Market Overview

RLI Reports Fourth Quarter and Year-End 2019 Results

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RLI Corp. (NYSE:RLI) – RLI Corp. reported fourth quarter 2019 net earnings of $53.4 million ($1.18 per share), compared to net losses of $20.7 million (-$0.46 per share) for the fourth quarter of 2018. Operating earnings(1) for the fourth quarter of 2019 were $28.6 million ($0.63 per share), compared to $17.8 million ($0.40 per share) for the same period in 2018.

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter

 

Year to Date

Earnings Per Diluted Share

 

2019

 

 

2018

 

 

 

2019

 

 

2018

Net earnings (loss)

$

1.18

 

$

(0.46

)

 

$

4.23

 

$

1.43

Operating earnings (1)

$

0.63

 

$

0.40

 

 

$

2.57

 

$

2.05

 

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

Highlights for the quarter included:

  • Underwriting income(1) of $16.5 million on a combined ratio(1)of 92.4.
  • 6% increase in gross premiums written.
  • Net favorable development in prior years' loss reserves, resulting in a $16.2 million net increase in underwriting income.
  • Special dividend of $1.00 per share, representing $44.9 million returned to shareholders.

Highlights for the year included:

  • Underwriting income(1) of $67.6 million on a combined ratio(1)of 91.9.
  • 8% increase in gross premiums written and 11% increase in net investment income.
  • Net favorable development in prior years' loss reserves, resulting in a $62.8 million net increase in underwriting income.
  • 24th consecutive year of underwriting profit(1).
  • Book value per share of $22.18, an increase of 33% from year-end 2018, inclusive of dividends.

"RLI achieved strong financial results in 2019, surpassing $1 billion in gross premiums written and statutory surplus for the first time in our company's history," said RLI Corp. Chairman & CEO Jonathan E. Michael. "Favorable market and competitive conditions supported consistent top line growth during the quarter and year. Through the efforts of our talented underwriters, we achieved an overall combined ratio of 91.9, marking our 24th consecutive year of underwriting profit. Book value grew 33% in 2019, a hallmark of our financial strength that allows us to provide customers and shareholders with exceptional value. RLI continues to be a reliable insurance carrier with a consistent risk appetite that offers protection and stability to its customers during times of change. I want to thank all RLI associates for their commitment to our customers and contributions to our performance during the year. We will remain focused on continuing the positive momentum in 2020."

Underwriting Income

RLI had $16.5 million of underwriting income in the fourth quarter of 2019 on a 92.4 combined ratio, compared to $2.2 million of underwriting income on a 98.9 combined ratio in the same quarter for 2018.

For the year, RLI achieved $67.6 million of underwriting income on a 91.9 combined ratio, compared to $41.6 million on a 94.7 combined ratio in 2018. Results for both years include net favorable development in prior years' loss reserves, which totaled $62.8 million and $44.3 million for 2019 and 2018, respectively.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Underwriting Income(1)

 

Combined Ratio(1)

(in millions)

 

 

2019

 

 

2018

 

 

 

2019

 

2018

Casualty

 

$

20.6

 

$

11.1

 

Casualty

 

96.3

 

97.9

Property

 

 

18.2

 

 

0.9

 

Property

 

88.9

 

99.4

Surety

 

 

28.8

 

 

29.6

 

Surety

 

75.3

 

75.0

Total

 

$

67.6

 

$

41.6

 

Total

 

91.9

 

94.7

 

 

 

 

 

 

 

 

 

 

 

 

 

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

Other Income

RLI's net investment income for the quarter increased 4.8% to $17.8 million, compared to the same period in 2018. For the year ended December 31, 2019, net investment income was $68.9 million versus $62.1 million for the same period in 2018. The investment portfolio's total return was 1.8% for the quarter and 11.6% for the year.

Comprehensive earnings were $47.9 million for the quarter ($1.06 per share), compared to -$12.9 million (-$0.29 per share) for the same quarter in 2018. Full-year comprehensive earnings were $258.7 million ($5.72 per share), compared to $30.2 million ($0.67 per share) in 2018. In addition to net earnings, comprehensive earnings included after-tax unrealized gains/(losses) from the fixed income portfolio.

Equity in earnings of Maui Jim, Inc., a producer of premium sunglasses, was $0.7 million for the quarter, reflecting seasonal sales results. Equity in earnings of Prime Holdings Insurance Services, Inc., a specialty insurance company, was $2.5 million. Comparatively, for the fourth quarter of 2018, equity in earnings of unconsolidated investees from Maui Jim and Prime was -$0.8 million and $1.0 million, respectively. For the year ended December 31, 2019, equity in earnings of unconsolidated investees was $13.6 million from Maui Jim and $7.4 million from Prime, compared to $12.5 million and $3.6 million, respectively, for the prior year. During the quarter, RLI received a $13.2 million dividend from Maui Jim, which resulted in a tax benefit on dividends received from affiliates of $1.8 million ($0.04 per share).

Special and Regular Dividends

On December 20, 2019, the company paid a special cash dividend of $1.00 per share and a regular quarterly dividend of $0.23 per share for a combined total of $55.2 million. RLI has paid dividends for 174 consecutive quarters and increased regular dividends in each of the last 44 years. Over the last 10 years, the company has returned nearly $1.25 billion to shareholders and the regular quarterly dividend has grown an average of 5.1% per year.

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 2019 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

During the fourth quarter, the company's A+ (Superior) financial strength rating was affirmed by AM Best Company for the company's insurance subsidiaries – RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company.

At 10 a.m. central standard time (CST) tomorrow, January 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/yth7kqwv.

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, 2018.

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 44 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

 

 

 

 

2019

 

2018

 

2019

 

2018

 

 

 

 

4th Qtr

 

4th Qtr

 

12 Mos.

 

12 Mos.

Operating Earnings Per Share(1)

$

0.63

 

 

$

0.40

 

 

$

2.57

 

 

$

2.05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Net favorable development in casualty prior years' reserves

 

$

0.30

 

 

$

0.20

 

 

$

0.98

 

 

$

0.55

 

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

 

$

(0.03

)

 

$

-

 

 

$

(0.01

)

 

$

0.07

 

Net favorable (unfavorable) development in surety prior years' reserves

 

$

-

 

 

$

(0.04

)

 

$

0.11

 

 

$

0.12

 

Catastrophe impact

 

 

 

 

 

 

 

 

 

 

 

 

2019 storms

$

(0.02

)

 

$

-

 

 

$

(0.14

)

 

$

-

 

 

2018 and prior events

$

0.01

 

 

$

(0.34

)

 

$

0.02

 

 

$

(0.57

)

Gain from tax benefit of special dividend to ESOP(4)

$

0.01

 

 

$

0.01

 

 

$

0.01

 

 

$

0.01

 

Gain from tax benefit applicable to Maui Jim dividend(5)

$

0.04

 

 

$

-

 

 

$

0.04

 

 

$

-

 

Gain from tax benefit of change in corporate tax law(6)

$

-

 

 

$

0.05

 

 

$

-

 

 

$

0.05

 

(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.

(4)

Dividends paid on employer securities in an ESOP are fully deductible from taxable income and resulted in a 21% tax benefit.

(5)

As required under the accounting standard for income taxes, the gain reflects the tax benefit of applying the lower tax rate applicable to dividends received from an affiliate (7.35%) as compared to the corporate capital gains tax rate (21%) on which tax estimates were based.

(6)

The gain reflects the tax benefit of applying the rules enacted under the Tax Cuts and Jobs Act of 2017.

RLI CORP

2019 FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

Twelve Months Ended December 31,

SUMMARIZED INCOME STATEMENT DATA:

 

2019

 

 

2018

 

 

% Change

 

2019

 

 

 

2018

 

 

 

% Change

Net premiums earned

 

$

215,626

 

 

$

204,002

 

 

5.7

 

%

 

$

839,111

 

 

 

$

791,366

 

 

 

6.0

 

%

Net investment income

 

 

17,775

 

 

 

16,962

 

 

4.8

 

%

 

 

68,870

 

 

 

 

62,085

 

 

 

10.9

 

%

Net realized gains

 

 

477

 

 

 

15,507

 

 

(96.9

)

%

 

 

17,520

 

 

 

 

63,407

 

 

 

(72.4

)

%

Net unrealized gains (losses) on equity securities

 

 

30,876

 

 

 

(64,200

)

 

-

 

 

 

 

78,090

 

 

 

 

(98,735

)

 

 

-

 

 

Consolidated revenue

 

$

264,754

 

 

$

172,271

 

 

53.7

 

%

 

$

1,003,591

 

 

 

$

818,123

 

 

 

22.7

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss and settlement expenses

 

$

106,210

 

 

$

123,888

 

 

(14.3

)

%

 

$

413,416

 

 

 

$

428,193

 

 

 

(3.5

)

%

Policy acquisition costs

 

 

74,111

 

 

 

66,265

 

 

11.8

 

%

 

 

288,697

 

 

 

 

267,738

 

 

 

7.8

 

%

Insurance operating expenses

 

 

18,833

 

 

 

11,612

 

 

62.2

 

%

 

 

69,430

 

 

 

 

53,803

 

 

 

29.0

 

%

Interest expense on debt

 

 

2,005

 

 

 

1,861

 

 

7.7

 

%

 

 

7,588

 

 

 

 

7,437

 

 

 

2.0

 

%

General corporate expenses

 

 

3,544

 

 

 

1,556

 

 

127.8

 

%

 

 

12,686

 

 

 

 

9,427

 

 

 

34.6

 

%

Total expenses

 

$

204,703

 

 

$

205,182

 

 

(0.2

)

%

 

$

791,817

 

 

 

$

766,598

 

 

 

3.3

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of unconsolidated investees

 

 

3,167

 

 

 

203

 

 

-

 

 

 

 

20,960

 

 

 

 

16,056

 

 

 

30.5

 

%

Earnings (loss) before income taxes

 

$

63,218

 

 

$

(32,708

)

 

-

 

 

 

$

232,734

 

 

 

$

67,581

 

 

 

244.4

 

%

Income tax expense (benefit)

 

 

9,840

 

 

 

(12,048

)

 

-

 

 

 

 

41,092

 

 

 

 

3,402

 

 

 

-

 

 

Net earnings (loss)

 

$

53,378

 

 

$

(20,660

)

 

-

 

 

 

$

191,642

 

 

 

$

64,179

 

 

 

198.6

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive earnings (loss), net of tax

 

 

(5,461

)

 

 

7,772

 

 

-

 

 

 

 

67,045

 

 

 

 

(33,997

)

 

 

-

 

 

Comprehensive earnings (loss)

 

$

47,917

 

 

$

(12,888

)

 

-

 

 

 

$

258,687

 

 

 

$

30,182

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

53,378

 

 

$

(20,660

)

 

-

 

 

 

$

191,642

 

 

 

$

64,179

 

 

 

198.6

 

%

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized gains

 

 

(477

)

 

 

(15,507

)

 

(96.9

)

%

 

 

(17,520

)

 

 

 

(63,407

)

 

 

(72.4

)

%

Income tax on realized gains

 

 

100

 

 

 

3,256

 

 

(96.9

)

%

 

 

3,679

 

 

 

 

13,315

 

 

 

(72.4

)

%

Unrealized (gains) losses on equity securities

 

 

(30,876

)

 

 

64,200

 

 

-

 

 

 

 

(78,090

)

 

 

 

98,735

 

 

 

-

 

 

Income tax on unrealized gains (losses) on equity securities

 

 

6,484

 

 

 

(13,482

)

 

-

 

 

 

 

16,399

 

 

 

 

(20,734

)

 

 

-

 

 

Operating earnings

 

$

28,609

 

 

$

17,807

 

 

60.7

 

%

 

$

116,110

 

 

 

$

92,088

 

 

 

26.1

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (trailing four quarters)

 

 

 

 

 

 

 

 

 

 

 

20.6

 

%

 

 

7.6

 

%

 

 

 

Comprehensive earnings (trailing four quarters)

 

 

 

 

 

 

 

 

 

 

 

27.8

 

%

 

 

3.6

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (in 000's)

 

 

45,409

 

 

 

44,497

 

 

 

 

 

 

45,257

 

 

 

 

44,835

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) per share

 

$

1.18

 

 

$

(0.46

)

 

-

 

 

 

$

4.23

 

 

 

$

1.43

 

 

 

195.8

 

%

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized gains

 

 

(0.01

)

 

 

(0.35

)

 

(97.1

)

%

 

 

(0.38

)

 

 

 

(1.42

)

 

 

(73.2

)

%

Income tax on realized gains

 

 

-

 

 

 

0.07

 

 

(100.0

)

%

 

 

0.08

 

 

 

 

0.30

 

 

 

(73.3

)

%

Unrealized (gains) losses on equity securities

 

 

(0.68

)

 

 

1.44

 

 

-

 

 

 

 

(1.72

)

 

 

 

2.20

 

 

 

-

 

 

Income tax on unrealized gains (losses) on equity securities

 

 

0.14

 

 

 

(0.30

)

 

-

 

 

 

 

0.36

 

 

 

 

(0.46

)

 

 

-

 

 

EPS from operations(1)

 

$

0.63

 

 

$

0.40

 

 

57.5

 

%

 

$

2.57

 

 

 

$

2.05

 

 

 

25.4

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive earnings (loss) per share

 

$

1.06

 

 

$

(0.29

)

 

-

 

 

 

$

5.72

 

 

 

$

0.67

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends per share - ordinary

 

$

0.23

 

 

$

0.22

 

 

4.5

 

%

 

$

0.91

 

 

 

$

0.87

 

 

 

4.6

 

%

Cash dividends per share - special

 

$

1.00

 

 

$

1.00

 

 

0.0

 

%

 

$

1.00

 

 

 

$

1.00

 

 

 

0.0

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Cash Flow provided by Operations

 

$

90,155

 

 

$

53,733

 

 

67.8

 

%

 

$

276,917

 

 

 

$

217,102

 

 

 

27.6

 

%

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

RLI CORP

2019 FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

December 31,

 

 

 

 

 

2019

 

2018

 

% Change

SUMMARIZED BALANCE SHEET DATA:

 

 

 

 

 

 

 

 

 

Fixed income, at fair value

 

$

1,983,086

 

$

1,760,515

 

12.6

 

%

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

 

 

 

 

 

 

 

 

 

(amortized cost - $1,776,465 at 12/31/18)

 

 

 

 

 

 

 

 

 

Equity securities, at fair value

 

 

460,630

 

 

340,483

 

35.3

 

%

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

 

 

 

 

 

 

 

 

 

(cost - $220,373 at 12/31/18)

 

 

 

 

 

 

 

 

 

Other invested assets

 

 

70,441

 

 

51,542

 

36.7

 

%

Cash and cash equivalents

 

 

46,203

 

 

41,690

 

10.8

 

%

Total investments and cash

 

$

2,560,360

 

$

2,194,230

 

16.7

 

%

 

 

 

 

 

 

 

 

 

 

Premiums and reinsurance balances receivable

 

 

160,369

 

 

152,576

 

5.1

 

%

Ceded unearned premiums

 

 

93,656

 

 

71,174

 

31.6

 

%

Reinsurance balances recoverable on unpaid losses

 

 

384,517

 

 

364,999

 

5.3

 

%

Deferred policy acquisition costs

 

 

85,044

 

 

84,934

 

0.1

 

%

Property and equipment

 

 

53,121

 

 

54,692

 

(2.9

)

%

Investment in unconsolidated investees

 

 

103,836

 

 

94,967

 

9.3

 

%

Goodwill and intangibles

 

 

54,127

 

 

54,534

 

(0.7

)

%

Other assets

 

 

50,691

 

 

32,959

 

53.8

 

%

Total assets

 

$

3,545,721

 

$

3,105,065

 

14.2

 

%

 

 

 

 

 

 

 

 

 

 

Unpaid losses and settlement expenses

 

$

1,574,352

 

$

1,461,348

 

7.7

 

%

Unearned premiums

 

 

540,213

 

 

496,505

 

8.8

 

%

Reinsurance balances payable

 

 

25,691

 

 

22,591

 

13.7

 

%

Funds held

 

 

83,358

 

 

72,309

 

15.3

 

%

Income taxes - deferred

 

 

56,727

 

 

24,238

 

134.0

 

%

Bonds payable, long-term debt

 

 

149,302

 

 

149,115

 

0.1

 

%

Accrued expenses

 

 

66,626

 

 

45,124

 

47.7

 

%

Other liabilities

 

 

54,064

 

 

26,993

 

100.3

 

%

Total liabilities

 

$

2,550,333

 

$

2,298,223

 

11.0

 

%

Shareholders' equity

 

 

995,388

 

 

806,842

 

23.4

 

%

Total liabilities & shareholders' equity

 

$

3,545,721

 

$

3,105,065

 

14.2

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding (in 000's)

 

 

44,869

 

 

44,504

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

22.18

 

$

18.13

 

22.3

 

%

Closing stock price per share

 

$

90.02

 

$

68.99

 

30.5

 

%

 

 

 

 

 

 

 

 

 

 

Statutory surplus

 

$

1,029,671

 

$

829,775

 

24.1

 

%

RLI CORP

2019 FINANCIAL HIGHLIGHTS

UNDERWRITING SEGMENT DATA

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

Casualty

 

Ratios

 

 

 

Property

 

Ratios

 

 

 

Surety

 

Ratios

 

 

 

Total

 

Ratios

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

179,542

 

 

 

 

$

64,638

 

 

 

 

$

29,650

 

 

 

 

$

273,830

 

 

 

Net premiums written

 

 

141,963

 

 

 

 

 

47,956

 

 

 

 

 

27,945

 

 

 

 

 

217,864

 

 

 

Net premiums earned

 

 

142,791

 

 

 

 

 

43,828

 

 

 

 

 

29,007

 

 

 

 

 

215,626

 

 

 

Net loss & settlement expenses

 

 

82,994

 

58.1

%

 

 

20,680

 

47.2

%

 

 

2,536

 

8.7

%

 

 

106,210

 

49.3

%

Net operating expenses

 

 

53,848

 

37.7

%

 

 

19,017

 

43.4

%

 

 

20,079

 

69.3

%

 

 

92,944

 

43.1

%

Underwriting income (loss) (1)

 

$

5,949

 

95.8

%

 

$

4,131

 

90.6

%

 

$

6,392

 

78.0

%

 

$

16,472

 

92.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

177,665

 

 

 

 

$

47,822

 

 

 

 

$

31,916

 

 

 

 

$

257,403

 

 

 

Net premiums written

 

 

147,615

 

 

 

 

 

34,710

 

 

 

 

 

30,103

 

 

 

 

 

212,428

 

 

 

Net premiums earned

 

 

136,404

 

 

 

 

 

37,822

 

 

 

 

 

29,776

 

 

 

 

 

204,002

 

 

 

Net loss & settlement expenses

 

 

83,372

 

61.1

%

 

 

33,429

 

88.4

%

 

 

7,087

 

23.8

%

 

 

123,888

 

60.7

%

Net operating expenses

 

 

44,333

 

32.5

%

 

 

15,659

 

41.4

%

 

 

17,885

 

60.1

%

 

 

77,877

 

38.2

%

Underwriting income (loss) (1)

 

$

8,699

 

93.6

%

 

$

(11,266)

 

129.8

%

 

$

4,804

 

83.9

%

 

$

2,237

 

98.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

Casualty

 

Ratios

 

 

 

Property

 

Ratios

 

 

 

Surety

 

Ratios

 

 

 

Total

 

Ratios

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

704,192

 

 

 

 

$

241,425

 

 

 

 

$

119,385

 

 

 

 

$

1,065,002

 

 

 

Net premiums written

 

 

564,979

 

 

 

 

 

181,974

 

 

 

 

 

113,384

 

 

 

 

 

860,337

 

 

 

Net premiums earned

 

 

558,458

 

 

 

 

 

164,022

 

 

 

 

 

116,631

 

 

 

 

 

839,111

 

 

 

Net loss & settlement expenses

 

 

330,156

 

59.1

%

 

 

73,614

 

44.9

%

 

 

9,646

 

8.3

%

 

 

413,416

 

49.3

%

Net operating expenses

 

 

207,701

 

37.2

%

 

 

72,265

 

44.0

%

 

 

78,161

 

67.0

%

 

 

358,127

 

42.6

%

Underwriting income (loss) (1)

 

$

20,601

 

96.3

%

 

$

18,143

 

88.9

%

 

$

28,824

 

75.3

%

 

$

67,568

 

91.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

654,194

 

 

 

 

$

202,917

 

 

 

 

$

126,105

 

 

 

 

$

983,216

 

 

 

Net premiums written

 

 

547,177

 

 

 

 

 

155,601

 

 

 

 

 

120,397

 

 

 

 

 

823,175

 

 

 

Net premiums earned

 

 

523,472

 

 

 

 

 

149,261

 

 

 

 

 

118,633

 

 

 

 

 

791,366

 

 

 

Net loss & settlement expenses

 

 

329,763

 

63.0

%

 

 

83,822

 

56.2

%

 

 

14,608

 

12.3

%

 

 

428,193

 

54.1

%

Net operating expenses

 

 

182,569

 

34.9

%

 

 

64,555

 

43.2

%

 

 

74,417

 

62.7

%

 

 

321,541

 

40.6

%

Underwriting income (loss) (1)

 

$

11,140

 

97.9

%

 

$

884

 

99.4

%

 

$

29,608

 

75.0

%

 

$

41,632

 

94.7

%

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

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