RLI Corp. (NYSE: RLI) – RLI Corp. reported second quarter 2012 operating earnings of $25.2 million ($1.17 per share), compared to $38.5 million ($1.80 per share) for the second quarter of 2011. For the six months ended June 30, 2012, operating earnings were $45.8 million ($2.13 per share) compared to $63.3 million ($2.97 per share) for the same period in 2011.
|Earnings Per Diluted Share||2012||2011*|
|Operating earnings (1)||$1.17||$1.80|
|*Second quarter 2011 results were revised to reflect the retrospective adoption of a new accounting standard for policy acquisition costs.|
|(1) See discussion of non-GAAP financial measures on page 3.|
Highlights for the quarter included:
- 9% growth in gross premiums written.
- Underwriting income of $21.6 million, resulting in a combined ratio of 84.7.
- Book value per share of $40.24, an increase of 7.4% from year end 2011.
- $26.5 million net increase in underwriting income resulting from favorable development on prior years’ loss reserves.
- $12.0 million net decrease in underwriting income resulting from 2012 spring storms.
“We are pleased with our performance and once again our underwriters delivered excellent results,” said RLI Corp. Chairman & CEO Jonathan E. Michael. “Premium production benefitted from improved market conditions, particularly within the casualty segment during the quarter. Our underwriters are seeing increased submission flow but remain, as always, disciplined in their pricing and risk selection.”