Underwriting income (loss) (1)

 

 

$

14,652

 

 

 

96.5

 

%

 

$

14,012

 

 

 

88.3

 

%

 

$

22,432

 

 

 

74.4

 

%

 

$

51,096

 

 

 

91.8

 

%

(1)

See discussion above: Non-GAAP and Performance Measures.

Tag: Earnings Release

Contacts

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

Release Summary

RLI Corp. reported net earnings of $42.4 million ($0.93 per share) and operating earnings of $19.0 ($0.42 per share) for third quarter 2020.

#Hashtags

Contacts

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