RLI(RLI) - 2025 Q1 - Quarterly Results

Financial Performance - RLI Corp. reported Q1 2025 net earnings of $63.2 million ($0.68 per share), a decrease of 50.6% from $127.9 million ($1.39 per share) in Q1 2024[1][3][28]. - Operating earnings for Q1 2025 were $84.9 million ($0.92 per share), down 2.9% from $87.4 million ($0.95 per share) in the same period last year[1][3][28]. - Total consolidated revenue for Q1 2025 was $407.7 million, down 8.4% from $444.8 million in Q1 2024[28]. - Underwriting income for Q1 2025 was $70.5 million on a combined ratio of 82.3, compared to $77.7 million on a combined ratio of 78.5 in Q1 2024[5][8][28]. - Loss and settlement expenses increased by 23.2% to $177.2 million compared to $143.8 million in the same period last year[28]. Premiums and Ratios - Gross premiums written increased by 5%, driven by growth in the casualty segment, contributing to an overall combined ratio of 82.3[3][5][8]. - Gross premiums written rose to $491,106,000 in Q1 2025, up from $468,675,000 in Q1 2024, reflecting a growth of 4.8%[35]. - Net premiums earned increased to $398,345,000 in Q1 2025, compared to $360,676,000 in Q1 2024, marking an increase of 10.4%[35]. - Net loss and settlement expenses represented 44.5% of total premiums in Q1 2025, compared to 39.9% in Q1 2024, indicating a rise in loss ratio[35]. - Net operating expenses as a percentage of total premiums were 37.8% in Q1 2025, compared to 38.6% in Q1 2024, showing improved efficiency[35]. Investment and Assets - Net investment income rose by 12% to $36.7 million, with a total return of 1.3% for the quarter[10][28]. - Total assets increased by 1.8% to $5,729,154,000 as of March 31, 2025, compared to $5,628,802,000 at December 31, 2024[32]. - Cash and cash equivalents decreased by 32.0% to $27,058,000 as of March 31, 2025, down from $39,790,000 at December 31, 2024[32]. - Short-term investments surged by 55.6% to $116,601,000 as of March 31, 2025, compared to $74,915,000 at December 31, 2024[32]. Shareholder Information - Book value per share increased by 6% to $17.48 since year-end 2024[3][8]. - The book value per share increased to $17.48 in Q1 2025, up from $16.59 in Q1 2024, reflecting a growth of 5.4%[32]. - Shareholders' equity grew by 5.4% to $1,604,212,000 as of March 31, 2025, from $1,521,967,000 at December 31, 2024[32]. - The company paid a quarterly dividend of $0.15 per share, reflecting a 3.4% increase over the prior quarter[12][28]. - The closing stock price per share decreased by 2.5% to $80.33 as of March 31, 2025, from $82.42 at December 31, 2024[32]. Ratings and Financial Strength - RLI's financial strength rating was affirmed as A+ (Superior) by AM Best Company for its insurance subsidiaries[18].