Specialty insurer RLI has reported net earnings of $439.9 million for the third quarter of 2022, including underwriting income of $8.8 million on a combined ratio of 97.0%.
This was despite the company reporting an underwriting loss of $8.8 million in its property segment, due to $34.8 million impact from third quarter hurricanes.
This impact was slightly below the estimated loss range of $38 million to $42 million that RLI had expected to take from Hurricane Ian.
But the property loss was outweighed by positive underwriting results of $11.3 million for RLI’s casualty segment, and of $5.8 million for its surety business.
Combined ratios for the segments were 110.3% for property, 93.7% for casualty, and 81.4% for surety.
Other highlights for the quarter included a 13% increase in gross premiums written and a 19% increase in net investment income, which amounted to $21.3 million.
Operating earnings came to $23.0 million, with most of the headline net earnings figure made up of $437.7 million related to the sale of Maui Jim, Inc.
“After a fairly quiet start to the storm season, Hurricane Ian had an impact on our third quarter results,” said RLI Corp. President & CEO Craig Kliethermes.
“Our thoughts are with all who have been affected by Ian, and I want to acknowledge the outstanding work our associates are doing to help our policyholders recover. Despite the sizable catastrophe losses related to this event, RLI produced an underwriting profit during the quarter,” Kliethermes.
“We also experienced continued growth across all three product segments. It is our financial strength that allows us to fulfill our promise to help restore our customers’ businesses and livelihoods following catastrophic events, and we remain focused on delivering on this commitment.”
