RLI Corp. (NYSE: RLI) – RLI Corp. reported fourth quarter 2024
net earnings of $40.9 million ($0.44 per share), compared to $114.6
million ($1.24 per share) for the fourth quarter of 2023. Operating
earnings(1) for the fourth quarter of 2024 were $38.4 million
($0.41 per share), compared to $71.1 million ($0.77 per share) for
the same period in 2023.
On January 15, 2025, RLI executed a two-for-one stock split of
common stock. All share and per share data in this release reflect
the stock split.
Fourth Quarter
Year to Date
Earnings Per Diluted Share
2024
2023
2024
2023
Net earnings
$
0.44
$
1.24
$
3.74
$
3.31
Operating earnings (1)
$
0.41
$
0.77
$
2.87
$
2.47
(1) See discussion below: Non-GAAP and
Performance Measures.
Highlights for the quarter included:
- Underwriting income(1) of $22.2 million on a combined ratio(1)
of 94.4.
- 9% increase in gross premiums written and 19% increase in net
investment income.
- Favorable development in prior years’ loss reserves resulted in
a $8.7 million net increase in underwriting income.
- Losses from Hurricane Milton, resulting in a $42.4 million net
decrease in underwriting income.
- Special dividend of $2.00 per share, representing $183.5
million returned to shareholders.
Highlights for the year included:
- Underwriting income(1) of $210.7 million on a combined ratio(1)
of 86.2.
- 11% increase in gross premiums written and 18% increase in net
investment income.
- Net cash flow provided by operations of $560.2 million, an
increase of 21%.
- Favorable development in prior years’ loss reserves resulted in
a $84.1 million net increase in underwriting income.
- Book value per share of $16.59, an increase of 24% (inclusive
of dividends) from year-end 2023.
“Our customer service, consistent financial performance and
prudent capital management distinguished RLI in 2024,” said RLI
Corp. President & CEO Craig Kliethermes. “Despite an active
hurricane season and highly competitive environment, we achieved an
86 combined ratio, marking our 29th consecutive year of
underwriting profitability. Gross premiums written grew by 11%,
surpassing $2 billion for the first time, with all three product
segments contributing to this growth. Our positive underwriting and
investment results allowed us to return $236 million to
shareholders through special and regular dividends. I want to thank
our associate-owners for their contributions throughout the year,
which helped differentiate RLI.”
Underwriting Income
RLI achieved $22.2 million of underwriting income in the fourth
quarter of 2024 on a 94.4 combined ratio, compared to $59.8 million
on an 82.7 combined ratio in 2023.
For the year, RLI achieved $210.7 million of underwriting income
on an 86.2 combined ratio, compared to $173.2 million on an 86.6
combined ratio in 2023. Results for both years include favorable
development in prior years’ loss reserves, which resulted in an
$84.1 million and $95.3 million net increase to underwriting income
in 2024 and 2023, respectively. The favorable development was
offset by a $93.6 million net reduction to underwriting income for
losses from Hurricanes Beryl, Helene and Milton, as well as other
storm losses, in 2024. This compares to $81.2 million for losses
from Hawaiian wildfires and other storm losses in 2023.
The following table highlights underwriting income and combined
ratios by segment for the year.
Underwriting Income(1)
Combined Ratio(1)
(in millions)
2024
2023
2024
2023
Casualty
$
17.8
$
59.5
Casualty
97.9
92.2
Property
167.6
86.3
Property
68.5
78.5
Surety
25.3
27.4
Surety
82.2
79.6
Total
$
210.7
$
173.2
Total
86.2
86.6
(1) See discussion below: Non-GAAP and
Performance Measures.
Other Income(2)
Net investment income for the quarter increased 19% to $38.8
million, compared to the same period in 2023. For the year ended
December 31, 2024, net investment income was $142.3 million,
compared to $120.4 million for the same period in 2023. The
investment portfolio’s total return was -1.1% for the quarter and
6.4% for the year.
RLI’s comprehensive loss was $26.3 million for the quarter
(-$0.28 per share), compared to comprehensive earnings of $216.2
million ($2.35 per share) for the same quarter in 2023. In addition
to net earnings, comprehensive loss included after-tax unrealized
losses from the fixed income portfolio in the fourth quarter of
2024, due to increasing interest rates. Full-year comprehensive
earnings were $338.4 million ($3.66 per share), compared to $367.4
million ($3.99 per share) in 2023.
Special and Regular Dividends(2)
On December 20, 2024, the company paid a special cash dividend
of $2.00 per share and a regular quarterly dividend of $0.145 per
share for a combined total of $196.8 million. RLI has paid
dividends for 194 consecutive quarters and increased regular
dividends in each of the last 49 years. Over the last 10 years, the
company has returned nearly $1.5 billion to shareholders and the
regular dividend has grown an average of 4.9% 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 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 standard time (CST) on January 23, 2025, 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/436980475.
(2) All share and per share data reflect the 2-for-1 stock split
that occurred on January 15, 2025.
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 29 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
Twelve Months Ended
December 31,
December 31,
(Dollars in millions, except per share
amounts)
2024
2023
2024
2023
Favorable development in casualty prior
years' reserves
$
11.5
$
9.0
$
51.4
$
76.0
Favorable development in property prior
years' reserves
$
0.1
$
2.0
$
28.6
$
16.2
Favorable (unfavorable) development in
surety prior years' reserves
$
(1.7
)
$
0.6
$
9.3
$
8.9
Net incurred losses related to:
2024 storms
$
—
$
—
$
(30.0
)
$
—
Hurricanes Beryl, Helene and Milton
$
(39.0
)
$
—
$
(76.0
)
$
—
2023 and prior events
$
—
$
1.3
$
6.0
$
(72.8
)
Reinstatement premium from events
$
—
$
2.6
$
—
$
(11.7
)
Operating Earnings Per Share
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2024
2023
2024
2023
Operating Earnings Per Share(2)(3)
$
0.41
$
0.77
$
2.87
$
2.47
Specific items included in operating
earnings per share:(1) (4)
Net favorable development in casualty
prior years' reserves
$
0.09
$
0.06
$
0.37
$
0.57
Net favorable development in property
prior years' reserves
$
—
$
0.02
$
0.22
$
0.12
Net favorable (unfavorable) development in
surety prior years' reserves
$
(0.02
)
$
—
$
0.07
$
0.06
Net incurred losses related to:
2024 storms
$
—
$
—
$
(0.22
)
$
—
Hurricanes Beryl, Helene and Milton
$
(0.29
)
$
—
$
(0.56
)
$
—
2023 and prior events (incurred loss and
reinstatement premium)
$
—
$
0.03
$
0.04
$
(0.63
)
(1)
Reserve development reflects changes from
previously estimated losses.
(2)
See discussion above: Non-GAAP and
Performance Measures.
(3)
All share and per share data reflect the
2-for-1 stock split that occurred on January 15, 2025.
(4)
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 December
31,
Twelve Months Ended December
31,
SUMMARIZED INCOME
STATEMENT DATA:
2024
2023
% Change
2024
2023
% Change
Net premiums earned
$
397,176
$
345,894
14.8
%
$
1,526,406
$
1,294,306
17.9
%
Net investment income
38,776
32,548
19.1
%
142,278
120,383
18.2
%
Net realized gains
8,744
5,760
51.8
%
19,966
32,518
(38.6
)
%
Net unrealized gains (losses) on equity
securities
(5,580
)
49,313
NM
81,734
64,787
26.2
%
Consolidated revenue
$
439,116
$
433,515
1.3
%
$
1,770,384
$
1,511,994
17.1
%
Loss and settlement expenses
225,512
146,424
54.0
%
739,253
604,413
22.3
%
Policy acquisition costs
121,854
111,242
9.5
%
464,040
418,325
10.9
%
Insurance operating expenses
27,568
28,381
(2.9
)
%
112,460
98,383
14.3
%
Interest expense on debt
1,492
1,373
8.7
%
6,331
7,301
(13.3
)
%
General corporate expenses
2,736
5,112
(46.5
)
%
15,880
15,917
(0.2
)
%
Total expenses
$
379,162
$
292,532
29.6
%
$
1,337,964
$
1,144,339
16.9
%
Equity in earnings of unconsolidated
investees
(12,522
)
2,441
NM
(4,869
)
9,610
NM
Earnings before income taxes
$
47,432
$
143,424
(66.9
)
%
$
427,551
$
377,265
13.3
%
Income tax expense
6,572
28,812
(77.2
)
%
81,772
72,654
12.5
%
Net earnings
$
40,860
$
114,612
(64.3
)
%
$
345,779
$
304,611
13.5
%
Other comprehensive earnings (loss), net
of tax
(67,199
)
101,621
NM
(7,420
)
62,773
NM
Comprehensive earnings (loss)
$
(26,339
)
$
216,233
NM
$
338,359
$
367,384
(7.9
)
%
Operating earnings(1):
Net earnings
$
40,860
$
114,612
(64.3
)
%
$
345,779
$
304,611
13.5
%
Less:
Net realized gains
(8,744
)
(5,760
)
51.8
%
(19,966
)
(32,518
)
(38.6
)
%
Income tax on realized gains
1,836
1,210
51.7
%
4,193
6,829
(38.6
)
%
Net unrealized (gains) losses on equity
securities
5,580
(49,313
)
NM
(81,734
)
(64,787
)
26.2
%
Income tax on unrealized gains (losses) on
equity securities
(1,171
)
10,355
NM
17,164
13,605
26.2
%
Operating earnings
$
38,361
$
71,104
(46.0
)
%
$
265,436
$
227,740
16.6
%
Return on Equity:
Net earnings
22.2
%
23.3
%
Comprehensive earnings
21.7
%
28.1
%
Per Share Data(2):
Diluted:
Weighted average shares outstanding (in
000's)
92,725
92,144
92,451
92,155
Net earnings per share
$
0.44
$
1.24
(64.5
)
%
$
3.74
$
3.31
13.0
%
Less:
Net realized gains
(0.09
)
(0.06
)
50.0
%
(0.22
)
(0.35
)
(37.1
)
%
Income tax on realized gains
0.02
0.01
100.0
%
0.05
0.07
(28.6
)
%
Net unrealized (gains) losses on equity
securities
0.06
(0.54
)
NM
(0.88
)
(0.70
)
25.7
%
Income tax on unrealized gains (losses) on
equity securities
(0.02
)
0.12
NM
0.18
0.14
28.6
%
Operating earnings per share(1)
$
0.41
$
0.77
(46.8
)
%
$
2.87
$
2.47
16.2
%
Comprehensive earnings (loss) per
share
$
(0.28
)
$
2.35
NM
$
3.66
$
3.99
(8.3
)
%
Cash dividends per share - ordinary
$
0.145
$
0.135
7.4
%
$
0.570
$
0.535
6.5
%
Cash dividends per share - special
$
2.00
$
1.00
100.0
%
$
2.00
$
1.00
100.0
%
Net cash flow provided by
operations
$
128,080
$
122,065
4.9
%
$
560,219
$
464,257
20.7
%
(1)
See discussion above: Non-GAAP and
Performance Measures.
(2)
All share and per share data reflect the
2-for-1 stock split that occurred on January 15, 2025.
NM = Not Meaningful
RLI CORP
2024 FINANCIAL
HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per
share amounts)
December 31,
December 31,
2024
2023
% Change
SUMMARIZED
BALANCE SHEET DATA:
Fixed income, at fair value
$
3,175,796
$
2,855,849
11.2
%
(amortized cost - $3,391,159 at
12/31/24)
(amortized cost - $3,054,391 at
12/31/23)
Equity securities, at fair value
736,191
590,041
24.8
%
(cost - $417,897 at 12/31/24)
(cost - $354,022 at 12/31/23)
Short-term investments
74,915
134,923
(44.5
)
%
Other invested assets
57,939
59,081
(1.9
)
%
Cash and cash equivalents
39,790
36,424
9.2
%
Total investments and cash
$
4,084,631
$
3,676,318
11.1
%
Accrued investment income
28,319
24,062
17.7
%
Premiums and reinsurance balances
receivable
230,534
221,206
4.2
%
Ceded unearned premiums
124,955
112,257
11.3
%
Reinsurance balances recoverable on unpaid
losses
755,425
757,349
(0.3
)
%
Deferred policy acquisition costs
166,214
146,566
13.4
%
Property and equipment
43,172
46,715
(7.6
)
%
Investment in unconsolidated investees
56,477
56,966
(0.9
)
%
Goodwill and intangibles
53,562
53,562
0.0
%
Income taxes - deferred
7,793
15,872
(50.9
)
%
Other assets
77,720
69,348
12.1
%
Total assets
$
5,628,802
$
5,180,221
8.7
%
Unpaid losses and settlement expenses
$
2,693,470
$
2,446,025
10.1
%
Unearned premiums
984,140
892,326
10.3
%
Reinsurance balances payable
44,681
71,507
(37.5
)
%
Funds held
97,380
101,446
(4.0
)
%
Income taxes - current
749
3,757
(80.1
)
%
Short-term debt
100,000
100,000
—
%
Accrued expenses
124,242
108,880
14.1
%
Other liabilities
62,173
42,766
45.4
%
Total liabilities
$
4,106,835
$
3,766,707
9.0
%
Shareholders' equity
1,521,967
1,413,514
7.7
%
Total liabilities & shareholders'
equity
$
5,628,802
$
5,180,221
8.7
%
OTHER
DATA(1):
Common shares outstanding (in 000's)
91,738
91,280
Book value per share
$
16.59
$
15.49
7.1
%
Closing stock price per share
$
82.42
$
66.56
23.8
%
Statutory surplus
$
1,787,312
$
1,520,135
17.6
%
(1)
All share and per share data reflect the
2-for-1 stock split that occurred on January 15, 2025.
NM = Not Meaningful
RLI CORP
2024 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
2024
Gross premiums written
$
282,204
$
153,295
$
37,711
$
473,210
Net premiums written
228,455
103,945
34,045
366,445
Net premiums earned
225,823
134,610
36,743
397,176
Net loss & settlement expenses
155,217
68.7
%
63,856
47.4
%
6,439
17.5
%
225,512
56.8
%
Net operating expenses
79,356
35.2
%
44,516
33.1
%
25,550
69.6
%
149,422
37.6
%
Underwriting income (loss)(1)
$
(8,750
)
103.9
%
$
26,238
80.5
%
$
4,754
87.1
%
$
22,242
94.4
%
2023
Gross premiums written
$
238,467
$
158,047
$
37,846
$
434,360
Net premiums written
191,626
104,154
35,117
330,897
Net premiums earned
195,962
115,934
33,998
345,894
Net loss & settlement expenses
121,399
62.0
%
22,554
19.5
%
2,471
7.3
%
146,424
42.3
%
Net operating expenses
72,562
37.0
%
40,653
35.0
%
26,408
77.6
%
139,623
40.4
%
Underwriting income (loss)(1)
$
2,001
99.0
%
$
52,727
54.5
%
$
5,119
84.9
%
$
59,847
82.7
%
Twelve Months
Ended December 31,
GAAP
GAAP
GAAP
GAAP
Casualty
Ratios
Property
Ratios
Surety
Ratios
Total
Ratios
2024
Gross premiums written
$
1,108,356
$
743,486
$
161,206
$
2,013,048
Net premiums written
915,625
542,997
146,899
1,605,521
Net premiums earned
852,837
531,384
142,185
1,526,406
Net loss & settlement expenses
524,490
61.5
%
198,806
37.4
%
15,957
11.2
%
739,253
48.4
%
Net operating expenses
310,559
36.4
%
165,042
31.1
%
100,899
71.0
%
576,500
37.8
%
Underwriting income (loss)(1)
$
17,788
97.9
%
$
167,536
68.5
%
$
25,329
82.2
%
$
210,653
86.2
%
2023
Gross premiums written
$
961,665
$
697,372
$
147,623
$
1,806,660
Net premiums written
788,982
500,057
138,708
1,427,747
Net premiums earned
758,346
401,530
134,430
1,294,306
Net loss & settlement expenses
418,032
55.1
%
172,062
42.9
%
14,319
10.7
%
604,413
46.7
%
Net operating expenses
280,835
37.1
%
143,152
35.6
%
92,721
68.9
%
516,708
39.9
%
Underwriting income (loss)(1)
$
59,479
92.2
%
$
86,316
78.5
%
$
27,390
79.6
%
$
173,185
86.6
%
(1)
See discussion above: Non-GAAP and
Performance Measures.
Category: Earnings Release
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250122553322/en/
Media Contact Aaron Diefenthaler Chief Investment Officer
& Treasurer 309-693-5846 Aaron.Diefenthaler@rlicorp.com
RLI (NYSE:RLI)
Historical Stock Chart
From Jan 2025 to Feb 2025
RLI (NYSE:RLI)
Historical Stock Chart
From Feb 2024 to Feb 2025
