This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

RLI Reports 2011 Fourth Quarter And Year-End Results

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
Operating earnings       $1.35       $1.66       $5.58       $5.29
Net earnings       $1.43       $1.90       $6.09       $6.00

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.”

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,058.35 -469.68 -2.84%
S&P 500 1,913.85 -58.33 -2.96%
NASDAQ 4,636.1050 -140.4030 -2.94%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs