Peoria, Ill.-based RLI Corp. reported first quarter net earnings of $25.7 million compared to $29.3 million reported in the same quarter last year. Operating earnings were $22.8 million ($0.86 per share) for the first quarter, compared to $27.4 million ($1.05 per share) from 2005.
Highlights for the first quarter include: overall GAAP combined ratio of 87.5; gross premiums written up 5 percent net premiums written up 9 pecent;double-digit growth in premium for the property and surety segments;and, favorable loss development from prior years’ casualty loss reserves of $2.3 million pre-tax ($0.06 per share).
“We are pleased to report strong results for the quarter, including a
solid combined ratio and a satisfactory level of overall growth,” said RLI Corp. President and CEO Jonathan E. Michael. “These are excellent results when you consider that last year’s operating earnings reflected $0.33 of favorable casualty and hurricane-related reserve developments.”
RLI reported first quarter underwriting income of $15.9 million
representing an 87.5 combined ratio. This compares to the $26.4 million and 78.8 combined ratio results from 2005’s first quarter, which were positively affected by $12.9 million from the quarter’s reserve development. The casualty segment recorded an 89.8 combined ratio, the property segment registered an 80.2 combined ratio, and the surety segment recorded an 86.5 combined ratio for the first quarter of 2006.
Gross premiums written for the quarter were up 5 percent to $175.2 million. Net premiums written rose 9 percent to $121.2 million. Net premiums earned of $127.4 million improved by 3 percent.
“We are pleased with casualty’s underwriting results,” said Michael.
“Casualty premiums were off slightly for the quarter due to reduced program business and modest softening in this segment. Property production was up markedly in the quarter, due to significant growth in commercial property as significant rate increases created additional opportunities in catastrophe- prone areas. Also driving property production was new business from our marine division. We welcome this solid start to the year in a segment that has continued to demonstrate strong profitability. Our surety segment has shown double-digit growth for the fifth consecutive quarter. This period’s 24 percent increase was particularly robust, with an 86.5 combined
ratio signaling solid underwriting results,” said Michael.
At 3:15 p.m. (CDT) today, April 18, RLI management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion through the Internet at RLI’s website, http://www.rlicorp.com .
On May 4, 2006, RLI will hold its annual meeting of shareholders at its
corporate headquarters in Peoria, Ill. Shareholders and the public may listen to the webcast of this meeting through a link at the company’s website, http://www.rlicorp.com .
RLI, a specialty insurance company, which offers a diversified portfolio of property and casualty coverages and surety bonds serving “niche” or underserved markets. RLI operates in all 50 states from 23 office locations.
Source: RLI Corp.
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