RLI(US:RLI)2025-01-22 21:13Financial Performance - RLI Corp. reported Q4 2024 net earnings of $40.9 million ($0.44 per share), down from $114.6 million ($1.24 per share) in Q4 2023[1][3] - Operating earnings for Q4 2024 were $38.4 million ($0.41 per share), compared to $71.1 million ($0.77 per share) in the same period of 2023[1][3] - Comprehensive loss for Q4 2024 was $26.3 million (-$0.28 per share), compared to comprehensive earnings of $216.2 million ($2.35 per share) in Q4 2023[13] - Net earnings for Q4 2024 decreased by 64.3% to $40,860 thousand, while full year net earnings increased by 13.5% to $345,779 thousand[32] Underwriting and Premiums - Gross premiums written increased by 11% to surpass $2 billion for the first time, with all product segments contributing to this growth[4] - Underwriting income for Q4 2024 was $22.2 million on a combined ratio of 94.4, compared to $59.8 million on an 82.7 combined ratio in Q4 2023[6][8] - For the full year 2024, 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[7][10] - Net premiums earned increased by 14.8% to $397,176 thousand for Q4 2024, and by 17.9% to $1,526,406 thousand for the full year 2024[32] - Gross premiums written for Q4 2024 reached $473,210,000, an increase of 8.9% from $434,360,000 in Q4 2023[38] - The gross premiums written for the twelve months ended December 31, 2024, were $2,013,048,000, a rise of 11.5% from $1,806,660,000 in 2023[38] Investment Income - Net investment income for Q4 2024 increased by 19% to $38.8 million, with full-year net investment income at $142.3 million, up from $120.4 million in 2023[12] - Net investment income rose by 19.1% to $38,776 thousand in Q4 2024, and by 18.2% to $142,278 thousand for the full year 2024[32] Shareholder Returns - RLI returned $236 million to shareholders through special and regular dividends, including a special dividend of $2.00 per share[4][15] - The company has paid dividends for 194 consecutive quarters and increased regular dividends for 49 consecutive years[15] - Cash dividends per share increased by 7.4% to $0.145 for ordinary dividends and doubled to $2.00 for special dividends[32] Assets and Liabilities - Total assets grew by 8.7% to $5,628,802 thousand as of December 31, 2024[36] - Total liabilities rose by 9.0% to $4,106,835 thousand[36] - The company reported a significant increase in equity securities at fair value, up 24.8% to $736,191 thousand[36] Operating Expenses - Loss and settlement expenses surged by 54.0% to $225,512 thousand in Q4 2024, and by 22.3% to $739,253 thousand for the full year 2024[32] - Net operating expenses for the total segment in Q4 2024 were $149,422,000, which is 37.6% of net premiums earned, compared to 40.4% in Q4 2023[38] - The net operating expenses for the twelve months ended December 31, 2024, were $576,500,000, which is 37.8% of net premiums earned, compared to 39.9% in 2023[38] Ratios and Performance Metrics - The net loss and settlement expenses ratio for the total segment in Q4 2024 was 56.8%, compared to 42.3% in Q4 2023, indicating a significant increase in loss ratios[38] - The net loss and settlement expenses for the twelve months ended December 31, 2024, were $739,253,000, with a total ratio of 48.4%[38] - The underwriting income (loss) for Q4 2024 was $22,242,000, a significant improvement from a loss of $59,847,000 in Q4 2023[38]