RLI Corp. (NYSE:RLI) – RLI Corp. reported fourth quarter 2024 net earnings of $40.9 million ($0.44 per share), compared to $114.6 million ($1.24 per share) for the fourth quarter of 2023. Operating earnings⁽¹⁾ for the fourth quarter of 2024 were $38.4 million ($0.41 per share), compared to $71.1 million ($0.77 per share) for the same period in 2023.

On January 15, 2025, RLI executed a two-for-one stock split of common stock. All share and per share data in this release reflect the stock split.


	Fourth Quarter				Year to Date
Earnings Per Diluted Share	2024		2023		2024		2023
Net earnings	$	0.44	$	1.24	$	3.74	$	3.31
Operating earnings ⁽¹⁾	$	0.41	$	0.77	$	2.87	$	2.47

(1) See discussion below: Non-GAAP and Performance Measures.

Highlights for the quarter included:

Underwriting income⁽¹⁾ of $22.2 million on a combined ratio⁽¹⁾ of 94.4.
9% increase in gross premiums written and 19% increase in net investment income.
Favorable development in prior years' loss reserves resulted in a $8.7 million net increase in underwriting income.
Losses from Hurricane Milton, resulting in a $42.4 million net decrease in underwriting income.
Special dividend of $2.00 per share, representing $183.5 million returned to shareholders.

Highlights for the year included:

Underwriting income⁽¹⁾ of $210.7 million on a combined ratio⁽¹⁾ of 86.2.
11% increase in gross premiums written and 18% increase in net investment income.
Net cash flow provided by operations of $560.2 million, an increase of 21%.
Favorable development in prior years' loss reserves resulted in a $84.1 million net increase in underwriting income.
Book value per share of $16.59, an increase of 24% (inclusive of dividends) from year-end 2023.

"Our customer service, consistent financial performance and prudent capital management distinguished RLI in 2024," said RLI Corp. President & CEO Craig Kliethermes. "Despite an active hurricane season and highly competitive environment, we achieved an 86 combined ratio, marking our 29^th consecutive year of underwriting profitability. Gross premiums written grew by 11%, surpassing $2 billion for the first time, with all three product segments contributing to this growth. Our positive underwriting and investment results allowed us to return $236 million to shareholders through special and regular dividends. I want to thank our associate-owners for their contributions throughout the year, which helped differentiate RLI."

Underwriting Income

RLI achieved $22.2 million of underwriting income in the fourth quarter of 2024 on a 94.4 combined ratio, compared to $59.8 million on an 82.7 combined ratio in 2023.

For the year, RLI achieved $210.7 million of underwriting income on an 86.2 combined ratio, compared to $173.2 million on an 86.6 combined ratio in 2023. Results for both years include favorable development in prior years' loss reserves, which resulted in an $84.1 million and $95.3 million net increase to underwriting income in 2024 and 2023, respectively. The favorable development was offset by a $93.6 million net reduction to underwriting income for losses from Hurricanes Beryl, Helene and Milton, as well as other storm losses, in 2024. This compares to $81.2 million for losses from Hawaiian wildfires and other storm losses in 2023.

The following table highlights underwriting income and combined ratios by segment for the year.

Underwriting Income⁽¹⁾

Combined Ratio⁽¹⁾

(in millions)

2024

2023

2024

2023

Casualty

17.8

59.5

Casualty

97.9

92.2

Property

167.6

86.3

Property

68.5

78.5

Surety

25.3

27.4

Surety

82.2

79.6

Total

210.7

173.2

Total

86.2

86.6

(1) See discussion below: Non-GAAP and Performance Measures.

Other Income⁽²⁾

Net investment income for the quarter increased 19% to $38.8 million, compared to the same period in 2023. For the year ended December 31, 2024, net investment income was $142.3 million, compared to $120.4 million for the same period in 2023. The investment portfolio's total return was -1.1% for the quarter and 6.4% for the year.

RLI's comprehensive loss was $26.3 million for the quarter (-$0.28 per share), compared to comprehensive earnings of $216.2 million ($2.35 per share) for the same quarter in 2023. In addition to net earnings, comprehensive loss included after-tax unrealized losses from the fixed income portfolio in the fourth quarter of 2024, due to increasing interest rates. Full-year comprehensive earnings were $338.4 million ($3.66 per share), compared to $367.4 million ($3.99 per share) in 2023.

Special and Regular Dividends⁽²⁾

On December 20, 2024, the company paid a special cash dividend of $2.00 per share and a regular quarterly dividend of $0.145 per share for a combined total of $196.8 million. RLI has paid dividends for 194 consecutive quarters and increased regular dividends in each of the last 49 years. Over the last 10 years, the company has returned nearly $1.5 billion to shareholders and the regular dividend has grown an average of 4.9% per year.

Non-GAAP and Performance Measures

Management has included certain non-generally accepted accounting principles (non-GAAP) financial measures in presenting the company's results. Management believes that these non-GAAP measures further explain the company's results of operations and allow for a more complete understanding of the underlying trends in the company's business. These measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles (GAAP). In addition, our definitions of these items may not be comparable to the definitions used by other companies.

Operating earnings and operating earnings per share (EPS) consist of our GAAP net earnings adjusted by net realized gains/(losses), net unrealized gains/(losses) on equity securities and taxes related thereto. Net earnings and net earnings per share are the GAAP financial measures that are most directly comparable to operating earnings and operating EPS. A reconciliation of the operating earnings and operating EPS to the comparable GAAP financial measures is included in the 2024 financial highlights below.

Underwriting income or profit represents the pretax profitability of our insurance operations and is derived by subtracting loss and settlement expenses, policy acquisition costs and insurance operating expenses from net premium earned, which are all GAAP financial measures. The combined ratio, which is derived from components of underwriting income, is a performance measure commonly used by property and casualty insurance companies and is calculated as the sum of loss and settlement expenses, policy acquisition costs and insurance operating expenses, divided by net premiums earned, which are all GAAP measures.

Other News

At 10 a.m. central standard time (CST) on January 23, 2025, RLI management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion at https://events.q4inc.com/attendee/436980475.

(2) All share and per share data reflect the 2-for-1 stock split that occurred on January 15, 2025.

Except for historical information, this news release may include forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) including, without limitation, statements reflecting our current expectations about the future performance of our company or our business segments or about future market conditions. These statements are subject to certain risk factors that could cause actual results to differ materially. Various risk factors that could affect future results are listed in the company's filings with the Securities and Exchange Commission, including the Form 10-K Annual Report for the year ended December 31, 2023.

About RLI

RLI Corp. (NYSE:RLI) is a specialty insurer serving niche property, casualty and surety markets. The company provides deep underwriting expertise and superior service to commercial and personal lines customers nationwide. RLI's products are offered through its insurance subsidiaries – RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company. All of RLI's insurance subsidiaries are rated A+ (Superior) by AM Best Company. RLI has paid and increased regular dividends for 49 consecutive years and delivered underwriting profits for 29 consecutive years. To learn more about RLI, visit www.rlicorp.com.

Supplemental disclosure regarding the earnings impact of specific items:


	Reserve Development⁽¹⁾ and Catastrophe Losses,
	Net of Reinsurance
	Three Months Ended					Twelve Months Ended
	December 31,					December 31,
(Dollars in millions, except per share amounts)	2024			2023		2024			2023
Favorable development in casualty prior years' reserves	$	11.5		$	9.0	$	51.4		$	76.0
Favorable development in property prior years' reserves	$	0.1		$	2.0	$	28.6		$	16.2
Favorable (unfavorable) development in surety prior years' reserves	$	(1.7	)	$	0.6	$	9.3		$	8.9

Net incurred losses related to:
2024 storms	$	—		$	—	$	(30.0	)	$	—
Hurricanes Beryl, Helene and Milton	$	(39.0	)	$	—	$	(76.0	)	$	—
2023 and prior events	$	—		$	1.3	$	6.0		$	(72.8	)
Reinstatement premium from events	$	—		$	2.6	$	—		$	(11.7	)

	Operating Earnings Per Share
	Three Months Ended					Twelve Months Ended
	December 31,					December 31,
	2024			2023		2024			2023
Operating Earnings Per Share⁽²⁾⁽³⁾	$	0.41		$	0.77	$	2.87		$	2.47

Specific items included in operating earnings per share:^{(1) (4)}
Net favorable development in casualty prior years' reserves	$	0.09		$	0.06	$	0.37		$	0.57
Net favorable development in property prior years' reserves	$	—		$	0.02	$	0.22		$	0.12
Net favorable (unfavorable) development in surety prior years' reserves	$	(0.02	)	$	—	$	0.07		$	0.06

Net incurred losses related to:
2024 storms	$	—		$	—	$	(0.22	)	$	—
Hurricanes Beryl, Helene and Milton	$	(0.29	)	$	—	$	(0.56	)	$	—
2023 and prior events (incurred loss and reinstatement premium)	$	—		$	0.03	$	0.04		$	(0.63	)

(1)		Reserve development reflects changes from previously estimated losses.
(2)		See discussion above: Non-GAAP and Performance Measures.
(3)		All share and per share data reflect the 2-for-1 stock split that occurred on January 15, 2025.
(4)		Items included in operating earnings per share are after tax and incorporates incentive and profit sharing-related impacts which affected policy acquisition, insurance operating and general corporate expenses.

RLI CORP 2024 FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands, except per share amounts)

	Three Months Ended December 31,									Twelve Months Ended December 31,
SUMMARIZED INCOME STATEMENT DATA:	2024			2023			% Change			2024				2023				% Change
Net premiums earned	$	397,176		$	345,894		14.8		%	$	1,526,406			$	1,294,306			17.9		%
Net investment income		38,776			32,548		19.1		%		142,278				120,383			18.2		%
Net realized gains		8,744			5,760		51.8		%		19,966				32,518			(38.6	)	%
Net unrealized gains (losses) on equity securities		(5,580	)		49,313		NM				81,734				64,787			26.2		%
Consolidated revenue	$	439,116		$	433,515		1.3		%	$	1,770,384			$	1,511,994			17.1		%
Loss and settlement expenses		225,512			146,424		54.0		%		739,253				604,413			22.3		%
Policy acquisition costs		121,854			111,242		9.5		%		464,040				418,325			10.9		%
Insurance operating expenses		27,568			28,381		(2.9	)	%		112,460				98,383			14.3		%
Interest expense on debt		1,492			1,373		8.7		%		6,331				7,301			(13.3	)	%
General corporate expenses		2,736			5,112		(46.5	)	%		15,880				15,917			(0.2	)	%
Total expenses	$	379,162		$	292,532		29.6		%	$	1,337,964			$	1,144,339			16.9		%
Equity in earnings of unconsolidated investees		(12,522	)		2,441		NM				(4,869	)			9,610			NM
Earnings before income taxes	$	47,432		$	143,424		(66.9	)	%	$	427,551			$	377,265			13.3		%
Income tax expense		6,572			28,812		(77.2	)	%		81,772				72,654			12.5		%
Net earnings	$	40,860		$	114,612		(64.3	)	%	$	345,779			$	304,611			13.5		%

Other comprehensive earnings (loss), net of tax		(67,199	)		101,621		NM				(7,420	)			62,773			NM
Comprehensive earnings (loss)	$	(26,339	)	$	216,233		NM			$	338,359			$	367,384			(7.9	)	%

Operating earnings⁽¹⁾:
Net earnings	$	40,860		$	114,612		(64.3	)	%	$	345,779			$	304,611			13.5		%
Less:
Net realized gains		(8,744	)		(5,760	)	51.8		%		(19,966	)			(32,518	)		(38.6	)	%
Income tax on realized gains		1,836			1,210		51.7		%		4,193				6,829			(38.6	)	%
Net unrealized (gains) losses on equity securities		5,580			(49,313	)	NM				(81,734	)			(64,787	)		26.2		%
Income tax on unrealized gains (losses) on equity securities		(1,171	)		10,355		NM				17,164				13,605			26.2		%
Operating earnings	$	38,361		$	71,104		(46.0	)	%	$	265,436			$	227,740			16.6		%

Return on Equity:
Net earnings											22.2		%		23.3		%
Comprehensive earnings											21.7		%		28.1		%

Per Share Data⁽²⁾:
Diluted:
Weighted average shares outstanding (in 000's)		92,725			92,144						92,451				92,155

Net earnings per share	$	0.44		$	1.24		(64.5	)	%	$	3.74			$	3.31			13.0		%
Less:
Net realized gains		(0.09	)		(0.06	)	50.0		%		(0.22	)			(0.35	)		(37.1	)	%
Income tax on realized gains		0.02			0.01		100.0		%		0.05				0.07			(28.6	)	%
Net unrealized (gains) losses on equity securities		0.06			(0.54	)	NM				(0.88	)			(0.70	)		25.7		%
Income tax on unrealized gains (losses) on equity securities		(0.02	)		0.12		NM				0.18				0.14			28.6		%
Operating earnings per share⁽¹⁾	$	0.41		$	0.77		(46.8	)	%	$	2.87			$	2.47			16.2		%

Comprehensive earnings (loss) per share	$	(0.28	)	$	2.35		NM			$	3.66			$	3.99			(8.3	)	%

Cash dividends per share - ordinary	$	0.145		$	0.135		7.4		%	$	0.570			$	0.535			6.5		%
Cash dividends per share - special	$	2.00		$	1.00		100.0		%	$	2.00			$	1.00			100.0		%

Net cash flow provided by operations	$	128,080		$	122,065		4.9		%	$	560,219			$	464,257			20.7		%

(1)		See discussion above: Non-GAAP and Performance Measures.
(2)		All share and per share data reflect the 2-for-1 stock split that occurred on January 15, 2025.

NM = Not Meaningful

RLI CORP 2024 FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands, except per share amounts)

	December 31,		December 31,
	2024		2023		% Change
SUMMARIZED BALANCE SHEET DATA:
Fixed income, at fair value	$	3,175,796	$	2,855,849	11.2		%
(amortized cost - $3,391,159 at 12/31/24)
(amortized cost - $3,054,391 at 12/31/23)
Equity securities, at fair value		736,191		590,041	24.8		%
(cost - $417,897 at 12/31/24)
(cost - $354,022 at 12/31/23)
Short-term investments		74,915		134,923	(44.5	)	%
Other invested assets		57,939		59,081	(1.9	)	%
Cash and cash equivalents		39,790		36,424	9.2		%
Total investments and cash	$	4,084,631	$	3,676,318	11.1		%

Accrued investment income		28,319		24,062	17.7		%
Premiums and reinsurance balances receivable		230,534		221,206	4.2		%
Ceded unearned premiums		124,955		112,257	11.3		%
Reinsurance balances recoverable on unpaid losses		755,425		757,349	(0.3	)	%
Deferred policy acquisition costs		166,214		146,566	13.4		%
Property and equipment		43,172		46,715	(7.6	)	%
Investment in unconsolidated investees		56,477		56,966	(0.9	)	%
Goodwill and intangibles		53,562		53,562	0.0		%
Income taxes - deferred		7,793		15,872	(50.9	)	%
Other assets		77,720		69,348	12.1		%
Total assets	$	5,628,802	$	5,180,221	8.7		%

Unpaid losses and settlement expenses	$	2,693,470	$	2,446,025	10.1		%
Unearned premiums		984,140		892,326	10.3		%
Reinsurance balances payable		44,681		71,507	(37.5	)	%
Funds held		97,380		101,446	(4.0	)	%
Income taxes - current		749		3,757	(80.1	)	%
Short-term debt		100,000		100,000	—		%
Accrued expenses		124,242		108,880	14.1		%
Other liabilities		62,173		42,766	45.4		%
Total liabilities	$	4,106,835	$	3,766,707	9.0		%
Shareholders' equity		1,521,967		1,413,514	7.7		%
Total liabilities & shareholders' equity	$	5,628,802	$	5,180,221	8.7		%

OTHER DATA⁽¹⁾:
Common shares outstanding (in 000's)		91,738		91,280

Book value per share	$	16.59	$	15.49	7.1		%
Closing stock price per share	$	82.42	$	66.56	23.8		%

Statutory surplus	$	1,787,312	$	1,520,135	17.6		%

(1)		All share and per share data reflect the 2-for-1 stock split that occurred on January 15, 2025.

NM = Not Meaningful

RLI CORP 2024 FINANCIAL HIGHLIGHTS UNDERWRITING SEGMENT DATA (Unaudited) (Dollars in thousands, except per share amounts)

Three Months Ended December 31,
				GAAP				GAAP				GAAP				GAAP
	Casualty			Ratios		Property		Ratios		Surety		Ratios		Total		Ratios
2024

Gross premiums written	$	282,204				$	153,295			$	37,711			$	473,210
Net premiums written		228,455					103,945				34,045				366,445
Net premiums earned		225,823					134,610				36,743				397,176
Net loss & settlement expenses		155,217		68.7	%		63,856	47.4	%		6,439	17.5	%		225,512	56.8	%
Net operating expenses		79,356		35.2	%		44,516	33.1	%		25,550	69.6	%		149,422	37.6	%
Underwriting income (loss)⁽¹⁾	$	(8,750	)	103.9	%	$	26,238	80.5	%	$	4,754	87.1	%	$	22,242	94.4	%

2023

Gross premiums written	$	238,467				$	158,047			$	37,846			$	434,360
Net premiums written		191,626					104,154				35,117				330,897
Net premiums earned		195,962					115,934				33,998				345,894
Net loss & settlement expenses		121,399		62.0	%		22,554	19.5	%		2,471	7.3	%		146,424	42.3	%
Net operating expenses		72,562		37.0	%		40,653	35.0	%		26,408	77.6	%		139,623	40.4	%
Underwriting income (loss)⁽¹⁾	$	2,001		99.0	%	$	52,727	54.5	%	$	5,119	84.9	%	$	59,847	82.7	%


Twelve Months Ended December 31,
			GAAP				GAAP				GAAP				GAAP
	Casualty		Ratios		Property		Ratios		Surety		Ratios		Total		Ratios
2024

Gross premiums written	$	1,108,356			$	743,486			$	161,206			$	2,013,048
Net premiums written		915,625				542,997				146,899				1,605,521
Net premiums earned		852,837				531,384				142,185				1,526,406
Net loss & settlement expenses		524,490	61.5	%		198,806	37.4	%		15,957	11.2	%		739,253	48.4	%
Net operating expenses		310,559	36.4	%		165,042	31.1	%		100,899	71.0	%		576,500	37.8	%
Underwriting income (loss)⁽¹⁾	$	17,788	97.9	%	$	167,536	68.5	%	$	25,329	82.2	%	$	210,653	86.2	%

2023

Gross premiums written	$	961,665			$	697,372			$	147,623			$	1,806,660
Net premiums written		788,982				500,057				138,708				1,427,747
Net premiums earned		758,346				401,530				134,430				1,294,306
Net loss & settlement expenses		418,032	55.1	%		172,062	42.9	%		14,319	10.7	%		604,413	46.7	%
Net operating expenses		280,835	37.1	%		143,152	35.6	%		92,721	68.9	%		516,708	39.9	%
Underwriting income (loss)⁽¹⁾	$	59,479	92.2	%	$	86,316	78.5	%	$	27,390	79.6	%	$	173,185	86.6	%

(1)

See discussion above: Non-GAAP and Performance Measures.

Category: Earnings Release

View source version on businesswire.com: https://www.businesswire.com/news/home/20250122553322/en/

Media Contact

Aaron Diefenthaler

Chief Investment Officer & Treasurer

309-693-5846

Aaron.Diefenthaler@rlicorp.com

RLI Reports Fourth Quarter and Year-End 2024 Results