US property and casualty insurance company RLI Corp. has posted a property underwriting loss of $16.5 million during the third quarter of 2021, after incurring $28.9 million of catastrophe losses for the period.
Overall net earnings for the quarter were $29.4 million, down from $42.4 million for the same period last year.
Despite the property underwriting loss, which follows a loss of $19.9 million for the segment in Q3 2020, RLI still managed to turn improved underwriting income of $13.7 million, up from $1.2 million previously.
This was the result of an improvement in its Casualty segment, which saw underwriting income grow from $14.0 million to $22.9 million, as well as stability in the Surety segment, where underwriting income remained relatively flat at $7.3 million.
RLI’s overall combined ratio was 94.6% for Q3 2021, which is a marked improvement on the 99.5% it posted for the same period last year.
This is thanks to a combined ratio of 85.9% for Casualty business and 75.3% for Surety, but disguises a combined ratio of 127.4% for Property business, which performed even worse last year at 144.0%.
Net investment income for the quarter increased 7.9% to $17.8 million during the quarter, compared to the same period in 2020.
RLI’s comprehensive earnings were $17.0 million for the quarter, compared to $51.9 million for the same quarter in 2020. In addition to net earnings, comprehensive earnings included after-tax unrealized gains from the fixed income portfolio.
“Despite the impact of Hurricane Ida and other catastrophes that occurred during the quarter, we delivered strong underwriting results and a 95 combined ratio,” said RLI Corp. Chairman & CEO Jonathan E. Michael.
“We experienced growth in gross written premium across all three segments, reflecting favorable market conditions for most product lines. Although catastrophe activity impacted our bottom line results, these events reinforce our purpose and promise to be there for our customers in times of need. I’m proud of our team’s ongoing efforts to deliver outstanding service and value to all stakeholders we serve.”