RLI Corp. (NYSE: RLI) – RLI Corp. reported first quarter 2014 operating earnings of $24.7 million ($0.57 per share), compared to $22.5 million ($0.52 per share) for the first quarter of 2013.
On January 15, 2014, RLI executed a two-for-one stock split of common stock. All share and per share data in this release reflect the stock split.
|Earnings Per Diluted Share||2014||2013|
|Operating earnings (1)||$0.57||$0.52|
|(1) See discussion below of non-GAAP financial measures.|
Highlights for the quarter included:
- Combined ratio of 86.0, resulting in underwriting income of $22.5 million.
- 2% growth in gross premiums written and 6% growth in net premiums written.
- $13.3 million net increase in underwriting income resulting from favorable development in prior years’ loss reserves.
- Investment income of $13.6 million, up 5% from the same period last year.
- Book value per share of $20.23, an increase of 5% from year end 2013.
“RLI finished 2013 with an 83 combined ratio, marking our 18th consecutive year of underwriting profit and positioning us for a positive start in 2014,” said RLI Corp. Chairman & CEO Jonathan E. Michael. “In the first quarter, we posted an 86 combined ratio, which was driven by solid performance across all of our segments. Gross premium volume was up 2%, primarily due to our casualty and surety segments. Net premiums written advanced 6% as a result of reduced reinsurance costs and changes in product mix.”