US property and casualty insurer RLI has reported second quarter net earnings of $92.2 million, compared to $40.5 million for Q2 2019.
Operating earning for the quarter were $34.8 million, compared to $29.7 million for the same period in 2019.
RLI achieved $24.2 million of underwriting income on an 88.4% combined ratio, compared to $14.9 million on a 92.8% combined ratio in 2019.
Results for both years include net favorable development in prior years’ loss reserves, which totaled $21.6 million and $17.8 million for 2020 and 2019, respectively.
“As we navigate the path forward in this uncertain environment, we remain focused on providing the best support possible to our customers, associates and communities,” said RLI Corp. Chairman & CEO Jonathan E. Michael.
“Commitments to those we serve are most easily fulfilled from a position of sustainable strength. Our financial results are a testament to that longstanding foundation. Although COVID-19 related losses were $6 million in the quarter, we achieved underwriting profitability in all product segments and an 88 combined ratio overall.
“Underwriting results, paired with steady investment income, generated $0.77 of operating earnings per share for the quarter.
“In addition, a strong rebound in the capital markets contributed to an 8 percent increase in book value for the first six months of 2020. We are prepared to meet any further challenges this crisis may bring and thank all RLI associates for their dedication to our stakeholders.”
Net investment income for the quarter decreased 0.5% to $16.9 million, compared to the same period in 2019.
The investment portfolio’s total return was 6.6% for the quarter and 2.0% for the six months ended June 30, 2020.