RLI Corp. (NYSE:RLI) – RLI Corp. announced today that its board of directors has declared an extraordinary cash dividend of $3.00 per share of common stock, which is expected to total approximately $65 million, and a regular quarterly cash dividend of $0.34 per share, unchanged from the prior quarter. In addition, the board announced a two-for-one stock split.
Both dividends are payable on December 20, 2013, to shareholders of record as of November 29, 2013. The two-for-one stock split is for shareholders of record as of December 30, 2013, and will be payable on January 15, 2014. Both the regular and special dividends will be paid on the pre-split shares.
“Today’s special dividend announcement by the RLI Board of Directors acknowledges our strong financial performance,” said RLI Corp. Chairman & CEO Jonathan E. Michael. “In addition to generating significant capital through solid underwriting and investment results, RLI has consistently been able to use capital to grow our business. This growth is a result of new products we have launched, niche acquisitions and the hard work of our talented underwriters, who continue to find opportunities in a challenging economic environment."
"Going forward, I am optimistic that we can fulfill our first priority for capital, which is putting it to work to grow our business profitably. RLI has a long history of book value growth and stock price appreciation. In the past, stock splits have been a way to acknowledge that success, and today’s announcement carries forward that tradition,” said Michael.
Since the beginning of 2009, RLI has returned more than $600 million to shareholders, including today’s announced dividends, in the form of dividends and share repurchases. RLI’s special dividends are not regular in nature and may or may not occur in the future. Any determination to declare a special dividend, as well as the amount of any special dividend, is based on the company’s financial position, earnings, market conditions and other relevant factors at that time, as determined by the board of directors.