US property and casualty insurer RLI Corp. has announced that its net earnings in the fourth quarter of 2020 totaled $83.8 million, compared to $53.4 million for the same period last year.
However, looking at the full year, earnings slumped to $157.1 million, down 18% from the $191.6 million it reported in 2019.
RLI achieved $27.0 million of underwriting income in the fourth quarter of 2020 on an 88.0 combined ratio, compared to $16.5 million on a 92.4 combined ratio in 2019.
For the year, RLI recorded $69.6 million of underwriting income on a 92.0 combined ratio, compared to $67.6 million on a 91.9 combined ratio in 2019.
Results for both years include net favorable development in prior years’ loss reserves, which totaled $84.0 million and $62.8 million for 2020 and 2019, respectively.
The favorable development in 2020 was partially offset by a $45.1 million net reduction to underwriting income from hurricane losses.
Net investment income for the quarter decreased 6.3% to $16.7 million, compared to the same period in 2019.
And over the whole of 2020, net investment income remained flat at $67.9 million, compared to $68.9 million for the same period in 2019.
“Despite the many uncertainties RLI faced in 2020, we achieved strong results, provided superior service to our customers and delivered value to our shareholders,” said RLI Chairman and CEO Jonathan E. Michael.
“We posted a 92 combined ratio for the year, inclusive of 5 points of hurricane activity, which marked our 25th consecutive year of underwriting profit. During the fourth quarter, we achieved profitability in all product segments including property, which experienced headwinds from an active catastrophe season,” Michael continued.
“We believe the successful execution of our strategy is validated by growth in book value, which was up 22% in 2020 … We will continue to position RLI for long-term growth through sustained financial strength, underwriting discipline and customer focus.”