RLI Tallies Another Record Quarter

Illinois-based RLI Corp.’s second quarter results generated net earnings of $10.0 million ($.97 per diluted share), compared with $8.2 million ($.82 per diluted share) from the same quarter in 2001. This result includes net operating earnings of $9.3 million ($.90 per share), versus the $7.1 million ($.71 per share) result from the same period last year. For the second consecutive quarter, the total dollar and per-share amounts for both net and operating earnings set all-time company records.

The same holds true for the company’s midyear results. Net earnings stood at $19.1 million ($1.87 per share) versus $15.3 million ($1.53 per share) in 2001. Operating earnings were $17.2 million ($1.69 per share), compared to $13.3 million ($1.32 per share) from one year ago.

For the quarter, RLI reported pretax underwriting profits of $2.6 million on a 96.8 net GAAP combined ratio, compared to $1.6 million on a 97.6 combined ratio last year. The company’s property segment’s results were significantly improved over those from one year ago due to exceptional seasonal results. This segment reported a 79.9 combined ratio, compared to a 93.7 result from the same quarter in 2001. Casualty postings were virtually unchanged from the second quarter one year ago, and were consistent with this segment’s historical performance. Surety results slipped, as this segment was hindered by the effects of national economic conditions on contract surety.

Gross written premiums reached $183.2 million, growing 37 percent over 2001′s second quarter. Each segment contributed to the result, with casualty improving by 50 percent, property by 26 percent, and surety by 6 percent. Net written premiums also notched double-digit growth, increasing by 21 percent, to $103.0 million. Both the gross and net written premiums results also established company records for the second consecutive quarter.

RLI Corp., through its subsidiaries RLI Insurance Company, Mt. Hawley Insurance Company, Underwriters Indemnity Company and Planet Indemnity Company, underwrites selected property and casualty products.