Market Overview

RLI Reports Third Quarter 2019 Results

Share:

RLI Corp. (NYSE:RLI) – RLI Corp. reported third quarter 2019 net earnings of $32.3 million ($0.71 per share), compared to $39.4 million ($0.88 per share) for the third quarter of 2018. Operating earnings(1) for the third quarter of 2019 were $25.9 million ($0.57 per share) compared to $20.8 million ($0.46 per share) for the same period in 2018.

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter

 

Year to Date

Earnings Per Diluted Share

2019

 

2018

 

2019

 

2018

Net earnings

$

 

0.71

 

$

 

0.88

 

$

 

3.06

 

$

 

1.90

Operating earnings (1)

$

 

0.57

 

$

 

0.46

 

$

 

1.94

 

$

 

1.66

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

Highlights for the quarter included:

  • Underwriting income(1) of $13.7 million, resulting in a combined ratio(1) of 93.5.
  • 16% increase in gross premiums written and 7% increase in investment income.
  • Favorable development in prior years' loss reserves, resulting in a $12.1 million net increase in underwriting income.
  • Book value per share of $22.30, an increase of 27% from year-end 2018, inclusive of dividends.

"We are pleased with our sound financial results and continued top line growth during the quarter," said RLI Corp. Chairman & CEO Jonathan E. Michael. "We achieved a 93.5 combined ratio overall, with contributions from each major product segment. Throughout 2019, we have been focused on using capital generated from our businesses to selectively expand our existing footprint. Quarterly operating earnings of $0.57 per share, in addition to positive investment returns, generated strong book value growth of 27% from year-end 2018. We remain well positioned to take advantage of favorable market conditions, while providing exceptional service to our customers and delivering value to our shareholders."

Underwriting Income

RLI achieved $13.7 million of underwriting income in the third quarter of 2019 on a 93.5 combined ratio, compared to $7.8 million on a 96.1 combined ratio in 2018. Results for both years include favorable development in prior years' loss reserves which totaled $12.1 million and $9.7 million for 2019 and 2018, respectively.

The following table highlights underwriting income and combined ratios by segment.

 

 

 

 

 

 

 

 

 

 

 

 

 

Underwriting Income (Loss)(1)

 

Combined Ratio(1)

(in millions)

 

2019

 

2018

 

 

 

2019

 

2018

Casualty

 

$

 

2.4

 

$

 

(1.9

)

 

Casualty

 

98.3

 

101.5

Property

 

 

6.2

 

 

2.6

 

 

Property

 

85.0

 

93.3

Surety

 

 

5.1

 

 

7.1

 

 

Surety

 

82.4

 

76.4

Total

 

$

 

13.7

 

$

 

7.8

 

 

Total

 

93.5

 

View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com