PEORIA, Ill.--(BUSINESS WIRE)--
RLI Corp. (NYSE: RLI) – RLI Corp. reported fourth quarter 2016 net
earnings of $32.2 million ($0.72 per share), compared to $33.9 million
($0.76 per share) for the fourth quarter of 2015. For the year ended
December 31, 2016, net earnings were $114.9 million ($2.59 per share),
compared to $137.5 million ($3.12 per share) for the 2015 fiscal year.
Operating earnings for the fourth quarter of 2016 were $24.9 million
($0.56 per share) compared to $24.6 million ($0.56 per share) for the
same period in 2015. For the year ended December 31, 2016, operating
earnings were $92.4 million ($2.08 per share) compared to $111.7 million
($2.53 per share) for the 2015 fiscal year.
|
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| | |
| | |
|
|
|
Fourth Quarter
|
|
Full Year
|
| Earnings Per Diluted Share |
| 2016 |
|
2015
|
| 2016 |
|
2015
|
|
Net earnings
| | $ | 0.72 | |
$
|
0.76
| | $ | 2.59 | |
$
|
3.12
|
|
Operating earnings (1)
|
| $ | 0.56 |
|
$
|
0.56
|
| $ | 2.08 |
|
$
|
2.53
|
| | | | | | | | | | | |
|
|
(1) See discussion below of non-GAAP and performance measures.
|
|
|
Highlights for the quarter included:
-
Underwriting income of $18.2 million, resulting in a combined ratio of
90.3.
-
3% growth in gross premiums written.
-
Favorable development in prior years’ loss reserves resulting in a
$12.2 million net increase to underwriting income.
-
Losses from Hurricane Matthew resulting in a $6.6 million net decrease
to underwriting income.
-
Special dividend of $2.00 per share, representing $87.9 million
returned to shareholders.
Highlights for the year included:
-
Underwriting income of $76.1 million, resulting in a combined ratio of
89.5.
-
2% growth in gross premiums written.
-
Favorable development in prior years’ loss reserves resulting in a
$36.4 million net increase to underwriting income.
-
21st consecutive year of a combined ratio below 100.
-
Book value per share of $18.74, an increase of 14% from year end 2015,
inclusive of dividends.
“I am pleased to report that 2016 was another excellent year for RLI,”
said RLI Corp. Chairman & CEO Jonathan E. Michael. “In addition to
growing our top line, we reported an 89.5 combined ratio for the year,
marking our 12th consecutive year of achieving a combined ratio below
90. We returned over $120 million to our shareholders in the form of
regular and special dividends, bringing the total amount returned to
shareholders over the past 10 years to more than $1.2 billion. RLI’s
track record of profitability is a testament to our talented
underwriters and associates, who continue to provide great service to
our customers, identify market opportunities and remain highly
disciplined in the selection and pricing of risks. We congratulate and
thank our team for their strong performance and for delivering value to
our shareholders.”
Underwriting Income
RLI achieved $18.2 million of underwriting income in the fourth quarter
of 2016 on a 90.3 combined ratio, compared to $22.5 million of
underwriting income on an 87.4 combined ratio in the same quarter for
2015.
For the year, RLI achieved $76.1 million of underwriting income on an
89.5 combined ratio, compared to $108.6 million of underwriting income
on an 84.5 combined ratio in 2015. Results for both years include
favorable development in prior years’ loss reserves which totaled $36.4
million and $60.6 million for 2016 and 2015, respectively.
The following table highlights annual underwriting income and combined
ratios by segment.
|
| | |
| | |
|
| |
| |
| |
| Underwriting Income (1) | | | | | Combined Ratio (1) | | |
|
(in millions)
|
|
| 2016 |
|
|
2015
| | |
|
| 2016 |
|
2015
|
|
Casualty
| | $ | 36.3 | |
$
|
46.3
| | |
Casualty
| | 92.0 | |
88.8
|
|
Property
| | | 12.8 | | |
29.0
| | |
Property
| | 91.6 | |
83.1
|
|
Surety
|
|
| 27.0 |
|
|
33.3
| | |
Surety
|
| 77.8 |
|
71.5
|
|
Total
|
| $ | 76.1 |
|
$
|
108.6
| | |
Total
|
| 89.5 |
|
84.5
|
| | | | | | | | | | | | |
|
|
(1) See discussion below of non-GAAP and performance measures.
|
|
|
Other Income
RLI’s net investment income for the quarter fell 4.4% to $13.2 million,
compared to the same period in 2015. For the year ended December 31,
2016, investment income was $53.1 million versus $54.6 million for the
same period in 2015. The investment portfolio’s total return was -1.2%
for the quarter. The bond portfolio’s return was -2.3% in the quarter,
while the equity portfolio’s return was 3.9%. For the year ended
December 31, 2016, the investment portfolio’s total return was 5.7% with
the bond portfolio returning 3.2% and equities returning 16.3%.
Comprehensive earnings, which include after-tax unrealized gains/losses
from the investment portfolio, were -$2.9 million for the quarter
(-$0.06 per share) compared to $34.9 million ($0.79 per share) for the
same quarter in 2015. Full-year comprehensive earnings were $113.8
million ($2.56 per share), compared to $89.9 million ($2.04 per share)
in 2015.
Equity in earnings of Maui Jim, Inc., a producer of premium sunglasses,
was -$0.1 million (reflecting seasonal sales results) and offset $0.1
million of earnings from Prime Holdings Insurance Services, Inc., a
specialty E&S insurance company. For the year ended December 31, 2016,
equity in earnings of unconsolidated investees from Maui Jim and Prime
was $9.7 million and $1.1 million, respectively, compared to $9.9
million and $1.0 million in 2015 from Maui Jim and Prime, respectively.
During the quarter, RLI received a $9.9 million dividend from Maui Jim,
which resulted in a tax benefit on dividends received from affiliates of
$2.8 million ($0.06 per share).
Special and Regular Dividends
On December 23, 2016, RLI paid a special cash dividend of $2.00 per
share, resulting in a tax benefit of $2.4 million ($0.05 per share) as
dividends to the ESOP are fully deductible, and a regular quarterly
dividend of $0.20 per share for a combined total of $96.7 million. RLI
has paid dividends for 162 consecutive quarters and increased regular
dividends in each of the last 41 years. Over the last 10 years, the
company’s regular quarterly dividend has grown an average of 7.2% 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 better 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) 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 2016 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 to help users of their financial information to better
understand company performance.
Other News
At 10 a.m. central standard time (CST) tomorrow, January 26, 2017, 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 http://edge.media-server.com/m/p/ohgjem7s.
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, 2015.
About RLI
RLI Corp. (NYSE: RLI) is a specialty insurer serving diverse, 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 A.M. Best Company. RLI
has paid and increased regular dividends for 41 consecutive years and
delivered underwriting profits for 21 consecutive years. To learn more
about RLI and its 50-year history of financial strength, visit www.rlicorp.com.
Supplemental disclosure regarding the earnings impact of specific items:
|
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|
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| | |
| | |
| | | | |
Operating Earnings Per Share
|
| | | | | | 2016 | |
2015
| | 2016 | |
2015
|
| | | | | | 4th Qtr | | 4th Qtr | | 12 Mos. | | 12 Mos. |
|
Operating Earnings Per Share (1)
| | |
$
| 0.56 | | |
$
|
0.56
| | |
$
| 2.08 | | |
$
|
2.53
| |
| | | | | | | | | | | | | | | |
|
| Specific items included in operating earnings per share: (2)
(3)
| | | | | | | | | | | | | |
|
--
| |
Favorable development in casualty prior years' reserves
| | |
$
| 0.23 | | |
$
|
0.06
| | |
$
| 0.48 | | |
$
|
0.63
| |
|
--
| |
Favorable (unfavorable) development in property prior years' reserves
| | |
$
| (0.02 | ) | |
$
|
0.02
| | |
$
| (0.02 | ) | |
$
|
0.07
| |
|
--
| |
Favorable (unfavorable) development in surety prior years' reserves
| | |
$
| (0.01 | ) | |
$
|
0.02
| | |
$
| 0.08 | | |
$
|
0.16
| |
|
--
| |
Catastrophe impact
| | | | | | | | | | | | | |
| |
▪
|
2016 storms
| | |
$
| (0.10 | ) | |
$
|
-
| | |
$
| (0.20 | ) | |
$
|
-
| |
| |
▪
|
2015 and prior events
| | |
$
| (0.01 | ) | |
$
|
(0.01
|
)
| |
$
| - | | |
$
|
(0.12
|
)
|
|
--
| |
Gain from tax benefit of special dividend to ESOP (4)
| | |
$
| 0.05 | | |
$
|
0.06
| | |
$
| 0.05 | | |
$
|
0.06
| |
|
--
| |
Gain from tax benefit applicable to Maui Jim dividend (5)
| | |
$
| 0.06 | | |
$
|
-
| | |
$
| 0.06 | | |
$
|
-
| |
| | | | | | | | | | | | | | | |
|
|
(1)
| |
See discussion above of non-GAAP and performance measures.
|
|
(2)
| |
Includes bonus and profit sharing-related impacts which affected
other insurance and general corporate expenses.
|
|
(3)
| |
Reserve development reflects changes from previously estimated
losses.
|
|
(4)
| |
Dividends paid in an ESOP on employer securities are fully
deductible from taxable income and result in a 35% 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%) as compared to the
corporate capital gains tax rate (35%) on which tax estimates were
based.
|
|
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| | |
| | |
| | | | | | | | |
| RLI CORP. |
| 2016 FINANCIAL HIGHLIGHTS |
|
(Unaudited)
|
|
(Dollars in thousands, except per share amounts)
|
| | | | | | | | | | | | | | | | | |
|
| | Three Months Ended December 31, | | Twelve Months Ended December 31, |
| | 2016 |
| | 2015 |
| | % Change | | 2016 |
| | 2015 |
| | % Change |
SUMMARIZED INCOME STATEMENT DATA: | | | | | | | | | | | | | | | | | | |
|
Net premiums earned
| |
$
|
187,869
| | |
$
|
179,371
| | |
4.7
| |
%
| |
$
|
728,608
| | |
$
|
700,161
| | |
4.1
| |
%
|
|
Net investment income
| | |
13,153
| | | |
13,754
| | |
(4.4
|
)
|
%
| | |
53,075
| | | |
54,644
| | |
(2.9
|
)
|
%
|
|
Net realized gains
| |
|
11,283
|
| |
|
14,207
|
| |
(20.6
|
)
|
%
| |
|
34,645
|
| |
|
39,829
|
| |
(13.0
|
)
|
%
|
|
Consolidated revenue
| |
$
|
212,305
| | |
$
|
207,332
| | |
2.4
| |
%
| |
$
|
816,328
| | |
$
|
794,634
| | |
2.7
| |
%
|
| | | | | | | | | | | | | | | | | |
|
|
Loss and settlement expenses
| |
$
|
90,438
| | |
$
|
80,584
| | |
12.2
| |
%
| |
$
|
349,778
| | |
$
|
299,045
| | |
17.0
| |
%
|
|
Policy acquisition costs
| | |
65,087
| | | |
62,113
| | |
4.8
| |
%
| | |
249,612
| | | |
241,078
| | |
3.5
| |
%
|
|
Insurance operating expenses
| | |
14,143
| | | |
14,183
| | |
(0.3
|
)
|
%
| | |
53,093
| | | |
51,480
| | |
3.1
| |
%
|
|
Interest expense on debt
| | |
1,856
| | | |
1,856
| | |
0.0
| |
%
| | |
7,426
| | | |
7,426
| | |
0.0
| |
%
|
|
General corporate expenses
| |
|
2,785
|
| |
|
2,887
|
| |
(3.5
|
)
|
%
| |
|
10,170
|
| |
|
9,837
|
| |
3.4
|
|
%
|
|
Total expenses
| |
$
|
174,309
| | |
$
|
161,623
| | |
7.8
| |
%
| |
$
|
670,079
| | |
$
|
608,866
| | |
10.1
| |
%
|
| | | | | | | | | | | | | | | | | |
|
Equity in earnings (loss) of unconsolidated investees
| |
|
10
|
| |
|
(127
|
)
| |
-
|
|
| |
|
10,833
|
| |
|
10,914
|
| |
(0.7
|
)
|
%
|
| | | | | | | | | | | | | | | | | |
|
|
Earnings before income taxes
| |
$
|
38,006
| | |
$
|
45,582
| | |
(16.6
|
)
|
%
| |
$
|
157,082
| | |
$
|
196,682
| | |
(20.1
|
)
|
%
|
|
Income tax expense
| |
|
5,819
|
| |
|
11,729
|
| |
(50.4
|
)
|
%
| |
|
42,162
|
| |
|
59,138
|
| |
(28.7
|
)
|
%
|
|
Net earnings
| |
$
|
32,187
|
| |
$
|
33,853
|
| |
(4.9
|
)
|
%
| |
$
|
114,920
|
| |
$
|
137,544
|
| |
(16.4
|
)
|
%
|
| | | | | | | | | | | | | | | | | |
|
|
Other comprehensive earnings (loss), net of tax
| |
|
(35,062
|
)
| |
|
1,054
|
| |
-
|
|
| |
|
(1,164
|
)
| |
|
(47,609
|
)
| |
(97.6
|
)
|
%
|
| | | | | | | | | | | | | | | | | |
|
|
Comprehensive earnings (loss)
| |
$
|
(2,875
|
)
| |
$
|
34,907
|
| |
-
|
|
| |
$
|
113,756
|
| |
$
|
89,935
|
| |
26.5
|
|
%
|
| | | | | | | | | | | | | | | | | |
|
|
Operating earnings: (1) | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
|
|
Net earnings
| |
$
|
32,187
| | |
$
|
33,853
| | |
(4.9
|
)
|
%
| |
$
|
114,920
| | |
$
|
137,544
| | |
(16.4
|
)
|
%
|
|
Less: Realized gains
| | |
(11,283
|
)
| | |
(14,207
|
)
| |
(20.6
|
)
|
%
| | |
(34,645
|
)
| | |
(39,829
|
)
| |
(13.0
|
)
|
%
|
|
Income tax on realized gains
| |
|
3,950
|
| |
|
4,972
|
| |
(20.6
|
)
|
%
| |
|
12,126
|
| |
|
13,939
|
| |
(13.0
|
)
|
%
|
|
Operating earnings
| |
$
|
24,854
|
| |
$
|
24,618
|
| |
1.0
|
|
%
| |
$
|
92,401
|
| |
$
|
111,654
|
| |
(17.2
|
)
|
%
|
| | | | | | | | | | | | | | | | | |
|
| Return on Equity: | | | | | | | | | | | | | | | | | | |
|
Net earnings (trailing four quarters)
| | | | | | | | | | | |
13.2
|
|
%
| |
16.1
|
|
%
| | |
|
Comprehensive earnings (trailing four quarters)
| | | | | | | | | | | |
13.1
|
|
%
| |
10.5
|
|
%
| | |
| | | | | | | | | | | | | | | | | |
|
| Per Share Data | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
|
Diluted: | | | | | | | | | | | | | | | | | | |
|
Weighted average shares outstanding (in 000's)
| | |
44,398
| | | |
44,335
| | | | | | |
44,432
| | | |
44,131
| | | | |
| | | | | | | | | | | | | | | | | |
|
|
Net earnings per share
| |
$
|
0.72
| | |
$
|
0.76
| | |
(5.3
|
)
|
%
| |
$
|
2.59
| | |
$
|
3.12
| | |
(17.0
|
)
|
%
|
|
Less: Realized gains
| | |
(0.25
|
)
| | |
(0.32
|
)
| |
(21.9
|
)
|
%
| | |
(0.78
|
)
| | |
(0.90
|
)
| |
(13.3
|
)
|
%
|
|
Income tax on realized gains
| |
|
0.09
|
| |
|
0.12
|
| |
(25.0
|
)
|
%
| |
|
0.27
|
| |
|
0.31
|
| |
(12.9
|
)
|
%
|
|
EPS from operations (1) | |
$
|
0.56
|
| |
$
|
0.56
|
| |
0.0
|
|
%
| |
$
|
2.08
|
| |
$
|
2.53
|
| |
(17.8
|
)
|
%
|
| | | | | | | | | | | | | | | | | |
|
|
Comprehensive earnings per share
| |
$
|
(0.06
|
)
| |
$
|
0.79
|
| |
-
|
|
| |
$
|
2.56
|
| |
$
|
2.04
|
| |
25.5
|
|
%
|
| | | | | | | | | | | | | | | | | |
|
|
Cash dividends per share - ordinary
| |
$
|
0.20
| | |
$
|
0.19
| | |
5.3
| |
%
| |
$
|
0.79
| | |
$
|
0.75
| | |
5.3
| |
%
|
|
Cash dividends per share - special
| |
$
|
2.00
| | |
$
|
2.00
| | |
0.0
| |
%
| |
$
|
2.00
| | |
$
|
2.00
| | |
0.0
| |
%
|
| | | | | | | | | | | | | | | | | |
|
| Net Cash Flow provided by Operations | |
$
|
51,463
|
| |
$
|
31,219
|
| |
64.8
|
|
%
| |
$
|
174,463
|
| |
$
|
152,586
|
| |
14.3
|
|
%
|
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
| (1) See discussion above of non-GAAP and performance measures.
|
|
| | |
| | |
| | |
| RLI CORP. |
| 2016 FINANCIAL HIGHLIGHTS |
|
(Unaudited)
|
|
(Dollars in thousands, except per share amounts)
|
| | | | | | | | |
|
| | | | | | | | |
|
| | December 31, | | December 31, | | | |
| | 2016 | | 2015 | | % Change |
SUMMARIZED BALANCE SHEET DATA: | | | | | | | | | |
|
Fixed income
| |
$
|
1,605,209
| |
$
|
1,538,110
| |
4.4
| |
%
|
|
(amortized cost - $1,596,227 at 12/31/16)
| | | | | | | | | |
|
(amortized cost - $1,518,156 at 12/31/15)
| | | | | | | | | |
|
Equity securities
| | |
369,219
| | |
375,424
| |
(1.7
|
)
|
%
|
|
(cost - $187,573 at 12/31/16)
| | | | | | | | | |
|
(cost - $202,437 at 12/31/15)
| | | | | | | | | |
|
Other invested assets
| | |
24,115
| | |
20,666
| |
16.7
| |
%
|
|
Cash and cash equivalents
| | |
23,284
| | |
17,343
| |
34.3
|
|
%
|
|
Total investments and cash
| |
$
|
2,021,827
| |
$
|
1,951,543
| |
3.6
| |
%
|
| | | | | | | | |
|
|
Premiums and reinsurance balances receivable
| | |
126,387
| | |
143,662
| |
(12.0
|
)
|
%
|
|
Ceded unearned premiums
| | |
52,173
| | |
52,833
| |
(1.2
|
)
|
%
|
|
Reinsurance balances recoverable on unpaid losses
| | |
288,224
| | |
297,844
| |
(3.2
|
)
|
%
|
|
Deferred policy acquisition costs
| | |
73,147
| | |
69,829
| |
4.8
| |
%
|
|
Property and equipment
| | |
54,606
| | |
47,102
| |
15.9
| |
%
|
|
Investment in unconsolidated investees
| | |
72,240
| | |
70,784
| |
2.1
| |
%
|
| Goodwill and intangibles
| | |
64,371
| | |
71,294
| |
(9.7
|
)
|
%
|
|
Other assets
| | |
24,658
| | |
30,574
| |
(19.3
|
)
|
%
|
|
Total assets
| |
$
|
2,777,633
| |
$
|
2,735,465
| |
1.5
|
|
%
|
| | | | | | | | |
|
|
Unpaid losses and settlement expenses
| |
$
|
1,139,337
| |
$
|
1,103,785
| |
3.2
| |
%
|
|
Unearned premiums
| | |
433,777
| | |
422,094
| |
2.8
| |
%
|
|
Reinsurance balances payable
| | |
17,928
| | |
37,556
| |
(52.3
|
)
|
%
|
|
Funds held
| | |
72,742
| | |
54,254
| |
34.1
| |
%
|
|
Income taxes - deferred
| | |
64,494
| | |
63,993
| |
0.8
| |
%
|
|
Bonds payable, long-term debt
| | |
148,741
| | |
148,554
| |
0.1
| |
%
|
|
Accrued expenses
| | |
51,992
| | |
55,742
| |
(6.7
|
)
|
%
|
|
Other liabilities
| | |
25,050
| | |
26,018
| |
(3.7
|
)
|
%
|
|
Total liabilities
| |
$
|
1,954,061
| |
$
|
1,911,996
| |
2.2
| |
%
|
|
Shareholders' equity
| | |
823,572
| | |
823,469
| |
0.0
|
|
%
|
|
Total liabilities & shareholders' equity
| |
$
|
2,777,633
| |
$
|
2,735,465
| |
1.5
|
|
%
|
| | | | | | | | |
|
| | | | | | | | |
|
OTHER DATA | | | | | | | | | |
| | | | | | | | |
|
|
Common shares outstanding (in 000's)
| | |
43,945
| | |
43,544
| | | |
| | | | | | | | |
|
|
Book value per share
| |
$
|
18.74
| |
$
|
18.91
| |
(0.9
|
)
|
%
|
|
Closing stock price per share
| |
$
|
63.13
| |
$
|
61.75
| |
2.2
| |
%
|
|
Cash dividends per share - ordinary (annualized)
| |
$
|
0.79
| |
$
|
0.75
| |
5.3
| |
%
|
|
Cash dividends per share - special
| |
$
|
2.00
| |
$
|
2.00
| |
0.0
| |
%
|
| | | | | | | | |
|
|
Statutory Surplus
| | $ |
859,976
| | $ |
865,268
| |
(0.6
|
)
|
%
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| RLI CORP. |
| 2016 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 |
2016 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Gross premiums written
| |
$
|
134,092
| | | | |
$
|
40,322
| | | | | |
$
|
31,945
| | | | |
$
|
206,359
| | | |
|
Net premiums written
| | |
111,841
| | | | | |
32,153
| | | | | | |
30,442
| | | | | |
174,436
| | | |
|
Net premiums earned
| | |
118,271
| | | | | |
38,156
| | | | | | |
31,442
| | | | | |
187,869
| | | |
|
Net loss & settlement expenses
| | |
60,637
| |
51.3
|
%
| | |
21,664
| | |
56.8
|
%
| | |
8,137
| |
25.9
|
%
| | |
90,438
| |
48.1
|
%
|
|
Net operating expenses
| | |
41,795
| |
35.3
|
%
| | |
17,571
|
| |
46.1
|
%
| | |
19,864
| |
63.2
|
%
| | |
79,230
| |
42.2
|
%
|
|
Underwriting income (loss) (1)
| |
$
|
15,839
| |
86.6
|
%
| |
$
|
(1,079
|
)
| |
102.9
|
%
| |
$
|
3,441
| |
89.1
|
%
| |
$
|
18,201
| |
90.3
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
2015 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Gross premiums written
| |
$
|
126,074
| | | | |
$
|
42,735
| | | | | |
$
|
31,770
| | | | |
$
|
200,579
| | | |
|
Net premiums written
| | |
104,877
| | | | | |
33,284
| | | | | | |
30,353
| | | | | |
168,514
| | | |
|
Net premiums earned
| | |
106,406
| | | | | |
42,840
| | | | | | |
30,125
| | | | | |
179,371
| | | |
|
Net loss & settlement expenses
| | |
59,194
| |
55.6
|
%
| | |
17,537
| | |
40.9
|
%
| | |
3,853
| |
12.8
|
%
| | |
80,584
| |
44.9
|
%
|
|
Net operating expenses
| | |
39,073
| |
36.7
|
%
| | |
18,498
|
| |
43.2
|
%
| | |
18,725
| |
62.2
|
%
| | |
76,296
| |
42.5
|
%
|
|
Underwriting income (loss) (1)
| |
$
|
8,139
| |
92.3
|
%
| |
$
|
6,805
| | |
84.1
|
%
| |
$
|
7,547
| |
75.0
|
%
| |
$
|
22,491
| |
87.4
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
Twelve Months Ended December 31, | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | GAAP | | | | | GAAP | | | | | GAAP | | | | | GAAP |
| | | Casualty | | Ratios | | | Property | | Ratios | | | Surety | | Ratios | | | Total | | Ratios |
2016 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Gross premiums written
| |
$
|
560,349
| | | | |
$
|
186,136
| | | | | |
$
|
128,379
| | | | |
$
|
874,864
| | | |
|
Net premiums written
| | |
470,082
| | | | | |
149,170
| | | | | | |
121,700
| | | | | |
740,952
| | | |
|
Net premiums earned
| | |
454,843
| | | | | |
152,167
| | | | | | |
121,598
| | | | | |
728,608
| | | |
|
Net loss & settlement expenses
| | |
259,907
| |
57.1
|
%
| | |
71,350
| | |
46.9
|
%
| | |
18,521
| |
15.2
|
%
| | |
349,778
| |
48.0
|
%
|
|
Net operating expenses
| | |
158,607
| |
34.9
|
%
| | |
67,985
|
| |
44.7
|
%
| | |
76,113
| |
62.6
|
%
| | |
302,705
| |
41.5
|
%
|
|
Underwriting income (loss) (1)
| |
$
|
36,329
| |
92.0
|
%
| |
$
|
12,832
| | |
91.6
|
%
| |
$
|
26,964
| |
77.8
|
%
| |
$
|
76,125
| |
89.5
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
2015 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Gross premiums written
| |
$
|
519,670
| | | | |
$
|
208,370
| | | | | |
$
|
125,546
| | | | |
$
|
853,586
| | | |
|
Net premiums written
| | |
435,409
| | | | | |
166,659
| | | | | | |
119,903
| | | | | |
721,971
| | | |
|
Net premiums earned
| | |
412,248
| | | | | |
170,924
| | | | | | |
116,989
| | | | | |
700,161
| | | |
|
Net loss & settlement expenses
| | |
218,414
| |
53.0
|
%
| | |
69,851
| | |
40.9
|
%
| | |
10,780
| |
9.2
|
%
| | |
299,045
| |
42.7
|
%
|
|
Net operating expenses
| | |
147,571
| |
35.8
|
%
| | |
72,048
|
| |
42.2
|
%
| | |
72,939
| |
62.3
|
%
| | |
292,558
| |
41.8
|
%
|
|
Underwriting income (loss) (1)
| |
$
|
46,263
| |
88.8
|
%
| |
$
|
29,025
| | |
83.1
|
%
| |
$
|
33,270
| |
71.5
|
%
| |
$
|
108,558
| |
84.5
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
| (1) See discussion above of non-GAAP and performance measures.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170125006269/en/
RLI Corp.
Aaron Jacoby
Vice President, Corporate Development
309-693-5880
Aaron.Jacoby@rlicorp.com
Source: RLI Corp.