RLI Reports Third Quarter 2020 Results
RLI Corp. reported Q3 2020 net earnings of $42.4 million ($0.93 per share), up from $32.3 million ($0.71 per share) in Q3 2019. Operating earnings fell to $19.0 million ($0.42 per share) from $25.9 million ($0.57 per share). The quarter saw a 9% increase in gross premiums written, yet was impacted by losses from hurricanes totaling $33.2 million. Book value per share rose 13% to $24.40. RLI achieved $1.2 million in underwriting income despite an increased combined ratio of 99.5.
- Q3 2020 net earnings increased to $42.4 million ($0.93 per share).
- 9% increase in gross premiums written.
- Book value per share rose 13% to $24.40.
- Achieved underwriting income of $1.2 million.
- Operating earnings decreased to $19.0 million ($0.42 per share) from $25.9 million ($0.57 per share) in 2019.
- Losses from hurricanes resulted in a $33.2 million net decrease in underwriting income.
- Increased combined ratio from 93.5 to 99.5.
PEORIA, Ill.--(BUSINESS WIRE)--RLI Corp. (NYSE: RLI) – RLI Corp. reported third quarter 2020 net earnings of
|
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 of13% (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
Underwriting Income
RLI achieved
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
RLI’s comprehensive earnings were
Equity in earnings of unconsolidated investees was
Dividends Paid in the Third Quarter of 2020
On September 18, 2020, the company paid a regular quarterly 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 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 - |
|
|
|
|
|
|
|
|
|
|
|
|
|
(amortized cost - |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity securities, at fair value |
|
|
455,956 |
|
|
|
460,630 |
|
|
|
(1.0 |
) |
% |
(cost - |
|
|
|
|
|
|
|
|
|
|
|
|
|
(cost - |
|
|
|
|
|
|
|
|
|
|
|
|
|
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
