RLI 8-K
Rli Corp (RLI)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
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(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On January 27, 2021, RLI Corp. announced its results of operations for the fourth quarter and year ended December 31, 2020. Furnished as Exhibit 99.1 and incorporated herein by reference is the press release issued by RLI Corp.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
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Exhibit No. |
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Description |
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99.1 |
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Press Release dated January 27, 2021 This Exhibit is furnished pursuant to Item 2.02 hereof and should not be deemed to be “filed” under the Securities Exchange Act of 1934. |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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RLI CORP. |
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Date: January 27, 2021 |
By: |
/s/ Todd W. Bryant |
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Todd W. Bryant |
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Vice President, Chief Financial Officer |
EXHIBIT 99.1
RLI REPORTS FOURTH QUARTER AND YEAR-END 2020 RESULTS
PEORIA, ILLINOIS, January 27, 2021 -- RLI Corp. (NYSE: RLI) – RLI Corp. reported fourth quarter 2020 net earnings of $83.8 million ($1.84 per share), compared to $53.4 million ($1.18 per share) for the fourth quarter of 2019. Operating earnings(1) for the fourth quarter of 2020 were $34.0 million ($0.75 per share), compared to $28.6 million ($0.63 per share) for the same period in 2019.
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Fourth Quarter |
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Year to Date |
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Earnings Per Diluted Share |
2020 |
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2019 |
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2020 |
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2019 |
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Net earnings |
$ |
1.84 |
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$ |
1.18 |
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$ |
3.46 |
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$ |
4.23 |
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Operating earnings (1) |
$ |
0.75 |
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$ |
0.63 |
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$ |
2.59 |
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$ |
2.57 |
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(1) |
See discussion below: Non-GAAP and Performance Measures. |
Highlights for the quarter included:
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Underwriting income(1) of $27.0 million on a combined ratio(1) of 88.0. |
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10% increase in gross premiums written. |
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Net favorable development in prior years’ loss reserves, resulting in a $24.7 million net increase in underwriting income. |
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Special dividend of $1.00 per share, representing $45.1 million returned to shareholders. |
Highlights for the year included:
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Underwriting income(1) of $69.6 million on a combined ratio(1) of 92.0. |
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7% increase in gross premiums written. |
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Net favorable development in prior years’ loss reserves, resulting in a $84.0 million net increase in underwriting income. |
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25th consecutive year of underwriting profit(1). |
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Book value per share of $25.16, an increase of 22% (inclusive of dividends) from year-end 2019. |
“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.”
Underwriting Income
RLI achieved $27.0 million of underwriting income in the fourth quarter of 2020 on a 88.0 combined ratio, compared to $16.5 million on a 92.4 combined ratio in 2019.
--more--
For the year, RLI achieved $69.6 million of underwriting income on a 92.0 combined ratio, compared to $67.6 million on a 91.9 combined ratio in 2019. Results for both years include net favorable development in prior years’ loss reserves, which totaled $84.0 million and $62.8 million for 2020 and 2019, respectively. The favorable development in 2020 was partially offset by a $45.1 million net reduction to underwriting income from hurricane losses.
The following table highlights underwriting income and combined ratios by segment for the year.
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Underwriting Income (Loss)(1) |
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Combined Ratio(1) |
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(in millions) |
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2020 |
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2019 |
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2020 |
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2019 |
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Casualty |
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$ |
44.4 |
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$ |
20.6 |
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Casualty |
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92.2 |
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96.3 |
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Property |
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(3.2 |
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18.2 |
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Property |
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101.7 |
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88.9 |
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Surety |
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28.4 |
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28.8 |
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Surety |
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74.8 |
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75.3 |
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Total |
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$ |
69.6 |
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$ |
67.6 |
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Total |
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92.0 |
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91.9 |
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(1) |
See discussion below: Non-GAAP and Performance Measures. |
Other Income
Net investment income for the quarter decreased 6.3% to $16.7 million, compared to the same period in 2019. For the year ended December 31, 2020, net investment income was $67.9 million, compared to $68.9 million for the same period in 2019. The investment portfolio’s total return was 3.2% for the quarter and 7.5% for the year.
RLI’s comprehensive earnings were $89.9 million for the quarter ($1.97 per share), compared to $47.9 million ($1.06 per share) for the same quarter in 2019. Full-year comprehensive earnings were $213.3 million ($4.70 per share), compared to $258.7 million ($5.72 per share) in 2019. In addition to net earnings, comprehensive earnings (loss) included after-tax unrealized gains/(losses) from the fixed income portfolio.
Equity in earnings of Maui Jim, Inc., a producer of premium sunglasses, was $(1.1) million for the quarter, influenced by seasonal sales results. Equity in earnings of Prime Holdings Insurance Services, Inc., a specialty insurance company, was $3.1 million. Comparatively, for the fourth quarter of 2019, equity in earnings of unconsolidated investees from Maui Jim and Prime was $0.7 million and $2.5 million, respectively. For the year ended December 31, 2020, equity in earnings of unconsolidated investees was $10.4 million from Maui Jim and $10.8 million from Prime, compared to $13.6 million and $7.4 million, respectively, for the prior year. During the quarter, RLI received a $4.7 million dividend from Prime, which resulted in a tax benefit on dividends received from affiliates of $0.5 million ($0.01 per share).
Special and Regular Dividends
On December 18, 2020, the company paid a special cash dividend of $1.00 per share and a regular quarterly dividend of $0.24 per share for a combined total of $56.0 million. RLI has paid dividends for 178 consecutive quarters and increased regular dividends in each of the last 45 years. Over the last 10 years, the company has returned nearly $1.14 billion to shareholders and the regular quarterly dividend has grown an average of 5.2% 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 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.
--more--
2
Operating earnings and earnings per share (EPS) from operations consist of our GAAP net earnings adjusted by the 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 EPS from operations. A reconciliation of the operating earnings and EPS from operations to the comparable GAAP financial measures is included in the 2020 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
During the fourth quarter, the company’s A+ (Superior) financial strength rating was affirmed by AM Best Company for the company’s insurance subsidiaries – RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company.
At 10 a.m. central standard time (CST) tomorrow, January 28, 2021, 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 https://edge.media-server.com/mmc/p/2scgys4w.
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, 2019.
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 45 consecutive years and delivered underwriting profits for 25 consecutive years. To learn more about RLI, visit www.rlicorp.com.
Media Contact
Aaron Diefenthaler
Vice President, Chief Investment Officer & Treasurer
309-693-5846
3
Supplemental disclosure regarding the earnings impact of specific items:
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Operating Earnings Per Share |
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2020 |
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2019 |
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2020 |
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2019 |
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4th Qtr |
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4th Qtr |
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12 Mos. |
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12 Mos. |
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Operating Earnings Per Share(1) |
$ |
0.75 |
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$ |
0.63 |
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$ |
2.59 |
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$ |
2.57 |
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Specific items included in operating earnings per share:(2) (3) |
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Net favorable development in casualty prior years' reserves |
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$ |
0.40 |
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$ |
0.30 |
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$ |
1.15 |
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$ |
0.98 |
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Net favorable (unfavorable) development in property prior years' reserves |
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$ |
- |
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$ |
(0.03 |
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$ |
0.05 |
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$ |
(0.01 |
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Net favorable development in surety prior years' reserves |
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$ |
0.02 |
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$ |
- |
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$ |
0.19 |
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$ |
0.11 |
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Net incurred losses related to: |
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▪ |
2020 Hurricanes |
$ |
(0.21 |
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$ |
- |
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$ |
(0.78 |
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$ |
- |
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▪ |
2020 storms and civil unrest |
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$ |
- |
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$ |
- |
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$ |
(0.10 |
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$ |
- |
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▪ |
COVID-19 |
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$ |
(0.05 |
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$ |
- |
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$ |
(0.27 |
) |
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$ |
- |
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▪ |
2019 and prior catastrophe events |
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$ |
- |
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$ |
(0.01 |
) |
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$ |
0.05 |
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$ |
(0.12 |
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Gain from tax benefit applicable to equity method dividends(4) |
$ |
0.01 |
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$ |
0.04 |
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$ |
0.01 |
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$ |
0.04 |
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(1) |
See discussion above: Non-GAAP and Performance Measures. |
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(2) |
Includes incentive and profit sharing-related impacts which affected policy acquisition, insurance operating and general corporate expenses. |
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(3) |
Reserve development reflects changes from previously estimated losses. |
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(4) |
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 (10.8% in 2020 and 7.4% in 2019) as compared to the corporate capital gains tax rate (21%) on which tax estimates were based. |
4
RLI CORP
2020 FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)
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Three Months Ended December 31, |
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Year Ended December 31, |
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SUMMARIZED INCOME STATEMENT DATA: |
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2020 |
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2019 |
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% Change |
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2020 |
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2019 |
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% Change |
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Net premiums earned |
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$ |
224,801 |
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$ |
215,626 |
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4.3 |
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% |
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$ |
865,747 |
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$ |
839,111 |
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3.2 |
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% |
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Net investment income |
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16,655 |
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17,775 |
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(6.3 |
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% |
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67,893 |
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68,870 |
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(1.4 |
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% |
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Net realized gains |
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3,330 |
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477 |
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NM |
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17,885 |
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17,520 |
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2.1 |
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% |
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Net unrealized gains on equity securities |
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59,665 |
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30,876 |
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93.2 |
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% |
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32,101 |
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78,090 |
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(58.9 |
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% |
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Consolidated revenue |
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$ |
304,451 |
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$ |
264,754 |
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15.0 |
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% |
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$ |
983,626 |
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$ |
1,003,591 |
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(2.0 |
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% |
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Loss and settlement expenses |
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103,065 |
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106,210 |
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(3.0 |
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% |
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442,884 |
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413,416 |
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7.1 |
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% |
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Policy acquisition costs |
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73,002 |
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74,111 |
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(1.5 |
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% |
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286,438 |
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288,697 |
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(0.8 |
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% |
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Insurance operating expenses |
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21,691 |
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18,833 |
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15.2 |
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% |
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66,828 |
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69,430 |
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(3.7 |
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% |
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Interest expense on debt |
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1,902 |
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2,005 |
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(5.1 |
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% |
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7,603 |
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7,588 |
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0.2 |
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% |
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General corporate expenses |
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3,848 |
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3,544 |
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8.6 |
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% |
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10,265 |
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12,686 |
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(19.1 |
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% |
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Total expenses |
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$ |
203,508 |
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$ |
204,703 |
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(0.6 |
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% |
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$ |
814,018 |
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$ |
791,817 |
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2.8 |
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% |
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Equity in earnings of unconsolidated investees |
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1,874 |
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3,167 |
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(40.8 |
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% |
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20,233 |
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20,960 |
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(3.5 |
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% |
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Earnings before income taxes |
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$ |
102,817 |
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$ |
63,218 |
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62.6 |
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% |
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$ |
189,841 |
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$ |
232,734 |
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(18.4 |
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% |
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Income tax expense |
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19,012 |
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9,840 |
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93.2 |
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% |
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32,750 |
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41,092 |
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(20.3 |
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% |
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Net earnings |
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$ |
83,805 |
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$ |
53,378 |
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57.0 |
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% |
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$ |
157,091 |
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$ |
191,642 |
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(18.0 |
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% |
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Other comprehensive earnings (loss), net of tax |
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6,129 |
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(5,461 |
) |
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NM |
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56,219 |
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67,045 |
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(16.1 |
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% |
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Comprehensive earnings |
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$ |
89,934 |
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$ |
47,917 |
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87.7 |
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% |
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$ |
213,310 |
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$ |
258,687 |
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(17.5 |
) |
% |
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Operating earnings(1): |
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Net earnings |
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$ |
83,805 |
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$ |
53,378 |
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57.0 |
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% |
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$ |
157,091 |
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$ |
191,642 |
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(18.0 |
) |
% |
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Less: |
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Realized gains |
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(3,330 |
) |
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(477 |
) |
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NM |
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(17,885 |
) |
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|
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(17,520 |
) |
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2.1 |
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% |
|
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Income tax on realized gains |
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|
699 |
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|
100 |
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NM |
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|
|
3,756 |
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|
3,679 |
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|
2.1 |
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% |
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Unrealized gains on equity securities |
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|
(59,665 |
) |
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|
(30,876 |
) |
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|
93.2 |
|
% |
|
|
(32,101 |
) |
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|
|
(78,090 |
) |
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|
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(58.9 |
) |
% |
|
Income tax on unrealized gains on equity securities |
|
|
12,531 |
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|
|
6,484 |
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|
|
93.3 |
|
% |
|
|
6,741 |
|
|
|
|
16,399 |
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|
|
|
(58.9 |
) |
% |
|
Operating earnings |
|
$ |
34,040 |
|
|
$ |
28,609 |
|
|
|
19.0 |
|
% |
|
$ |
117,602 |
|
|
|
$ |
116,110 |
|
|
|
|
1.3 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15.1 |
|
% |
|
|
20.6 |
|
% |
|
|
|
|
|
|
|
Comprehensive earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20.5 |
|
% |
|
27.8 |
|
% |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding (in 000's) |
|
|
45,565 |
|
|
|
45,409 |
|
|
|
|
|
|
|
|
45,376 |
|
|
|
|
45,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share |
|
$ |
1.84 |
|
|
$ |
1.18 |
|
|
|
55.9 |
|
% |
|
$ |
3.46 |
|
|
|
$ |
4.23 |
|
|
|
|
(18.2 |
) |
% |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gains |
|
|
(0.07 |
) |
|
|
(0.01 |
) |
|
NM |
|
|
|
|
(0.39 |
) |
|
|
|
(0.38 |
) |
|
|
|
2.6 |
|
% |
|
|
Income tax on realized gains |
|
|
0.02 |
|
|
|
- |
|
|
NM |
|
|
|
|
0.08 |
|
|
|
|
0.08 |
|
|
|
|
0.0 |
|
% |
|
|
Unrealized gains on equity securities |
|
|
(1.32 |
) |
|
|
(0.68 |
) |
|
|
94.1 |
|
% |
|
|
(0.71 |
) |
|
|
|
(1.72 |
) |
|
|
|
(58.7 |
) |
% |
|
Income tax on unrealized gains on equity securities |
|
|
0.28 |
|
|
|
0.14 |
|
|
|
100.0 |
|
% |
|
|
0.15 |
|
|
|
|
0.36 |
|
|
|
|
(58.3 |
) |
% |
|
EPS from operations(1) |
|
$ |
0.75 |
|
|
$ |
0.63 |
|
|
|
19.0 |
|
% |
|
$ |
2.59 |
|
|
|
$ |
2.57 |
|
|
|
|
0.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive earnings per share |
|
$ |
1.97 |
|
|
$ |
1.06 |
|
|
|
85.8 |
|
% |
|
$ |
4.70 |
|
|
|
$ |
5.72 |
|
|
|
|
(17.8 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends per share - ordinary |
|
$ |
0.24 |
|
|
$ |
0.23 |
|
|
|
4.3 |
|
% |
|
$ |
0.95 |
|
|
|
$ |
0.91 |
|
|
|
|
4.4 |
|
% |
|
Cash dividends per share - special |
|
$ |
1.00 |
|
|
$ |
1.00 |
|
|
|
0.0 |
|
% |
|
$ |
1.00 |
|
|
|
$ |
1.00 |
|
|
|
|
0.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Flow provided by Operations |
|
$ |
100,015 |
|
|
$ |
90,155 |
|
|
|
10.9 |
|
% |
|
$ |
263,259 |
|
|
|
$ |
276,917 |
|
|
|
|
(4.9 |
) |
% |
|
(1) |
See discussion above: Non-GAAP and Performance Measures. |
NM = Not Meaningful
5
RLI CORP
2020 FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)
|
|
|
December 31, |
|
|
December 31, |
|
|
|
|
|
|
||
|
|
|
|
2020 |
|
|
|
2019 |
|
|
% Change |
|||
|
SUMMARIZED BALANCE SHEET DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed income, at fair value |
|
$ |
2,196,626 |
|
|
$ |
1,983,086 |
|
|
|
10.8 |
|
% |
|
(amortized cost - $2,061,467 at 12/31/20) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(amortized cost - $1,915,278 at 12/31/19) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity securities, at fair value |
|
|
524,006 |
|
|
|
460,630 |
|
|
|
13.8 |
|
% |
|
(cost - $293,190 at 12/31/20) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(cost - $262,131 at 12/31/19) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other invested assets |
|
|
54,232 |
|
|
|
70,441 |
|
|
|
(23.0 |
) |
% |
|
Cash and cash equivalents |
|
|
62,217 |
|
|
|
46,203 |
|
|
|
34.7 |
|
% |
|
Total investments and cash |
|
$ |
2,837,081 |
|
|
$ |
2,560,360 |
|
|
|
10.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums and reinsurance balances receivable |
|
|
174,628 |
|
|
|
160,369 |
|
|
|
8.9 |
|
% |
|
Ceded unearned premiums |
|
|
113,488 |
|
|
|
93,656 |
|
|
|
21.2 |
|
% |
|
Reinsurance balances recoverable on unpaid losses |
|
|
443,729 |
|
|
|
384,517 |
|
|
|
15.4 |
|
% |
|
Deferred policy acquisition costs |
|
|
88,425 |
|
|
|
85,044 |
|
|
|
4.0 |
|
% |
|
Property and equipment |
|
|
51,406 |
|
|
|
53,121 |
|
|
|
(3.2 |
) |
% |
|
Investment in unconsolidated investees |
|
|
128,382 |
|
|
|
103,836 |
|
|
|
23.6 |
|
% |
|
Goodwill and intangibles |
|
|
53,719 |
|
|
|
54,127 |
|
|
|
(0.8 |
) |
% |
|
Other assets |
|
|
47,627 |
|
|
|
50,691 |
|
|
|
(6.0 |
) |
% |
|
Total assets |
|
$ |
3,938,485 |
|
|
$ |
3,545,721 |
|
|
|
11.1 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid losses and settlement expenses |
|
$ |
1,750,049 |
|
|
$ |
1,574,352 |
|
|
|
11.2 |
|
% |
|
Unearned premiums |
|
|
586,386 |
|
|
|
540,213 |
|
|
|
8.5 |
|
% |
|
Reinsurance balances payable |
|
|
42,265 |
|
|
|
25,691 |
|
|
|
64.5 |
|
% |
|
Funds held |
|
|
81,747 |
|
|
|
83,358 |
|
|
|
(1.9 |
) |
% |
|
Income taxes - deferred |
|
|
80,235 |
|
|
|
56,727 |
|
|
|
41.4 |
|
% |
|
Bonds payable, long-term debt |
|
|
149,489 |
|
|
|
149,302 |
|
|
|
0.1 |
|
% |
|
Accrued expenses |
|
|
75,925 |
|
|
|
66,626 |
|
|
|
14.0 |
|
% |
|
Other liabilities |
|
|
36,411 |
|
|
|
54,064 |
|
|
|
(32.7 |
) |
% |
|
Total liabilities |
|
$ |
2,802,507 |
|
|
$ |
2,550,333 |
|
|
|
9.9 |
|
% |
|
Shareholders' equity |
|
|
1,135,978 |
|
|
|
995,388 |
|
|
|
14.1 |
|
% |
|
Total liabilities & shareholders' equity |
|
$ |
3,938,485 |
|
|
$ |
3,545,721 |
|
|
|
11.1 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding (in 000's) |
|
|
45,143 |
|
|
|
44,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
25.16 |
|
|
$ |
22.18 |
|
|
|
13.4 |
|
% |
|
Closing stock price per share |
|
$ |
104.15 |
|
|
$ |
90.02 |
|
|
|
15.7 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory surplus |
|
$ |
1,121,592 |
|
|
$ |
1,029,671 |
|
|
|
8.9 |
|
% |
6
RLI CORP
2020 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 |
||||||||||||||||
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
|
$ |
196,118 |
|
|
|
|
|
|
|
$ |
74,227 |
|
|
|
|
|
|
|
$ |
30,239 |
|
|
|
|
|
|
|
$ |
300,584 |
|
|
|
|
|
|
|
|
Net premiums written |
|
|
|
146,623 |
|
|
|
|
|
|
|
|
54,718 |
|
|
|
|
|
|
|
|
28,506 |
|
|
|
|
|
|
|
|
229,847 |
|
|
|
|
|
|
|
|
Net premiums earned |
|
|
|
147,884 |
|
|
|
|
|
|
|
|
48,605 |
|
|
|
|
|
|
|
|
28,312 |
|
|
|
|
|
|
|
|
224,801 |
|
|
|
|
|
|
|
|
Net loss & settlement expenses |
|
|
|
72,107 |
|
|
|
48.8 |
|
% |
|
|
26,961 |
|
|
|
55.5 |
|
% |
|
|
3,997 |
|
|
|
14.1 |
|
% |
|
|
103,065 |
|
|
|
45.8 |
|
% |
|
|
Net operating expenses |
|
|
|
53,753 |
|
|
|
36.3 |
|
% |
|
|
20,950 |
|
|
|
43.1 |
|
% |
|
|
19,990 |
|
|
|
70.6 |
|
% |
|
|
94,693 |
|
|
|
42.2 |
|
% |
|
|
Underwriting income (loss)(1) |
|
|
$ |
22,024 |
|
|
|
85.1 |
|
% |
|
$ |
694 |
|
|
|
98.6 |
|
% |
|
$ |
4,325 |
|
|
|
84.7 |
|
% |
|
$ |
27,043 |
|
|
|
88.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
|
$ |
179,542 |
|
|
|
|
|
|
|
$ |
64,638 |
|
|
|
|
|
|
|
$ |
29,650 |
|
|
|
|
|
|
|
$ |
273,830 |
|
|
|
|
|
|
|
|
Net premiums written |
|
|
|
141,963 |
|
|
|
|
|
|
|
|
47,956 |
|
|
|
|
|
|
|
|
27,945 |
|
|
|
|
|
|
|
|
217,864 |
|
|
|
|
|
|
|
|
Net premiums earned |
|
|
|
142,791 |
|
|
|
|
|
|
|
|
43,828 |
|
|
|
|
|
|
|
|
29,007 |
|
|
|
|
|
|
|
|
215,626 |
|
|
|
|
|
|
|
|
Net loss & settlement expenses |
|
|
|
82,994 |
|
|
|
58.1 |
|
% |
|
|
20,680 |
|
|
|
47.2 |
|
% |
|
|
2,536 |
|
|
|
8.7 |
|
% |
|
|
106,210 |
|
|
|
49.3 |
|
% |
|
|
Net operating expenses |
|
|
|
53,848 |
|
|
|
37.7 |
|
% |
|
|
19,017 |
|
|
|
43.4 |
|
% |
|
|
20,079 |
|
|
|
69.3 |
|
% |
|
|
92,944 |
|
|
|
43.1 |
|
% |
|
|
Underwriting income (loss)(1) |
|
|
$ |
5,949 |
|
|
|
95.8 |
|
% |
|
$ |
4,131 |
|
|
|
90.6 |
|
% |
|
$ |
6,392 |
|
|
|
78.0 |
|
% |
|
$ |
16,472 |
|
|
|
92.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
GAAP |
|
|
|
|
|
GAAP |
|
|
|
|
|
GAAP |
|
|
|
|
|
GAAP |
||||||||||||
|
|
|
|
|
Casualty |
|
|
Ratios |
|
Property |
|
|
Ratios |
|
Surety |
|
|
Ratios |
|
Total |
|
|
Ratios |
||||||||||||||||
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
|
$ |
749,409 |
|
|
|
|
|
|
|
$ |
268,769 |
|
|
|
|
|
|
|
$ |
118,254 |
|
|
|
|
|
|
|
$ |
1,136,432 |
|
|
|
|
|
|
|
|
Net premiums written |
|
|
|
583,244 |
|
|
|
|
|
|
|
|
196,603 |
|
|
|
|
|
|
|
|
112,241 |
|
|
|
|
|
|
|
|
892,088 |
|
|
|
|
|
|
|
|
Net premiums earned |
|
|
|
569,521 |
|
|
|
|
|
|
|
|
183,720 |
|
|
|
|
|
|
|
|
112,506 |
|
|
|
|
|
|
|
|
865,747 |
|
|
|
|
|
|
|
|
Net loss & settlement expenses |
|
|
|
322,099 |
|
|
|
56.6 |
|
% |
|
|
111,356 |
|
|
|
60.6 |
|
% |
|
|
9,429 |
|
|
|
8.4 |
|
% |
|
|
442,884 |
|
|
|
51.2 |
|
% |
|
|
Net operating expenses |
|
|
|
202,995 |
|
|
|
35.6 |
|
% |
|
|
75,546 |
|
|
|
41.1 |
|
% |
|
|
74,725 |
|
|
|
66.4 |
|
% |
|
|
353,266 |
|
|
|
40.8 |
|
% |
|
|
Underwriting income (loss)(1) |
|
|
$ |
44,427 |
|
|
|
92.2 |
|
% |
|
$ |
(3,182 |
) |
|
|
101.7 |
|
% |
|
$ |
28,352 |
|
|
|
74.8 |
|
% |
|
$ |
69,597 |
|
|
|
92.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
|
$ |
704,192 |
|
|
|
|
|
|
|
$ |
241,425 |
|
|
|
|
|
|
|
$ |
119,385 |
|
|
|
|
|
|
|
$ |
1,065,002 |
|
|
|
|
|
|
|
|
Net premiums written |
|
|
|
564,979 |
|
|
|
|
|
|
|
|
181,974 |
|
|
|
|
|
|
|
|
113,384 |
|
|
|
|
|
|
|
|
860,337 |
|
|
|
|
|
|
|
|
Net premiums earned |
|
|
|
558,458 |
|
|
|
|
|
|
|
|
164,022 |
|
|
|
|
|
|
|
|
116,631 |
|
|
|
|
|
|
|
|
839,111 |
|
|
|
|
|
|
|
|
Net loss & settlement expenses |
|
|
|
330,156 |
|
|
|
59.1 |
|
% |
|
|
73,614 |
|
|
|
44.9 |
|
% |
|
|
9,646 |
|
|
|
8.3 |
|
% |
|
|
413,416 |
|
|
|
49.3 |
|
% |
|
|
Net operating expenses |
|
|
|
207,701 |
|
|
|
37.2 |
|
% |
|
|
72,265 |
|
|
|
44.0 |
|
% |
|
|
78,161 |
|
|
|
67.0 |
|
% |
|
|
358,127 |
|
|
|
42.6 |
|
% |
|
|
Underwriting income (loss)(1) |
|
|
$ |
20,601 |
|
|
|
96.3 |
|
% |
|
$ |
18,143 |
|
|
|
88.9 |
|
% |
|
$ |
28,824 |
|
|
|
75.3 |
|
% |
|
$ |
67,568 |
|
|
|
91.9 |
|
% |
|
|
(1) |
See discussion above: Non-GAAP and Performance Measures. |
7