US property and casualty (P&C) insurer RLI has beniftted from a $16.2 million reserve release in the fourth quarter of 2019.
This reserve release largely accounts for RLI’s reported Q4 underwriting income of $16.5 million, a $2.8 million increase from the previous quarter.
RLI posted a 92.4 combined ratio, compared to a 98.9 CR in the same quarter for 2018.
Net earnings for Q419 stood at $53.4 million, compared to net losses of $20.7 million for the fourth quarter of 2018.
For the full year, net favorable development in prior years’ loss reserves resulted in a $62.8 million net increase in underwriting income.
Meanwhile, RLI saw an 8% increase in gross premiums written and 11% increase in net investment income for the full year.
GWP for the full year surpassed $1 billion for the first time in the company’s history.
“RLI achieved strong financial results in 2019, surpassing $1 billion in gross premiums written and statutory surplus for the first time in our company’s history,” said RLI Corp. Chairman & Chief Executive Officer Jonathan E. Michael.
“Favorable market and competitive conditions supported consistent top line growth during the quarter and year. Through the efforts of our talented underwriters, we achieved an overall combined ratio of 91.9, marking our 24th consecutive year of underwriting profit.
“Book value grew 33% in 2019, a hallmark of our financial strength that allows us to provide customers and shareholders with exceptional value,” he added.
“RLI continues to be a reliable insurance carrier with a consistent risk appetite that offers protection and stability to its customers during times of change.
“I want to thank all RLI associates for their commitment to our customers and contributions to our performance during the year. We will remain focused on continuing the positive momentum in 2020.”