RLI Corp. has reported net earnings of $95.3 million for the fourth quarter of 2021, an improvement over the $83.8 million that it reported for the same period in the previous year.
The company also achieved $49.7 million of underwriting income in in Q4 2021 on an 80.7% combined ratio, compared to $27.0 million on an 88.0% combined ratio in 2020.
For the year, RLI reported $129.9 million of underwriting income on an 86.8% combined ratio, compared to $69.6 million on a 92.0% combined ratio in 2020.
Results for both years include favourable development in prior years’ loss reserves, which resulted in a $106.5 million and $84.0 million net increase to underwriting income for 2021 and 2020, respectively.
The favourable development in 2021 was partially offset by a $50.2 million net reduction to underwriting income for hurricane and storm losses, compared to $49.3 million in 2020.
RLI also recorded a 7.7% increase in net investment income, which totalled $17.9 million in Q4.
For the year, net investment income was $68.9 million, compared to $67.9 million for the same period in 2020.
“We are pleased to report excellent fourth quarter and year-end results,” said RLI Corp. President & CEO Craig Kliethermes. “Our focus on organic growth resulted in a 19% increase in gross premium and an 87 combined ratio for the year.”
“For the quarter, light catastrophe activity and favorable reserve development drove positive underwriting results, and we benefitted from solid investment returns,” Kliethermes continued.
“In 2021, we achieved our 26th consecutive year of underwriting profit, and shared our success in the form of a $2 special dividend. The total capital returned to shareholders now exceeds $1.1 billion over the last ten years, a testament to our consistent financial performance.”
