Peoria, Ill.-based specialty insurer RLI Corp. says second quarter net earnings rose 21 percent due to spring storm losses costing $3 million less than last year.

Q2 net earnings were up by $5 million to $30 million on net premiums earned of $155 million, a 9 percent increase. For the first half of the year, net earnings were up 4 percent to $55 million. Net premiums earned increased 7 percent to $299 million.

RLI says the company suffered $8.8 million in spring storm losses, less than its $12 million loss in 2012.

The company's combined ratio dropped 1.3 points in the quarter to 83.4.

During a conference call with financial analysts, President and Chief Operating Officer Michael J. Stone, says the markets are “responding slowly” to spring storm events, but insurers are beginning to increase rates. 

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