RLI Corp. has reported Q2 2023 net earnings of $77.7 million, compared to a net loss of $2.2 million for the same quarter of 2022.
RLI disclosed that it achieved $41.2 million of underwriting income in Q2 of 2023 on an 87.2 combined ratio, compared to $56.0 million on an 80.2 combined ratio in 2022. The firm noted that results for both years include favourable development in prior years’ loss reserves, which resulted in a $17 million and $20.9 million net increase to underwriting income from 2023 and 2022, respectively.
Meanwhile, net investment income for the quarter increased 55.8% to $28.8 million, compared to the same period in 2022.
According to RLI, the investment portfolio’s total return was 1.1% for the quarter and 3.9% for the six months ended June 30, 2023.
RLI’s comprehensive earnings were $57.9 million in Q2 2023, compared to a comprehensive loss of $99.8 million for the same quarter in 2022.
In addition to net earnings, comprehensive earnings included after-tax unrealised losses from the fixed income portfolio, due to rising interest rates.
RLI also boasted a 21% increase in gross premiums written, while losses from Q2 storms resulted in a $15.5 million net decrease in underwriting income.
RLI Corp. President & CEO Craig Kliethermes, commented, “We are pleased to report an 87 combined ratio for the quarter and an 83 combined ratio year to date.
“All three product segments contributed to our strong results. Our property segment continues to experience hard market conditions, which drove significant premium growth in the quarter.
“Casualty and surety segment premiums increased slightly, as product exits, market conditions and underwriting discipline moderated growth.
“Our profitability and growth in book value highlight the benefits of our diverse product portfolio and continued focus on responsible underwriting.”
