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RLI - RLI Corp


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What happened to the old one?

 

I think the author of the thread deleted his original post, which deleted the whole thread. I might still be saved somewhere in the forum's archives, but I'm not sure if it's recoverable.

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  • 3 weeks later...
Guest HarryLong

RLI deserves a lot more respect from the board than it's getting. Let's go back to the latest quarter reported and start comparing it to LRE, AXS, ACGL, etc.

 

This is what I mean when I discuss the important of being non-correlated to the cat cycle and still hitting the 80's on the combined ratio in a soft market.

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RLI deserves a lot more respect from the board than it's getting. Let's go back to the latest quarter reported and start comparing it to LRE, AXS, ACGL, etc.

 

This is what I mean when I discuss the important of being non-correlated to the cat cycle and still hitting the 80's on the combined ratio in a soft market.

 

I respect it by being a shareholder :-)

 

Regards from Spain.

Bidatzi M. Bastida

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I respect it by being a shareholder :-)

 

Same here!

 

I'd be curious to get the IV estimates of other shareholders. I find RLI a bit harder to nail down, because while they are expensive if you look at BV, they have such good UW and reserving that they are cheaper than they might look.. but how much is the question, and is now still a good time to buy?

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  • 1 month later...
Guest HarryLong

Do you think RLI is that much better than LRE Harry, or better at all? 

 

When you compare their combined ratios, what have you found?  ;)

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Do you think RLI is that much better than LRE Harry, or better at all?  

 

When you compare their combined ratios, what have you found?  ;)

 

Based on the ratios here:

 

http://www.investis.com/lre_group/presentations/2011/q1_2011_investor_presentation1.pdf

 

and here:

 

http://www.rlicorp.com/AR2010/2010_11yrdata.pdf

 

It seems like LRE has better CR than RLI, though they have a much shorter track record and aren't quite in the same sector, so their results could be lumpier over time and average out to something that is harder to predict.

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Harry, I know you like answering questions with questions, and sometimes that's very good to encourage people to do their homework.. But I'd love to hear your current thinking on RLI.

 

Still like them as much as ever?

 

I'm also curious to know if you've looked at WRB. Not quite as good CR as RLI, but they seem to be excellent defensive players and very good at springing into action when a hard market comes.

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Guest HarryLong

The past two quarters have separated the men from the boys. Splendid earnings! For the life of me, I cannot understand why some insurance investors want to be tied to the catastrophe cycle.

 

Going forward, I think it will be interesting to see if the CBIC acquisition has the ability, in the short term and the long term, to lower RLI's average combined ratio.

 

I tip my hat to RLI. For those of you who remember my CNA Surety analysis before CNA bought the rest of the company, I think it might be instructive to keep a keen eye on the CBIC numbers.

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Guest HarryLong

Mr. Market made a nice offer this morning. I'm less enchanted with 8-k but I'm reserving judgement until the 10-q comes out to elaborate on the loss performance ex. releases. and rising expenses.

 

As you will remember Rabbitisrich, surety has much higher expense ratios and lower loss ratios  ;D

If you keep that in mind, I think you will be extremely enchanted.

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But direct operating expense growth in surety only accounts for a bit over 1/3 of the YOY growth in pre-provision operating expenses, despite producing over half of the growth in earned premiums. The 10q should provide more disclosure regarding the unusually high ratio of property net written to earned premiums, as well as the bump in the casualty expense ratio.

 

Hopefully, management discussion will include the unusually large reserve release as well.

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Guest HarryLong

Mr. Market made a nice offer this morning. I'm less enchanted with 8-k but I'm reserving judgement until the 10-q comes out to elaborate on the loss performance ex. releases. and rising expenses.

 

They had a grand slam quarter. I just don't see how anyone couldn't be deeply impressed by what they've accomplished.

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  • 2 months later...
  • 1 month later...
To return more value to the shareholders, the board of directors of RLI Corp. (NYSE:RLI) will pay a special dividend of $5.00 per share. Concurrently, the board has also authorized a regular dividend of 30 cents per share. Both the special dividend as well as the regular dividend will be paid on December 20, 2011 to shareholders of record as of November 30, 2011.

 

The decision to authorize a special dividend came on the back of the company’s strong capital position and strength in business operations.

 

RLI Corp. has increased dividends for the past 36 years, the latest of which was a quarterly increase of 3.4% in May 2011. The company has also been paying dividends for 141 consecutive quarters.

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To return more value to the shareholders, the board of directors of RLI Corp. (NYSE:RLI) will pay a special dividend of $5.00 per share. Concurrently, the board has also authorized a regular dividend of 30 cents per share. Both the special dividend as well as the regular dividend will be paid on December 20, 2011 to shareholders of record as of November 30, 2011.

 

The decision to authorize a special dividend came on the back of the company’s strong capital position and strength in business operations.

 

RLI Corp. has increased dividends for the past 36 years, the latest of which was a quarterly increase of 3.4% in May 2011. The company has also been paying dividends for 141 consecutive quarters.

 

This is a horrible announcement... because I sold at $66.

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  • 4 weeks later...
Guest HarryLong

Do you think RLI is that much better than LRE Harry, or better at all?

 

In my opinion, RLI is a much better company than LRE. Take a look at reserve releases and their effect on the combined ratio. Once one takes in to account reserve releases, it is clear that RLI combined ratio this year is far superior to LRE's.

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Do you think RLI is that much better than LRE Harry, or better at all?

 

In my opinion, RLI is a much better company than LRE. Take a look at reserve releases and their effect on the combined ratio. Once one takes in to account reserve releases, it is clear that RLI combined ratio this year is far superior to LRE's.

 

Both are All Star in my book!

 

 

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