RLI Corp. (NYSE: RLI) – RLI Corp. reported third quarter 2024
net earnings of $95.0 million ($2.06 per share), compared to $13.5
million ($0.29 per share) for the third quarter of 2023. Operating
earnings(1) for the third quarter of 2024 were $60.4 million ($1.31
per share), compared to $28.3 million ($0.61 per share) for the
same period in 2023.
Third Quarter
Year to Date
Earnings Per Diluted Share
2024
2023
2024
2023
Net earnings
$
2.06
$
0.29
$
6.60
$
4.12
Operating earnings (1)
$
1.31
$
0.61
$
4.92
$
3.40
(1)
See discussion below: Non-GAAP and
Performance Measures.
Highlights for the quarter included:
- Underwriting income(1) of $40.7 million on a combined ratio(1)
of 89.6.
- 13% increase in gross premiums written.
- 15% increase in net investment income.
- Favorable development in prior years’ loss reserves resulted in
a $18.1 million net increase in underwriting income.
- Losses from Hurricanes Beryl and Helene, resulting in a $32.7
million net decrease in underwriting income.
- Book value per share of $38.17, an increase of 26% (inclusive
of dividends) from year-end 2023.
“Our primary focus has been to assist customers affected by
recent hurricanes," said RLI Corp. President & CEO Craig
Kliethermes. “When catastrophes occur, we quickly deploy our claim
experts to assess damage and help policyholders begin recovering.
Despite the storm activity in the third quarter, we continued to
find opportunities for balanced top line growth across our
portfolio. Our diversified business model, sound risk selection and
disciplined underwriting resulted in a solid 90 combined ratio. I
want to thank all RLI associates for their commitment to
maintaining our financial strength and ensuring RLI remains a
stable partner for our customers.”
Underwriting Income
RLI achieved $40.7 million of underwriting income in the third
quarter of 2024 on an 89.6 combined ratio, compared to $4.2 million
on a 98.7 combined ratio in 2023.
Results for both years include favorable development in prior
years’ loss reserves, which resulted in a $18.1 million and $19.8
million net increase to underwriting income in 2024 and 2023,
respectively. The favorable development was offset by a $32.7
million net reduction to underwriting income for losses from
Hurricanes Beryl and Helene, compared to $58.2 million for losses
from Hawaiian wildfires in 2023.
The following table highlights underwriting income and combined
ratios by segment for the third quarter.
Underwriting Income(1)
Combined Ratio(1)
(in millions)
2024
2023
2024
2023
Casualty
$
2.6
$
18.7
Casualty
98.8
90.1
Property
30.4
(20.7)
Property
77.2
121.8
Surety
7.7
6.2
Surety
78.8
81.7
Total
$
40.7
$
4.2
Total
89.6
98.7
(1)
See discussion below: Non-GAAP and
Performance Measures.
Other Income
Net investment income for the quarter increased 15% to $36.7
million, compared to the same period in 2023. The investment
portfolio’s total return was 4.8% for the quarter and 7.6% for the
nine months ended September 30, 2024.
RLI’s comprehensive earnings were $175.3 million for the quarter
($3.79 per share), compared to a comprehensive loss of $43.3
million (-$0.94 per share) for the same quarter in 2023. In
addition to net earnings, comprehensive earnings included after-tax
unrealized gains from the fixed income portfolio in 2024, due to
declining interest rates.
Dividends Paid in Third Quarter of
2024
On September 20, 2024, the company paid a regular quarterly
dividend of $0.29 per share, the same amount as the prior quarter.
RLI’s cumulative dividends total more than $822 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 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. 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 2024 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 daylight time (CDT) on October 22, 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/811172831.
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, 2023.
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 49 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(1) and
Catastrophe Losses,
Net of Reinsurance
Three Months Ended
Nine Months Ended
September 30,
September 30,
(Dollars in millions, except per share
amounts)
2024
2023
2024
2023
Favorable development in casualty prior
years' reserves
$
9.0
$
22.1
$
40.0
$
67.0
Favorable (unfavorable) development in
property prior years' reserves
$
4.4
$
(1.9
)
$
28.5
$
14.3
Favorable development in surety prior
years' reserves
$
3.1
$
0.8
$
10.9
$
8.2
Net incurred losses related to:
2024 storms
$
(2.0
)
$
—
$
(30.0
)
$
—
Hurricanes Beryl and Helene
$
(37.0
)
$
—
$
(37.0
)
$
—
2023 and prior events
$
4.0
$
(55.2
)
$
6.0
$
(74.1
)
Reinstatement premium from events
$
—
$
(14.4
)
$
—
$
(14.4
)
Operating Earnings Per Share
Three Months Ended
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
Operating Earnings Per Share(2)
$
1.31
$
0.61
$
4.92
$
3.40
Specific items included in operating
earnings per share:(1) (3)
Net favorable development in casualty
prior years' reserves
$
0.12
$
0.33
$
0.55
$
1.00
Net favorable (unfavorable) development in
property prior years' reserves
$
0.07
$
(0.04
)
$
0.44
$
0.20
Net favorable development in surety prior
years' reserves
$
0.05
$
0.01
$
0.17
$
0.12
Net incurred losses related to:
2024 storms
$
(0.03
)
$
—
$
(0.44
)
$
—
Hurricanes Beryl and Helene
$
(0.54
)
$
—
$
(0.54
)
$
—
2023 and prior events (incurred loss and
reinstatement premium)
$
0.06
$
(1.02
)
$
0.09
$
(1.31
)
(1)
Reserve development reflects changes from
previously estimated losses.
(2)
See discussion above: Non-GAAP and
Performance Measures.
(3)
Items included in operating earnings per
share are after tax and incorporates incentive and profit
sharing-related impacts which affected policy acquisition,
insurance operating and general corporate expenses.
RLI CORP
2024 FINANCIAL
HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per
share amounts)
Three Months Ended September
30,
Nine Months Ended September
30,
SUMMARIZED INCOME
STATEMENT DATA:
2024
2023
% Change
2024
2023
% Change
Net premiums earned
$
389,489
$
318,409
22.3
%
$
1,129,230
$
948,412
19.1
%
Net investment income
36,694
31,963
14.8
%
103,502
87,835
17.8
%
Net realized gains
5,420
6,558
(17.4
)
%
11,222
26,758
(58.1
)
%
Net unrealized gains (losses) on equity
securities
38,392
(25,236
)
NM
87,314
15,474
NM
Consolidated revenue
$
469,995
$
331,694
41.7
%
$
1,331,268
$
1,078,479
23.4
%
Loss and settlement expenses
202,118
189,558
6.6
%
513,741
457,989
12.2
%
Policy acquisition costs
117,811
103,013
14.4
%
342,186
307,083
11.4
%
Insurance operating expenses
28,868
21,591
33.7
%
84,892
70,002
21.3
%
Interest expense on debt
1,617
1,873
(13.7
)
%
4,839
5,928
(18.4
)
%
General corporate expenses
3,994
2,372
68.4
%
13,144
10,805
21.6
%
Total expenses
$
354,408
$
318,407
11.3
%
$
958,802
$
851,807
12.6
%
Equity in earnings of unconsolidated
investees
1,238
1,732
(28.5
)
%
7,653
7,169
6.8
%
Earnings before income taxes
$
116,825
$
15,019
NM
$
380,119
$
233,841
62.6
%
Income tax expense
21,798
1,483
NM
75,200
43,842
71.5
%
Net earnings
$
95,027
$
13,536
NM
$
304,919
$
189,999
60.5
%
Other comprehensive earnings (loss), net
of tax
80,293
(56,834
)
NM
59,779
(38,848
)
NM
Comprehensive earnings (loss)
$
175,320
$
(43,298
)
NM
$
364,698
$
151,151
141.3
%
Operating earnings(1):
Net earnings
$
95,027
$
13,536
NM
$
304,919
$
189,999
60.5
%
Less:
Net realized gains
(5,420
)
(6,558
)
(17.4
)
%
(11,222
)
(26,758
)
(58.1
)
%
Income tax on realized gains
1,139
1,377
(17.3
)
%
2,357
5,619
(58.1
)
%
Net unrealized (gains) losses on equity
securities
(38,392
)
25,236
NM
(87,314
)
(15,474
)
NM
Income tax on unrealized gains (losses) on
equity securities
8,062
(5,299
)
NM
18,335
3,250
NM
Operating earnings
$
60,416
$
28,292
113.5
%
$
227,075
$
156,636
45.0
%
Return on Equity:
Net earnings (trailing four quarters)
27.7
%
22.1
%
Comprehensive earnings (trailing four
quarters)
38.4
%
20.3
%
Per Share Data:
Diluted:
Weighted average shares outstanding (in
000's)
46,220
46,065
46,185
46,067
Net earnings per share
$
2.06
$
0.29
NM
$
6.60
$
4.12
60.2
%
Less:
Net realized gains
(0.12
)
(0.14
)
(14.3
)
%
(0.24
)
(0.58
)
(58.6
)
%
Income tax on realized gains
0.02
0.03
(33.3
)
%
0.05
0.13
(61.5
)
%
Net unrealized (gains) losses on equity
securities
(0.83
)
0.55
NM
(1.89
)
(0.34
)
NM
Income tax on unrealized gains (losses) on
equity securities
0.18
(0.12
)
NM
0.40
0.07
NM
Operating earnings per share(1)
$
1.31
$
0.61
114.8
%
$
4.92
$
3.40
44.7
%
Comprehensive earnings (loss) per
share
$
3.79
$
(0.94
)
NM
$
7.90
$
3.28
140.9
%
Cash dividends per share - ordinary
$
0.29
$
0.27
7.4
%
$
0.85
$
0.80
6.3
%
Net cash flow provided by
operations
$
219,368
$
98,597
122.5
%
$
432,139
$
342,192
26.3
%
(1)
See discussion above: Non-GAAP and
Performance Measures.
NM = Not Meaningful
RLI CORP
2024 FINANCIAL
HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per
share amounts)
September 30,
December 31,
2024
2023
% Change
SUMMARIZED
BALANCE SHEET DATA:
Fixed income, at fair value
$
3,176,073
$
2,855,849
11.2
%
(amortized cost - $3,302,684 at
9/30/24)
(amortized cost - $3,054,391 at
12/31/23)
Equity securities, at fair value
729,738
590,041
23.7
%
(cost - $405,663 at 9/30/24)
(cost - $354,022 at 12/31/23)
Short-term investments
203,296
134,923
50.7
%
Other invested assets
53,993
59,081
(8.6
)
%
Cash and cash equivalents
60,634
36,424
66.5
%
Total investments and cash
$
4,223,734
$
3,676,318
14.9
%
Accrued investment income
26,711
24,062
11.0
%
Premiums and reinsurance balances
receivable
241,311
221,206
9.1
%
Ceded unearned premiums
120,845
112,257
7.7
%
Reinsurance balances recoverable on unpaid
losses
759,540
757,349
0.3
%
Deferred policy acquisition costs
172,069
146,566
17.4
%
Property and equipment
44,644
46,715
(4.4
)
%
Investment in unconsolidated investees
65,271
56,966
14.6
%
Goodwill and intangibles
53,562
53,562
0.0
%
Income taxes - deferred
—
15,872
(100.0
)
%
Other assets
84,068
69,348
21.2
%
Total assets
$
5,791,755
$
5,180,221
11.8
%
Unpaid losses and settlement expenses
$
2,611,941
$
2,446,025
6.8
%
Unearned premiums
1,010,760
892,326
13.3
%
Reinsurance balances payable
43,423
71,507
(39.3
)
%
Funds held
98,585
101,446
(2.8
)
%
Income taxes - current
4,369
3,757
16.3
%
Income taxes - deferred
15,369
—
NM
Debt
100,000
100,000
—
%
Accrued expenses
105,813
108,880
(2.8
)
%
Other liabilities
53,145
42,766
24.3
%
Total liabilities
$
4,043,405
$
3,766,707
7.3
%
Shareholders' equity
1,748,350
1,413,514
23.7
%
Total liabilities & shareholders'
equity
$
5,791,755
$
5,180,221
11.8
%
OTHER
DATA:
Common shares outstanding (in 000's)
45,810
45,640
Book value per share
$
38.17
$
30.97
23.2
%
Closing stock price per share
$
154.98
$
133.12
16.4
%
Statutory surplus
$
1,806,660
$
1,520,135
18.8
%
NM = Not Meaningful
RLI CORP
2024 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
2024
Gross premiums written
$
294,267
$
173,813
$
39,710
$
507,790
Net premiums written
242,650
122,428
36,466
401,544
Net premiums earned
219,638
133,266
36,585
389,489
Net loss & settlement expenses
137,951
62.8
%
60,991
45.8
%
3,176
8.7
%
202,118
51.9
%
Net operating expenses
79,138
36.0
%
41,873
31.4
%
25,668
70.1
%
146,679
37.7
%
Underwriting income (loss)(1)
$
2,549
98.8
%
$
30,402
77.2
%
$
7,741
78.8
%
$
40,692
89.6
%
2023
Gross premiums written
$
254,307
$
158,590
$
36,427
$
449,324
Net premiums written
207,177
93,207
34,340
334,724
Net premiums earned
189,305
94,988
34,116
318,409
Net loss & settlement expenses
101,750
53.7
%
81,932
86.3
%
5,876
17.2
%
189,558
59.5
%
Net operating expenses
68,885
36.4
%
33,727
35.5
%
21,992
64.5
%
124,604
39.2
%
Underwriting income (loss)(1)
$
18,670
90.1
%
$
(20,671
)
121.8
%
$
6,248
81.7
%
$
4,247
98.7
%
Nine Months Ended
September 30,
GAAP
GAAP
GAAP
GAAP
Casualty
Ratios
Property
Ratios
Surety
Ratios
Total
Ratios
2024
Gross premiums written
$
826,152
$
590,191
$
123,495
$
1,539,838
Net premiums written
687,170
439,052
112,854
1,239,076
Net premiums earned
627,014
396,774
105,442
1,129,230
Net loss & settlement expenses
369,273
58.9
%
134,950
34.0
%
9,518
9.0
%
513,741
45.5
%
Net operating expenses
231,203
36.9
%
120,526
30.4
%
75,349
71.5
%
427,078
37.8
%
Underwriting income (loss)(1)
$
26,538
95.8
%
$
141,298
64.4
%
$
20,575
80.5
%
$
188,411
83.3
%
2023
Gross premiums written
$
723,198
$
539,325
$
109,777
$
1,372,300
Net premiums written
597,356
395,903
103,591
1,096,850
Net premiums earned
562,384
285,596
100,432
948,412
Net loss & settlement expenses
296,633
52.7
%
149,508
52.3
%
11,848
11.8
%
457,989
48.3
%
Net operating expenses
208,273
37.1
%
102,499
35.9
%
66,313
66.0
%
377,085
39.7
%
Underwriting income (loss)(1)
$
57,478
89.8
%
$
33,589
88.2
%
$
22,271
77.8
%
$
113,338
88.0
%
(1)
See discussion above: Non-GAAP and
Performance Measures.
Category: Earnings Release
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241021767239/en/
Aaron Diefenthaler Chief Investment Officer & Treasurer
309-693-5846 Aaron.Diefenthaler@rlicorp.com
Grafico Azioni RLI (NYSE:RLI)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni RLI (NYSE:RLI)
Storico
Da Dic 2023 a Dic 2024
