RLI Corp. (NYSE: RLI) – RLI Corp. reported first quarter 2012 operating earnings of $20.6 million ($0.96 per share), compared to $24.8 million ($1.17 per share) for the first quarter of 2011.
|Earnings Per Diluted Share||2012||2011*|
* First quarter 2011 results were revised to reflect the retrospective adoption of a new accounting standard for policy acquisition costs.
Highlights for the quarter included:
- 23% growth in gross premiums written, including 10% growth driven by Contractors Bonding and Insurance Company (CBIC).
- Combined ratio of 89.1.
- Underwriting income of $14.9 million.
- $7.8 million ($0.24 per share) pretax favorable development in prior years’ loss reserves, net of effects on bonus and profit sharing-related expenses.
- Comprehensive earnings of $38.8 million ($1.80 per share).
“We ended last year on a strong note, delivering our 16 th consecutive year of underwriting profit, and are pleased to be off to a solid start in the first quarter by posting a respectable 89.1 combined ratio,” said RLI Corp. Chairman & CEO Jonathan E. Michael. “In addition to growth from our acquisition of Contractors Bonding and Insurance Company, we recognized organic growth across each of our segments.”“The insurance market is showing signs of moderate pricing improvement, which is encouraging as we look to continue delivering positive underwriting results. From a product, talent and capital perspective, we are well-positioned to benefit from improved market conditions,” said Michael.