Specialty insurer RLI Corp. reported second-quarter net income of nearly $40 million this year, a 2.7 percent increase compared to the same period last year.
Favorable reserve development on prior accident years in the casualty and surety segments positively affected second-quarter results, the company said.
The market remains soft, with the industry having "too much capital chasing too little premium," said Jonathan E. Michael, president and chief executive officer, in a statement.
Results include $3.5 million in catastrophe losses due to flooding in the Southeast and severe storms in the Midwest, the Peoria, Ill.-based insurer said.
Underwriting income increased to $30.8 million in the 2010 second quarter compared to $25.1 million the prior year, and the combined ratio improved to 74.7 from 79.5.
RLI's expansion to crop and other assumed property reinsurance increased written premiums in the property segment during the quarter, Mr. Michael said. Written premiums in the casualty business decreased due to difficult economic conditions in the construction and transportation-related sectors, he added.
For the first six months of 2010, RLI's net income is up 83.5 percent to about $59.2 million, compared to about $32.3 million at the end of June last year.
Net income at the end of the first quarter was about $24.2 million.
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