RLI Corp. (NYSE: RLI) – RLI Corp. reported third quarter 2012 operating earnings of $21.9 million ($1.02 per share), compared to $24.1 million ($1.13 per share) for the third quarter of 2011. For the nine months ended September 30, 2012, operating earnings were $67.7 million ($3.15 per share) compared to $87.3 million ($4.10 per share) for the same period in 2011.
|Earnings Per Diluted Share||2012||2011*|
|Operating earnings (1)||$1.02||$1.13|
|*Third 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:
- 6% growth in gross premiums written.
- Underwriting income of $18.5 million, resulting in a combined ratio of 87.7.
- Book value per share of $42.15, an increase of 12.5% from year end 2011.
- $18.1 million net increase in underwriting income resulting from favorable development on prior years’ loss reserves.
- $5.6 million net decrease in underwriting income resulting from Hurricane Isaac and other catastrophe events.
- $3.2 million underwriting loss on the 2012 crop reinsurance year due to widespread drought conditions.
“We commend our talented underwriters whose contributions once again created an excellent result,” said RLI Corp. Chairman & CEO Jonathan E. Michael. “We remain focused on delivering superior products and service to our customers and continuing our outstanding financial track record.”