RLI Reports Third Quarter 2022 Results
PEORIA, Ill.--(BUSINESS WIRE)-- RLI Corp. (NYSE: RLI) – RLI Corp. reported third quarter 2022 net earnings of $439.9 million ($9.61 per share), compared to net earnings of $29.2 million ($0.64 per share) for the third quarter of 2021. Operating earnings(1) for the third quarter of 2022 were $23.0 million ($0.50 per share), compared to $25.6 million ($0.56 per share) for the same period in 2021.
|
|
Third Quarter |
|
Year to Date |
|||||||||||
Earnings Per Diluted Share |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||
Net earnings |
|
$ |
9.61 |
|
$ |
0.64 |
|
$ |
10.61 |
|
$ |
4.03 |
|||
Operating earnings (1) (2) |
|
$ |
0.50 |
|
$ |
0.56 |
|
$ |
3.15 |
|
$ |
2.27 |
|||
| (1) | See discussion below: Non-GAAP and Performance Measures. |
|
| (2) | Equity in earnings of Maui Jim and the related taxes were excluded from operating earnings per share due to the sale of RLI’s investment in Maui Jim. Prior period amounts have been restated to reflect the adjustment. |
Highlights for the quarter included:
- Underwriting income(1) of $8.8 million on a combined ratio(1) of 97.0.
- 13% increase in gross premiums written.
- 19% increase in net investment income.
- Net earnings include $437.7 million ($9.56 per diluted share) related to the sale of Maui Jim, Inc.
- Favorable development in prior years’ loss reserves, resulting in a $29.0 million net increase in underwriting income.
- Losses from third quarter hurricanes, resulting in a $34.8 million net decrease in underwriting income.
- Book value per share of $30.72, an increase of 16% (inclusive of dividends) from year-end 2021.
“After a fairly quiet start to the storm season, Hurricane Ian had an impact on our third quarter results,” said RLI Corp. President & CEO Craig Kliethermes. “Our thoughts are with all who have been affected by Ian, and I want to acknowledge the outstanding work our associates are doing to help our policyholders recover. Despite the sizable catastrophe losses related to this event, RLI produced an underwriting profit during the quarter. We also experienced continued growth across all three product segments. It is our financial strength that allows us to fulfill our promise to help restore our customers’ businesses and livelihoods following catastrophic events, and we remain focused on delivering on this commitment.”
Underwriting Income
RLI achieved $8.8 million of underwriting income in the third quarter of 2022 on a 97.0 combined ratio, compared to $13.7 million on a 94.6 combined ratio in 2021.
Results for the third quarter of both years include favorable development in prior years’ loss reserves, which resulted in a $29.0 million and $25.1 million net increase to underwriting income for 2022 and 2021, respectively. The favorable development in 2022 was offset by a $34.8 million net reduction to underwriting income for hurricane losses, compared to $29.8 million of hurricane and storm losses in 2021.
The following table highlights underwriting income and combined ratios by segment.
Underwriting Income (Loss)(1) |
|
|
|
|
|
|
|
Combined Ratio(1) |
|
|
|
|
|||
(in millions) |
|
2022 |
|
|
2021 |
|
|
|
|
2022 |
|
2021 |
|||
Casualty |
|
$ |
11.3 |
|
|
$ |
22.9 |
|
|
Casualty |
|
93.7 |
|
85.9 |
|
Property |
|
|
(8.3 |
) |
|
|
(16.5 |
) |
|
Property |
|
110.3 |
|
127.2 |
|
Surety |
|
|
5.8 |
|
|
|
7.3 |
|
|
Surety |
|
81.4 |
|
75.3 |
|
Total |
|
$ |
8.8 |
|
|
$ |
13.7 |
|
|
Total |
|
97.0 |
|
94.6 |
|
(1) |
See discussion below: Non-GAAP and Performance Measures. |
Other Income
Net investment income for the quarter increased 19.2% to $21.3 million, compared to the same period in 2021. The investment portfolio’s total return was -3.4% for the quarter and -13.5% for the nine months ended September 30, 2022.
RLI’s comprehensive earnings was $358.6 million for the quarter ($7.84 per share), compared to $17.0 million ($0.37 per share) for the same quarter in 2021. In addition to net earnings, comprehensive earnings included after-tax unrealized losses from the fixed income portfolio, due to rising interest rates.
Equity in earnings (loss) of Maui Jim, Inc. (Maui Jim), a producer of premium sunglasses, was -$18.0 million for the quarter, primarily due to transaction related expenses from the sale of the company. Equity in earnings of Prime Holdings Insurance Services, Inc. (Prime), a specialty insurance company, was $2.9 million. Comparatively, for the third quarter of 2021, equity in earnings of unconsolidated investees from Maui Jim and Prime was $5.4 million and $4.4 million, respectively.
Dividends Paid in Third Quarter of 2022
On September 20, 2022, the company paid a regular quarterly dividend of $0.26 per share, the same amount as the prior quarter. RLI’s cumulative dividends total more than $513 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. Additionally, equity in earnings of Maui Jim and the related taxes were excluded from operating earnings and operating EPS due to the sale of RLI’s investment. Operating earnings and operating EPS for prior periods have been restated to reflect the equity in earnings of Maui Jim adjustment. 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 2022 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
As previously announced, RLI completed the sale of its minority interest in Maui Jim. RLI’s pre-tax proceeds from the sale was $686.6 million, and remains subject to customary post-closing working capital and other adjustments. The impact of the sale on RLI’s financial statements was a $437.7 million increase to net earnings.
At 10 a.m. central daylight time (CDT) tomorrow, October 20, 2022, 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/974954525.
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, 2021.
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 47 consecutive years and delivered underwriting profits for 26 consecutive years. To learn more about RLI, visit www.rlicorp.com.
Supplemental disclosure regarding the earnings impact of specific items:
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|
Reserve Development and Catastrophe Losses, |
||||||||||||||
|
|
Net of Reinsurance |
||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
(Dollars in millions, except per share amounts) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Favorable development in casualty prior years' reserves |
|
$ |
28.2 |
|
|
$ |
26.4 |
|
|
$ |
72.9 |
|
|
$ |
83.8 |
|
Favorable development in property prior years' reserves |
|
$ |
3.3 |
|
|
$ |
0.5 |
|
|
$ |
20.8 |
|
|
$ |
8.4 |
|
Favorable development in surety prior years' reserves |
|
$ |
1.8 |
|
|
$ |
2.5 |
|
|
$ |
9.3 |
|
|
$ |
2.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net incurred losses related to: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
2022 storms |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(5.0 |
) |
|
$ |
— |
|
2022 hurricanes |
|
$ |
(40.0 |
) |
|
$ |
— |
|
|
$ |
(40.0 |
) |
|
$ |
— |
|
2021 and prior events |
|
$ |
— |
|
|
$ |
(34.9 |
) |
|
$ |
— |
|
|
$ |
(56.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Operating Earnings Per Share |
||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Operating Earnings Per Share(1) (2) |
|
$ |
0.50 |
|
|
$ |
0.56 |
|
|
$ |
3.15 |
|
|
$ |
2.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Specific items included in operating earnings per share:(3) (4) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net favorable development in casualty prior years' reserves |
|
$ |
0.44 |
|
|
$ |
0.40 |
|
|
$ |
1.11 |
|
|
$ |
1.30 |
|
Net favorable development in property prior years' reserves |
|
$ |
0.04 |
|
|
$ |
— |
|
|
$ |
0.31 |
|
|
$ |
0.09 |
|
Net favorable development in surety prior years' reserves |
|
$ |
0.02 |
|
|
$ |
0.03 |
|
|
$ |
0.13 |
|
|
$ |
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net incurred losses related to: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
2022 storms |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(0.08 |
) |
|
$ |
— |
|
2022 hurricanes |
|
$ |
(0.60 |
) |
|
$ |
— |
|
|
$ |
(0.60 |
) |
|
$ |
— |
|
2021 and prior events |
|
$ |
— |
|
|
$ |
(0.51 |
) |
|
$ |
— |
|
|
$ |
(0.84 |
) |
(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 due to the sale of RLI’s investment in Maui Jim. Prior period amounts have been restated to reflect the adjustment. |
|
(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. |
RLI CORP 2022 FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands, except per share amounts) |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||||||||||||
SUMMARIZED INCOME STATEMENT DATA: |
|
2022 |
|
2021 |
|
% Change |
|
2022 |
2021 |
|
% Change |
|||||||||||||||
Net premiums earned |
|
$ |
291,468 |
|
|
$ |
253,389 |
|
|
15.0 |
|
% |
|
$ |
843,430 |
|
|
$ |
722,984 |
|
|
|
16.7 |
|
% |
|
Net investment income |
|
|
21,270 |
|
|
|
17,844 |
|
|
19.2 |
|
% |
|
|
57,625 |
|
|
|
50,929 |
|
|
|
13.1 |
|
% |
|
Net realized gains |
|
|
573,170 |
|
|
|
1,829 |
|
|
NM |
|
|
|
|
591,562 |
|
|
|
52,442 |
|
|
|
NM |
|
|
|
Net unrealized gains (losses) on equity securities |
|
|
(26,414 |
) |
|
|
(2,592 |
) |
|
NM |
|
|
|
|
(155,218 |
) |
|
|
29,526 |
|
|
|
NM |
|
|
|
Consolidated revenue |
|
$ |
859,494 |
|
|
$ |
270,470 |
|
|
NM |
|
|
|
$ |
1,337,399 |
|
|
$ |
855,881 |
|
|
|
56.3 |
|
% |
|
Loss and settlement expenses |
|
|
165,089 |
|
|
|
143,656 |
|
|
14.9 |
|
% |
|
|
388,527 |
|
|
|
355,574 |
|
|
|
9.3 |
|
% |
|
Policy acquisition costs |
|
|
96,977 |
|
|
|
80,449 |
|
|
20.5 |
|
% |
|
|
271,879 |
|
|
|
232,674 |
|
|
|
16.8 |
|
% |
|
Insurance operating expenses |
|
|
20,606 |
|
|
|
15,560 |
|
|
32.4 |
|
% |
|
|
58,794 |
|
|
|
54,504 |
|
|
|
7.9 |
|
% |
|
Interest expense on debt |
|
|
2,013 |
|
|
|
1,906 |
|
|
5.6 |
|
% |
|
|
6,034 |
|
|
|
5,711 |
|
|
|
5.7 |
|
% |
|
General corporate expenses |
|
|
2,755 |
|
|
|
2,505 |
|
|
10.0 |
|
% |
|
|
8,553 |
|
|
|
9,533 |
|
|
|
(10.3 |
) |
% |
|
Total expenses |
|
$ |
287,440 |
|
|
$ |
244,076 |
|
|
17.8 |
|
% |
|
$ |
733,787 |
|
|
$ |
657,996 |
|
|
|
11.5 |
|
% |
|
Equity in earnings (loss) of unconsolidated investees |
|
|
(17,352 |
) |
|
|
9,043 |
|
|
NM |
|
|
|
|
3,061 |
|
|
|
29,407 |
|
|
|
(89.6 |
) |
% |
|
Earnings before income taxes |
|
$ |
554,702 |
|
|
$ |
35,437 |
|
|
NM |
|
|
|
$ |
606,673 |
|
|
$ |
227,292 |
|
|
|
166.9 |
|
% |
|
Income tax expense |
|
|
114,809 |
|
|
|
6,194 |
|
|
NM |
|
|
|
|
121,096 |
|
|
|
43,222 |
|
|
|
180.2 |
|
% |
|
Net earnings(3) |
|
$ |
439,893 |
|
|
$ |
29,243 |
|
|
NM |
|
|
|
$ |
485,577 |
|
|
$ |
184,070 |
|
|
|
163.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other comprehensive earnings (loss), net of tax |
|
|
(81,248 |
) |
|
|
(12,240 |
) |
|
NM |
|
|
|
|
(294,392 |
) |
|
|
(41,810 |
) |
|
|
NM |
|
|
|
Comprehensive earnings |
|
$ |
358,645 |
|
|
$ |
17,003 |
|
|
NM |
|
|
|
$ |
191,185 |
|
|
$ |
142,260 |
|
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating earnings(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net earnings(3) |
|
$ |
439,893 |
|
|
$ |
29,243 |
|
|
NM |
|
|
|
$ |
485,577 |
|
|
$ |
184,070 |
|
|
|
163.8 |
|
% |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net realized gains |
|
|
(573,170 |
) |
|
|
(1,829 |
) |
|
NM |
|
|
|
|
(591,562 |
) |
|
|
(52,442 |
) |
|
|
NM |
|
|
|
Income tax on realized gains |
|
|
121,199 |
|
|
|
385 |
|
|
NM |
|
|
|
|
125,061 |
|
|
|
11,013 |
|
|
|
NM |
|
|
|
Net unrealized (gains) losses on equity securities |
|
|
26,414 |
|
|
|
2,592 |
|
|
NM |
|
|
|
|
155,218 |
|
|
|
(29,526 |
) |
|
|
NM |
|
|
|
Income tax on unrealized gains (losses) on equity securities |
|
|
(5,547 |
) |
|
|
(544 |
) |
|
NM |
|
|
|
|
(32,596 |
) |
|
|
6,200 |
|
|
|
NM |
|
|
|
Equity in (earnings) loss of Maui Jim |
|
|
17,993 |
|
|
|
(5,376 |
) |
|
NM |
|
|
|
|
3,121 |
|
|
|
(19,691 |
) |
|
|
NM |
|
|
|
Income tax on equity in earnings (loss) of Maui Jim |
|
|
(3,779 |
) |
|
|
1,129 |
|
|
NM |
|
|
|
|
(655 |
) |
|
|
4,135 |
|
|
|
NM |
|
|
|
Operating earnings(2) |
|
$ |
23,004 |
|
|
$ |
25,600 |
|
|
(10.1 |
) |
% |
|
$ |
144,164 |
|
|
$ |
103,759 |
|
|
|
38.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Return on Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net earnings (trailing four quarters) |
|
|
|
|
|
|
|
|
|
|
|
47.8 |
|
% |
|
22.8 |
|
% |
|
|
|
|||||
Comprehensive earnings (trailing four quarters) |
|
|
|
|
|
|
|
|
|
|
|
22.2 |
|
% |
|
19.7 |
|
% |
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Weighted average shares outstanding (in 000's) |
|
|
45,775 |
|
|
|
45,689 |
|
|
|
|
|
|
45,775 |
|
|
|
45,714 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net earnings per share(2) |
|
$ |
9.61 |
|
|
$ |
0.64 |
|
|
NM |
|
|
|
$ |
10.61 |
|
|
$ |
4.03 |
|
|
|
163.3 |
|
% |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net realized gains |
|
|
(12.53 |
) |
|
|
(0.04 |
) |
|
NM |
|
|
|
|
(12.93 |
) |
|
|
(1.15 |
) |
|
|
NM |
|
|
|
Income tax on realized gains |
|
|
2.65 |
|
|
|
0.01 |
|
|
NM |
|
|
|
|
2.73 |
|
|
|
0.24 |
|
|
|
NM |
|
|
|
Net unrealized (gains) losses on equity securities |
|
|
0.58 |
|
|
|
0.05 |
|
|
NM |
|
|
|
|
3.39 |
|
|
|
(0.65 |
) |
|
|
NM |
|
|
|
Income tax on unrealized gains (losses) on equity securities |
|
|
(0.12 |
) |
|
|
(0.01 |
) |
|
NM |
|
|
|
|
(0.71 |
) |
|
|
0.14 |
|
|
|
NM |
|
|
|
Equity in (earnings) loss of Maui Jim |
|
|
0.39 |
|
|
|
(0.11 |
) |
|
NM |
|
|
|
|
0.07 |
|
|
|
(0.43 |
) |
|
|
NM |
|
|
|
Income tax on equity in earnings (loss) of Maui Jim |
|
|
(0.08 |
) |
|
|
0.02 |
|
|
NM |
|
|
|
|
(0.01 |
) |
|
|
0.09 |
|
|
|
NM |
|
|
|
Operating earnings per share(1)(2) |
|
$ |
0.50 |
|
|
$ |
0.56 |
|
|
(10.7 |
) |
% |
|
$ |
3.15 |
|
|
$ |
2.27 |
|
|
|
38.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Comprehensive earnings per share |
|
$ |
7.84 |
|
|
$ |
0.37 |
|
|
NM |
|
|
|
$ |
4.18 |
|
|
$ |
3.11 |
|
|
|
34.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cash dividends per share - ordinary |
|
$ |
0.26 |
|
|
$ |
0.25 |
|
|
4.0 |
|
% |
|
$ |
0.77 |
|
|
$ |
0.74 |
|
|
|
4.1 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net Cash Flow provided by Operations |
|
$ |
112,241 |
|
|
$ |
115,932 |
|
|
(3.2 |
) |
% |
|
$ |
282,886 |
|
|
$ |
280,441 |
|
|
|
0.9 |
|
% |
|
(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 due to the sale of RLI’s investment in Maui Jim. Prior period amounts have been restated to reflect the adjustment. |
|
(3) |
Net earnings include $437.7 million related to the sale of Maui Jim, which was completed in the third quarter of 2022. |
|
|
||
| NM = Not Meaningful | ||
RLI CORP 2022 FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands, except per share amounts) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
|||
|
|
2022 |
|
2021 |
|
% Change |
||||
SUMMARIZED BALANCE SHEET DATA: |
|
|
|
|
|
|
|
|
|
|
Fixed income, at fair value |
|
$ |
2,452,039 |
|
$ |
2,409,887 |
|
1.7 |
|
% |
(amortized cost - $2,753,631 at 9/30/22) |
|
|
|
|
|
|
|
|
|
|
(amortized cost - $2,346,267 at 12/31/21) |
|
|
|
|
|
|
|
|
|
|
Equity securities, at fair value |
|
|
462,988 |
|
|
613,776 |
|
(24.6 |
) |
% |
(cost - $327,964 at 9/30/22) |
|
|
|
|
|
|
|
|
|
|
(cost - $324,501 at 12/31/21) |
|
|
|
|
|
|
|
|
|
|
Other invested assets |
|
|
48,837 |
|
|
50,501 |
|
(3.3 |
) |
% |
Cash and cash equivalents |
|
|
723,511 |
|
|
88,804 |
|
NM |
|
|
Total investments and cash |
|
$ |
3,687,375 |
|
$ |
3,162,968 |
|
16.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
Premiums and reinsurance balances receivable |
|
|
201,781 |
|
|
167,279 |
|
20.6 |
|
% |
Ceded unearned premiums |
|
|
137,346 |
|
|
130,916 |
|
4.9 |
|
% |
Reinsurance balances recoverable on unpaid losses |
|
|
770,858 |
|
|
608,086 |
|
26.8 |
|
% |
Deferred policy acquisition costs |
|
|
128,979 |
|
|
103,553 |
|
24.6 |
|
% |
Property and equipment |
|
|
50,385 |
|
|
52,161 |
|
(3.4 |
) |
% |
Investment in unconsolidated investees |
|
|
58,105 |
|
|
171,311 |
|
(66.1 |
) |
% |
Goodwill and intangibles |
|
|
53,562 |
|
|
53,562 |
|
0.0 |
|
% |
Income taxes - deferred |
|
|
51,791 |
|
|
— |
|
NM |
|
|
Other assets |
|
|
71,483 |
|
|
58,466 |
|
22.3 |
|
% |
Total assets |
|
$ |
5,211,665 |
|
$ |
4,508,302 |
|
15.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
Unpaid losses and settlement expenses |
|
$ |
2,322,737 |
|
$ |
2,043,555 |
|
13.7 |
|
% |
Unearned premiums |
|
|
786,485 |
|
|
680,444 |
|
15.6 |
|
% |
Reinsurance balances payable |
|
|
50,349 |
|
|
42,851 |
|
17.5 |
|
% |
Funds held |
|
|
100,547 |
|
|
89,773 |
|
12.0 |
|
% |
Income taxes - current |
|
|
132,446 |
|
|
3,092 |
|
NM |
|
|
Income taxes - deferred |
|
|
— |
|
|
83,509 |
|
(100.0 |
) |
% |
Current portion of long-term debt |
|
|
149,816 |
|
|
— |
|
NM |
|
|
Long-term debt |
|
|
50,000 |
|
|
199,676 |
|
(75.0 |
) |
% |
Accrued expenses |
|
|
81,066 |
|
|
98,274 |
|
(17.5 |
) |
% |
Other liabilities |
|
|
144,226 |
|
|
37,767 |
|
NM |
|
|
Total liabilities |
|
$ |
3,817,672 |
|
$ |
3,278,941 |
|
16.4 |
|
% |
Shareholders' equity |
|
|
1,393,993 |
|
|
1,229,361 |
|
13.4 |
|
% |
Total liabilities & shareholders' equity |
|
$ |
5,211,665 |
|
$ |
4,508,302 |
|
15.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
OTHER DATA: |
|
|
|
|
|
|
|
|
|
|
Common shares outstanding (in 000's) |
|
|
45,378 |
|
|
45,289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
30.72 |
|
$ |
27.14 |
|
13.2 |
|
% |
Closing stock price per share |
|
$ |
102.38 |
|
$ |
112.10 |
|
(8.7 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
Statutory surplus |
|
$ |
1,195,898 |
|
$ |
1,240,649 |
|
(3.6 |
) |
% |
RLI CORP 2022 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 |
|||||||||||||
2022 |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Gross premiums written |
|
$ |
240,366 |
|
|
|
$ |
126,083 |
|
|
|
|
$ |
37,301 |
|
|
|
$ |
403,750 |
|
|
|
||||
Net premiums written |
|
|
192,615 |
|
|
|
|
90,961 |
|
|
|
|
|
35,256 |
|
|
|
|
318,832 |
|
|
|
||||
Net premiums earned |
|
|
179,615 |
|
|
|
|
80,844 |
|
|
|
|
|
31,009 |
|
|
|
|
291,468 |
|
|
|
||||
Net loss & settlement expenses |
|
|
100,714 |
|
56.1 |
% |
|
59,347 |
|
|
73.4 |
% |
|
5,028 |
|
16.2 |
% |
|
165,089 |
|
56.6 |
% |
||||
Net operating expenses |
|
|
67,572 |
|
37.6 |
% |
|
29,805 |
|
|
36.9 |
% |
|
20,206 |
|
65.2 |
% |
|
117,583 |
|
40.4 |
% |
||||
Underwriting income (loss)(1) |
|
$ |
11,329 |
|
93.7 |
% |
$ |
(8,308 |
) |
|
110.3 |
% |
$ |
5,775 |
|
81.4 |
% |
$ |
8,796 |
|
97.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
2021 |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Gross premiums written |
|
$ |
232,796 |
|
|
|
$ |
90,148 |
|
|
|
|
$ |
33,302 |
|
|
|
$ |
356,246 |
|
|
|
||||
Net premiums written |
|
|
178,586 |
|
|
|
|
68,444 |
|
|
|
|
|
31,623 |
|
|
|
|
278,653 |
|
|
|
||||
Net premiums earned |
|
|
162,852 |
|
|
|
|
60,886 |
|
|
|
|
|
29,651 |
|
|
|
|
253,389 |
|
|
|
||||
Net loss & settlement expenses |
|
|
84,139 |
|
51.7 |
% |
|
55,695 |
|
|
91.5 |
% |
|
3,822 |
|
12.9 |
% |
|
143,656 |
|
56.7 |
% |
||||
Net operating expenses |
|
|
55,764 |
|
34.2 |
% |
|
21,749 |
|
|
35.7 |
% |
|
18,496 |
|
62.4 |
% |
|
96,009 |
|
37.9 |
% |
||||
Underwriting income (loss)(1) |
|
$ |
22,949 |
|
85.9 |
% |
$ |
(16,558 |
) |
|
127.2 |
% |
$ |
7,333 |
|
75.3 |
% |
$ |
13,724 |
|
94.6 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nine Months Ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
GAAP |
|
|
GAAP |
|
|
GAAP |
|
|
GAAP |
|||||||||||||
|
|
Casualty |
|
Ratios |
Property |
|
Ratios |
Surety |
|
Ratios |
Total |
|
Ratios |
|||||||||||||
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross premiums written |
|
$ |
704,502 |
|
|
|
$ |
371,529 |
|
|
|
|
$ |
105,667 |
|
|
|
$ |
1,181,698 |
|
|
|
||||
Net premiums written |
|
|
569,475 |
|
|
|
|
273,312 |
|
|
|
|
|
100,254 |
|
|
|
|
943,041 |
|
|
|
||||
Net premiums earned |
|
|
528,494 |
|
|
|
|
222,974 |
|
|
|
|
|
91,962 |
|
|
|
|
843,430 |
|
|
|
||||
Net loss & settlement expenses |
|
|
278,813 |
|
52.8 |
% |
|
100,187 |
|
|
44.9 |
% |
|
9,527 |
|
10.4 |
% |
|
388,527 |
|
46.1 |
% |
||||
Net operating expenses |
|
|
189,263 |
|
35.8 |
% |
|
82,514 |
|
|
37.0 |
% |
|
58,896 |
|
64.0 |
% |
|
330,673 |
|
39.2 |
% |
||||
Underwriting income (loss)(1) |
|
$ |
60,418 |
|
88.6 |
% |
$ |
40,273 |
|
|
81.9 |
% |
$ |
23,539 |
|
74.4 |
% |
$ |
124,230 |
|
85.3 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross premiums written |
|
$ |
658,021 |
|
|
|
$ |
256,596 |
|
|
|
|
$ |
95,508 |
|
|
|
$ |
1,010,125 |
|
|
|
||||
Net premiums written |
|
|
510,913 |
|
|
|
|
194,373 |
|
|
|
|
|
90,842 |
|
|
|
|
796,128 |
|
|
|
||||
Net premiums earned |
|
|
467,817 |
|
|
|
|
168,393 |
|
|
|
|
|
86,774 |
|
|
|
|
722,984 |
|
|
|
||||
Net loss & settlement expenses |
|
|
228,807 |
|
48.9 |
% |
|
111,643 |
|
|
66.3 |
% |
|
15,124 |
|
17.4 |
% |
|
355,574 |
|
49.2 |
% |
||||
Net operating expenses |
|
|
164,756 |
|
35.2 |
% |
|
65,434 |
|
|
38.9 |
% |
|
56,988 |
|
65.7 |
% |
|
287,178 |
|
39.7 |
% |
||||
Underwriting income (loss)(1) |
|
$ |
74,254 |
|
84.1 |
% |
$ |
(8,684 |
) |
|
105.2 |
% |
$ |
14,662 |
|
83.1 |
% |
$ |
80,232 |
|
88.9 |
% |
||||
(1) |
See discussion above: Non-GAAP and Performance Measures. |
Category: Earnings Release
View source version on businesswire.com: https://www.businesswire.com/news/home/20221019005876/en/
Aaron Diefenthaler
Chief Investment Officer & Treasurer
309-693-5846
[email protected]
Source: RLI Corp.