RLI Corp. reported second quarter 2021 net earnings of $81.8 million ($1.79 per share), compared to $92.2 million ($2.04 per share) for the second quarter of 2020. Operating earnings(1) for the second quarter of 2021 were $49.9 million ($1.09 per share), compared to $34.8 million ($0.77 per share) for the same period in 2020.
Highlights for the quarter included:
- Underwriting income(1) of $36.6 million on a combined ratio(1) of 84.8.
- 25% increase in gross premiums written.
- Favorable development in prior years’ loss reserves, resulting in a $27.5 million net increase in underwriting income.
- Book value per share of $27.46, an increase of 11% (inclusive of dividends) from year-end 2020.
“We are pleased to report excellent second quarter financial results,” said RLI Corp. Chairman and CEO Jonathan E. Michael. “All three product segments contributed to our strong performance in the quarter. We achieved an 85 combined ratio and 25% growth in gross written premiums. Favorable market conditions and the continued economic recovery enabled our disciplined underwriters to find more niche opportunities that match our risk appetite. Our capital base continues to grow, supported by our insurance operations and investment returns, and book value per share has increased 11% year to date.”
“During the quarter, we also announced an increase in ordinary dividends for the 46th consecutive year. We are proud of this track record and I want to thank our talented associates for their hard work and continued dedication to our customers. We recently welcomed many of our team members back to our offices and appreciate their perseverance over the past 18 months.”
RLI Corp. is a specialty insurer serving niche property, casualty and surety markets. The company provides deep underwriting expertise and superior service to commercial and personal lines customers nationwide. RLI’s products are offered through its insurance subsidiaries – RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company. All of RLI’s insurance subsidiaries are rated A+ (Superior) by AM Best Company. RLI has paid and increased regular dividends for 46 consecutive years and delivered underwriting profits for 25 consecutive years. To learn more about RLI, visit www.rlicorp.com.