RLI - RLI Reports Fourth Quarter and Year-End 2023 Results
RLI Corp. (NYSE: RLI) – RLI Corp. reported fourth quarter 2023 net earnings of $114.6 million ($2.49 per share), compared to $97.8 million ($2.13 per share) for the fourth quarter of 2022. Operating earnings (2)(3) for the fourth quarter of 2023 were $71.1 million ($1.54 per share), compared to $70.5 million ($1.53 per share) for the same period in 2022.
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| Fourth Quarter |
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| Year to Date |
| Earnings Per Diluted Share |
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| 2023 |
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| 2022 |
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| 2023 |
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| 2022 |
| Net earnings (1) |
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| $ |
| 2.49 |
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| $ |
| 2.13 |
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| $ |
| 6.61 |
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| $ |
| 12.74 |
| Operating earnings (2) (3) |
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| $ |
| 1.54 |
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| $ |
| 1.53 |
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| $ |
| 4.94 |
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| $ |
| 4.69 |
| (1) |
| The year to date net earnings for 2022 include $434.4 million ($9.49 per diluted share) related to the sale of Maui Jim, Inc. in the third quarter of 2022. |
| (2) |
| See discussion below: Non-GAAP and Performance Measures. |
| (3) |
| Equity in earnings of Maui Jim and the related taxes were excluded from operating earnings per share in 2022 due to the sale of RLI’s investment in Maui Jim in the third quarter of 2022. |
Highlights for the quarter included:
- Underwriting income (2) of $59.8 million on a combined ratio (2) of 82.7.
- 13% increase in gross premiums written.
- Favorable development in prior years’ loss reserves resulted in a $12.5 million net increase in underwriting income.
- Special dividend of $2.00 per share, representing $91.3 million returned to shareholders.
Highlights for the year included:
- Underwriting income (2) of $173.2 million on a combined ratio (2) of 86.6.
- 15% increase in gross premiums written.
- 40% increase in net investment income.
- Favorable development in prior years’ loss reserves resulted in a $95.3 million net increase in underwriting income.
- Book value per share of $30.97, an increase of 31% (inclusive of dividends) from year-end 2022.
“Continued premium growth across all product segments drove RLI’s strong fourth quarter performance and supported our 28th consecutive year of underwriting profit," said RLI Corp. President & CEO Craig Kliethermes. "Gross premiums written grew 13% in the quarter and we achieved an 83 combined ratio. Underwriting and investment income were solid contributors to quarterly operating earnings of $1.54 per share and book value growth of 31% from year-end 2022. Our success during the year is a reminder that underwriting discipline and financial strength put us in the best position to fulfill our promise to policyholders and provide superior customer service."
"As we turn our focus to 2024, I want to thank our associate-owners who drive RLI forward every day. Their dedication is a testament to our ability to meet the challenges and opportunities that lie ahead."
Underwriting Income
RLI achieved $59.8 million of underwriting income in the fourth quarter of 2023 on an 82.7 combined ratio, compared to $54.0 million on an 82.1 combined ratio in 2022.
For the year, RLI achieved $173.2 million of underwriting income on an 86.6 combined ratio, compared to $178.2 million on an 84.4 combined ratio in 2022. Favorable development in prior years’ loss reserves resulted in a $95.3 million net increase to underwriting income in 2023, which was partially offset by $81.2 million of Hawaiian wildfire and other storm losses. Comparatively, favorable development in prior years’ loss reserves resulted in a $106.5 million net increase to underwriting income in 2022, which was partially offset by $44.4 million of hurricane and storm losses.
The following table highlights underwriting income and combined ratios by segment for the year.
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| Underwriting Income (1) |
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| Combined Ratio (1) |
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| 2023 |
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| 2022 |
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| 2023 |
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| 2022 |
| Casualty |
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| $ |
| 59.5 |
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| $ |
| 73.8 |
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| Casualty |
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| 92.2 |
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| 89.6 |
| Property |
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| 86.3 |
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| 72.5 |
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| Property |
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| 78.5 |
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| 76.4 |
| Surety |
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| 27.4 |
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| 31.9 |
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| Surety |
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| 79.6 |
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| 74.4 |
| Total |
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| $ |
| 173.2 |
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| $ |
| 178.2 |
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| Total |
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| 86.6 |
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| 84.4 |
(1) See discussion below: Non-GAAP and Performance Measures.
Other Income
Net investment income for the quarter increased 14.4% to $32.5 million, compared to the same period in 2022. For the year ended December 31, 2023, net investment income was $120.4 million, compared to $86.1 million for the same period in 2022. The investment portfolio’s total return was 6.4% for the quarter and 8.8% for the year.
RLI’s comprehensive earnings were $216.2 million for the quarter ($4.69 per share), compared to $113.3 million ($2.47 per share) for the same quarter in 2022. Full-year comprehensive earnings were $367.4 million ($7.97 per share), compared to $304.5 million ($6.65 per share) in 2022. In addition to net earnings, comprehensive earnings for 2023 included after-tax unrealized gains from the fixed income portfolio, due to declining interest rates.
Special and Regular Dividends
On December 20, 2023, the company paid a special cash dividend of $2.00 per share and a regular quarterly dividend of $0.27 per share for a combined total of $103.6 million. RLI has paid dividends for 190 consecutive quarters and increased regular dividends in each of the last 48 years. Over the last 10 years, the company has returned $1.41 billion to shareholders and the regular dividend has grown an average of 4.7% 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.
Operating earnings and operating earnings per share (EPS) consist of our GAAP net earnings adjusted by net realized gains/(losses), net unrealized gains/(losses) on equity securities and taxes related thereto. Additionally, equity in earnings of Maui Jim and the related taxes were excluded from operating earnings and operating EPS for 2022 due to the sale of RLI’s investment in the third quarter of 2022. Net earnings and net earnings per share are the GAAP financial measures that are most directly comparable to operating earnings and operating EPS. A reconciliation of the operating earnings and operating EPS to the comparable GAAP financial measures is included in the 2023 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
At 10 a.m. central standard time (CST) tomorrow, January 25, 2024, RLI management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion at https://events.q4inc.com/attendee/112063672 .
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, 2022.
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 48 consecutive years and delivered underwriting profits for 28 consecutive years. To learn more about RLI, visit www.rlicorp.com .
Supplemental disclosure regarding the earnings impact of specific items:
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| Reserve Development and Catastrophe Losses, |
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| Net of Reinsurance |
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| Three Months Ended |
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| Twelve Months Ended |
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| December 31, |
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| December 31, |
| (Dollars in millions, except per share amounts) |
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| 2023 |
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| 2022 |
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| 2023 |
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| 2022 |
| Favorable development in casualty prior years' reserves |
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| $ |
| 9.0 |
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| $ |
| 14.0 |
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| $ |
| 76.0 |
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| $ |
| 87.0 |
| Favorable development in property prior years' reserves |
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| $ |
| 2.0 |
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| $ |
| 0.4 |
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| $ |
| 16.2 |
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| $ |
| 21.2 |
| Favorable development in surety prior years' reserves |
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| $ |
| 0.6 |
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| $ |
| 1.1 |
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| $ |
| 8.9 |
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| $ |
| 10.4 |
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| Net incurred losses related to: |
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| 2023 storms |
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| $ |
| (4.0) |
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| $ |
| — |
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| $ |
| (31.0) |
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| $ |
| — |
| Hawaiian wildfires |
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| $ |
| 2.4 |
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| $ |
| — |
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| $ |
| (49.3) |
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| $ |
| — |
| 2022 and prior events |
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| $ |
| 2.9 |
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| $ |
| (2.0) |
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| $ |
| 7.5 |
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| $ |
| (47.0) |
| Reinstatement premium from Hawaiian wildfires |
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| $ |
| 2.6 |
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| $ |
| — |
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| $ |
| (11.7) |
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| $ |
| — |
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| Operating Earnings Per Share |
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| Three Months Ended |
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| Twelve Months Ended |
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| December 31, |
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| December 31, |
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| 2023 |
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| 2022 |
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| 2023 |
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| 2022 |
| Operating Earnings Per Share (1) (2) |
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| $ |
| 1.54 |
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| $ |
| 1.53 |
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| $ |
| 4.94 |
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| $ |
| 4.69 |
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| Specific items included in operating earnings per share: (3) (4) |
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| Net favorable development in casualty prior years' reserves |
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| $ |
| 0.13 |
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| $ |
| 0.21 |
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| $ |
| 1.14 |
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| $ |
| 1.31 |
| Net favorable development in property prior years' reserves |
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| $ |
| 0.03 |
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| $ |
| 0.01 |
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| $ |
| 0.23 |
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| $ |
| 0.32 |
| Net favorable development in surety prior years' reserves |
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| $ |
| 0.01 |
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| $ |
| 0.01 |
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| $ |
| 0.12 |
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| $ |
| 0.15 |
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| Net incurred losses related to: |
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| 2023 storms |
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| $ |
| (0.06) |
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| $ |
| — |
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| $ |
| (0.46) |
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| $ |
| — |
| Hawaiian wildfires (incurred loss and reinstatement premium) |
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| $ |
| 0.07 |
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| $ |
| — |
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| $ |
| (0.90) |
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| $ |
| — |
| 2022 and prior events |
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| $ |
| 0.04 |
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| $ |
| (0.03) |
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| $ |
| 0.10 |
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| $ |
| (0.71) |
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| Gain from tax benefit of special dividend to ESOP (5) |
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| $ |
| 0.02 |
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| $ |
| 0.08 |
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| $ |
| 0.02 |
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| $ |
| 0.08 |
| (1) |
| See discussion above: Non-GAAP and Performance Measures. |
| (2) |
| Equity in earnings of Maui Jim and the related taxes were excluded from operating earnings per share in 2022 due to the sale of RLI’s investment in Maui Jim in the third quarter of 2022. |
| (3) |
| Includes incentive and profit sharing-related impacts which affected policy acquisition, insurance operating and general corporate expenses. |
| (4) |
| Reserve development reflects changes from previously estimated losses. |
| (5) |
| Dividends paid on employer securities in an ESOP are fully deductible from taxable income and resulted in a 21% tax benefit. |
| RLI CORP |
| 2023 FINANCIAL HIGHLIGHTS |
| (Unaudited) |
| (Dollars in thousands, except per share amounts) |
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| Three Months Ended December 31, |
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| Twelve Months Ended December 31, |
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| SUMMARIZED INCOME STATEMENT DATA: |
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| 2023 |
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| 2022 |
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| % Change |
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| 2023 |
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| 2022 |
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| % Change |
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| Net premiums earned |
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| $ |
| 345,894 |
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| $ |
| 301,006 |
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| 14.9 |
| % |
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| $ |
| 1,294,306 |
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| $ |
| 1,144,436 |
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| 13.1 |
| % |
| Net investment income |
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|
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| 32,548 |
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| 28,453 |
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| 14.4 |
| % |
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|
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| 120,383 |
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| 86,078 |
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| 39.9 |
| % |
| Net realized gains (losses) |
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|
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| 5,760 |
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| (3,047) |
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| NM |
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| 32,518 |
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| 588,515 |
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| (94.5) |
| % |
| Net unrealized gains (losses) on equity securities |
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| 49,313 |
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| 34,181 |
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| 44.3 |
| % |
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|
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| 64,787 |
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| (121,037) |
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| NM |
|
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| Consolidated revenue |
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| $ |
| 433,515 |
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| $ |
| 360,593 |
|
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| 20.2 |
| % |
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| $ |
| 1,511,994 |
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| $ |
| 1,697,992 |
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| (11.0) |
| % |
| Loss and settlement expenses |
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|
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| 146,424 |
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|
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| 125,849 |
|
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| 16.3 |
| % |
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|
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| 604,413 |
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| 514,376 |
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| 17.5 |
| % |
| Policy acquisition costs |
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|
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| 111,242 |
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| 97,753 |
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| 13.8 |
| % |
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| 418,325 |
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| 369,632 |
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| 13.2 |
| % |
| Insurance operating expenses |
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| 28,381 |
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| 23,418 |
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| 21.2 |
| % |
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| 98,383 |
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| 82,212 |
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| 19.7 |
| % |
| Interest expense on debt |
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| 1,373 |
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| 2,013 |
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| (31.8) |
| % |
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| 7,301 |
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| 8,047 |
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| (9.3) |
| % |
| General corporate expenses |
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| 5,112 |
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| 4,347 |
|
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| 17.6 |
| % |
|
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|
|
| 15,917 |
|
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|
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| 12,900 |
|
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|
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| 23.4 |
| % |
| Total expenses |
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| $ |
| 292,532 |
|
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| $ |
| 253,380 |
|
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| 15.5 |
| % |
|
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| $ |
| 1,144,339 |
|
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| $ |
| 987,167 |
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|
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| 15.9 |
| % |
| Equity in earnings of unconsolidated investees |
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|
|
| 2,441 |
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|
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| 6,792 |
|
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| (64.1) |
| % |
|
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|
|
| 9,610 |
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|
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| 9,853 |
|
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| (2.5) |
| % |
| Earnings before income taxes |
|
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| $ |
| 143,424 |
|
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| $ |
| 114,005 |
|
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| 25.8 |
| % |
|
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| $ |
| 377,265 |
|
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| $ |
| 720,678 |
|
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| (47.7) |
| % |
| Income tax expense |
|
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|
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| 28,812 |
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|
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| 16,171 |
|
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| 78.2 |
| % |
|
|
|
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| 72,654 |
|
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|
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| 137,267 |
|
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|
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| (47.1) |
| % |
| Net earnings |
|
|
| $ |
| 114,612 |
|
|
| $ |
| 97,834 |
|
|
| 17.1 |
| % |
|
|
| $ |
| 304,611 |
|
|
| $ |
| 583,411 |
|
|
|
|
| (47.8) |
| % |
|
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|
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| Other comprehensive earnings (loss), net of tax |
|
|
|
|
| 101,621 |
|
|
|
|
| 15,490 |
|
|
| 556.0 |
| % |
|
|
|
|
| 62,773 |
|
|
|
|
| (278,902) |
|
|
|
|
| NM |
|
|
| Comprehensive earnings |
|
|
| $ |
| 216,233 |
|
|
| $ |
| 113,324 |
|
|
| 90.8 |
| % |
|
|
| $ |
| 367,384 |
|
|
| $ |
| 304,509 |
|
|
|
|
| 20.6 |
| % |
|
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|
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| Operating earnings (1) : |
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|
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| Net earnings |
|
|
| $ |
| 114,612 |
|
|
| $ |
| 97,834 |
|
|
| 17.1 |
| % |
|
|
| $ |
| 304,611 |
|
|
| $ |
| 583,411 |
|
|
|
|
| (47.8) |
| % |
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net realized (gains) losses |
|
|
|
|
| (5,760) |
|
|
|
|
| 3,047 |
|
|
| NM |
|
|
|
|
|
|
| (32,518) |
|
|
|
|
| (588,515) |
|
|
|
|
| (94.5) |
| % |
| Income tax on realized gains (losses) |
|
|
|
|
| 1,210 |
|
|
|
|
| (646) |
|
|
| NM |
|
|
|
|
|
|
| 6,829 |
|
|
|
|
| 124,415 |
|
|
|
|
| (94.5) |
| % |
| Net unrealized (gains) losses on equity securities |
|
|
|
|
| (49,313) |
|
|
|
|
| (34,181) |
|
|
| 44.3 |
| % |
|
|
|
|
| (64,787) |
|
|
|
|
| 121,037 |
|
|
|
|
| NM |
|
|
| Income tax on unrealized gains (losses) on equity securities |
|
|
|
|
| 10,355 |
|
|
|
|
| 7,178 |
|
|
| 44.3 |
| % |
|
|
|
|
| 13,605 |
|
|
|
|
| (25,418) |
|
|
|
|
| NM |
|
|
| Equity in earnings of Maui Jim |
|
|
|
|
| — |
|
|
|
|
| (3,493) |
|
|
| (100.0) |
| % |
|
|
|
|
| — |
|
|
|
|
| (372) |
|
|
|
|
| (100.0) |
| % |
| Income tax on equity in earnings of Maui Jim |
|
|
|
|
| — |
|
|
|
|
| 733 |
|
|
| (100.0) |
| % |
|
|
|
|
| — |
|
|
|
|
| 78 |
|
|
|
|
| (100.0) |
| % |
| Operating earnings (2) |
|
|
| $ |
| 71,104 |
|
|
| $ |
| 70,472 |
|
|
| 0.9 |
| % |
|
|
| $ |
| 227,740 |
|
|
| $ |
| 214,636 |
|
|
|
|
| 6.1 |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 23.3 |
| % |
|
|
| 48.6 |
| % |
|
|
|
|
|
|
| Comprehensive earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 28.1 |
| % |
|
|
| 25.4 |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares outstanding (in 000's) |
|
|
|
|
| 46,072 |
|
|
|
|
| 45,954 |
|
|
|
|
|
|
|
|
|
|
| 46,077 |
|
|
|
|
| 45,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings per share (2) |
|
|
| $ |
| 2.49 |
|
|
| $ |
| 2.13 |
|
|
| 16.9 |
| % |
|
|
| $ |
| 6.61 |
|
|
| $ |
| 12.74 |
|
|
|
|
| (48.1) |
| % |
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net realized (gains) losses |
|
|
|
|
| (0.13) |
|
|
|
|
| 0.06 |
|
|
| NM |
|
|
|
|
|
|
| (0.71) |
|
|
|
|
| (12.84) |
|
|
|
|
| (94.5) |
| % |
| Income tax on realized gains (losses) |
|
|
|
|
| 0.03 |
|
|
|
|
| (0.01) |
|
|
| NM |
|
|
|
|
|
|
| 0.15 |
|
|
|
|
| 2.72 |
|
|
|
|
| (94.5) |
| % |
| Net unrealized (gains) losses on equity securities |
|
|
|
|
| (1.07) |
|
|
|
|
| (0.74) |
|
|
| 44.6 |
| % |
|
|
|
|
| (1.41) |
|
|
|
|
| 2.64 |
|
|
|
|
| NM |
|
|
| Income tax on unrealized gains (losses) on equity securities |
|
|
|
|
| 0.22 |
|
|
|
|
| 0.16 |
|
|
| 37.5 |
| % |
|
|
|
|
| 0.30 |
|
|
|
|
| (0.56) |
|
|
|
|
| NM |
|
|
| Equity in earnings of Maui Jim |
|
|
|
|
| — |
|
|
|
|
| (0.08) |
|
|
| (100.0) |
| % |
|
|
|
|
| — |
|
|
|
|
| (0.01) |
|
|
|
|
| (100.0) |
| % |
| Income tax on equity in earnings of Maui Jim |
|
|
|
|
| — |
|
|
|
|
| 0.01 |
|
|
| (100.0) |
| % |
|
|
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
| % |
| Operating earnings per share (1) (2) |
|
|
| $ |
| 1.54 |
|
|
| $ |
| 1.53 |
|
|
| 0.7 |
| % |
|
|
| $ |
| 4.94 |
|
|
| $ |
| 4.69 |
|
|
|
|
| 5.3 |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Comprehensive earnings per share |
|
|
| $ |
| 4.69 |
|
|
| $ |
| 2.47 |
|
|
| 89.9 |
| % |
|
|
| $ |
| 7.97 |
|
|
| $ |
| 6.65 |
|
|
|
|
| 19.8 |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash dividends per share - ordinary |
|
|
| $ |
| 0.27 |
|
|
| $ |
| 0.26 |
|
|
| 3.8 |
| % |
|
|
| $ |
| 1.07 |
|
|
| $ |
| 1.03 |
|
|
|
|
| 3.9 |
| % |
| Cash dividends per share - special |
|
|
|
|
| 2.00 |
|
|
|
|
| 7.00 |
|
|
| (71.4) |
| % |
|
|
|
|
| 2.00 |
|
|
|
|
| 7.00 |
|
|
|
|
| (71.4) |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash flow provided by (used in) operations |
|
|
| $ |
| 122,065 |
|
|
| $ |
| (32,438) |
|
|
| NM |
|
|
|
|
| $ |
| 464,257 |
|
|
| $ |
| 250,448 |
|
|
|
|
| 85.4 |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
| See discussion above: Non-GAAP and Performance Measures. |
| (2) |
| Equity in earnings of Maui Jim and the related taxes were excluded from operating earnings and operating earnings per share in 2022 due to the sale of RLI’s investment in Maui Jim in the third quarter of 2022. |
|
|
| NM = Not Meaningful |
| RLI CORP |
| 2023 FINANCIAL HIGHLIGHTS |
| (Unaudited) |
| (Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| December 31, |
|
|
| December 31, |
|
|
|
|
|
|
|
|
|
|
| 2023 |
|
|
| 2022 |
|
|
| % Change |
|
|
| SUMMARIZED BALANCE SHEET DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fixed income, at fair value |
|
|
| $ |
| 2,855,849 |
|
|
| $ |
| 2,666,950 |
|
|
| 7.1 |
| % |
| (amortized cost - $3,054,391 at 12/31/23) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (amortized cost - $2,945,273 at 12/31/22) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity securities, at fair value |
|
|
|
|
| 590,041 |
|
|
|
|
| 498,382 |
|
|
| 18.4 |
| % |
| (cost - $354,022 at 12/31/23) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (cost - $328,019 at 12/31/22) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Short-term investments |
|
|
|
|
| 134,923 |
|
|
|
|
| 36,229 |
|
|
| 272.4 |
| % |
| Other invested assets |
|
|
|
|
| 59,081 |
|
|
|
|
| 47,922 |
|
|
| 23.3 |
| % |
| Cash and cash equivalents |
|
|
|
|
| 36,424 |
|
|
|
|
| 22,818 |
|
|
| 59.6 |
| % |
| Total investments and cash |
|
|
| $ |
| 3,676,318 |
|
|
| $ |
| 3,272,301 |
|
|
| 12.3 |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accrued investment income |
|
|
|
|
| 24,062 |
|
|
|
|
| 21,259 |
|
|
| 13.2 |
| % |
| Premiums and reinsurance balances receivable |
|
|
|
|
| 221,206 |
|
|
|
|
| 189,501 |
|
|
| 16.7 |
| % |
| Ceded unearned premiums |
|
|
|
|
| 112,257 |
|
|
|
|
| 138,457 |
|
|
| (18.9) |
| % |
| Reinsurance balances recoverable on unpaid losses |
|
|
|
|
| 757,349 |
|
|
|
|
| 740,089 |
|
|
| 2.3 |
| % |
| Deferred policy acquisition costs |
|
|
|
|
| 146,566 |
|
|
|
|
| 127,859 |
|
|
| 14.6 |
| % |
| Property and equipment |
|
|
|
|
| 46,715 |
|
|
|
|
| 49,573 |
|
|
| (5.8) |
| % |
| Investment in unconsolidated investees |
|
|
|
|
| 56,966 |
|
|
|
|
| 58,275 |
|
|
| (2.2) |
| % |
| Goodwill and intangibles |
|
|
|
|
| 53,562 |
|
|
|
|
| 53,562 |
|
|
| 0.0 |
| % |
| Income taxes - deferred |
|
|
|
|
| 15,872 |
|
|
|
|
| 40,269 |
|
|
| (60.6) |
| % |
| Other assets |
|
|
|
|
| 69,348 |
|
|
|
|
| 75,923 |
|
|
| (8.7) |
| % |
| Total assets |
|
|
| $ |
| 5,180,221 |
|
|
| $ |
| 4,767,068 |
|
|
| 8.7 |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unpaid losses and settlement expenses |
|
|
| $ |
| 2,446,025 |
|
|
| $ |
| 2,315,637 |
|
|
| 5.6 |
| % |
| Unearned premiums |
|
|
|
|
| 892,326 |
|
|
|
|
| 785,085 |
|
|
| 13.7 |
| % |
| Reinsurance balances payable |
|
|
|
|
| 71,507 |
|
|
|
|
| 61,100 |
|
|
| 17.0 |
| % |
| Funds held |
|
|
|
|
| 101,446 |
|
|
|
|
| 101,144 |
|
|
| 0.3 |
| % |
| Income taxes - current |
|
|
|
|
| 3,757 |
|
|
|
|
| — |
|
|
| NM |
|
|
| Debt |
|
|
|
|
| 100,000 |
|
|
|
|
| 199,863 |
|
|
| (50.0) |
| % |
| Accrued expenses |
|
|
|
|
| 108,880 |
|
|
|
|
| 94,869 |
|
|
| 14.8 |
| % |
| Other liabilities |
|
|
|
|
| 42,766 |
|
|
|
|
| 32,029 |
|
|
| 33.5 |
| % |
| Total liabilities |
|
|
| $ |
| 3,766,707 |
|
|
| $ |
| 3,589,727 |
|
|
| 4.9 |
| % |
| Shareholders' equity |
|
|
|
|
| 1,413,514 |
|
|
|
|
| 1,177,341 |
|
|
| 20.1 |
| % |
| Total liabilities & shareholders' equity |
|
|
| $ |
| 5,180,221 |
|
|
| $ |
| 4,767,068 |
|
|
| 8.7 |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OTHER DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares outstanding (in 000's) |
|
|
|
|
| 45,640 |
|
|
|
|
| 45,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Book value per share |
|
|
| $ |
| 30.97 |
|
|
| $ |
| 25.89 |
|
|
| 19.6 |
| % |
| Closing stock price per share |
|
|
| $ |
| 133.12 |
|
|
| $ |
| 131.27 |
|
|
| 1.4 |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Statutory surplus |
|
|
| $ |
| 1,520,135 |
|
|
| $ |
| 1,437,324 |
|
|
| 5.8 |
| % |
| RLI CORP |
| 2023 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 |
|
|
| 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross premiums written |
|
|
| $ |
| 238,467 |
|
|
|
|
|
|
| $ |
| 158,047 |
|
|
|
|
|
|
| $ |
| 37,846 |
|
|
|
|
|
|
| $ |
| 434,360 |
|
|
|
|
|
|
| Net premiums written |
|
|
|
|
| 191,626 |
|
|
|
|
|
|
|
|
| 104,154 |
|
|
|
|
|
|
|
|
| 35,117 |
|
|
|
|
|
|
|
|
| 330,897 |
|
|
|
|
|
|
| Net premiums earned |
|
|
|
|
| 195,962 |
|
|
|
|
|
|
|
|
| 115,934 |
|
|
|
|
|
|
|
|
| 33,998 |
|
|
|
|
|
|
|
|
| 345,894 |
|
|
|
|
|
|
| Net loss & settlement expenses |
|
|
|
|
| 121,399 |
|
|
| 62.0 |
| % |
|
|
| 22,554 |
|
|
| 19.5 |
| % |
|
|
| 2,471 |
|
|
| 7.3 |
| % |
|
|
| 146,424 |
|
|
| 42.3 |
| % |
| Net operating expenses |
|
|
|
|
| 72,562 |
|
|
| 37.0 |
| % |
|
|
| 40,653 |
|
|
| 35.0 |
| % |
|
|
| 26,408 |
|
|
| 77.6 |
| % |
|
|
| 139,623 |
|
|
| 40.4 |
| % |
| Underwriting income (1) |
|
|
| $ |
| 2,001 |
|
|
| 99.0 |
| % |
| $ |
| 52,727 |
|
|
| 54.5 |
| % |
| $ |
| 5,119 |
|
|
| 84.9 |
| % |
| $ |
| 59,847 |
|
|
| 82.7 |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross premiums written |
|
|
| $ |
| 221,729 |
|
|
|
|
|
|
| $ |
| 127,932 |
|
|
|
|
|
|
| $ |
| 34,127 |
|
|
|
|
|
|
| $ |
| 383,788 |
|
|
|
|
|
|
| Net premiums written |
|
|
|
|
| 175,132 |
|
|
|
|
|
|
|
|
| 91,332 |
|
|
|
|
|
|
|
|
| 32,031 |
|
|
|
|
|
|
|
|
| 298,495 |
|
|
|
|
|
|
| Net premiums earned |
|
|
|
|
| 183,338 |
|
|
|
|
|
|
|
|
| 84,912 |
|
|
|
|
|
|
|
|
| 32,756 |
|
|
|
|
|
|
|
|
| 301,006 |
|
|
|
|
|
|
| Net loss & settlement expenses |
|
|
|
|
| 102,623 |
|
|
| 56.0 |
| % |
|
|
| 20,558 |
|
|
| 24.2 |
| % |
|
|
| 2,668 |
|
|
| 8.1 |
| % |
|
|
| 125,849 |
|
|
| 41.8 |
| % |
| Net operating expenses |
|
|
|
|
| 67,344 |
|
|
| 36.7 |
| % |
|
|
| 32,105 |
|
|
| 37.8 |
| % |
|
|
| 21,722 |
|
|
| 66.4 |
| % |
|
|
| 121,171 |
|
|
| 40.3 |
| % |
| Underwriting income (1) |
|
|
| $ |
| 13,371 |
|
|
| 92.7 |
| % |
| $ |
| 32,249 |
|
|
| 62.0 |
| % |
| $ |
| 8,366 |
|
|
| 74.5 |
| % |
| $ |
| 53,986 |
|
|
| 82.1 |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Twelve Months Ended December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP |
|
|
|
|
|
|
|
|
| GAAP |
|
|
|
|
|
|
|
|
| GAAP |
|
|
|
|
|
|
|
|
| GAAP |
|
|
|
|
|
|
| Casualty |
|
|
| Ratios |
|
|
| Property |
|
|
| Ratios |
|
|
| Surety |
|
|
| Ratios |
|
|
| Total |
|
|
| Ratios |
|
|
| 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross premiums written |
|
|
| $ |
| 961,665 |
|
|
|
|
|
|
| $ |
| 697,372 |
|
|
|
|
|
|
| $ |
| 147,623 |
|
|
|
|
|
|
| $ |
| 1,806,660 |
|
|
|
|
|
|
| Net premiums written |
|
|
|
|
| 788,982 |
|
|
|
|
|
|
|
|
| 500,057 |
|
|
|
|
|
|
|
|
| 138,708 |
|
|
|
|
|
|
|
|
| 1,427,747 |
|
|
|
|
|
|
| Net premiums earned |
|
|
|
|
| 758,346 |
|
|
|
|
|
|
|
|
| 401,530 |
|
|
|
|
|
|
|
|
| 134,430 |
|
|
|
|
|
|
|
|
| 1,294,306 |
|
|
|
|
|
|
| Net loss & settlement expenses |
|
|
|
|
| 418,032 |
|
|
| 55.1 |
| % |
|
|
| 172,062 |
|
|
| 42.9 |
| % |
|
|
| 14,319 |
|
|
| 10.7 |
| % |
|
|
| 604,413 |
|
|
| 46.7 |
| % |
| Net operating expenses |
|
|
|
|
| 280,835 |
|
|
| 37.1 |
| % |
|
|
| 143,152 |
|
|
| 35.6 |
| % |
|
|
| 92,721 |
|
|
| 68.9 |
| % |
|
|
| 516,708 |
|
|
| 39.9 |
| % |
| Underwriting income (1) |
|
|
| $ |
| 59,479 |
|
|
| 92.2 |
| % |
| $ |
| 86,316 |
|
|
| 78.5 |
| % |
| $ |
| 27,390 |
|
|
| 79.6 |
| % |
| $ |
| 173,185 |
|
|
| 86.6 |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross premiums written |
|
|
| $ |
| 926,231 |
|
|
|
|
|
|
| $ |
| 499,461 |
|
|
|
|
|
|
| $ |
| 139,794 |
|
|
|
|
|
|
| $ |
| 1,565,486 |
|
|
|
|
|
|
| Net premiums written |
|
|
|
|
| 744,607 |
|
|
|
|
|
|
|
|
| 364,644 |
|
|
|
|
|
|
|
|
| 132,285 |
|
|
|
|
|
|
|
|
| 1,241,536 |
|
|
|
|
|
|
| Net premiums earned |
|
|
|
|
| 711,832 |
|
|
|
|
|
|
|
|
| 307,886 |
|
|
|
|
|
|
|
|
| 124,718 |
|
|
|
|
|
|
|
|
| 1,144,436 |
|
|
|
|
|
|
| Net loss & settlement expenses |
|
|
|
|
| 381,436 |
|
|
| 53.6 |
| % |
|
|
| 120,745 |
|
|
| 39.2 |
| % |
|
|
| 12,195 |
|
|
| 9.8 |
| % |
|
|
| 514,376 |
|
|
| 44.9 |
| % |
| Net operating expenses |
|
|
|
|
| 256,607 |
|
|
| 36.0 |
| % |
|
|
| 114,619 |
|
|
| 37.2 |
| % |
|
|
| 80,618 |
|
|
| 64.6 |
| % |
|
|
| 451,844 |
|
|
| 39.5 |
| % |
| Underwriting income (1) |
|
|
| $ |
| 73,789 |
|
|
| 89.6 |
| % |
| $ |
| 72,522 |
|
|
| 76.4 |
| % |
| $ |
| 31,905 |
|
|
| 74.4 |
| % |
| $ |
| 178,216 |
|
|
| 84.4 |
| % |
(1) See discussion above: Non-GAAP and Performance Measures.
Category: Earnings Release
View source version on businesswire.com: https://www.businesswire.com/news/home/20240124867301/en/
Aaron Diefenthaler
Chief Investment Officer & Treasurer
309-693-5846
Aaron.Diefenthaler@rlicorp.com