RLI(RLI) - 2021 Q1 - Quarterly Report

PART I - FINANCIAL INFORMATION Item 1. Financial Statements This section presents the unaudited condensed consolidated interim financial statements, including statements of earnings, balance sheets, shareholders' equity, and cash flows, along with detailed notes on significant accounting policies, investments, loss development, income taxes, stock-based compensation, operating segments, and leases Condensed Consolidated Statements of Earnings and Comprehensive Earnings Condensed Consolidated Statements of Earnings and Comprehensive Earnings (in thousands, except per share data) | (in thousands, except per share data) | 2021 | 2020 | | :------------------------------------ | :--- | :--- | | Net premiums earned | $228,595 | $215,582 | | Net investment income | $16,424 | $17,778 | | Net realized gains | $14,150 | $15,152 | | Net unrealized gains (losses) on equity securities | $28,162 | $(130,395) | | Consolidated revenue | $287,331 | $118,117 | | Losses and settlement expenses | $104,892 | $111,021 | | Policy acquisition costs | $74,990 | $72,941 | | Insurance operating expenses | $18,796 | $14,381 | | Interest expense on debt | $1,901 | $1,897 | | General corporate expenses | $3,342 | $1,755 | | Total expenses | $203,921 | $201,995 | | Equity in earnings of unconsolidated investees | $6,424 | $4,514 | | Earnings (loss) before income taxes | $89,834 | $(79,364) | | Income tax expense (benefit) | $16,822 | $(18,097) | | Net earnings (loss) | $73,012 | $(61,267) | | Other comprehensive earnings (loss), net of tax | $(44,747) | $(13,031) | | Comprehensive earnings (loss) | $28,265 | $(74,298) | | Basic net earnings (loss) per share | $1.62 | $(1.36) | | Diluted net earnings (loss) per share | $1.60 | $(1.36) | Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (in thousands, except share and per share data) | (in thousands, except share and per share data) | March 31, 2021 | December 31, 2020 | | :---------------------------------------------- | :------------- | :---------------- | | ASSETS | | | | Total investments and cash | $2,876,426 | $2,837,081 | | Premiums and reinsurance balances receivable, net | $149,736 | $174,628 | | Reinsurance balances recoverable on unpaid losses and settlement expenses, net | $454,921 | $443,729 | | Deferred policy acquisition costs | $92,595 | $88,425 | | Investment in unconsolidated investees | $134,314 | $128,382 | | Goodwill and intangibles | $53,617 | $53,719 | | TOTAL ASSETS | $3,972,440 | $3,938,485 | | LIABILITIES | | | | Unpaid losses and settlement expenses | $1,795,275 | $1,750,049 | | Unearned premiums | $590,364 | $586,386 | | Bonds payable, long-term debt | $149,536 | $149,489 | | TOTAL LIABILITIES | $2,817,654 | $2,802,507 | | SHAREHOLDERS' EQUITY | | | | Common stock ($0.01 par value) | $681 | $681 | | Paid-in capital | $336,757 | $335,365 | | Accumulated other comprehensive earnings | $63,967 | $108,714 | | Retained earnings | $1,146,380 | $1,084,217 | | Less: Treasury shares, at cost | $(400,925) | $(401,291) | | TOTAL SHAREHOLDERS' EQUITY | $1,154,786 | $1,135,978 | | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $3,972,440 | $3,938,485 | Condensed Consolidated Statements of Shareholders' Equity Condensed Consolidated Statements of Shareholders' Equity (in thousands, except share and per share data) | (in thousands, except share and per share data) | Balance, January 1, 2021 | Net earnings (loss) | Other comprehensive earnings (loss), net of tax | Dividends and dividend equivalents ($0.24 per share) | Balance, March 31, 2021 | | :---------------------------------------------- | :----------------------- | :------------------ | :---------------------------------------------- | :--------------------------------------------------- | :---------------------- | | Total Shareholders' Equity | $1,135,978 | $73,012 | $(44,747) | $(10,849) | $1,154,786 | | Common Stock | $681 | — | — | — | $681 | | Paid-in Capital | $335,365 | — | — | — | $336,757 | | Accumulated Other Comprehensive Earnings (Loss) | $108,714 | — | $(44,747) | — | $63,967 | | Retained Earnings | $1,084,217 | $73,012 | — | $(10,849) | $1,146,380 | | Deferred Compensation | $8,292 | — | — | — | $7,926 | | Treasury Shares at Cost | $(401,291) | — | — | — | $(400,925) | Condensed Consolidated Statements of Cash Flows Condensed Consolidated Statements of Cash Flows (in thousands) | (in thousands) | 2021 | 2020 | | :------------------------------------------ | :--- | :--- | | Net cash provided by (used in) operating activities | $60,287 | $(5,767) | | Net cash provided by (used in) investing activities | $(16,544) | $10,048 | | Net cash used in financing activities | $(11,025) | $(7,783) | | Net increase (decrease) in cash | $32,718 | $(3,502) | | Cash at the beginning of the period | $62,217 | $46,203 | | Cash at March 31 | $94,935 | $42,701 | Notes to Unaudited Condensed Consolidated Interim Financial Statements 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - The unaudited condensed consolidated interim financial statements are prepared in accordance with GAAP for interim financial reporting and Form 10-Q instructions, requiring management estimates and assumptions[20][21] - No new accounting standards applicable in 2021 or prospective standards are expected to have a material impact on the financial statements[22][23] - Reinsurance balances recoverable are reported separately as assets and are subject to credit risk, with allowances for uncollectible amounts of $15.9 million (paid) and $9.0 million (unpaid) at March 31, 2021[24][26] Goodwill and Intangible Assets (in thousands) | Category | March 31, 2021 | December 31, 2020 | | :------------------------------------------------------------------------------------------------ | :------------- | :---------------- | | Goodwill - Surety | $40,816 | $40,816 | | Goodwill - Casualty | $5,246 | $5,246 | | Total goodwill | $46,062 | $46,062 | | Indefinite-lived intangibles - state insurance licenses | $7,500 | $7,500 | | Definite-lived intangibles, net | $55 | $157 | | Total intangibles | $7,555 | $7,657 | | Total goodwill and intangibles | $53,617 | $53,719 | - Unrealized losses, net of tax, recognized in other comprehensive earnings (loss) were $44.7 million for the first three months of 2021, compared to $13.0 million in the same period last year, primarily due to increased interest rates[31] - Fair value measurements classify financial assets into Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs). Most fixed income securities are Level 2, common stock is Level 1, and Regulation D private placements are Level 3[34][35][36][38][39][40][42] - The company faces risks and uncertainties from adverse economic changes, including the COVID-19 pandemic, which could impact demand for insurance products, investment results, and the fair value of goodwill[44] 2. INVESTMENTS Investment Portfolio Composition (in thousands) | Category | March 31, 2021 Fair Value | December 31, 2020 Fair Value | | :---------------------------------------- | :-------------------------- | :--------------------------- | | Fixed income securities - available-for-sale | $2,175,869 | $2,196,626 | | Equity securities | $555,209 | $524,006 | | Other invested assets | $50,413 | $54,232 | | Cash | $94,935 | $62,217 | | Total investments and cash | $2,876,426 | $2,837,081 | Net Realized Gains (in thousands) | Category | 2021 | 2020 | | :---------------------- | :--- | :--- | | Available-for-sale | $976 | $2,168 | | Equities | $13,083 | $15,159 | | Total Net Realized Gain (Loss) | $14,150 | $15,152 | - Unrealized gains recognized on equity securities were $41.2 million in Q1 2021, a significant improvement compared to $115.2 million in unrealized losses in Q1 2020[58] - The allowance for credit losses on available-for-sale fixed income securities was $375 thousand at March 31, 2021, down from $397 thousand at December 31, 2020[54] - The fixed income portfolio contained 320 securities with an unrealized loss position totaling $15.0 million at March 31, 2021, representing 0.7% of the portfolio's cost basis, primarily due to increased interest rates[54] 3. HISTORICAL LOSS AND LAE DEVELOPMENT Net Unpaid Losses and LAE (in thousands) | Category | March 31, 2021 | March 31, 2020 | | :------------------------------------ | :------------- | :------------- | | Net unpaid losses and LAE at beginning of year | $1,306,320 | $1,189,835 | | Increase (decrease) in incurred losses and LAE | $104,892 | $111,021 | | Loss and LAE payments for claims incurred | $(70,858) | $(91,192) | | Net unpaid losses and LAE at March 31 | $1,340,354 | $1,208,319 | - Incurred losses and LAE included $37.1 million of favorable development on prior years' loss reserves in Q1 2021, compared to $15.2 million in Q1 2020, driven by general liability, transportation, small commercial, professional services, personal umbrella, and surety[66][67] - Actuarial models face increased uncertainty due to COVID-19, potentially impacting loss emergence timing and ultimate loss ratios, with new issues like civil court case postponements and changes in settlement trends[68] 4. INCOME TAXES - The effective tax rate for Q1 2021 was 18.7%, down from 22.8% for Q1 2020, primarily due to tax-favored adjustments reducing income tax expense in 2021 and increasing tax benefit in 2020 (due to pretax losses)[69] Income Tax Expense (Benefit) Reconciliation (in thousands) | Item | 2021 Amount | 2021 % | 2020 Amount | 2020 % | | :------------------------------------------ | :---------- | :----- | :---------- | :----- | | Provision for income taxes at statutory rate of 21% | $18,865 | 21.0% | $(16,666) | 21.0% | | Excess tax benefit on share-based compensation | $(1,924) | (2.1)% | $(1,029) | 1.3% | | Investment tax credit | $(801) | (0.9)% | $(1,321) | 1.7% | | Total tax expense (benefit) | $16,822 | 18.7% | $(18,097) | 22.8% | 5. STOCK BASED COMPENSATION - The 2015 RLI Corp. Long-Term Incentive Plan (LTIP) replaced the 2010 LTIP, allowing for various equity-based awards, with 2,667,865 awards granted since 2015, including 44,496 in 2021[73] - Total compensation expense related to equity awards was $1.6 million in Q1 2021, up from $1.3 million in Q1 2020. Total unrecognized compensation expense is $5.4 million, to be recognized over a weighted average vesting period of 2.56 years[74] Stock Option Activity (Three-Month Period Ended March 31, 2021) | Category | Options | Weighted Average Exercise Price | | :-------------------------- | :-------- | :------------------------------ | | Outstanding options at January 1, 2021 | 1,632,334 | $70.67 | | Options granted | 44,496 | $97.64 | | Options exercised | (121,645) | $56.04 | | Options canceled/forfeited | (600) | $93.24 | | Outstanding options at March 31, 2021 | 1,554,585 | $72.57 | | Exercisable options at March 31, 2021 | 563,215 | $61.80 | - The intrinsic value of options exercised was $6.9 million in Q1 2021, compared to $2.5 million in Q1 2020[78] 6. OPERATING SEGMENT INFORMATION Net Premiums Earned by Segment (in thousands) | Segment | 2021 | 2020 | | :-------- | :--- | :--- | | Casualty | $148,770 | $143,420 | | Property | $51,642 | $44,348 | | Surety | $28,183 | $27,814 | | Total | $228,595 | $215,582 | Net Underwriting Income by Segment (in thousands) | Segment | 2021 | 2020 | | :-------- | :--- | :--- | | Casualty | $24,867 | $(1,323) | | Property | $(1,005) | $9,908 | | Surety | $6,055 | $8,654 | | Total | $29,917 | $17,239 | Combined Ratio by Segment | Segment | 2021 | 2020 | | :-------- | :--- | :--- | | Casualty | 83.3 | 100.9 | | Property | 101.9 | 77.7 | | Surety | 78.5 | 68.9 | | Total | 86.9 | 92.0 | 7. LEASES Lease Information (in thousands) | Category | 2021 | 2020 | | :-------------------------------------------------- | :--- | :--- | | Operating lease cost | $1,351 | $1,406 | | Variable lease cost | $384 | $355 | | Sublease income | $(123) | — | | Total lease cost | $1,612 | $1,761 | | Operating cash outflows from operating leases | $1,488 | $1,486 | | ROU assets obtained in exchange for new operating lease liabilities | $58 | $15 | | Reduction to ROU assets resulting from reduction to lease liabilities | $59 | — | | Other non-cash reductions to ROU assets | — | $1,192 | - Operating lease ROU assets were $14,952 thousand and operating lease liabilities were $17,676 thousand as of March 31, 2021. The weighted-average remaining lease term is 3.68 years[85] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on the company's financial condition and results of operations, including an overview of its business model, definitions of GAAP and non-GAAP measures, critical accounting policies, the impact of COVID-19, detailed results of operations by segment, and an analysis of liquidity and capital resources OVERVIEW - RLI Corp. is a U.S.-based specialty insurance company focused on niche markets, unique products, and underwriting profitability, having achieved 25 consecutive years of underwriting profit with an average 88.3 combined ratio[87] - The company measures insurance operations by growth (gross premiums written) and profitability (combined ratios) across three segments: casualty, property, and surety[88] - The casualty business involves long-tail claims and is subject to inflation and evolving legislation. The property segment is exposed to catastrophic events like earthquakes and wind storms. The surety segment generally has low loss ratios but can fluctuate with economic conditions[90][91][92][93] GAAP, non-GAAP and Performance Measures - Underwriting income (non-GAAP) is a key measure of pretax profitability, derived by subtracting losses and settlement expenses, policy acquisition costs, and insurance operating expenses from net premiums earned[97] - The combined ratio (non-GAAP) is an industry performance measure of underwriting profitability, calculated as the sum of the loss ratio and expense ratio[98] Reconciliation of Net Earnings to Underwriting Income (in thousands) | Item | 2021 | 2020 | | :-------------------------------------- | :--- | :--- | | Net earnings (loss) | $73,012 | $(61,267) | | Income tax expense (benefit) | $16,822 | $(18,097) | | Earnings (loss) before income taxes | $89,834 | $(79,364) | | Equity in earnings of unconsolidated investees | $(6,424) | $(4,514) | | General corporate expenses | $3,342 | $1,755 | | Interest expense on debt | $1,901 | $1,897 | | Net unrealized (gains) losses on equity securities | $(28,162) | $130,395 | | Net realized gains | $(14,150) | $(15,152) | | Net investment income | $(16,424) | $(17,778) | | Net underwriting income | $29,917 | $17,239 | Critical Accounting Policies - The most critical accounting policies involve significant estimates for liability for unpaid losses and settlement expenses, investment valuation, recoverability of reinsurance balances, deferred policy acquisition costs, and deferred taxes[100] - There have been no significant changes to critical accounting policies during the year[101] IMPACT OF COVID-19 - COVID-19 has significantly impacted the public transportation product line and construction-related products (general liability, commercial umbrella, contract surety), leading to premium declines, while personal lines, management liability, and property businesses saw little impact[103] - Actuarial models face greater uncertainty regarding loss emergence and ultimate loss ratios due to COVID-19, with issues like court case postponements and changes in settlement trends[105] - Investment yields decreased in 2020, resulting in lower investment income in Q1 2021. Rising interest rates led to a $44.7 million after-tax other comprehensive loss in Q1 2021 due to declining fixed income fair value[106] - The company generated $60.3 million in net operating cash inflows in Q1 2021 and maintains sufficient liquidity through operations, a $60.0 million revolving credit facility, and a $30.0 million FHLBC secured lending facility[107] RESULTS OF OPERATIONS - Consolidated revenue increased by $169.2 million in Q1 2021 compared to Q1 2020, primarily driven by $28.2 million in unrealized gains on equity securities in 2021 versus $130.4 million in unrealized losses in 2020[109] - Net earnings for Q1 2021 totaled $73.0 million, a significant improvement from a $61.3 million net loss in Q1 2020, largely attributed to the positive performance of the equity portfolio[110] - Underwriting income was $29.9 million on an 86.9 combined ratio in Q1 2021, up from $17.2 million on a 92.0 combined ratio in Q1 2020, benefiting from favorable reserve development[111] - The loss ratio decreased to 45.9% in Q1 2021 from 51.5% in Q1 2020 due to improvements in the current accident year loss ratio, higher favorable development, and COVID-19 related reserve additions in 2020[111] - Comprehensive earnings totaled $28.3 million for Q1 2021, compared to a $74.3 million comprehensive loss for Q1 2020, with Q1 2021 impacted by $44.7 million in after-tax unrealized losses from the fixed income portfolio due to increased interest rates[113] Premiums Gross and Net Premiums by Segment (in thousands) | Segment | Gross Premiums Written 2021 | Gross Premiums Written 2020 | % Change | Net Premiums Earned 2021 | Net Premiums Earned 2020 | % Change | | :-------------------------- | :-------------------------- | :-------------------------- | :------- | :----------------------- | :----------------------- | :------- | | Casualty | | | | | | | | Commercial excess and personal umbrella | $64,723 | $55,590 | 16% | $51,554 | $40,088 | 29% | | General liability | $23,209 | $24,691 | (6)% | $22,407 | $23,998 | (7)% | | Professional services | $22,407 | $21,498 | 4% | $21,728 | $20,695 | 5% | | Commercial transportation | $16,438 | $(3,777) | NM | $16,830 | $21,185 | (21)% | | Small commercial | $16,378 | $16,117 | 2% | $15,722 | $15,633 | 1% | | Executive products | $22,770 | $20,947 | 9% | $5,241 | $7,331 | (29)% | | Other casualty | $22,971 | $24,170 | (5)% | $15,288 | $14,490 | 6% | | Total Casualty | $188,896 | $159,236 | 19% | $148,770 | $143,420 | 4% | | Property | | | | | | | | Marine | $26,853 | $21,111 | 27% | $22,958 | $19,577 | 17% | | Commercial property | $40,136 | $29,779 | 35% | $22,712 | $19,155 | 19% | | Specialty personal | $5,662 | $4,872 | 16% | $5,034 | $5,000 | 1% | | Other property | $1,886 | $959 | 97% | $938 | $616 | 52% | | Total Property | $74,537 | $56,721 | 31% | $51,642 | $44,348 | 16% | | Surety | | | | | | | | Commercial | $13,301 | $11,280 | 18% | $11,013 | $10,938 | 1% | | Miscellaneous | $11,974 | $11,948 | 0% | $10,635 | $10,516 | 1% | | Contract | $6,187 | $6,647 | (7)% | $6,535 | $6,360 | 3% | | Total Surety | $31,462 | $29,875 | 5% | $28,183 | $27,814 | 1% | | Grand Total | $294,895 | $245,832 | 20% | $228,595 | $215,582 | 6% | - Gross premiums written for the Group increased by $49.1 million (20%) in Q1 2021, driven by growth in all three segments, particularly property and casualty[114][116] - Commercial transportation premiums increased to $16.4 million in Q1 2021 from negative premiums in Q1 2020 (due to reversals), though still below pre-pandemic levels[118] - Commercial property gross premiums were up $10.4 million (35%) and marine was up $5.7 million (27%) in Q1 2021, driven by rate increases and market disruption[119] Underwriting Income - Casualty segment underwriting earnings were $24.9 million in Q1 2021 (vs. $1.3 million loss in Q1 2020), with a combined ratio of 83.3% (vs. 100.9%), benefiting from $28.3 million in reserve releases[122][123] - Property segment recorded an underwriting loss of $1.0 million in Q1 2021 (vs. $9.9 million income in Q1 2020), with a combined ratio of 101.9% (vs. 77.7%), impacted by $14.9 million in winter storm losses[124][125] - Surety segment underwriting income was $6.1 million in Q1 2021 (vs. $8.7 million in Q1 2020), with a combined ratio of 78.5% (vs. 68.9%), including $2.8 million in favorable reserve development[126][127] Investment Income - Net investment income decreased by 7.6% to $16.4 million in Q1 2021 compared to Q1 2020, primarily due to a decline in reinvestment rates during 2020[128] Fixed Income Investment Yields | Yield Type | 2021 | 2020 | | :----------- | :--- | :--- | | Pretax Yield - Taxable | 2.87% | 3.27% | | Pretax Yield - Tax-Exempt | 2.63% | 2.77% | | After-Tax Yield - Taxable | 2.27% | 2.58% | | After-Tax Yield - Tax-Exempt | 2.49% | 2.62% | - The fixed income portfolio decreased by $20.8 million in Q1 2021 due to increased interest rates, while the equity portfolio increased by $31.2 million due to strong market returns[130] Income Taxes - The effective tax rate for Q1 2021 was 18.7%, compared to 22.8% for Q1 2020, with rates dependent on pretax earnings/losses and related tax effects[131] LIQUIDITY AND CAPITAL RESOURCES Cash Flows (in thousands) | Activity | 2021 | 2020 | | :-------------------- | :--- | :--- | | Operating cash flows | $60,287 | $(5,767) | | Investing cash flows | $(16,544) | $10,048 | | Financing cash flows | $(11,025) | $(7,783) | | Total | $32,718 | $(3,502) | - Operating cash flows in Q1 2021 benefited from lower loss and settlement expense payments and increased premium receipts[134] - The company has $149.5 million in senior notes outstanding, maturing in 2023 with a 4.875% interest rate. The estimated fair value was $164.4 million at March 31, 2021[135] - Liquidity sources include $201.8 million in cash and investments maturing within one year, a $60.0 million revolving line of credit (expandable to $120.0 million), and access to a $30.0 million secured lending facility via FHLBC membership[136][137][138] - The fixed income portfolio has an average rating of AA, with 83% rated A or better. The equity portfolio is primarily invested in large-cap issues with a focus on dividend income and has a dividend yield of 2.0%[140][141][146][147] - The capital structure at March 31, 2021, consisted of $149.5 million in debt and $1.2 billion in shareholders' equity, with debt comprising 11.5% of total capital[150] - The company paid a regular quarterly cash dividend of $0.24 per share and has increased dividends for 45 consecutive years[151] - Dividends from the principal insurance subsidiary are restricted by Illinois law. As of March 31, 2021, $11.8 million of the principal insurance subsidiary's net assets were unrestricted for ordinary dividends[153] Item 3. Quantitative and Qualitative Disclosures about Market Risk This section outlines the company's exposure to market risks, primarily equity price risk and interest rate risk, and discusses credit risk management, noting no significant changes from the prior annual report but acknowledging new uncertainties from the COVID-19 pandemic - Primary market risks include equity price risk (equity securities) and interest rate risk (fixed maturities), with limited exposure to foreign currency and commodity risk[154] - Credit risk is managed by investing in high credit quality, investment grade securities; the fixed maturity portfolio has an average rating of AA-, with 83% rated A or better[155] - Overall market risk exposure has not significantly changed from the 2020 Annual Report, but the COVID-19 pandemic introduces new and emerging uncertainties to financial markets[156] Item 4. Controls and Procedures This section confirms the effectiveness of the company's disclosure controls and procedures, based on an evaluation by management, including the CEO and CFO, and states that no material changes were made to internal control over financial reporting - The company maintains a system of disclosure controls and procedures designed to provide reasonable assurance of financial statement reliability and asset safeguarding[157] - An evaluation, supervised by management, CEO, and CFO, concluded that these disclosure controls and procedures are effective as of the end of the reporting period[157] - No changes were made to internal control over financial reporting during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting[159] PART II - OTHER INFORMATION Item 1. Legal Proceedings This section states that there were no material changes to report regarding legal proceedings - No material changes to report regarding legal proceedings[161] Item 1a. Risk Factors This section indicates that there were no material changes to report regarding risk factors - No material changes to report regarding risk factors[161] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section reports on the company's share repurchase program, noting no repurchases during 2021 and the remaining capacity - The company has a $100 million share repurchase program implemented in 2010[162] - No shares were repurchased during 2021[162] - There is $87.5 million of remaining capacity from the repurchase program[162] Item 3. Defaults upon Senior Securities This section states that it is not applicable - Not applicable[164] Item 4. Mine Safety Disclosures This section states that it is not applicable - Not applicable[164] Item 5. Other Information This section states that it is not applicable - Not applicable[164] Item 6. Exhibits This section lists the exhibits filed with the Form 10-Q, including various certifications and iXBRL documents - Includes certifications pursuant to Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002 (Exhibits 31.1, 31.2, 32.1, 32.2)[163] - Includes iXBRL-Related Documents (Exhibit 101) and Cover Page Interactive Data File (Exhibit 104)[163] SIGNATURES Signatures Details This section provides the formal signatures for the Form 10-Q report, confirming its submission on behalf of RLI Corp - The report was signed by Todd W. Bryant, Vice President, Chief Financial Officer (Principal Financial and Chief Accounting Officer) of RLI Corp[168] - The signing date was April 23, 2021[168]