Rli Corp (RLI) 10-Q Quarterly Report July 2018

PEORIA, ILLINOIS, July 18, 2018 -- RLI Corp. (NYSE: RLI) – RLI Corp. reported second quarter 2018 net earnings of $33.3 million ($0.74 per share), compared to $26.2 million ($0.59 per share) for the second quarter of 2017. Operating earnings

(1) for the second quarter of 2018 were $26.7 million ($0.60 per share) compared to $27.1 million ($0.61 per share) for the same period in 2017.


		Second Quarter				Year to Date
Earnings Per Diluted Share		2018		2017		2018		2017
Net earnings (2)		$	0.74	$	0.59	$	1.01	$	1.03
Operating earnings (1)		$	0.60	$	0.61	$	1.19	$	1.04

(1)	See discussion below: Non-GAAP and Performance Measures.
(2)	Unrealized losses on equity securities and the related taxes were included in net earnings in 2018. See discussion below: Recently Adopted Accounting Standard and Tax Reform.

Highlights for the quarter included:

Underwriting income(1) of $14.1 million, resulting in a combined ratio(1) of 92.8.

12% increase in gross premiums written and 10% increase in investment income.

Favorable development in prior years’ loss reserves resulting in a $12.4 million net increase in underwriting income.

Losses from volcanic activity in Hawaii resulting in a $5.5 million net decrease to underwriting income.

Book value per share of $19.17, an increase of 1% from year-end 2017, inclusive of dividends.

“We are pleased to report profitable underwriting results and strong premium growth in the second quarter,” said RLI Corp. Chairman & CEO Jonathan E. Michael. “We achieved a 93 combined ratio, which was driven by profitable underwriting in all segments. Although volcanic activity in Hawaii impacted our property results, I am proud of our team’s ongoing efforts to provide outstanding service and support to our policyholders living in affected areas. In addition, we posted 12% top line growth with contributions from multiple products across our diverse portfolio, marking our third consecutive quarter of double-digit growth. Because of the combined strength of our underwriting and investment performance, we were able to deliver $0.60 of operating earnings per share.”

Underwriting Income

RLI achieved $14.1 million of underwriting income in the second quarter of 2018 on a 92.8 combined ratio, compared to $19.7 million of underwriting income on an 89.3 combined ratio in the same quarter for 2017. Results for both years include favorable development in prior years’ loss reserves which totaled $12.4 million and $12.8 million for 2018 and 2017, respectively.

The following table highlights underwriting income and combined ratios by segment.


Underwriting Income(1)	Second Quarter				Combined Ratio(1)	Second Quarter
(in millions)		2018		2017		2018	2017
Casualty	$	2.9	$	8.6	Casualty	97.8	92.8
Property		3.6		2.9	Property	90.2	91.7
Surety		7.6		8.2	Surety	74.3	73.1
Total	$	14.1	$	19.7	Total	92.8	89.3

(1) See discussion below: Non-GAAP and Performance Measures.

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The following information was filed by Rli Corp (RLI) on Wednesday, July 18, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Rli Corp provided additional information to their SEC Filing as exhibits

Exhibit 10.1: Material Contract

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: RLI
CIK: 84246
Form Type: 10-Q Quarterly Report
Accession Number: 0000084246-18-000042
Submitted to the SEC: Fri Jul 20 2018 3:23:07 PM EST
Accepted by the SEC: Fri Jul 20 2018
Period: Saturday, June 30, 2018
Industry: Fire Marine And Casualty Insurance