RLI's Stock Gains Following Q3 Earnings and Revenue Beat

Core Insights - RLI Corp. reported third-quarter 2024 operating earnings of $1.31 per share, exceeding the Zacks Consensus Estimate by 33.7% and more than doubling year-over-year [1] - The company's stock rose 1.2% in after-market trading, reflecting its strong performance [1] RLI's Operational Performance - Operating revenues for the quarter were $426 million, a 1.4% increase year-over-year, driven by a 22.3% rise in net premiums earned and a 14.8% increase in net investment income, surpassing the Zacks Consensus Estimate of $420 million [2] - Gross premiums written rose 13% year-over-year to $563.4 million, with notable growth in the Casualty (up 15.7%), Property (up 9.6%), and Surety segments (up 9%) [2] - Net investment income increased 15% year-over-year to $36.7 million, although it fell short of the estimate of $39.1 million [2] - Total expenses rose 11.3% year-over-year to $354.4 million, attributed to higher loss and settlement expenses, policy acquisition costs, and general corporate expenses [2] Underwriting Performance - Underwriting income surged to $40.7 million from $4.2 million in the prior year [3] - The combined ratio improved by 910 basis points year-over-year to 89.6, significantly better than the Zacks Consensus Estimate of 96 [3] Financial Update - RLI's total investments and cash reached $4.2 billion, a 14.9% increase from the end of 2023 [4] - Book value per share was $38.17 as of September 30, 2024, reflecting a 26% increase from December 31, 2023 [4] - Net cash flow from operations was $219.4 million, up 122.5% year-over-year [4] - The statutory surplus increased by 18.8% to $1.8 billion as of September 30, 2024 [4] - Return on equity was 38.4%, up 1810 basis points from the previous year [4] Dividend Update - RLI paid a dividend of 29 cents on September 20, 2024, with cumulative dividends exceeding $822 million over the last five years [5] Industry Performance - The Travelers Companies reported third-quarter 2024 core income of $5.24 per share, beating the Zacks Consensus Estimate by 38.2% [6] - Travelers' total revenues increased 10.7% year-over-year to $11.84 billion, driven by higher premiums and net investment income [6] - Progressive Corporation's third-quarter 2024 earnings per share of $3.97 exceeded the Zacks Consensus Estimate of $3.40, with operating revenues improving 24.9% year-over-year to $19.5 billion [7] - W.R. Berkley Corporation reported third-quarter 2024 operating income of 93 cents per share, beating the Zacks Consensus Estimate by 1.1% [8]