RLI Corp. (NYSE: RLI) reported Q4 EPS of $0.75, $0.09 better than the analyst estimate of $0.66.

Highlights for the quarter included:

• Underwriting income(1) of $27.0 million on a combined ratio(1) of 88.0.
• 10% increase in gross premiums written.
• Net favorable development in prior years’ loss reserves, resulting in a $24.7 million net increase in underwriting income.
• Special dividend of $1.00 per share, representing $45.1 million returned to shareholders.

“Despite the many uncertainties RLI faced in 2020, we achieved strong results, provided superior service to our customers and delivered value to our shareholders,” said RLI Corp. Chairman and CEO Jonathan E. Michael. “We posted a 92 combined ratio for the year, inclusive of 5 points of hurricane activity, which marked our 25th consecutive year of underwriting profit. During the fourth quarter, we achieved profitability in all product segments including property, which experienced headwinds from an active catastrophe season. Our strong underwriting performance, combined with investment income, resulted in $2.59 per share of operating income.”

“We believe the successful execution of our strategy is validated by growth in book value, which was up 22% in 2020. This achievement allowed us to share the rewards of our success with shareholders through a $1 per share special dividend. We will continue to position RLI for long-term growth through sustained financial strength, underwriting discipline and customer focus. I want to thank our talented associates for their outstanding efforts over the past year. Their willingness to adapt and readily take on the challenges of 2020 speaks to the resilience and strength of our team and culture.”

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