RLI Corp. Achieves 28 Years of Underwriting Profitability

By Bobby Samwell • Wednesday, April 24 15:23 • Permanent Link

RLI Corp., an insurance holding company, has recently released its 10-Q report. The company underwrites property and casualty insurance through its Casualty, Property, and Surety segments. Its Casualty segment provides commercial and personal coverage products, general liability products, and professional liability coverages. The Property segment offers commercial property, marine, and homeowners' insurance products, while the Surety segment specializes in writing small to medium-sized contract surety coverages.

According to the 10-Q report, RLI Corp. achieved underwriting profitability for the 28th consecutive year in 2023, with an average 88.2 combined ratio over the period. The report also highlights that the property and casualty insurance business is influenced by various factors, including price competition, economic conditions, natural or man-made disasters, and state regulations.

In terms of financial performance, the report indicates that RLI Corp. achieved net earnings of $127.9 million for the three months ended March 31, 2024, compared to $98.8 million for the same period in 2023. The company's net premiums earned increased by 17%, driven by products in its property and casualty segments. Additionally, RLI Corp. reported underwriting income of $78 million on a 78.5 combined ratio for the first three months of 2024, compared to $68 million on a 77.9 combined ratio in the same period of 2023.

Furthermore, the report provides insight into RLI Corp.'s performance measures, such as underwriting income and combined ratio. It also discusses the critical accounting policies involved in determining the liability for unpaid losses and settlement expenses, investment valuation, recoverability of reinsurance balances, deferred policy acquisition costs, and deferred taxes.

The 10-Q report also details the company's premiums, showing that gross premiums written increased by $54 million for the first three months of 2024, compared to the same period in 2023. Growth was achieved in all three segments, with net premiums earned increasing by $53 million, driven by products in the property and casualty segments.

Today the company's shares have moved 0.9% to a price of $147.02. Check out the company's full 10-Q submission here.

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