RLI's Quarterly Income Up Sharply
NU Online News Service, July 16, 12:24 p.m. EDT?Specialty insurer RLI Corp. posted second-quarter net income of $15.4 million today–a gain of $5.4 million over the comparable period last year, which was attributed to premium growth and increased policy retentions.
Commenting on the Peoria, Ill.-based company's latest financial results, RLI's chief executive officer Jonathan Michael also remarked that the insurance marketplace is still "very attractive" for specialty niche writers such as RLI.
RLI's performance for the first half of 2003 also showed a marked improvement compared to one year ago. Through the first six months of this year, RLI posted net earnings of $29.8 million, compared to $19.1 million from the first half of 2002.
RLI's second-quarter underwriting profits came in at $7.4 million, on a 93.4 net combined ratio using Generally Accepted Accounting Principles, the company said. In the 2002 second quarter, RLI posted $2.6 million in underwriting profits on a 96.8 combined ratio
RLI said its property segment was the engine behind its robust second-quarter results–this segment posted a 71.5 combined ratio for the quarter, which, the company noted, is an "outstanding figure in light of seasonal weather-related claims."
The casualty segment also performed well, with a 98.5 combined ratio. The company added that its surety results "stayed level" for the quarter, with a combined ratio of 112.
Mr. Michael, RLI's chief executive, noted, "Our 2003 results are benefiting from last year's premium growth. As planned, we've also increased our retentions this year, which have boosted net consolidated revenue and earnings."
Mr. Michael pointed out that his company's net premiums earned grew nearly 40 percent in the second quarter, to $113.6 million, compared to the similar period one year ago.
RLI also saw its investment income rise to $10.9 million in the second quarter, which is a 14-percent increase over the comparable period last year. Bullish equity markets of the last three months also helped lift the company's investment earnings. The company's equity portfolio posted a 14.6 percent return for the quarter, and a 10.5-percent return for the first half of 2003.
RLI mainly offers specialty property-casualty coverage for niche markets. The company's RLI Insurance unit offers commercial insurance in all 50 states.
P-C lines for RLI include commercial and personal liability, commercial property, directors and officers liability, general liability, and surety. Other lines include transportation, employer's excess indemnity and residential property. Last year, the company posted $35.9 million in net income, with $386.6 million in sales.
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