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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.

Total Revenue
$235M
Previous year: $197M
+19.2%
EPS
$0.87
Previous year: $0.66
+31.8%
Total Combined Ratio
86.9%
Previous year: 92%
-5.5%
Gross Profit
$287M
Previous year: $118M
+143.3%
Cash and Equivalents
$94.9M
Previous year: $42.7M
+122.3%
Free Cash Flow
$59.4M
Previous year: -$7.68M
-873.7%
Total Assets
$3.97B
Previous year: $3.38B
+17.6%

Rli

Rli

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