RLI Corp. (NYSE: RLI) – RLI Corp. reported fourth quarter 2012 operating earnings of $19.2 million ($0.89 per share), compared to $28.2 million ($1.31 per share) for the fourth quarter of 2011. For the year ended December 31, 2012, operating earnings were $86.9 million ($4.02 per share) compared to $115.5 million ($5.39 per share) for the 2011 fiscal year.
|Fourth Quarter||Full Year|
|Earnings Per Diluted Share||2012||2011*||2012||2011*|
|Operating earnings (1)||$0.89||$1.31||$4.02||$5.39|
|*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:
- 11% growth in gross premiums written.
- Underwriting income of $8.5 million, resulting in a combined ratio of 94.3.
- $7.5 million net increase in underwriting income resulting from favorable development on prior years’ loss reserves.
- $13.2 million net decrease in underwriting income resulting from Hurricane Sandy.
- Special dividend of $5.00 per share, representing $106.3 million returned to shareholders and resulting in a tax benefit of $2.9 million as dividends to the ESOP are fully deductible.
- $6.6 million dividend from Maui Jim, Inc. resulting in a tax benefit on dividends received from affiliates of $1.8 million.
Highlights for the year included:
- 12% growth in gross premiums written.
- Underwriting income of $63.6 million, resulting in a combined ratio of 89.0.
- 17 th consecutive year of underwriting income.
- Book value per share of $37.45 at year end, representing an increase of 17%, inclusive of dividends.
- $59.8 million net increase in underwriting income resulting from favorable development on prior years’ loss reserves.
- $30.8 million net decrease in underwriting income resulting from catastrophe events including Hurricane Sandy.
- Comprehensive earnings of $129.2 million ($5.99 per share).
“We delivered solid financial results during the fourth quarter,” said RLI Corp. Chairman & CEO Jonathan E. Michael. “We achieved good top line growth and reported a 94.3 combined ratio, despite the impact of Hurricane Sandy.”