RLI Reports Fourth Quarter and Year-End 2023 Results
- Net earnings increased from $97.8 million in Q4 2022 to $114.6 million in Q4 2023
- Underwriting income for 2023 was $173.2 million with a 15% increase in gross premiums written
- Net investment income for 2023 was $120.4 million, and book value per share increased by 31% from year-end 2022
- None.
Insights
The reported financial results of RLI Corp. indicating a significant increase in net earnings from $97.8 million in Q4 2022 to $114.6 million in Q4 2023 and a slight increase in operating earnings, reflect a robust financial performance. The growth in net earnings per share from $2.13 to $2.49, alongside a 13% increase in gross premiums written, suggests an effective strategy in revenue generation and possibly an expansion in market share. The special dividend of $2.00 per share is a substantial return to shareholders and signals confidence from management in the company's liquidity and financial health.
Additionally, a 31% increase in book value per share inclusive of dividends points towards a strong balance sheet. However, it is noteworthy that the year to date net earnings for 2022 were significantly bolstered by a one-time event, the sale of Maui Jim, Inc. This should be taken into account when comparing the year-over-year figures, as such extraordinary gains are not indicative of ongoing operational performance. Investors should also consider the company's underwriting discipline reflected by the favorable combined ratios, which remained below 100, indicating profitability in their insurance operations.
RLI Corp.'s underwriting income and combined ratio are key indicators of its core insurance operations' performance. A combined ratio of 82.7 for Q4 2023, although slightly higher than the 82.1 in Q4 2022, still represents a strong underwriting profit as it is well below the 100% breakeven point. The favorable development in prior years' loss reserves, leading to a net increase in underwriting income, suggests that past period loss estimates were conservative, which is a positive sign of prudent risk assessment.
The segment-specific combined ratios highlight the varying levels of profitability across different lines of business, with the Property segment showing notable improvement. However, the year's underwriting income did see a slight decrease, partly due to significant Hawaiian wildfire and other storm losses, emphasizing the impact of catastrophic events on insurance profitability. The company's ability to absorb such losses and still report favorable results is indicative of a strong reinsurance program and capital position.
The insurance industry is sensitive to various external factors, including economic cycles, interest rates and catastrophic events. RLI Corp.'s reported increase in net investment income by 40% for the year and a total return of 8.8% on the investment portfolio are particularly impressive in the context of the broader market conditions. This suggests that RLI's investment strategy has successfully navigated the volatile interest rate environment and market fluctuations.
Furthermore, the consistent payment of dividends for 190 consecutive quarters and the growth of the regular dividend by an average of 4.7% per year over the last decade demonstrate a shareholder-friendly approach and a reliable income stream for investors. This trend of returning capital to shareholders can be an attractive feature for potential investors looking for steady dividend-paying stocks.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter |
|
Year to Date |
||||||||
Earnings Per Diluted Share |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Net earnings (1) |
|
$ |
2.49 |
|
$ |
2.13 |
|
$ |
6.61 |
|
$ |
12.74 |
Operating earnings (2) (3) |
|
$ |
1.54 |
|
$ |
1.53 |
|
$ |
4.94 |
|
$ |
4.69 |
| (1) |
The year to date net earnings for 2022 include |
| (2) | See discussion below: Non-GAAP and Performance Measures. |
| (3) | Equity in earnings of Maui Jim and the related taxes were excluded from operating earnings per share in 2022 due to the sale of RLI’s investment in Maui Jim in the third quarter of 2022. |
Highlights for the quarter included:
-
Underwriting income(2) of
$59.8 million -
13% increase in gross premiums written. -
Favorable development in prior years’ loss reserves resulted in a
$12.5 million -
Special dividend of
$2.00 $91.3 million
Highlights for the year included:
-
Underwriting income(2) of
$173.2 million -
15% increase in gross premiums written. -
40% increase in net investment income. -
Favorable development in prior years’ loss reserves resulted in a
$95.3 million -
Book value per share of
$30.97 31% (inclusive of dividends) from year-end 2022.
“Continued premium growth across all product segments drove RLI’s strong fourth quarter performance and supported our 28th consecutive year of underwriting profit," said RLI Corp. President & CEO Craig Kliethermes. "Gross premiums written grew
"As we turn our focus to 2024, I want to thank our associate-owners who drive RLI forward every day. Their dedication is a testament to our ability to meet the challenges and opportunities that lie ahead."
Underwriting Income
RLI achieved
For the year, RLI achieved
The following table highlights underwriting income and combined ratios by segment for the year.
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Income(1) |
|
|
|
|
|
|
|
Combined Ratio(1) |
|
|
|
|
(in millions) |
|
2023 |
|
2022 |
|
|
|
2023 |
|
2022 |
||
Casualty |
|
$ |
59.5 |
|
$ |
73.8 |
|
Casualty |
|
92.2 |
|
89.6 |
Property |
|
|
86.3 |
|
|
72.5 |
|
Property |
|
78.5 |
|
76.4 |
Surety |
|
|
27.4 |
|
|
31.9 |
|
Surety |
|
79.6 |
|
74.4 |
Total |
|
$ |
173.2 |
|
$ |
178.2 |
|
Total |
|
86.6 |
|
84.4 |
(1) See discussion below: Non-GAAP and Performance Measures.
Other Income
Net investment income for the quarter increased
RLI’s comprehensive earnings were
Special and Regular Dividends
On December 20, 2023, the company paid a special cash dividend of
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 operating earnings per share (EPS) consist of our GAAP net earnings adjusted by net realized gains/(losses), net unrealized gains/(losses) on equity securities and taxes related thereto. Additionally, equity in earnings of Maui Jim and the related taxes were excluded from operating earnings and operating EPS for 2022 due to the sale of RLI’s investment in the third quarter of 2022. Net earnings and net earnings per share are the GAAP financial measures that are most directly comparable to operating earnings and operating EPS. A reconciliation of the operating earnings and operating EPS to the comparable GAAP financial measures is included in the 2023 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 standard time (CST) tomorrow, January 25, 2024, RLI management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion at https://events.q4inc.com/attendee/112063672.
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, 2022.
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 48 consecutive years and delivered underwriting profits for 28 consecutive years. To learn more about RLI, visit www.rlicorp.com.
Supplemental disclosure regarding the earnings impact of specific items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve Development and Catastrophe Losses, |
||||||||||
|
|
Net of Reinsurance |
||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||
|
|
December 31, |
|
December 31, |
||||||||
(Dollars in millions, except per share amounts) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Favorable development in casualty prior years' reserves |
|
$ |
9.0 |
|
$ |
14.0 |
|
$ |
76.0 |
|
$ |
87.0 |
Favorable development in property prior years' reserves |
|
$ |
2.0 |
|
$ |
0.4 |
|
$ |
16.2 |
|
$ |
21.2 |
Favorable development in surety prior years' reserves |
|
$ |
0.6 |
|
$ |
1.1 |
|
$ |
8.9 |
|
$ |
10.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net incurred losses related to: |
|
|
|
|
|
|
|
|
|
|
|
|
2023 storms |
|
$ |
(4.0) |
|
$ |
— |
|
$ |
(31.0) |
|
$ |
— |
Hawaiian wildfires |
|
$ |
2.4 |
|
$ |
— |
|
$ |
(49.3) |
|
$ |
— |
2022 and prior events |
|
$ |
2.9 |
|
$ |
(2.0) |
|
$ |
7.5 |
|
$ |
(47.0) |
Reinstatement premium from Hawaiian wildfires |
|
$ |
2.6 |
|
$ |
— |
|
$ |
(11.7) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings Per Share |
||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||
|
|
December 31, |
|
December 31, |
||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Operating Earnings Per Share(1) (2) |
|
$ |
1.54 |
|
$ |
1.53 |
|
$ |
4.94 |
|
$ |
4.69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Specific items included in operating earnings per share:(3) (4) |
|
|
|
|
|
|
|
|
|
|
|
|
Net favorable development in casualty prior years' reserves |
|
$ |
0.13 |
|
$ |
0.21 |
|
$ |
1.14 |
|
$ |
1.31 |
Net favorable development in property prior years' reserves |
|
$ |
0.03 |
|
$ |
0.01 |
|
$ |
0.23 |
|
$ |
0.32 |
Net favorable development in surety prior years' reserves |
|
$ |
0.01 |
|
$ |
0.01 |
|
$ |
0.12 |
|
$ |
0.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net incurred losses related to: |
|
|
|
|
|
|
|
|
|
|
|
|
2023 storms |
|
$ |
(0.06) |
|
$ |
— |
|
$ |
(0.46) |
|
$ |
— |
Hawaiian wildfires (incurred loss and reinstatement premium) |
|
$ |
0.07 |
|
$ |
— |
|
$ |
(0.90) |
|
$ |
— |
2022 and prior events |
|
$ |
0.04 |
|
$ |
(0.03) |
|
$ |
0.10 |
|
$ |
(0.71) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain from tax benefit of special dividend to ESOP(5) |
|
$ |
0.02 |
|
$ |
0.08 |
|
$ |
0.02 |
|
$ |
0.08 |
(1) |
See discussion above: Non-GAAP and Performance Measures. |
(2) |
Equity in earnings of Maui Jim and the related taxes were excluded from operating earnings per share in 2022 due to the sale of RLI’s investment in Maui Jim in the third quarter of 2022. |
(3) |
Includes incentive and profit sharing-related impacts which affected policy acquisition, insurance operating and general corporate expenses. |
(4) |
Reserve development reflects changes from previously estimated losses. |
(5) |
Dividends paid on employer securities in an ESOP are fully deductible from taxable income and resulted in a |
RLI CORP |
|||||||||||||||||||
2023 FINANCIAL HIGHLIGHTS |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
(Dollars in thousands, except per share amounts) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
Twelve Months Ended December 31, |
|
|||||||||||||
SUMMARIZED INCOME STATEMENT DATA: |
|
2023 |
|
2022 |
|
% Change |
|
|
2023 |
|
2022 |
|
|
% Change |
|
||||
Net premiums earned |
|
$ |
345,894 |
|
$ |
301,006 |
|
14.9 |
% |
|
$ |
1,294,306 |
|
$ |
1,144,436 |
|
|
13.1 |
% |
Net investment income |
|
|
32,548 |
|
|
28,453 |
|
14.4 |
% |
|
|
120,383 |
|
|
86,078 |
|
|
39.9 |
% |
Net realized gains (losses) |
|
|
5,760 |
|
|
(3,047) |
|
NM |
|
|
|
32,518 |
|
|
588,515 |
|
|
(94.5) |
% |
Net unrealized gains (losses) on equity securities |
|
|
49,313 |
|
|
34,181 |
|
44.3 |
% |
|
|
64,787 |
|
|
(121,037) |
|
|
NM |
|
Consolidated revenue |
|
$ |
433,515 |
|
$ |
360,593 |
|
20.2 |
% |
|
$ |
1,511,994 |
|
$ |
1,697,992 |
|
|
(11.0) |
% |
Loss and settlement expenses |
|
|
146,424 |
|
|
125,849 |
|
16.3 |
% |
|
|
604,413 |
|
|
514,376 |
|
|
17.5 |
% |
Policy acquisition costs |
|
|
111,242 |
|
|
97,753 |
|
13.8 |
% |
|
|
418,325 |
|
|
369,632 |
|
|
13.2 |
% |
Insurance operating expenses |
|
|
28,381 |
|
|
23,418 |
|
21.2 |
% |
|
|
98,383 |
|
|
82,212 |
|
|
19.7 |
% |
Interest expense on debt |
|
|
1,373 |
|
|
2,013 |
|
(31.8) |
% |
|
|
7,301 |
|
|
8,047 |
|
|
(9.3) |
% |
General corporate expenses |
|
|
5,112 |
|
|
4,347 |
|
17.6 |
% |
|
|
15,917 |
|
|
12,900 |
|
|
23.4 |
% |
Total expenses |
|
$ |
292,532 |
|
$ |
253,380 |
|
15.5 |
% |
|
$ |
1,144,339 |
|
$ |
987,167 |
|
|
15.9 |
% |
Equity in earnings of unconsolidated investees |
|
|
2,441 |
|
|
6,792 |
|
(64.1) |
% |
|
|
9,610 |
|
|
9,853 |
|
|
(2.5) |
% |
Earnings before income taxes |
|
$ |
143,424 |
|
$ |
114,005 |
|
25.8 |
% |
|
$ |
377,265 |
|
$ |
720,678 |
|
|
(47.7) |
% |
Income tax expense |
|
|
28,812 |
|
|
16,171 |
|
78.2 |
% |
|
|
72,654 |
|
|
137,267 |
|
|
(47.1) |
% |
Net earnings |
|
$ |
114,612 |
|
$ |
97,834 |
|
17.1 |
% |
|
$ |
304,611 |
|
$ |
583,411 |
|
|
(47.8) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive earnings (loss), net of tax |
|
|
101,621 |
|
|
15,490 |
|
556.0 |
% |
|
|
62,773 |
|
|
(278,902) |
|
|
NM |
|
Comprehensive earnings |
|
$ |
216,233 |
|
$ |
113,324 |
|
90.8 |
% |
|
$ |
367,384 |
|
$ |
304,509 |
|
|
20.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
$ |
114,612 |
|
$ |
97,834 |
|
17.1 |
% |
|
$ |
304,611 |
|
$ |
583,411 |
|
|
(47.8) |
% |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized (gains) losses |
|
|
(5,760) |
|
|
3,047 |
|
NM |
|
|
|
(32,518) |
|
|
(588,515) |
|
|
(94.5) |
% |
Income tax on realized gains (losses) |
|
|
1,210 |
|
|
(646) |
|
NM |
|
|
|
6,829 |
|
|
124,415 |
|
|
(94.5) |
% |
Net unrealized (gains) losses on equity securities |
|
|
(49,313) |
|
|
(34,181) |
|
44.3 |
% |
|
|
(64,787) |
|
|
121,037 |
|
|
NM |
|
Income tax on unrealized gains (losses) on equity securities |
|
|
10,355 |
|
|
7,178 |
|
44.3 |
% |
|
|
13,605 |
|
|
(25,418) |
|
|
NM |
|
Equity in earnings of Maui Jim |
|
|
— |
|
|
(3,493) |
|
(100.0) |
% |
|
|
— |
|
|
(372) |
|
|
(100.0) |
% |
Income tax on equity in earnings of Maui Jim |
|
|
— |
|
|
733 |
|
(100.0) |
% |
|
|
— |
|
|
78 |
|
|
(100.0) |
% |
Operating earnings(2) |
|
$ |
71,104 |
|
$ |
70,472 |
|
0.9 |
% |
|
$ |
227,740 |
|
$ |
214,636 |
|
|
6.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
|
|
|
|
|
|
|
|
|
|
23.3 |
% |
|
48.6 |
% |
|
|
|
Comprehensive earnings |
|
|
|
|
|
|
|
|
|
|
|
28.1 |
% |
|
25.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding (in 000's) |
|
|
46,072 |
|
|
45,954 |
|
|
|
|
|
46,077 |
|
|
45,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share(2) |
|
$ |
2.49 |
|
$ |
2.13 |
|
16.9 |
% |
|
$ |
6.61 |
|
$ |
12.74 |
|
|
(48.1) |
% |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized (gains) losses |
|
|
(0.13) |
|
|
0.06 |
|
NM |
|
|
|
(0.71) |
|
|
(12.84) |
|
|
(94.5) |
% |
Income tax on realized gains (losses) |
|
|
0.03 |
|
|
(0.01) |
|
NM |
|
|
|
0.15 |
|
|
2.72 |
|
|
(94.5) |
% |
Net unrealized (gains) losses on equity securities |
|
|
(1.07) |
|
|
(0.74) |
|
44.6 |
% |
|
|
(1.41) |
|
|
2.64 |
|
|
NM |
|
Income tax on unrealized gains (losses) on equity securities |
|
|
0.22 |
|
|
0.16 |
|
37.5 |
% |
|
|
0.30 |
|
|
(0.56) |
|
|
NM |
|
Equity in earnings of Maui Jim |
|
|
— |
|
|
(0.08) |
|
(100.0) |
% |
|
|
— |
|
|
(0.01) |
|
|
(100.0) |
% |
Income tax on equity in earnings of Maui Jim |
|
|
— |
|
|
0.01 |
|
(100.0) |
% |
|
|
— |
|
|
— |
|
|
— |
% |
Operating earnings per share(1)(2) |
|
$ |
1.54 |
|
$ |
1.53 |
|
0.7 |
% |
|
$ |
4.94 |
|
$ |
4.69 |
|
|
5.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive earnings per share |
|
$ |
4.69 |
|
$ |
2.47 |
|
89.9 |
% |
|
$ |
7.97 |
|
$ |
6.65 |
|
|
19.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends per share - ordinary |
|
$ |
0.27 |
|
$ |
0.26 |
|
3.8 |
% |
|
$ |
1.07 |
|
$ |
1.03 |
|
|
3.9 |
% |
Cash dividends per share - special |
|
|
2.00 |
|
|
7.00 |
|
(71.4) |
% |
|
|
2.00 |
|
|
7.00 |
|
|
(71.4) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flow provided by (used in) operations |
|
$ |
122,065 |
|
$ |
(32,438) |
|
NM |
|
|
$ |
464,257 |
|
$ |
250,448 |
|
|
85.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) | See discussion above: Non-GAAP and Performance Measures. |
| (2) | Equity in earnings of Maui Jim and the related taxes were excluded from operating earnings and operating earnings per share in 2022 due to the sale of RLI’s investment in Maui Jim in the third quarter of 2022. |
|
|
| NM = Not Meaningful | |
RLI CORP |
|||||||||
2023 FINANCIAL HIGHLIGHTS |
|||||||||
(Unaudited) |
|||||||||
(Dollars in thousands, except per share amounts) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
||
|
|
2023 |
|
2022 |
|
% Change |
|
||
SUMMARIZED BALANCE SHEET DATA: |
|
|
|
|
|
|
|
|
|
Fixed income, at fair value |
|
$ |
2,855,849 |
|
$ |
2,666,950 |
|
7.1 |
% |
(amortized cost - |
|
|
|
|
|
|
|
|
|
(amortized cost - |
|
|
|
|
|
|
|
|
|
Equity securities, at fair value |
|
|
590,041 |
|
|
498,382 |
|
18.4 |
% |
(cost - |
|
|
|
|
|
|
|
|
|
(cost - |
|
|
|
|
|
|
|
|
|
Short-term investments |
|
|
134,923 |
|
|
36,229 |
|
272.4 |
% |
Other invested assets |
|
|
59,081 |
|
|
47,922 |
|
23.3 |
% |
Cash and cash equivalents |
|
|
36,424 |
|
|
22,818 |
|
59.6 |
% |
Total investments and cash |
|
$ |
3,676,318 |
|
$ |
3,272,301 |
|
12.3 |
% |
|
|
|
|
|
|
|
|
|
|
Accrued investment income |
|
|
24,062 |
|
|
21,259 |
|
13.2 |
% |
Premiums and reinsurance balances receivable |
|
|
221,206 |
|
|
189,501 |
|
16.7 |
% |
Ceded unearned premiums |
|
|
112,257 |
|
|
138,457 |
|
(18.9) |
% |
Reinsurance balances recoverable on unpaid losses |
|
|
757,349 |
|
|
740,089 |
|
2.3 |
% |
Deferred policy acquisition costs |
|
|
146,566 |
|
|
127,859 |
|
14.6 |
% |
Property and equipment |
|
|
46,715 |
|
|
49,573 |
|
(5.8) |
% |
Investment in unconsolidated investees |
|
|
56,966 |
|
|
58,275 |
|
(2.2) |
% |
Goodwill and intangibles |
|
|
53,562 |
|
|
53,562 |
|
0.0 |
% |
Income taxes - deferred |
|
|
15,872 |
|
|
40,269 |
|
(60.6) |
% |
Other assets |
|
|
69,348 |
|
|
75,923 |
|
(8.7) |
% |
Total assets |
|
$ |
5,180,221 |
|
$ |
4,767,068 |
|
8.7 |
% |
|
|
|
|
|
|
|
|
|
|
Unpaid losses and settlement expenses |
|
$ |
2,446,025 |
|
$ |
2,315,637 |
|
5.6 |
% |
Unearned premiums |
|
|
892,326 |
|
|
785,085 |
|
13.7 |
% |
Reinsurance balances payable |
|
|
71,507 |
|
|
61,100 |
|
17.0 |
% |
Funds held |
|
|
101,446 |
|
|
101,144 |
|
0.3 |
% |
Income taxes - current |
|
|
3,757 |
|
|
— |
|
NM |
|
Debt |
|
|
100,000 |
|
|
199,863 |
|
(50.0) |
% |
Accrued expenses |
|
|
108,880 |
|
|
94,869 |
|
14.8 |
% |
Other liabilities |
|
|
42,766 |
|
|
32,029 |
|
33.5 |
% |
Total liabilities |
|
$ |
3,766,707 |
|
$ |
3,589,727 |
|
4.9 |
% |
Shareholders' equity |
|
|
1,413,514 |
|
|
1,177,341 |
|
20.1 |
% |
Total liabilities & shareholders' equity |
|
$ |
5,180,221 |
|
$ |
4,767,068 |
|
8.7 |
% |
|
|
|
|
|
|
|
|
|
|
OTHER DATA: |
|
|
|
|
|
|
|
|
|
Common shares outstanding (in 000's) |
|
|
45,640 |
|
|
45,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
30.97 |
|
$ |
25.89 |
|
19.6 |
% |
Closing stock price per share |
|
$ |
133.12 |
|
$ |
131.27 |
|
1.4 |
% |
|
|
|
|
|
|
|
|
|
|
Statutory surplus |
|
$ |
1,520,135 |
|
$ |
1,437,324 |
|
5.8 |
% |
RLI CORP |
|||||||||||||||||||||
2023 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 |
|
||||
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
$ |
238,467 |
|
|
|
$ |
158,047 |
|
|
|
$ |
37,846 |
|
|
|
$ |
434,360 |
|
|
|
Net premiums written |
|
|
191,626 |
|
|
|
|
104,154 |
|
|
|
|
35,117 |
|
|
|
|
330,897 |
|
|
|
Net premiums earned |
|
|
195,962 |
|
|
|
|
115,934 |
|
|
|
|
33,998 |
|
|
|
|
345,894 |
|
|
|
Net loss & settlement expenses |
|
|
121,399 |
|
62.0 |
% |
|
22,554 |
|
19.5 |
% |
|
2,471 |
|
7.3 |
% |
|
146,424 |
|
42.3 |
% |
Net operating expenses |
|
|
72,562 |
|
37.0 |
% |
|
40,653 |
|
35.0 |
% |
|
26,408 |
|
77.6 |
% |
|
139,623 |
|
40.4 |
% |
Underwriting income(1) |
|
$ |
2,001 |
|
99.0 |
% |
$ |
52,727 |
|
54.5 |
% |
$ |
5,119 |
|
84.9 |
% |
$ |
59,847 |
|
82.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
$ |
221,729 |
|
|
|
$ |
127,932 |
|
|
|
$ |
34,127 |
|
|
|
$ |
383,788 |
|
|
|
Net premiums written |
|
|
175,132 |
|
|
|
|
91,332 |
|
|
|
|
32,031 |
|
|
|
|
298,495 |
|
|
|
Net premiums earned |
|
|
183,338 |
|
|
|
|
84,912 |
|
|
|
|
32,756 |
|
|
|
|
301,006 |
|
|
|
Net loss & settlement expenses |
|
|
102,623 |
|
56.0 |
% |
|
20,558 |
|
24.2 |
% |
|
2,668 |
|
8.1 |
% |
|
125,849 |
|
41.8 |
% |
Net operating expenses |
|
|
67,344 |
|
36.7 |
% |
|
32,105 |
|
37.8 |
% |
|
21,722 |
|
66.4 |
% |
|
121,171 |
|
40.3 |
% |
Underwriting income(1) |
|
$ |
13,371 |
|
92.7 |
% |
$ |
32,249 |
|
62.0 |
% |
$ |
8,366 |
|
74.5 |
% |
$ |
53,986 |
|
82.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
|
|
GAAP |
|
|
|
|
GAAP |
|
|
|
|
GAAP |
|
|
|
Casualty |
|
Ratios |
|
Property |
|
Ratios |
|
Surety |
|
Ratios |
|
Total |
|
Ratios |
|
||||
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
$ |
961,665 |
|
|
|
$ |
697,372 |
|
|
|
$ |
147,623 |
|
|
|
$ |
1,806,660 |
|
|
|
Net premiums written |
|
|
788,982 |
|
|
|
|
500,057 |
|
|
|
|
138,708 |
|
|
|
|
1,427,747 |
|
|
|
Net premiums earned |
|
|
758,346 |
|
|
|
|
401,530 |
|
|
|
|
134,430 |
|
|
|
|
1,294,306 |
|
|
|
Net loss & settlement expenses |
|
|
418,032 |
|
55.1 |
% |
|
172,062 |
|
42.9 |
% |
|
14,319 |
|
10.7 |
% |
|
604,413 |
|
46.7 |
% |
Net operating expenses |
|
|
280,835 |
|
37.1 |
% |
|
143,152 |
|
35.6 |
% |
|
92,721 |
|
68.9 |
% |
|
516,708 |
|
39.9 |
% |
Underwriting income(1) |
|
$ |
59,479 |
|
92.2 |
% |
$ |
86,316 |
|
78.5 |
% |
$ |
27,390 |
|
79.6 |
% |
$ |
173,185 |
|
86.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
$ |
926,231 |
|
|
|
$ |
499,461 |
|
|
|
$ |
139,794 |
|
|
|
$ |
1,565,486 |
|
|
|
Net premiums written |
|
|
744,607 |
|
|
|
|
364,644 |
|
|
|
|
132,285 |
|
|
|
|
1,241,536 |
|
|
|
Net premiums earned |
|
|
711,832 |
|
|
|
|
307,886 |
|
|
|
|
124,718 |
|
|
|
|
1,144,436 |
|
|
|
Net loss & settlement expenses |
|
|
381,436 |
|
53.6 |
% |
|
120,745 |
|
39.2 |
% |
|
12,195 |
|
9.8 |
% |
|
514,376 |
|
44.9 |
% |
Net operating expenses |
|
|
256,607 |
|
36.0 |
% |
|
114,619 |
|
37.2 |
% |
|
80,618 |
|
64.6 |
% |
|
451,844 |
|
39.5 |
% |
Underwriting income(1) |
|
$ |
73,789 |
|
89.6 |
% |
$ |
72,522 |
|
76.4 |
% |
$ |
31,905 |
|
74.4 |
% |
$ |
178,216 |
|
84.4 |
% |
(1) See discussion above: Non-GAAP and Performance Measures.
Category: Earnings Release
View source version on businesswire.com: https://www.businesswire.com/news/home/20240124867301/en/
Aaron Diefenthaler
Chief Investment Officer & Treasurer
309-693-5846
Aaron.Diefenthaler@rlicorp.com
Source: RLI Corp.
FAQ
What was RLI Corp.'s net earnings for the fourth quarter of 2023?
What was RLI Corp.'s underwriting income for the year 2023?
What was RLI Corp.'s net investment income for the year 2023?
What was the increase in gross premiums written for RLI Corp. in 2023?
What was the book value per share increase for RLI Corp. from year-end 2022 to year-end 2023?
