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Mar 31, 2021
Rli Q1 2021 Earnings Report
RLI Corp. reported first quarter results with net earnings of $73.0 million and operating earnings of $39.6 million.
Key Takeaways
RLI Corp. reported a strong first quarter with significant growth in net earnings, driven by underwriting income and favorable development in prior years' loss reserves, despite challenges from winter storms. The company's combined ratio was 86.9, and premium volume increased across all three segments.
Underwriting income of $29.9 million achieved with a combined ratio of 86.9.
Gross premiums written increased by 20%, or 10% adjusting for prior year transportation premium returns.
Net favorable development in prior years’ loss reserves resulted in a $31.4 million increase in underwriting income.
Winter storms caused a $13.6 million net decrease in underwriting income.
Forward Guidance
RLI will continue to build on its 25 consecutive years of underwriting profitability and focus on growing book value through employee dedication.
Positive Outlook
- Continued focus on underwriting profitability.
- Emphasis on growing book value.
- Dedication of employee owners.
- Growth opportunities across the portfolio
- Premium volume was up over last year in all three segments
Challenges Ahead
- Active winter storm season
- Net investment income decreased 7.6%
- Comprehensive earning decreased
- Other comprehensive earnings decreased
- General corporate expenses increased
Historical Earnings Impact
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Avg. Return Before/After Earnings
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