In This Article:
-
Net Written Premium Growth: 12% growth for the year.
-
Underwriting Profit Growth: 22% growth for the year.
-
Operating Earnings: $0.41 per share for the fourth quarter.
-
Combined Ratio: 94.4 for the fourth quarter; 86.2 for the full year.
-
Gross Premiums Growth: 9% in the fourth quarter; 11% year-to-date.
-
Net Earnings Per Share: $0.44 for the fourth quarter; $3.74 for the year.
-
Casualty Segment Premium Growth: 18% in the fourth quarter.
-
Casualty Combined Ratio: 97.9 for the calendar year.
-
Surety Segment Growth: Flat in the quarter; 9% year-to-date.
-
Property Segment Premium Change: Down 3% in the fourth quarter.
-
Investment Income Growth: 19% rise contributing to operating earnings.
-
Comprehensive Earnings: $3.66 per share.
-
Book Value Per Share: $16.59, an increase of 24% from year-end 2023.
-
Special Dividend: $2 per share, split adjusted.
-
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
-
How to calculate the intrinsic value of a stock?
Release Date: January 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
RLI Corp (NYSE:RLI) reported its 29th consecutive year of underwriting profit, showcasing strong financial consistency.
-
The company achieved a 12% growth in net written premium and a 22% growth in underwriting profits for the year.
-
Operating earnings for the fourth quarter were $0.41 per share, supported by positive underwriting performance and a 19% rise in investment income.
-
The casualty segment saw an 18% growth in premiums during the fourth quarter, driven by a 10% rate change in auto coverages.
-
RLI Corp (NYSE:RLI) declared a special dividend of $2 per share, reflecting its strong capital management strategy and consistent financial performance.
Negative Points
-
The combined ratio for the fourth quarter was 94.4, influenced by hurricane losses and additions to current accident year casualty reserves.
-
The property segment experienced a 3% decline in gross premiums for the quarter, primarily due to increased competition and rate softening in the E&S property market.
-
RLI Corp (NYSE:RLI) recorded a loss of $12.5 million from its investment in Prime due to reserve strengthening on prior accident years.
-
The transportation and personal umbrella segments faced challenges with increased auto severity, prompting reserve additions to the current accident year.
-
The equity portfolio underperformed the general market, partly due to a value-oriented portion of the allocation.