RLI’s Q3’24 underwriting income reaches $40.7m, combined ratio improves to 89.6%

Specialty insurer RLI Corp. has reported an improved underwriting income of $40.7 million for Q3 2024 with a combined ratio of 89.6%, compared to $4.2 million and a 98.7% combined ratio in Q3 2023.

The year-on-year improvement in underwriting comes despite losses from Hurricanes Beryl and Helene resulting in a $32.7 million net decrease in underwriting income, compared to an impact of $58.2 million for losses from Hawaiian wildfires in 2023.

Earlier this month, the firm estimated pre-tax net catastrophe losses, net of reinsurance recoverables, from hurricanes Beryl and Helene of between $35 million and $40 million for its Q3 2024 results, so they’ve come in just below the range.

RLI states that the results for both years include favourable development in prior years’ loss reserves, which resulted in a net increase of $18.1 million and $19.8 million to underwriting income in 2024 and 2023, respectively.

The insurer has reported a better performance in its property business with underwriting income of $30.4 million compared to a loss of $20.7 million in the comparative quarter. For Q3 2024, the casualty segment generated underwriting income of $2.6 million, a sharp decrease from Q3 2023’s $18.7 million, while surety underwriting profit rose from $6.2 million to $7.7 million.

For Q3 2024, the insurer has reported a 13% increase in gross premiums written, while its overall net investment income increased by 15% to $36.7 million, compared to the same period in 2023.

The investment portfolio’s total return was 4.8% for the quarter and 7.6% for the nine months ended September 30th, 2024.

RLI’s comprehensive earnings were $175.3 million for Q3 2024, $3.79 per share, compared to a comprehensive loss of $43.3 million or -$0.94 per share for Q3 2023.

Net earnings for Q3 2024 hit $95 million, compared with $13.5 million a year earlier, while operating earnings totalled $60.4 million, up on last year’s $28.3 million.

Craig Kliethermes, President & Chief Executive Officer, RLI Corp., commented, “Our primary focus has been to assist customers affected by recent hurricanes. When catastrophes occur, we quickly deploy our claim experts to assess damage and help policyholders begin recovering.

“Despite the storm activity in the third quarter, we continued to find opportunities for balanced top line growth across our portfolio. Our diversified business model, sound risk selection and disciplined underwriting resulted in a solid 90 combined ratio. I want to thank all RLI associates for their commitment to maintaining our financial strength and ensuring RLI remains a stable partner for our customers.”

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