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  • 4 weeks later...
  • 4 months later...

http://www.snl.com/irweblinkx/file.aspx?IID=103386&FID=13177456

 

Another good quarter.

 

PEORIA, Ill.--(BUSINESS WIRE)-- RLI Corp. (NYSE: RLI) – RLI Corp. reported first quarter 2012 operating earnings of $20.6 million ($0.96 per share), compared to $24.8 million ($1.17 per share) for the first quarter of 2011.

 

  First Quarter

Earnings Per Diluted Share   2012   2011*

Operating earnings   $ 0.96   $ 1.17

Net earnings   $ 1.30   $ 1.30

 

* First quarter 2011 results were revised to reflect the retrospective adoption of a new accounting standard for policy acquisition costs.

 

Highlights for the quarter included:

 

23% growth in gross premiums written, including 10% growth driven by Contractors Bonding and Insurance Company (CBIC).

Combined ratio of 89.1.

Underwriting income of $14.9 million.

$7.8 million ($0.24 per share) pretax favorable development in prior years’ loss reserves, net of effects on bonus and profit sharing-related expenses.

Comprehensive earnings of $38.8 million ($1.80 per share).

“We ended last year on a strong note, delivering our 16th consecutive year of underwriting profit, and are pleased to be off to a solid start in the first quarter by posting a respectable 89.1 combined ratio,” said RLI Corp. Chairman & CEO Jonathan E. Michael. “In addition to growth from our acquisition of Contractors Bonding and Insurance Company, we recognized organic growth across each of our segments.”

 

“The insurance market is showing signs of moderate pricing improvement, which is encouraging as we look to continue delivering positive underwriting results. From a product, talent and capital perspective, we are well-positioned to benefit from improved market conditions,” said Michael.

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  • 1 month later...

http://www.snl.com/irweblinkx/file.aspx?IID=103386&FID=13884562

 

PEORIA, Ill.--(BUSINESS WIRE)-- RLI Corp. (NYSE: RLI) – RLI Corp. reported second quarter 2012 operating earnings of $25.2 million ($1.17 per share), compared to $38.5 million ($1.80 per share) for the second quarter of 2011. For the six months ended June 30, 2012, operating earnings were $45.8 million ($2.13 per share) compared to $63.3 million ($2.97 per share) for the same period in 2011.

 

 

  Second Quarter

Earnings Per Diluted Share   2012   2011*

Operating earnings (1) $1.17   $1.80

Net earnings   $1.15   $2.11

 

*Second quarter 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:

 

9% growth in gross premiums written.

Underwriting income of $21.6 million, resulting in a combined ratio of 84.7.

Book value per share of $40.24, an increase of 7.4% from year end 2011.

$26.5 million net increase in underwriting income resulting from favorable development on prior years’ loss reserves.

$12.0 million net decrease in underwriting income resulting from 2012 spring storms.

“We are pleased with our performance and once again our underwriters delivered excellent results,” said RLI Corp. Chairman & CEO Jonathan E. Michael. “Premium production benefitted from improved market conditions, particularly within the casualty segment during the quarter. Our underwriters are seeing increased submission flow but remain, as always, disciplined in their pricing and risk selection.”

 

“We continued our long-standing underwriting track record, as evidenced by the 84.7 combined ratio this quarter, consistent with the 85 combined ratio we have averaged over the last 10 years. We remain well-positioned to succeed in all market conditions,” said Michael.

 

Underwriting income

 

RLI achieved $21.6 million of underwriting income in the second quarter of 2012 on an 84.7 combined ratio, compared to $42.1 million of underwriting income on a 67.8 combined ratio in the same quarter for 2011.

 

         

Underwriting Income (Loss)   Second Quarter Combined Ratio   Second Quarter

(in millions)   2012   2011*     2012   2011*

Casualty $ 11.0   $ 25.9 Casualty 83.2   55.7

Property (0.3 ) 7.4 Property 100.6 84.5

Surety     10.9       8.8 Surety   58.2   64.1

Total   $ 21.6     $ 42.1 Total   84.7   67.8

 

*Second quarter 2011 results were revised to reflect the retrospective adoption of a new accounting standard for policy acquisition costs.

 

Both periods were impacted by approximately $12 million in spring storm losses. Results for 2012 include $26.5 million in favorable development in prior years’ loss reserves, compared to $42.7 million in favorable development in prior years’ loss reserves in 2011.

 

RLI reported year-to-date underwriting income of $36.6 million representing an 86.9 combined ratio through June 30, 2012, versus $63.0 million of underwriting income representing a 74.5 combined ratio for the same period last year.

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  • 3 months later...

http://www.snl.com/irweblinkx/file.aspx?IID=103386&FID=13884562

 

PEORIA, Ill.--(BUSINESS WIRE)-- RLI Corp. (NYSE: RLI) – RLI Corp. reported second quarter 2012 operating earnings of $25.2 million ($1.17 per share), compared to $38.5 million ($1.80 per share) for the second quarter of 2011. For the six months ended June 30, 2012, operating earnings were $45.8 million ($2.13 per share) compared to $63.3 million ($2.97 per share) for the same period in 2011.

 

 

  Second Quarter

Earnings Per Diluted Share   2012   2011*

Operating earnings (1) $1.17   $1.80

Net earnings   $1.15   $2.11

 

*Second quarter 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:

 

9% growth in gross premiums written.

Underwriting income of $21.6 million, resulting in a combined ratio of 84.7.

Book value per share of $40.24, an increase of 7.4% from year end 2011.

$26.5 million net increase in underwriting income resulting from favorable development on prior years’ loss reserves.

$12.0 million net decrease in underwriting income resulting from 2012 spring storms.

“We are pleased with our performance and once again our underwriters delivered excellent results,” said RLI Corp. Chairman & CEO Jonathan E. Michael. “Premium production benefitted from improved market conditions, particularly within the casualty segment during the quarter. Our underwriters are seeing increased submission flow but remain, as always, disciplined in their pricing and risk selection.”

 

“We continued our long-standing underwriting track record, as evidenced by the 84.7 combined ratio this quarter, consistent with the 85 combined ratio we have averaged over the last 10 years. We remain well-positioned to succeed in all market conditions,” said Michael.

 

Underwriting income

 

RLI achieved $21.6 million of underwriting income in the second quarter of 2012 on an 84.7 combined ratio, compared to $42.1 million of underwriting income on a 67.8 combined ratio in the same quarter for 2011.

 

         

Underwriting Income (Loss)   Second Quarter Combined Ratio   Second Quarter

(in millions)   2012   2011*     2012   2011*

Casualty $ 11.0   $ 25.9 Casualty 83.2   55.7

Property (0.3 ) 7.4 Property 100.6 84.5

Surety     10.9       8.8 Surety   58.2   64.1

Total   $ 21.6     $ 42.1 Total   84.7   67.8

 

*Second quarter 2011 results were revised to reflect the retrospective adoption of a new accounting standard for policy acquisition costs.

 

Both periods were impacted by approximately $12 million in spring storm losses. Results for 2012 include $26.5 million in favorable development in prior years’ loss reserves, compared to $42.7 million in favorable development in prior years’ loss reserves in 2011.

 

RLI reported year-to-date underwriting income of $36.6 million representing an 86.9 combined ratio through June 30, 2012, versus $63.0 million of underwriting income representing a 74.5 combined ratio for the same period last year.

 

Giofranchi,  "Ask, and you shall receive"  :)

 

You found it! I looked briefly too, and came up with nothing.

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http://www.snl.com/irweblinkx/file.aspx?IID=103386&FID=13884562

 

PEORIA, Ill.--(BUSINESS WIRE)-- RLI Corp. (NYSE: RLI) – RLI Corp. reported second quarter 2012 operating earnings of $25.2 million ($1.17 per share), compared to $38.5 million ($1.80 per share) for the second quarter of 2011. For the six months ended June 30, 2012, operating earnings were $45.8 million ($2.13 per share) compared to $63.3 million ($2.97 per share) for the same period in 2011.

 

 

  Second Quarter

Earnings Per Diluted Share   2012   2011*

Operating earnings (1) $1.17   $1.80

Net earnings   $1.15   $2.11

 

*Second quarter 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:

 

9% growth in gross premiums written.

Underwriting income of $21.6 million, resulting in a combined ratio of 84.7.

Book value per share of $40.24, an increase of 7.4% from year end 2011.

$26.5 million net increase in underwriting income resulting from favorable development on prior years’ loss reserves.

$12.0 million net decrease in underwriting income resulting from 2012 spring storms.

“We are pleased with our performance and once again our underwriters delivered excellent results,” said RLI Corp. Chairman & CEO Jonathan E. Michael. “Premium production benefitted from improved market conditions, particularly within the casualty segment during the quarter. Our underwriters are seeing increased submission flow but remain, as always, disciplined in their pricing and risk selection.”

 

“We continued our long-standing underwriting track record, as evidenced by the 84.7 combined ratio this quarter, consistent with the 85 combined ratio we have averaged over the last 10 years. We remain well-positioned to succeed in all market conditions,” said Michael.

 

Underwriting income

 

RLI achieved $21.6 million of underwriting income in the second quarter of 2012 on an 84.7 combined ratio, compared to $42.1 million of underwriting income on a 67.8 combined ratio in the same quarter for 2011.

 

         

Underwriting Income (Loss)   Second Quarter Combined Ratio   Second Quarter

(in millions)   2012   2011*     2012   2011*

Casualty $ 11.0   $ 25.9 Casualty 83.2   55.7

Property (0.3 ) 7.4 Property 100.6 84.5

Surety     10.9       8.8 Surety   58.2   64.1

Total   $ 21.6     $ 42.1 Total   84.7   67.8

 

*Second quarter 2011 results were revised to reflect the retrospective adoption of a new accounting standard for policy acquisition costs.

 

Both periods were impacted by approximately $12 million in spring storm losses. Results for 2012 include $26.5 million in favorable development in prior years’ loss reserves, compared to $42.7 million in favorable development in prior years’ loss reserves in 2011.

 

RLI reported year-to-date underwriting income of $36.6 million representing an 86.9 combined ratio through June 30, 2012, versus $63.0 million of underwriting income representing a 74.5 combined ratio for the same period last year.

 

Giofranchi,  "Ask, and you shall receive"  :)

 

 

RLI has a great record.  However, there is one aspect of their business that is difficult if not impossible for me to understand: surety.

 

The most interesting booklet, The First 25 Years of Fairfax,  tells how The investment Group led by Prem was able to take over the nearly insolvent operations of Markel, Canada, that had almost gone under because their main competitor had drastically underpriced their policies.  Almost immediately after the sale, that competitor went bankrupt, and the rates on the policies Fairfax was writing went through the roof.  Within a year or so, FFH's BV doubled, then soon doubled again,  FFH was off to the races, making acquisitions and expanding the business.

 

Then something unexpected happened: the original  business acquired from Markel suddenly lost almost all it's NAV, but that was not fatal because the other operations were doing so well.  The cause of the monster loss was a tiny part of the original business.  It was so small, accounting for only about 1% of premiums written, that Prem didn't even know about iJt. 

 

What did that tiny line of business do?  It wrote surety.  Its loss was about 100 times the annual premiums they wrote! 

 

 

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http://www.snl.com/irweblinkx/file.aspx?IID=103386&FID=13884562

 

PEORIA, Ill.--(BUSINESS WIRE)-- RLI Corp. (NYSE: RLI) – RLI Corp. reported second quarter 2012 operating earnings of $25.2 million ($1.17 per share), compared to $38.5 million ($1.80 per share) for the second quarter of 2011. For the six months ended June 30, 2012, operating earnings were $45.8 million ($2.13 per share) compared to $63.3 million ($2.97 per share) for the same period in 2011.

 

 

  Second Quarter

Earnings Per Diluted Share   2012   2011*

Operating earnings (1) $1.17   $1.80

Net earnings   $1.15   $2.11

 

*Second quarter 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:

 

9% growth in gross premiums written.

Underwriting income of $21.6 million, resulting in a combined ratio of 84.7.

Book value per share of $40.24, an increase of 7.4% from year end 2011.

$26.5 million net increase in underwriting income resulting from favorable development on prior years’ loss reserves.

$12.0 million net decrease in underwriting income resulting from 2012 spring storms.

“We are pleased with our performance and once again our underwriters delivered excellent results,” said RLI Corp. Chairman & CEO Jonathan E. Michael. “Premium production benefitted from improved market conditions, particularly within the casualty segment during the quarter. Our underwriters are seeing increased submission flow but remain, as always, disciplined in their pricing and risk selection.”

 

“We continued our long-standing underwriting track record, as evidenced by the 84.7 combined ratio this quarter, consistent with the 85 combined ratio we have averaged over the last 10 years. We remain well-positioned to succeed in all market conditions,” said Michael.

 

Underwriting income

 

RLI achieved $21.6 million of underwriting income in the second quarter of 2012 on an 84.7 combined ratio, compared to $42.1 million of underwriting income on a 67.8 combined ratio in the same quarter for 2011.

 

         

Underwriting Income (Loss)   Second Quarter Combined Ratio   Second Quarter

(in millions)   2012   2011*     2012   2011*

Casualty $ 11.0   $ 25.9 Casualty 83.2   55.7

Property (0.3 ) 7.4 Property 100.6 84.5

Surety     10.9       8.8 Surety   58.2   64.1

Total   $ 21.6     $ 42.1 Total   84.7   67.8

 

*Second quarter 2011 results were revised to reflect the retrospective adoption of a new accounting standard for policy acquisition costs.

 

Both periods were impacted by approximately $12 million in spring storm losses. Results for 2012 include $26.5 million in favorable development in prior years’ loss reserves, compared to $42.7 million in favorable development in prior years’ loss reserves in 2011.

 

RLI reported year-to-date underwriting income of $36.6 million representing an 86.9 combined ratio through June 30, 2012, versus $63.0 million of underwriting income representing a 74.5 combined ratio for the same period last year.

 

Giofranchi,  "Ask, and you shall receive"  :)

 

 

RLI has a great record.  However, there is one aspect of their business that is difficult if not impossible for me to understand: surety.

 

The most interesting booklet, The First 25 Years of Fairfax,  tells how The investment Group led by Prem was able to take over the nearly insolvent operations of Markel, Canada, that had almost gone under because their main competitor had drastically underpriced their policies.  Almost immediately after the sale, that competitor went bankrupt, and the rates on the policies Fairfax was writing went through the roof.  Within a year or so, FFH's BV doubled, then soon doubled again,  FFH was off to the races, making acquisitions and expanding the business.

 

Then something unexpected happened: the original  business acquired from Markel suddenly lost almost all it's NAV, but that was not fatal because the other operations were doing so well.  The cause of the monster loss was a tiny part of the original business.  It was so small, accounting for only about 1% of premiums written, that Prem didn't even know about iJt. 

 

What did that tiny line of business do?  It wrote surety.  Its loss was about 100 times the annual premiums they wrote!

 

twacowfca,

I am seriously beginning to rely on your help way too much!!  ;D

And I agree that The First 25 Years of Fairfax is very interesting! In 2011 I traveled all the way to Toronto, to attend the AGM of FFH, and also to get my hands on a copy of that booklet! It was undoubtedly worth the effort!

Thank you,

 

giofranchi

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http://www.snl.com/irweblinkx/file.aspx?IID=103386&FID=13884562

 

PEORIA, Ill.--(BUSINESS WIRE)-- RLI Corp. (NYSE: RLI) – RLI Corp. reported second quarter 2012 operating earnings of $25.2 million ($1.17 per share), compared to $38.5 million ($1.80 per share) for the second quarter of 2011. For the six months ended June 30, 2012, operating earnings were $45.8 million ($2.13 per share) compared to $63.3 million ($2.97 per share) for the same period in 2011.

 

 

  Second Quarter

Earnings Per Diluted Share   2012   2011*

Operating earnings (1) $1.17   $1.80

Net earnings   $1.15   $2.11

 

*Second quarter 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:

 

9% growth in gross premiums written.

Underwriting income of $21.6 million, resulting in a combined ratio of 84.7.

Book value per share of $40.24, an increase of 7.4% from year end 2011.

$26.5 million net increase in underwriting income resulting from favorable development on prior years’ loss reserves.

$12.0 million net decrease in underwriting income resulting from 2012 spring storms.

“We are pleased with our performance and once again our underwriters delivered excellent results,” said RLI Corp. Chairman & CEO Jonathan E. Michael. “Premium production benefitted from improved market conditions, particularly within the casualty segment during the quarter. Our underwriters are seeing increased submission flow but remain, as always, disciplined in their pricing and risk selection.”

 

“We continued our long-standing underwriting track record, as evidenced by the 84.7 combined ratio this quarter, consistent with the 85 combined ratio we have averaged over the last 10 years. We remain well-positioned to succeed in all market conditions,” said Michael.

 

Underwriting income

 

RLI achieved $21.6 million of underwriting income in the second quarter of 2012 on an 84.7 combined ratio, compared to $42.1 million of underwriting income on a 67.8 combined ratio in the same quarter for 2011.

 

         

Underwriting Income (Loss)   Second Quarter Combined Ratio   Second Quarter

(in millions)   2012   2011*     2012   2011*

Casualty $ 11.0   $ 25.9 Casualty 83.2   55.7

Property (0.3 ) 7.4 Property 100.6 84.5

Surety     10.9       8.8 Surety   58.2   64.1

Total   $ 21.6     $ 42.1 Total   84.7   67.8

 

*Second quarter 2011 results were revised to reflect the retrospective adoption of a new accounting standard for policy acquisition costs.

 

Both periods were impacted by approximately $12 million in spring storm losses. Results for 2012 include $26.5 million in favorable development in prior years’ loss reserves, compared to $42.7 million in favorable development in prior years’ loss reserves in 2011.

 

RLI reported year-to-date underwriting income of $36.6 million representing an 86.9 combined ratio through June 30, 2012, versus $63.0 million of underwriting income representing a 74.5 combined ratio for the same period last year.

 

Giofranchi,  "Ask, and you shall receive"  :)

 

 

RLI has a great record.  However, there is one aspect of their business that is difficult if not impossible for me to understand: surety.

 

The most interesting booklet, The First 25 Years of Fairfax,  tells how The investment Group led by Prem was able to take over the nearly insolvent operations of Markel, Canada, that had almost gone under because their main competitor had drastically underpriced their policies.  Almost immediately after the sale, that competitor went bankrupt, and the rates on the policies Fairfax was writing went through the roof.  Within a year or so, FFH's BV doubled, then soon doubled again,  FFH was off to the races, making acquisitions and expanding the business.

 

Then something unexpected happened: the original  business acquired from Markel suddenly lost almost all it's NAV, but that was not fatal because the other operations were doing so well.  The cause of the monster loss was a tiny part of the original business.  It was so small, accounting for only about 1% of premiums written, that Prem didn't even know about iJt. 

 

What did that tiny line of business do?  It wrote surety.  Its loss was about 100 times the annual premiums they wrote!

 

twacowfca,

I am seriously beginning to rely on your help way too much!!  ;D

And I agree that The First 25 Years of Fairfax is very interesting! In 2011 I traveled all the way to Toronto, to attend the AGM of FFH, and also to get my hands on a copy of that booklet! It was undoubtedly worth the effort!

Thank you,

 

giofranchi

 

Giofranchi, thanks once again for your gracious compliment.  Please do sign up for the 2013 FFH  AGM and especially for the banquet hosted by Sanjeev the night before.  I think Sanjeev may be gracious to seat us at the same table.  We must "press the flesh" as the no longer active RLI enthusiast, Harry Long, used to say.  Don't be alarmed.  That's merely American slang for a firm handshake.  :)

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  • 2 months later...
  • 2 years later...

I think Tom Gayner discussed them as an example of a quality business with limited opportunities for reinvestment in his recent talk at google.  I remember thinking, "isn't that the same as Markel (or BRK) if you're just talking about the insurance business?"

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  • 8 months later...

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