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Sep 30, 2024

Rli Q3 2024 Earnings Report

RLI Corp. reported an increase in net earnings and operating earnings for Q3 2024, driven by underwriting income and investment income.

Key Takeaways

RLI Corp. reported a significant increase in net earnings to $95.0 million ($2.06 per share) for Q3 2024, compared to $13.5 million ($0.29 per share) for the same period in 2023. Operating earnings also rose to $60.4 million ($1.31 per share) from $28.3 million ($0.61 per share) year-over-year. The company's performance was supported by underwriting income of $40.7 million and a combined ratio of 89.6, despite losses from Hurricanes Beryl and Helene.

Underwriting income was $40.7 million with a combined ratio of 89.6.

Gross premiums written increased by 13%.

Net investment income increased by 15%.

Favorable development in prior years’ loss reserves resulted in a $18.1 million net increase in underwriting income.

Total Revenue
$402M
Previous year: $335M
+20.0%
EPS
$1.31
Previous year: $0.61
+114.8%
Total Combined Ratio
89.6%
Previous year: 98.7%
-9.2%
Gross Profit
$470M
Previous year: $332M
+41.7%
Cash and Equivalents
$60.6M
Previous year: $18.4M
+228.7%
Free Cash Flow
$219M
Previous year: $95.9M
+128.3%
Total Assets
$4.91B
Previous year: $4.15B
+18.3%

Rli

Rli

Forward Guidance

RLI's primary focus remains on assisting customers affected by recent hurricanes, with quick deployment of claim experts to assess damage and help with recovery. The company aims to continue finding opportunities for balanced top-line growth across its portfolio, leveraging its diversified business model, sound risk selection, and disciplined underwriting.

Positive Outlook

  • Diversified business model
  • Sound risk selection
  • Disciplined underwriting
  • Commitment to financial strength
  • Stable partner for customers

Challenges Ahead

  • Losses from Hurricanes Beryl and Helene
  • Potential risk factors listed in the company's filings
  • Market conditions
  • Unpredictable catastrophic events
  • Competition in the insurance industry