RLI Corp. (RLI) stated second quarter 2k19 net earnings of $40.5M ($0.89 per share), contrast to $33.3M ($0.74 per share) for the second quarter of 2k18. Operating earnings(1) for the second quarter of 2k19 were $29.7M ($0.66 per share) contrast to $26.7M ($0.60 per share) for the same period in 2k18.
Highlights for the quarter included:
- Underwriting income(1)of $14.9M, resulting in a combined ratio(1) of 92.8.
- 5% raise in gross premiums written and 17% raise in investment income.
- Favorable development in previous years loss reserves resulting in a $17.8M net raise in underwriting income.
- Book value per share of $21.43, an raise of 21% from year-end 2k18, inclusive of dividends.
Other Income
RLI’s net investment income for the quarter raised 16.6% to $17.0M, contrast to the same period in 2k18. The investment portfolio’s total return was 2.9% for the quarter and 7.6% for the year.
Comprehensive earnings were $68.3M for the quarter ($1.51 per share) contrast to $25.6M ($0.57 per share) for the same quarter in 2k18. In addition to net earnings, comprehensive earnings included after-tax unrealized gains/losses from the fixed income portfolio.
Equity in earnings of unconsolidated investees was $8.5M for the quarter contrast to $7.1M from the same period last year. These results are related to Maui Jim, Inc. ($6.5M), a producer of premium sunglasses, and Prime Holdings Insurance Services, Inc. ($2.0M), a specialty insurance company. For the second quarter of 2k18, equity in earnings of unconsolidated investees from Maui Jim and Prime was $6.6M and $0.5M, respectively.
Dividends Paid in the Second Quarter of 2k19
On June 20, 2k19, the company paid a regular quarterly dividend of $0.23 per share, a $0.01 raise over the previous quarter. RLI’s cumulative dividends total over $603M paid over the last five years.
Analysts mean Recommendation on a stock is noted at 3.30. Analyst Recommendation is an outlook of a stock-market analyst on a stock. Rating Scale: 1.0 represent “Strong Buy” and 2.0 signify “Buy” 3.0 while shows “Hold”. 4.0 display “Sell” and 5.0 reveal “Strong Sell” rating.
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