RLI
$130.38
Rli
($.23)
(.18%)
Earnings Details
Quarter December 2022
Wednesday, January 25, 2023 4:05:00 PM
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Summary

Rli Beats

Rli (RLI) reported Quarter December 2022 earnings of $1.53 per share on revenue of $360.6 million. The consensus earnings estimate was $1.08 per share on revenue of $298.5 million. The Earnings Whisper number was $1.03 per share. Revenue grew 11.5% on a year-over-year basis.

RLI Corp is an insurance company. It operates in three segments namely property, casualty and surety.

Results
Reported Earnings
$1.53
Earnings Whisper
$1.03
Consensus Estimate
$1.08
Reported Revenue
$360.6 Mil
Revenue Estimate
$298.5 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

RLI Reports Fourth Quarter and Year-End 2022 Results

PEORIA, Ill.--(BUSINESS WIRE)--RLI Corp. (NYSE: RLI) – RLI Corp. reported fourth quarter 2022 net earnings of $97.8 million ($2.13 per share), compared to $95.3 million ($2.08 per share) for the fourth quarter of 2021. Operating earnings(1) for the fourth quarter of 2022 were $70.5 million ($1.53 per share), compared to $55.3 million ($1.21 per share) for the same period in 2021.

 

 

Fourth Quarter

 

Year to Date

Earnings Per Diluted Share

 

2022

 

2021

 

2022

 

2021

Net earnings

 

$

2.13

 

$

2.08

 

$

12.74

 

$

6.11

Operating earnings (1) (2)

 

$

1.53

 

$

1.21

 

$

4.69

 

$

3.48

(1)

See discussion below: Non-GAAP and Performance Measures.

(2)

Equity in earnings of Maui Jim and the related taxes were excluded from operating earnings per share due to the sale of RLI’s investment in Maui Jim. Prior period amounts have been restated to reflect the adjustment.

Highlights for the quarter included:

  • Underwriting income(1) of $54.0 million on a combined ratio(1) of 82.1.
  • 14% increase in gross premiums written.
  • 59% increase in net investment income.
  • Favorable development in prior years’ loss reserves, resulting in a $17.0 million net increase in underwriting income.
  • Special dividend of $7.00 per share, representing $318.1 million returned to shareholders.

Highlights for the year included:

  • Underwriting income(1) of $178.2 million on a combined ratio(1) of 84.4.
  • 16% increase in gross premiums written.
  • Favorable development in prior years’ loss reserves, resulting in a $106.5 million net increase in underwriting income.
  • Net earnings include $434.4 million ($9.49 per diluted share) related to the sale of Maui Jim, Inc.
  • Book value per share of $25.89, an increase of 25% (inclusive of dividends) from year-end 2021.

“In 2022, we continued to provide outstanding service to our customers while delivering profitable growth,” said RLI Corp. President & CEO Craig Kliethermes. “We faced some headwinds from hurricane activity and capital market volatility, but strong underwriting performance across all product segments resulted in 16% growth in gross premiums written for the year and an 84 combined ratio, marking our 27th consecutive year of underwriting profitability. We also successfully closed on the sale of our minority ownership interest in Maui Jim and were able to share excess capital generated with shareholders through a $7 per share special dividend.

“I’m proud of what our team accomplished in 2022 and want to thank our talented associate owners for their dedication to our mission and our customers. In the year ahead, we anticipate the industry will remain dynamic. We will continue to address both the opportunities and challenges with discipline, and a focus on the long-term success of our company.”

Underwriting Income

RLI achieved $54.0 million of underwriting income in the fourth quarter of 2022 on an 82.1 combined ratio, compared to $49.7 million on an 80.7 combined ratio in 2021.

For the year, RLI achieved $178.2 million of underwriting income on an 84.4 combined ratio, compared to $129.9 million on an 86.8 combined ratio in 2021. 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. Comparatively, favorable development in prior years’ loss reserves resulted in a $106.5 million net increase to underwriting income in 2021, which was partially offset by $50.2 million of hurricane and storm losses.

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

Underwriting Income(1)

 

 

 

 

 

 

 

Combined Ratio(1)

 

 

 

 

(in millions)

 

2022

 

2021

 

 

 

2022

 

2021

Casualty

 

$

73.8

 

$

95.5

 

Casualty

 

89.6

 

84.9

Property

 

 

72.5

 

 

11.3

 

Property

 

76.4

 

95.1

Surety

 

 

31.9

 

 

23.1

 

Surety

 

74.4

 

80.0

Total

 

$

178.2

 

$

129.9

 

Total

 

84.4

 

86.8

(1)

See discussion below: Non-GAAP and Performance Measures.

Other Income

Net investment income for the quarter increased 58.7% to $28.5 million, compared to the same period in 2021. For the year ended December 31, 2022, net investment income was $86.1 million, compared to $68.9 million for the same period in 2021. The investment portfolio’s total return was 2.3% for the quarter and -11.5% for the year.

RLI’s comprehensive earnings were $113.3 million for the quarter ($2.47 per share), compared to $78.2 million ($1.71 per share) for the same quarter in 2021. Full-year comprehensive earnings were $304.5 million ($6.65 per share), compared to $220.5 million ($4.82 per share) in 2021. In addition to net earnings, comprehensive earnings included after-tax unrealized losses from the fixed income portfolio, due to rising interest rates.

Equity in earnings of Maui Jim, Inc. (Maui Jim), a producer of premium sunglasses, was $3.5 million for the quarter, as post-closing adjustments were made after the sale. Equity in earnings of Prime Holdings Insurance Services, Inc. (Prime), a specialty insurance company, was $3.7 million. Comparatively, for the fourth quarter of 2021, equity in earnings of unconsolidated investees from Maui Jim and Prime was $3.1 million and $5.3 million, respectively. For the year ended December 31, 2022, equity in earnings of Maui Jim was $0.4 million, down from $22.8 million in 2021, primarily due to transaction related expenses from the sale of the company. Equity in earnings of Prime was $13.0 million in 2022, compared to $17.0 million in 2021.

Special and Regular Dividends

On December 20, 2022, the company paid a special cash dividend of $7.00 per share and a regular quarterly dividend of $0.26 per share for a combined total of $329.9 million. RLI has paid dividends for 186 consecutive quarters and increased regular dividends in each of the last 47 years. Over the last 10 years, the company has returned $1.37 billion to shareholders and the regular quarterly dividend has grown an average of 5.0% 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 due to the sale of RLI’s investment. Operating earnings and operating EPS for prior periods have been restated to reflect the equity in earnings of Maui Jim adjustment. 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 2022 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

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 26, 2023, 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/603734663.

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, 2021.

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 47 consecutive years and delivered underwriting profits for 27 consecutive years. To learn more about RLI, visit www.rlicorp.com.

Supplemental disclosure regarding the earnings impact of specific items:

 

 

Reserve Development and Catastrophe Losses,

 

 

Net of Reinsurance

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31,

 

December 31,

(Dollars in millions, except per share amounts)

 

2022

 

2021

 

2022

 

2021

Favorable development in casualty prior years' reserves

 

$

14.0

 

 

$

25.7

 

$

87.0

 

 

$

109.5

 

Favorable development in property prior years' reserves

 

$

0.4

 

 

$

 

$

21.2

 

 

$

8.4

 

Favorable development in surety prior years' reserves

 

$

1.1

 

 

$

3.2

 

$

10.4

 

 

$

5.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net incurred losses related to:

 

 

 

 

 

 

 

 

 

 

 

 

2022 storms

 

$

(8.0

)

 

$

 

$

(13.0

)

 

$

 

Hurricane Ian

 

$

2.0

 

 

$

 

$

(38.0

)

 

$

 

2021 and prior events

 

$

4.0

 

 

$

 

$

4.0

 

 

$

(56.8

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Earnings Per Share

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31,

 

December 31,

 

 

2022

 

2021

 

2022

 

2021

Operating Earnings Per Share(1) (2)

 

$

1.53

 

 

$

1.21

 

$

4.69

 

 

$

3.48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Specific items included in operating earnings per share:(3) (4)

 

 

 

 

 

 

 

 

 

 

 

 

Net favorable development in casualty prior years' reserves

 

$

0.21

 

 

$

0.40

 

$

1.31

 

 

$

1.72

 

Net favorable development in property prior years' reserves

 

$

0.01

 

 

$

 

$

0.32

 

 

$

0.07

 

Net favorable development in surety prior years' reserves

 

$

0.01

 

 

$

0.02

 

$

0.15

 

 

$

0.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net incurred losses related to:

 

 

 

 

 

 

 

 

 

 

 

 

2022 storms

 

$

(0.12

)

 

$

 

$

(0.20

)

 

$

 

Hurricane Ian

 

$

0.03

 

 

$

 

$

(0.57

)

 

$

 

2021 and prior events

 

$

0.06

 

 

$

 

$

0.06

 

 

$

(0.84

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain from tax benefit of special dividend to ESOP(5)

 

$

0.08

 

 

$

0.02

 

$

0.08

 

 

$

0.02

 

(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 due to the sale of RLI’s investment in Maui Jim. Prior period amounts have been restated to reflect the adjustment.

(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

2022 FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

Twelve Months Ended December 31,

 

SUMMARIZED INCOME STATEMENT DATA:

 

2022

 

2021

 

% Change

 

 

2022

 

2021

 

 

% Change

 

Net premiums earned

 

$

301,006

 

 

$

257,919

 

 

16.7

 

%

 

$

1,144,436

 

 

$

980,903

 

 

 

16.7

 

%

Net investment income

 

 

28,453

 

 

 

17,933

 

 

58.7

 

%

 

 

86,078

 

 

 

68,862

 

 

 

25.0

 

%

Net realized gains (losses)

 

 

(3,047

)

 

 

11,780

 

 

NM

 

 

 

 

588,515

 

 

 

64,222

 

 

 

NM

 

 

Net unrealized gains (losses) on equity securities

 

 

34,181

 

 

 

35,732

 

 

(4.3

)

%

 

 

(121,037

)

 

 

65,258

 

 

 

NM

 

 

Consolidated revenue

 

$

360,593

 

 

$

323,364

 

 

11.5

 

%

 

$

1,697,992

 

 

$

1,179,245

 

 

 

44.0

 

%

Loss and settlement expenses

 

 

125,849

 

 

 

101,028

 

 

24.6

 

%

 

 

514,376

 

 

 

456,602

 

 

 

12.7

 

%

Policy acquisition costs

 

 

97,753

 

 

 

84,794

 

 

15.3

 

%

 

 

369,632

 

 

 

317,468

 

 

 

16.4

 

%

Insurance operating expenses

 

 

23,418

 

 

 

22,403

 

 

4.5

 

%

 

 

82,212

 

 

 

76,907

 

 

 

6.9

 

%

Interest expense on debt

 

 

2,013

 

 

 

1,966

 

 

2.4

 

%

 

 

8,047

 

 

 

7,677

 

 

 

4.8

 

%

General corporate expenses

 

 

4,347

 

 

 

3,797

 

 

14.5

 

%

 

 

12,900

 

 

 

13,330

 

 

 

(3.2

)

%

Total expenses

 

$

253,380

 

 

$

213,988

 

 

18.4

 

%

 

$

987,167

 

 

$

871,984

 

 

 

13.2

 

%

Equity in earnings of unconsolidated investees

 

 

6,792

 

 

 

7,653

 

 

(11.3

)

%

 

 

9,853

 

 

 

37,060

 

 

 

(73.4

)

%

Earnings before income taxes

 

$

114,005

 

 

$

117,029

 

 

(2.6

)

%

 

$

720,678

 

 

$

344,321

 

 

 

109.3

 

%

Income tax expense

 

 

16,171

 

 

 

21,745

 

 

(25.6

)

%

 

 

137,267

 

 

 

64,967

 

 

 

111.3

 

%

Net earnings(3)

 

$

97,834

 

 

$

95,284

 

 

2.7

 

%

 

$

583,411

 

 

$

279,354

 

 

 

108.8

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive earnings (loss), net of tax

 

 

15,490

 

 

 

(17,078

)

 

NM

 

 

 

 

(278,902

)

 

 

(58,888

)

 

 

NM

 

 

Comprehensive earnings

 

$

113,324

 

 

$

78,206

 

 

44.9

 

%

 

$

304,509

 

 

$

220,466

 

 

 

38.1

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings(3)

 

$

97,834

 

 

$

95,284

 

 

2.7

 

%

 

$

583,411

 

 

$

279,354

 

 

 

108.8

 

%

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized (gains) losses

 

 

3,047

 

 

 

(11,780

)

 

NM

 

 

 

 

(588,515

)

 

 

(64,222

)

 

 

NM

 

 

Income tax on realized gains (losses)

 

 

(646

)

 

 

2,474

 

 

NM

 

 

 

 

124,415

 

 

 

13,487

 

 

 

NM

 

 

Net unrealized (gains) losses on equity securities

 

 

(34,181

)

 

 

(35,732

)

 

(4.3

)

%

 

 

121,037

 

 

 

(65,258

)

 

 

NM

 

 

Income tax on unrealized gains (losses) on equity securities

 

 

7,178

 

 

 

7,503

 

 

(4.3

)

%

 

 

(25,418

)

 

 

13,703

 

 

 

NM

 

 

Equity in earnings of Maui Jim

 

 

(3,493

)

 

 

(3,095

)

 

12.9

 

%

 

 

(372

)

 

 

(22,786

)

 

 

(98.4

)

%

Income tax on equity in earnings of Maui Jim

 

 

734

 

 

 

650

 

 

12.9

 

%

 

 

78

 

 

 

4,785

 

 

 

(98.4

)

%

Operating earnings(2)

 

$

70,472

 

 

$

55,304

 

 

27.4

 

%

 

$

214,636

 

 

$

159,063

 

 

 

34.9

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

 

 

 

 

 

 

 

 

 

 

48.6

 

%

 

23.2

 

%

 

 

 

Comprehensive earnings

 

 

 

 

 

 

 

 

 

 

 

25.4

 

%

 

18.3

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (in 000's)

 

 

45,954

 

 

 

45,730

 

 

 

 

 

 

45,794

 

 

 

45,712

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share(2)

 

$

2.13

 

 

$

2.08

 

 

2.4

 

%

 

$

12.74

 

 

$

6.11

 

 

 

108.5

 

%

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized (gains) losses

 

 

0.06

 

 

 

(0.26

)

 

NM

 

 

 

 

(12.84

)

 

 

(1.40

)

 

 

NM

 

 

Income tax on realized gains (losses)

 

 

(0.01

)

 

 

0.05

 

 

NM

 

 

 

 

2.72

 

 

 

0.30

 

 

 

NM

 

 

Net unrealized (gains) losses on equity securities

 

 

(0.74

)

 

 

(0.77

)

 

(3.9

)

%

 

 

2.64

 

 

 

(1.44

)

 

 

NM

 

 

Income tax on unrealized gains (losses) on equity securities

 

 

0.16

 

 

 

0.16

 

 

 

%

 

 

(0.56

)

 

 

0.30

 

 

 

NM

 

 

Equity in earnings of Maui Jim

 

 

(0.08

)

 

 

(0.06

)

 

33.3

 

%

 

 

(0.01

)

 

 

(0.49

)

 

 

(98.0

)

%

Income tax on equity in earnings of Maui Jim

 

 

0.01

 

 

 

0.01

 

 

 

%

 

 

 

 

 

0.10

 

 

 

(100.0

)

%

Operating earnings per share(1)(2)

 

$

1.53

 

 

$

1.21

 

 

26.4

 

%

 

$

4.69

 

 

$

3.48

 

 

 

34.8

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive earnings per share

 

$

2.47

 

 

$

1.71

 

 

44.4

 

%

 

$

6.65

 

 

$

4.82

 

 

 

38.0

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends per share - ordinary

 

$

0.26

 

 

$

0.25

 

 

4.0

 

%

 

$

1.03

 

 

$

0.99

 

 

 

4.0

 

%

Cash dividends per share - special

 

 

7.00

 

 

 

2.00

 

 

NM

 

 

 

 

7.00

 

 

 

2.00

 

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Cash Flow provided by (used in) Operations(4)

 

$

(32,438

)

 

$

104,464

 

 

(131.1

)

%

 

$

250,448

 

 

$

384,905

 

 

 

(34.9

)

%

(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 due to the sale of RLI’s investment in Maui Jim. Prior period amounts have been restated to reflect the adjustment.

(3)

Net earnings include $434.4 million related to the sale of Maui Jim, which was completed in the third quarter of 2022.

(4)

Proceeds from the sale of Maui Jim were classified as cash flow from investing activities, not operating activities. However, $116.5 million of tax payments related to the sale were included as operating cash outflows.

 

NM = Not Meaningful

RLI CORP

2022 FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

December 31,

 

 

 

 

 

2022

 

2021

 

% Change

 

SUMMARIZED BALANCE SHEET DATA:

 

 

 

 

 

 

 

 

 

Fixed income, at fair value

 

$

2,666,950

 

$

2,409,887

 

10.7

 

%

(amortized cost - $2,945,273 at 12/31/22)

 

 

 

 

 

 

 

 

 

(amortized cost - $2,346,267 at 12/31/21)

 

 

 

 

 

 

 

 

 

Equity securities, at fair value

 

 

498,382

 

 

613,776

 

(18.8

)

%

(cost - $328,019 at 12/31/22)

 

 

 

 

 

 

 

 

 

(cost - $324,501 at 12/31/21)

 

 

 

 

 

 

 

 

 

Short-term investments

 

 

36,229

 

 

 

NM

 

 

Other invested assets

 

 

47,922

 

 

50,501

 

(5.1

)

%

Cash and cash equivalents

 

 

22,818

 

 

88,804

 

(74.3

)

%

Total investments and cash

 

$

3,272,301

 

$

3,162,968

 

3.5

 

%

 

 

 

 

 

 

 

 

 

 

Accrued investment income

 

 

21,259

 

 

17,505

 

21.4

 

%

Premiums and reinsurance balances receivable

 

 

189,501

 

 

167,279

 

13.3

 

%

Ceded unearned premiums

 

 

138,457

 

 

130,916

 

5.8

 

%

Reinsurance balances recoverable on unpaid losses

 

 

740,089

 

 

608,086

 

21.7

 

%

Deferred policy acquisition costs

 

 

127,859

 

 

103,553

 

23.5

 

%

Property and equipment

 

 

49,573

 

 

52,161

 

(5.0

)

%

Investment in unconsolidated investees

 

 

58,275

 

 

171,311

 

(66.0

)

%

Goodwill and intangibles

 

 

53,562

 

 

53,562

 

0.0

 

%

Income taxes - deferred

 

 

40,269

 

 

 

NM

 

 

Other assets

 

 

75,923

 

 

40,961

 

85.4

 

%

Total assets

 

$

4,767,068

 

$

4,508,302

 

5.7

 

%

 

 

 

 

 

 

 

 

 

 

Unpaid losses and settlement expenses

 

$

2,315,637

 

$

2,043,555

 

13.3

 

%

Unearned premiums

 

 

785,085

 

 

680,444

 

15.4

 

%

Reinsurance balances payable

 

 

61,100

 

 

42,851

 

42.6

 

%

Funds held

 

 

101,144

 

 

89,773

 

12.7

 

%

Income taxes - deferred

 

 

 

 

83,509

 

(100.0

)

%

Current portion of long-term debt

 

 

199,863

 

 

 

NM

 

 

Long-term debt

 

 

 

 

199,676

 

(100.0

)

%

Accrued expenses

 

 

94,869

 

 

98,274

 

(3.5

)

%

Other liabilities

 

 

32,029

 

 

40,859

 

(21.6

)

%

Total liabilities

 

$

3,589,727

 

$

3,278,941

 

9.5

 

%

Shareholders' equity

 

 

1,177,341

 

 

1,229,361

 

(4.2

)

%

Total liabilities & shareholders' equity

 

$

4,767,068

 

$

4,508,302

 

5.7

 

%

 

 

 

 

 

 

 

 

 

 

OTHER DATA:

 

 

 

 

 

 

 

 

 

Common shares outstanding (in 000's)

 

 

45,470

 

 

45,289

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

25.89

 

$

27.14

 

(4.6

)

%

Closing stock price per share

 

$

131.27

 

$

112.10

 

17.1

 

%

 

 

 

 

 

 

 

 

 

 

Statutory surplus

 

$

1,437,324

 

$

1,240,649

 

15.9

 

%

RLI CORP

2022 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

 

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

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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(1)

 

$

21,265

 

87.2

%

$

19,984

 

68.5

%

$

8,445

 

 

70.5

 

%

$

49,694

 

80.7

%

Twelve Months Ended December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

GAAP

 

 

 

 

GAAP

 

 

 

 

GAAP

 

 

 

Casualty

 

Ratios

 

Property

 

Ratios

 

Surety

 

Ratios

 

Total

 

Ratios

 

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

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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(1)

 

$

95,519

 

84.9

%

$

11,300

 

95.1

%

$

23,107

 

80.0

%

$

129,926

 

86.8

%

(1)

See discussion above: Non-GAAP and Performance Measures.

Category: Earnings Release

Aaron Diefenthaler
Chief Investment Officer & Treasurer
309-693-5846
Aaron.Diefenthaler@rlicorp.com

Source: RLI Corp.