RLI Scores With a Solid Q2

July 18, 2014

Specialty insurer RLI Corp. closed its 2014 second quarter with higher underwriting income and net earnings, greater book value, and growth in premiums earned.

But the Illinois company still faced a few blips. Its combined ratio grew slightly, and 2014 spring storms chipped at underwriting returns. Overall, however, RLI conveyed solid results that continued a positive trend beginning early in the year, Chairman and CEO Jonathan E. Michael noted during the company’s investor call on July 17.

It was “a good quarter, good earnings. Premiums earned were up over 9 percent for the quarter and a little bit more than that year-to-date,” Michael said, adding it was “a very good first half [of the year] for us.”

Michael noted that there is “new capital in the market, reflective of the reinsurance pricing decreases we have seen the last 18 months, and that continues.” To offset this, the company has been launching new products, he added.

RLI said it booked more than $35.7 million net earnings during the 2014 second quarter, up 19.5 percent from $29.9 million over the same period last year.

Broken down:

The company said it produced a book value per share of $21.37 during the quarter, an 11 percent increase from the end of 2013.