RLI Corp. (NYSE: RLI) – RLI Corp. reported fourth quarter 2011 operating earnings of $28.9 million ($1.35 per share), versus $35.1 million ($1.66 per share) for the comparable period last year. For the year ended December 31, 2011, operating earnings were $119.5 million ($5.58 per share), compared to $112.3 million ($5.29 per share) for the 2010 fiscal year.
|Fourth Quarter||Full Year|
|Earnings Per Diluted Share||2011||2010||2011||2010|
Highlights for the quarter included:
- Combined ratio of 81.5.
- Underwriting income of $26.8 million.
- 12% growth in gross premiums written, including 8% growth driven by CBIC acquisition.
- $10.6 million ($0.32 per share) pretax favorable development in prior years’ loss reserves, net of effects on bonus and profit sharing-related expenses.
- Comprehensive earnings of $58.3 million ($2.72 per share).
- Special dividend of $5.00 per share, representing $105.8 million returned to shareholders and resulting in a tax benefit of $2.7 million ($0.13 per share) as dividends to the ESOP are fully deductible.
Highlights for the year-ended 2011 included:
- Combined ratio of 78.4.
- Underwriting income of $116.3 million.
- 10% growth in gross premiums written, including 6% growth driven by CBIC acquisition.
- $91.7 million ($2.79 per share) pretax favorable development in prior years’ loss reserves, net of effects on bonus and profit sharing-related expenses.
- Comprehensive earnings of $151.9 million ($7.09 per share).
- Book value per share of $38.69 at year-end, representing an increase of 16%, excluding the special dividend.
- Return on equity for the trailing four quarters was 15.7%.
- Acquired Contractors Bonding and Insurance Company (CBIC).
“Throughout the fourth quarter and the year, we delivered strong financial results to our shareholders despite the challenges presented by a tough operating environment,” said RLI Corp. Chairman & CEO Jonathan E. Michael. “Our success reflects the advantages derived from our diversified business model and focus on disciplined underwriting and execution. I am pleased that we were able to share this success with our shareholders through a special dividend that was paid in the quarter.”
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV