rli-ex991_6.htm
EXHIBIT 99.1
RLI REPORTS FOURTH QUARTER AND YEAR-END 2021 RESULTS
PEORIA, ILLINOIS, January 26, 2022 – RLI Corp. (NYSE: RLI) – RLI Corp. reported fourth quarter 2021 net earnings of $95.3 million ($2.08 per share), compared to $83.8 million ($1.84 per share) for the fourth quarter of 2020. Operating earnings(1) for the fourth quarter of 2021 were $57.7 million ($1.26 per share), compared to $34.0 million ($0.75 per share) for the same period in 2020.
|
|
Fourth Quarter |
|
|
Year to Date |
|
|
Earnings Per Diluted Share |
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
Net earnings |
$ |
2.08 |
|
|
$ |
1.84 |
|
|
$ |
6.11 |
|
|
$ |
3.46 |
|
|
Operating earnings (1) |
$ |
1.26 |
|
|
$ |
0.75 |
|
|
$ |
3.87 |
|
|
$ |
2.59 |
|
|
|
(1) |
See discussion below: Non-GAAP and Performance Measures. |
Highlights for the quarter included:
|
|
• |
Underwriting income(1) of $49.7 million on a combined ratio(1) of 80.7. |
|
|
• |
12% increase in gross premiums written. |
|
|
• |
Favorable development in prior years’ loss reserves, resulting in a $24.2 million net increase in underwriting income. |
|
|
• |
Special dividend of $2.00 per share, representing $90.6 million returned to shareholders. |
Highlights for the year included:
|
|
• |
Underwriting income(1) of $129.9 million on a combined ratio(1) of 86.8. |
|
|
• |
19% increase in gross premiums written. |
|
|
• |
Favorable development in prior years’ loss reserves, resulting in a $106.5 million net increase in underwriting income. |
|
|
• |
26th consecutive year of underwriting profit(1). |
|
|
• |
Book value per share of $27.14, an increase of 20% (inclusive of dividends) from year-end 2020. |
“We are pleased to report excellent fourth quarter and year-end results,” said RLI Corp. President & CEO Craig Kliethermes. “Our focus on organic growth resulted in a 19% increase in gross premium and an 87 combined ratio for the year. For the quarter, light catastrophe activity and favorable reserve development drove positive underwriting results, and we benefitted from solid investment returns. In 2021, we achieved our 26th consecutive year of underwriting profit, and shared our success in the form of a $2 special dividend. The total capital returned to shareholders now exceeds $1.1 billion over the last ten years, a testament to our consistent financial performance.”
“Our accomplishments are a direct result of our underwriting discipline and the dedication of our talented employee owners. We believe our people and culture have been foundational to our success and will continue to play an important role in the long-term sustainability of our company. I want to thank our Chairman, Jon Michael, for his outstanding leadership as CEO of our organization over the past 20 years. It has been an honor to work with him, and I am humbled to carry on the vision and legacy of RLI’s founder, Jerry Stephens.”
Underwriting Income
RLI achieved $49.7 million of underwriting income in the fourth quarter of 2021 on an 80.7 combined ratio, compared to $27.0 million on an 88.0 combined ratio in 2020.
--more--
For the year, RLI achieved $129.9 million of underwriting income on an 86.8 combined ratio, compared to $69.6 million on a 92.0 combined ratio in 2020. Results for both years include favorable development in prior years’ loss reserves, which resulted in a $106.5 million and $84.0 million net increase to underwriting income for 2021 and 2020, respectively. The favorable development in 2021 was partially offset by a $50.2 million net reduction to underwriting income for hurricane and storm losses, compared to $49.3 million in 2020.
The following table highlights underwriting income and combined ratios by segment for the year.
|
Underwriting Income (Loss)(1) |
|
|
Combined Ratio(1) |
|
|
(in millions) |
|
2021 |
|
|
2020 |
|
|
|
|
2021 |
|
|
2020 |
|
|
Casualty |
|
$ |
95.5 |
|
|
$ |
44.4 |
|
|
Casualty |
|
|
84.9 |
|
|
|
92.2 |
|
|
Property |
|
|
11.3 |
|
|
|
(3.2 |
) |
|
Property |
|
|
95.1 |
|
|
|
101.7 |
|
|
Surety |
|
|
23.1 |
|
|
|
28.4 |
|
|
Surety |
|
|
80.0 |
|
|
|
74.8 |
|
|
Total |
|
$ |
129.9 |
|
|
$ |
69.6 |
|
|
Total |
|
|
86.8 |
|
|
|
92.0 |
|
|
|
(1) |
See discussion below: Non-GAAP and Performance Measures. |
Other Income
Net investment income for the quarter increased 7.7% to $17.9 million, compared to the same period in 2020. For the year ended December 31, 2021, net investment income was $68.9 million, compared to $67.9 million for the same period in 2020. The investment portfolio’s total return was 1.5% for the quarter and 4.7% for the year.
RLI’s comprehensive earnings were $78.2 million for the quarter ($1.71 per share), compared to $89.9 million ($1.97 per share) for the same quarter in 2020. Full-year comprehensive earnings were $220.5 million ($4.82 per share), compared to $213.3 million ($4.70 per share) in 2021. In addition to net earnings, comprehensive earnings (loss) included after-tax unrealized gains/(losses) from the fixed income portfolio.
Equity in earnings of Maui Jim, Inc. (Maui Jim), a producer of premium sunglasses, was $3.1 million for the quarter. Equity in earnings of Prime Holdings Insurance Services, Inc. (Prime), a specialty insurance company, was $5.3 million. Comparatively, for the fourth quarter of 2020, equity in earnings of unconsolidated investees from Maui Jim and Prime was ($1.1) million and $3.1 million, respectively. For the year ended December 31, 2021, equity in earnings of unconsolidated investees was $22.8 million from Maui Jim and $17.0 million from Prime, compared to $10.4 million and $10.8 million, respectively, for the prior year.
Special and Regular Dividends
On December 20, 2021, the company paid a special cash dividend of $2.00 per share and a regular quarterly dividend of $0.25 per share for a combined total of $101.9 million. RLI has paid dividends for 182 consecutive quarters and increased regular dividends in each of the last 46 years. Over the last 10 years, the company has returned $1.13 billion to shareholders and the regular quarterly dividend has grown an average of 5.2% 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 earnings per share (EPS) from operations consist of our GAAP net earnings adjusted by the net realized gains/(losses), net unrealized gains/(losses) on equity securities and taxes related thereto. Net earnings and net earnings per share are the GAAP financial measures that are most directly comparable to operating earnings and EPS from operations. A reconciliation of the operating earnings and EPS from operations to the comparable GAAP financial measures is included in the 2021 financial highlights below.
--more--
2
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
During the fourth quarter, the company’s A+ (Superior) financial strength rating was affirmed by AM Best Company for the company’s insurance subsidiaries – RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company.
At 10 a.m. central standard time (CST) tomorrow, January 27, 2022, 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/214990165.
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, 2020.
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 46 consecutive years and delivered underwriting profits for 26 consecutive years. To learn more about RLI, visit www.rlicorp.com.
Media Contact
Aaron Diefenthaler
Vice President, Chief Investment Officer & Treasurer
309-693-5846
Aaron.Diefenthaler@rlicorp.com
3
Supplemental disclosure regarding the earnings impact of specific items:
|
|
|
|
|
Reserve Development and Catastrophe Losses,
Net of Reinsurance |
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|
(Dollars in millions, except per share amounts) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
Favorable development in casualty prior years' reserves |
|
$ |
25.7 |
|
|
$ |
25.4 |
|
|
$ |
109.5 |
|
|
$ |
76.0 |
|
|
Favorable development in property prior years' reserves |
|
$ |
- |
|
|
$ |
0.6 |
|
|
$ |
8.4 |
|
|
$ |
5.8 |
|
|
Favorable development in surety prior years' reserves |
|
$ |
3.2 |
|
|
$ |
1.9 |
|
|
$ |
5.8 |
|
|
$ |
12.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net incurred losses related to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 storms |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
(25.0 |
) |
|
$ |
- |
|
|
|
2021 hurricanes |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
(34.0 |
) |
|
$ |
- |
|
|
|
2020 and prior events(4) |
|
$ |
- |
|
|
$ |
(18.0 |
) |
|
$ |
2.2 |
|
|
$ |
(73.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings Per Share |
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|
|
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
Operating Earnings Per Share(1) |
$ |
1.26 |
|
|
$ |
0.75 |
|
|
$ |
3.87 |
|
|
$ |
2.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specific items included in operating earnings per share:(2) (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net favorable development in casualty prior years' reserves |
|
$ |
0.40 |
|
|
$ |
0.40 |
|
|
$ |
1.72 |
|
|
$ |
1.15 |
|
|
|
Net favorable development in property prior years' reserves |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
0.07 |
|
|
$ |
0.05 |
|
|
|
Net favorable development in surety prior years' reserves |
|
$ |
0.02 |
|
|
$ |
0.02 |
|
|
$ |
0.03 |
|
|
$ |
0.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net incurred losses related to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 storms |
$ |
- |
|
|
$ |
- |
|
|
$ |
(0.37 |
) |
|
$ |
- |
|
|
|
|
2021 hurricanes |
$ |
- |
|
|
$ |
- |
|
|
$ |
(0.50 |
) |
|
$ |
- |
|
|
|
|
2020 and prior events(4) |
|
$ |
- |
|
|
$ |
(0.26 |
) |
|
$ |
0.03 |
|
|
$ |
(1.10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
See discussion above: Non-GAAP and Performance Measures. |
|
(2) |
Includes incentive and profit sharing-related impacts which affected policy acquisition, insurance operating and general corporate expenses. |
|
(3) |
Reserve development reflects changes from previously estimated losses. |
|
(4) |
Includes COVID-19 reserves established in 2020. |
4
RLI CORP
2021 FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
SUMMARIZED INCOME STATEMENT DATA: |
|
|
2021 |
|
|
|
2020 |
|
|
% Change |
|
|
2021 |
|
|
|
|
2020 |
|
|
|
% Change |
|
Net premiums earned |
|
$ |
257,919 |
|
|
$ |
224,801 |
|
|
|
14.7 |
|
% |
|
$ |
980,903 |
|
|
|
$ |
865,747 |
|
|
|
|
13.3 |
|
% |
|
Net investment income |
|
|
17,933 |
|
|
|
16,655 |
|
|
|
7.7 |
|
% |
|
|
68,862 |
|
|
|
|
67,893 |
|
|
|
|
1.4 |
|
% |
|
Net realized gains |
|
|
11,780 |
|
|
|
3,330 |
|
|
NM |
|
|
|
|
64,222 |
|
|
|
|
17,885 |
|
|
|
NM |
|
|
|
Net unrealized gains on equity securities |
|
|
35,732 |
|
|
|
59,665 |
|
|
|
(40.1 |
) |
% |
|
|
65,258 |
|
|
|
|
32,101 |
|
|
|
|
103.3 |
|
% |
|
Consolidated revenue |
|
$ |
323,364 |
|
|
$ |
304,451 |
|
|
|
6.2 |
|
% |
|
$ |
1,179,245 |
|
|
|
$ |
983,626 |
|
|
|
|
19.9 |
|
% |
|
Loss and settlement expenses |
|
|
101,028 |
|
|
|
103,065 |
|
|
|
(2.0 |
) |
% |
|
|
456,602 |
|
|
|
|
442,884 |
|
|
|
|
3.1 |
|
% |
|
Policy acquisition costs |
|
|
84,794 |
|
|
|
73,002 |
|
|
|
16.2 |
|
% |
|
|
317,468 |
|
|
|
|
286,438 |
|
|
|
|
10.8 |
|
% |
|
Insurance operating expenses |
|
|
22,403 |
|
|
|
21,691 |
|
|
|
3.3 |
|
% |
|
|
76,907 |
|
|
|
|
66,828 |
|
|
|
|
15.1 |
|
% |
|
Interest expense on debt |
|
|
1,966 |
|
|
|
1,902 |
|
|
|
3.4 |
|
% |
|
|
7,677 |
|
|
|
|
7,603 |
|
|
|
|
1.0 |
|
% |
|
General corporate expenses |
|
|
3,797 |
|
|
|
3,848 |
|
|
|
(1.3 |
) |
% |
|
|
13,330 |
|
|
|
|
10,265 |
|
|
|
|
29.9 |
|
% |
|
Total expenses |
|
$ |
213,988 |
|
|
$ |
203,508 |
|
|
|
5.1 |
|
% |
|
$ |
871,984 |
|
|
|
$ |
814,018 |
|
|
|
|
7.1 |
|
% |
|
Equity in earnings of unconsolidated investees |
|
|
7,653 |
|
|
|
1,874 |
|
|
NM |
|
|
|
|
37,060 |
|
|
|
|
20,233 |
|
|
|
|
83.2 |
|
% |
|
Earnings before income taxes |
|
$ |
117,029 |
|
|
$ |
102,817 |
|
|
|
13.8 |
|
% |
|
$ |
344,321 |
|
|
|
$ |
189,841 |
|
|
|
|
81.4 |
|
% |
|
Income tax expense |
|
|
21,745 |
|
|
|
19,012 |
|
|
|
14.4 |
|
% |
|
|
64,967 |
|
|
|
|
32,750 |
|
|
|
|
98.4 |
|
% |
|
Net earnings |
|
$ |
95,284 |
|
|
$ |
83,805 |
|
|
|
13.7 |
|
% |
|
$ |
279,354 |
|
|
|
$ |
157,091 |
|
|
|
|
77.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive earnings (loss), net of tax |
|
|
(17,078 |
) |
|
|
6,129 |
|
|
NM |
|
|
|
|
(58,888 |
) |
|
|
|
56,219 |
|
|
|
NM |
|
|
|
Comprehensive earnings |
|
$ |
78,206 |
|
|
$ |
89,934 |
|
|
|
(13.0 |
) |
% |
|
$ |
220,466 |
|
|
|
$ |
213,310 |
|
|
|
|
3.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
$ |
95,284 |
|
|
$ |
83,805 |
|
|
|
13.7 |
|
% |
|
$ |
279,354 |
|
|
|
$ |
157,091 |
|
|
|
|
77.8 |
|
% |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gains |
|
|
(11,780 |
) |
|
|
(3,330 |
) |
|
NM |
|
|
|
|
(64,222 |
) |
|
|
|
(17,885 |
) |
|
|
NM |
|
|
|
Income tax on realized gains |
|
|
2,474 |
|
|
|
699 |
|
|
NM |
|
|
|
|
13,487 |
|
|
|
|
3,756 |
|
|
|
NM |
|
|
|
Unrealized gains on equity securities |
|
|
(35,732 |
) |
|
|
(59,665 |
) |
|
|
(40.1 |
) |
% |
|
|
(65,258 |
) |
|
|
|
(32,101 |
) |
|
|
|
103.3 |
|
% |
|
Income tax on unrealized gains on equity securities |
|
|
7,503 |
|
|
|
12,531 |
|
|
|
(40.1 |
) |
% |
|
|
13,703 |
|
|
|
|
6,741 |
|
|
|
|
103.3 |
|
% |
|
Operating earnings |
|
$ |
57,749 |
|
|
$ |
34,040 |
|
|
|
69.7 |
|
% |
|
$ |
177,064 |
|
|
|
$ |
117,602 |
|
|
|
|
50.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23.2 |
|
% |
|
|
15.1 |
|
% |
|
|
|
|
|
|
Comprehensive earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18.3 |
|
% |
|
|
20.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding (in 000's) |
|
|
45,730 |
|
|
|
45,565 |
|
|
|
|
|
|
|
|
45,712 |
|
|
|
|
45,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share |
|
$ |
2.08 |
|
|
$ |
1.84 |
|
|
|
13.0 |
|
% |
|
$ |
6.11 |
|
|
|
$ |
3.46 |
|
|
|
|
76.6 |
|
% |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gains |
|
|
(0.26 |
) |
|
|
(0.07 |
) |
|
NM |
|
|
|
|
(1.40 |
) |
|
|
|
(0.39 |
) |
|
|
NM |
|
|
|
Income tax on realized gains |
|
|
0.05 |
|
|
|
0.02 |
|
|
|
150.0 |
|
% |
|
|
0.30 |
|
|
|
|
0.08 |
|
|
|
NM |
|
|
|
Unrealized gains on equity securities |
|
|
(0.77 |
) |
|
|
(1.32 |
) |
|
|
(41.7 |
) |
% |
|
|
(1.44 |
) |
|
|
|
(0.71 |
) |
|
|
|
102.8 |
|
% |
|
Income tax on unrealized gains on equity securities |
|
|
0.16 |
|
|
|
0.28 |
|
|
|
(42.9 |
) |
% |
|
|
0.30 |
|
|
|
|
0.15 |
|
|
|
|
100.0 |
|
% |
|
EPS from operations(1) |
|
$ |
1.26 |
|
|
$ |
0.75 |
|
|
|
68.0 |
|
% |
|
$ |
3.87 |
|
|
|
$ |
2.59 |
|
|
|
|
49.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive earnings per share |
|
$ |
1.71 |
|
|
$ |
1.97 |
|
|
|
(13.2 |
) |
% |
|
$ |
4.82 |
|
|
|
$ |
4.70 |
|
|
|
|
2.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends per share - ordinary |
|
$ |
0.25 |
|
|
$ |
0.24 |
|
|
|
4.2 |
|
% |
|
$ |
0.99 |
|
|
|
$ |
0.95 |
|
|
|
|
4.2 |
|
% |
|
Cash dividends per share - special |
|
$ |
2.00 |
|
|
$ |
1.00 |
|
|
|
100.0 |
|
% |
|
$ |
2.00 |
|
|
|
$ |
1.00 |
|
|
|
|
100.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Flow provided by Operations |
|
$ |
104,464 |
|
|
$ |
100,015 |
|
|
|
4.4 |
|
% |
|
$ |
384,905 |
|
|
|
$ |
263,259 |
|
|
|
|
46.2 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
See discussion above: Non-GAAP and Performance Measures. |
NM = Not Meaningful
5
RLI CORP
2021 FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)
|
|
|
December 31, |
|
|
December 31, |
|
|
|
|
|
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
% Change |
|
SUMMARIZED BALANCE SHEET DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed income, at fair value |
|
$ |
2,409,887 |
|
|
$ |
2,196,626 |
|
|
|
9.7 |
|
% |
|
(amortized cost - $2,346,267 at 12/31/21) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(amortized cost - $2,061,467 at 12/31/20) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity securities, at fair value |
|
|
613,776 |
|
|
|
524,006 |
|
|
|
17.1 |
|
% |
|
(cost - $324,501 at 12/31/21) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(cost - $293,190 at 12/31/20) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other invested assets |
|
|
50,501 |
|
|
|
54,232 |
|
|
|
(6.9 |
) |
% |
|
Cash and cash equivalents |
|
|
88,804 |
|
|
|
62,217 |
|
|
|
42.7 |
|
% |
|
Total investments and cash |
|
$ |
3,162,968 |
|
|
$ |
2,837,081 |
|
|
|
11.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums and reinsurance balances receivable |
|
|
167,279 |
|
|
|
174,628 |
|
|
|
(4.2 |
) |
% |
|
Ceded unearned premiums |
|
|
130,916 |
|
|
|
113,488 |
|
|
|
15.4 |
|
% |
|
Reinsurance balances recoverable on unpaid losses |
|
|
608,086 |
|
|
|
443,729 |
|
|
|
37.0 |
|
% |
|
Deferred policy acquisition costs |
|
|
103,553 |
|
|
|
88,425 |
|
|
|
17.1 |
|
% |
|
Property and equipment |
|
|
52,161 |
|
|
|
51,406 |
|
|
|
1.5 |
|
% |
|
Investment in unconsolidated investees |
|
|
171,311 |
|
|
|
128,382 |
|
|
|
33.4 |
|
% |
|
Goodwill and intangibles |
|
|
53,562 |
|
|
|
53,719 |
|
|
|
(0.3 |
) |
% |
|
Other assets |
|
|
58,466 |
|
|
|
47,627 |
|
|
|
22.8 |
|
% |
|
Total assets |
|
$ |
4,508,302 |
|
|
$ |
3,938,485 |
|
|
|
14.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid losses and settlement expenses |
|
$ |
2,043,555 |
|
|
$ |
1,750,049 |
|
|
|
16.8 |
|
% |
|
Unearned premiums |
|
|
680,444 |
|
|
|
586,386 |
|
|
|
16.0 |
|
% |
|
Reinsurance balances payable |
|
|
42,851 |
|
|
|
42,265 |
|
|
|
1.4 |
|
% |
|
Funds held |
|
|
89,773 |
|
|
|
81,747 |
|
|
|
9.8 |
|
% |
|
Income taxes - deferred |
|
|
83,509 |
|
|
|
80,235 |
|
|
|
4.1 |
|
% |
|
Long-term debt |
|
|
199,676 |
|
|
|
149,489 |
|
|
|
33.6 |
|
% |
|
Accrued expenses |
|
|
98,274 |
|
|
|
75,925 |
|
|
|
29.4 |
|
% |
|
Other liabilities |
|
|
40,859 |
|
|
|
36,411 |
|
|
|
12.2 |
|
% |
|
Total liabilities |
|
$ |
3,278,941 |
|
|
$ |
2,802,507 |
|
|
|
17.0 |
|
% |
|
Shareholders' equity |
|
|
1,229,361 |
|
|
|
1,135,978 |
|
|
|
8.2 |
|
% |
|
Total liabilities & shareholders' equity |
|
$ |
4,508,302 |
|
|
$ |
3,938,485 |
|
|
|
14.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding (in 000's) |
|
|
45,289 |
|
|
|
45,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
27.14 |
|
|
$ |
25.16 |
|
|
|
7.9 |
|
% |
|
Closing stock price per share |
|
$ |
112.10 |
|
|
$ |
104.15 |
|
|
|
7.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory surplus |
|
$ |
1,240,649 |
|
|
$ |
1,121,592 |
|
|
|
10.6 |
|
% |
6
RLI CORP
2021 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 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
|
$ |
213,563 |
|
|
|
|
|
|
|
$ |
91,270 |
|
|
|
|
|
|
|
$ |
32,396 |
|
|
|
|
|
|
|
$ |
337,229 |
|
|
|
|
|
|
|
Net premiums written |
|
|
|
163,796 |
|
|
|
|
|
|
|
|
68,443 |
|
|
|
|
|
|
|
|
29,166 |
|
|
|
|
|
|
|
|
261,405 |
|
|
|
|
|
|
|
Net premiums earned |
|
|
|
165,822 |
|
|
|
|
|
|
|
|
63,444 |
|
|
|
|
|
|
|
|
28,653 |
|
|
|
|
|
|
|
|
257,919 |
|
|
|
|
|
|
|
Net loss & settlement expenses |
|
|
|
82,820 |
|
|
|
49.9 |
|
% |
|
|
18,281 |
|
|
|
28.8 |
|
% |
|
|
(73 |
) |
|
|
-0.3 |
|
% |
|
|
101,028 |
|
|
|
39.2 |
|
% |
|
Net operating expenses |
|
|
|
61,737 |
|
|
|
37.3 |
|
% |
|
|
25,179 |
|
|
|
39.7 |
|
% |
|
|
20,281 |
|
|
|
70.8 |
|
% |
|
|
107,197 |
|
|
|
41.5 |
|
% |
|
Underwriting income (loss)(1) |
|
|
$ |
21,265 |
|
|
|
87.2 |
|
% |
|
$ |
19,984 |
|
|
|
68.5 |
|
% |
|
$ |
8,445 |
|
|
|
70.5 |
|
% |
|
$ |
49,694 |
|
|
|
80.7 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
|
$ |
196,118 |
|
|
|
|
|
|
|
$ |
74,227 |
|
|
|
|
|
|
|
$ |
30,239 |
|
|
|
|
|
|
|
$ |
300,584 |
|
|
|
|
|
|
|
Net premiums written |
|
|
|
146,623 |
|
|
|
|
|
|
|
|
54,718 |
|
|
|
|
|
|
|
|
28,506 |
|
|
|
|
|
|
|
|
229,847 |
|
|
|
|
|
|
|
Net premiums earned |
|
|
|
147,884 |
|
|
|
|
|
|
|
|
48,605 |
|
|
|
|
|
|
|
|
28,312 |
|
|
|
|
|
|
|
|
224,801 |
|
|
|
|
|
|
|
Net loss & settlement expenses |
|
|
|
72,107 |
|
|
|
48.8 |
|
% |
|
|
26,961 |
|
|
|
55.5 |
|
% |
|
|
3,997 |
|
|
|
14.1 |
|
% |
|
|
103,065 |
|
|
|
45.8 |
|
% |
|
Net operating expenses |
|
|
|
53,753 |
|
|
|
36.3 |
|
% |
|
|
20,950 |
|
|
|
43.1 |
|
% |
|
|
19,990 |
|
|
|
70.6 |
|
% |
|
|
94,693 |
|
|
|
42.2 |
|
% |
|
Underwriting income (loss)(1) |
|
|
$ |
22,024 |
|
|
|
85.1 |
|
% |
|
$ |
694 |
|
|
|
98.6 |
|
% |
|
$ |
4,325 |
|
|
|
84.7 |
|
% |
|
$ |
27,043 |
|
|
|
88.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
|
|
|
GAAP |
|
|
|
|
|
GAAP |
|
|
|
|
|
GAAP |
|
|
|
|
|
Casualty |
|
|
Ratios |
|
Property |
|
|
Ratios |
|
Surety |
|
|
Ratios |
|
Total |
|
|
Ratios |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
|
$ |
871,584 |
|
|
|
|
|
|
|
$ |
347,866 |
|
|
|
|
|
|
|
$ |
127,904 |
|
|
|
|
|
|
|
$ |
1,347,354 |
|
|
|
|
|
|
|
Net premiums written |
|
|
|
674,709 |
|
|
|
|
|
|
|
|
262,816 |
|
|
|
|
|
|
|
|
120,008 |
|
|
|
|
|
|
|
|
1,057,533 |
|
|
|
|
|
|
|
Net premiums earned |
|
|
|
633,639 |
|
|
|
|
|
|
|
|
231,837 |
|
|
|
|
|
|
|
|
115,427 |
|
|
|
|
|
|
|
|
980,903 |
|
|
|
|
|
|
|
Net loss & settlement expenses |
|
|
|
311,627 |
|
|
|
49.2 |
|
% |
|
|
129,924 |
|
|
|
56.0 |
|
% |
|
|
15,051 |
|
|
|
13.0 |
|
% |
|
|
456,602 |
|
|
|
46.5 |
|
% |
|
Net operating expenses |
|
|
|
226,493 |
|
|
|
35.7 |
|
% |
|
|
90,613 |
|
|
|
39.1 |
|
% |
|
|
77,269 |
|
|
|
67.0 |
|
% |
|
|
394,375 |
|
|
|
40.3 |
|
% |
|
Underwriting income (loss)(1) |
|
|
$ |
95,519 |
|
|
|
84.9 |
|
% |
|
$ |
11,300 |
|
|
|
95.1 |
|
% |
|
$ |
23,107 |
|
|
|
80.0 |
|
% |
|
$ |
129,926 |
|
|
|
86.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
|
$ |
749,409 |
|
|
|
|
|
|
|
$ |
268,769 |
|
|
|
|
|
|
|
$ |
118,254 |
|
|
|
|
|
|
|
$ |
1,136,432 |
|
|
|
|
|
|
|
Net premiums written |
|
|
|
583,244 |
|
|
|
|
|
|
|
|
196,603 |
|
|
|
|
|
|
|
|
112,241 |
|
|
|
|
|
|
|
|
892,088 |
|
|
|
|
|
|
|
Net premiums earned |
|
|
|
569,521 |
|
|
|
|
|
|
|
|
183,720 |
|
|
|
|
|
|
|
|
112,506 |
|
|
|
|
|
|
|
|
865,747 |
|
|
|
|
|
|
|
Net loss & settlement expenses |
|
|
|
322,099 |
|
|
|
56.6 |
|
% |
|
|
111,356 |
|
|
|
60.6 |
|
% |
|
|
9,429 |
|
|
|
8.4 |
|
% |
|
|
442,884 |
|
|
|
51.2 |
|
% |
|
Net operating expenses |
|
|
|
202,995 |
|
|
|
35.6 |
|
% |
|
|
75,546 |
|
|
|
41.1 |
|
% |
|
|
74,725 |
|
|
|
66.4 |
|
% |
|
|
353,266 |
|
|
|
40.8 |
|
% |
|
Underwriting income (loss)(1) |
|
|
$ |
44,427 |
|
|
|
92.2 |
|
% |
|
$ |
(3,182 |
) |
|
|
101.7 |
|
% |
|
$ |
28,352 |
|
|
|
74.8 |
|
% |
|
$ |
69,597 |
|
|
|
92.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
See discussion above: Non-GAAP and Performance Measures. |
7
