RLI Corp., Peoria, Ill., reported today that third quarter earnings rose 300 percent compared to the same period last year.
The property-casualty writer reported third quarter net earnings of $25.3 million on $149.2 million in revenue for the third quarter of this year, compared to $8.3 million earnings on $146.6 million revenue in the same period last year.
The company reported a combined ratio of 89.5 across all segments compared to 105.6 for the same period last year.
Losses from Hurricanes Katrina and Rita totaled $17 million on a pretax basis, compared to $17.3 million on the same basis in the third quarter last year.
RLI Chief Executive Officer Jonathan Michael said hurricane losses came in below initial estimates. "It may be too soon to predict the impact of hurricanes on future rates, but we expect January reinsurance renewal pricing to increase, which should filter down to primary rates," he said.
The company also reported favorable loss development from prior years' casualty loss reserves of $42 million on a pretax basis. "These adjustments reflect that this business is continuing to develop better than expected," Mr. Michael said.
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