RLI Corp., a specialty insurer serving property, casualty and surety markets, has reported Q1 2024 net earnings of $127.9 million, compared to $98.8 million a year earlier.
The insurer has announced underwriting income of $77.7 million on a combined ratio of 78.5% for the first quarter of 2024, compared to $67.9 million and a 77.9% combined ratio in Q1 2023.
Results for both years include favourable development in prior years’ loss reserves, which resulted in a $37.4 million and $44.5 million net increase in underwriting income in 2024 and 2023, respectively.
By segment, and RLI has reported a drop in casualty underwriting income to $13.7 million compared to Q1 2023’s $31.8 million, as the combined ratio rose to 93.1% in Q1 2024 from 82.9% a year earlier.
The property segment saw a hike in underwriting income reported at $57.7 million for Q1 2024 with a combined ratio of 55.4%, compared to last year’s Q1 underwriting income of $28.4 million and a ratio of 68%.
In surety, the underwriting income for Q1 2024 was reported at $6.3 million with a combined ratio of 80.9%, compared to the Q1 2023 total of $7.7 million and a combined ratio of 76.7%.
In terms of growth, the insurer has reported a 13% increase in gross premiums written for the quarter.
On the asset side of the balance sheet, RLI has announced a 21% increase in net investment income for Q1 2024 to $32.8 million, while the investment portfolio’s total return was 1.8% for the quarter.
RLI’s comprehensive earnings were $115.2 million for the first quarter of 2024, compared to $136.5 million for the same quarter in 2023. In addition to net earnings, comprehensive earnings for 2024 included after-tax unrealized losses from the fixed-income portfolio, due to rising interest rates, says the firm.
Craig Kliethermes, President & Chief Executive Officer, RLI, commented, “We are pleased to report continued top line premium growth and excellent bottom line results in the first quarter of 2024. Gross premiums written increased 13%, with contributions from all three of our product segments. While property premium growth was more moderate this quarter, sustained rate increases and manageable storm activity resulted in an outstanding 55 combined ratio for the segment.
“Overall, underwriting income delivered significant margin which complemented investment returns to support an 8% increase in book value. We believe our ownership culture and ability to serve customers from a position of financial strength continue to differentiate us. I want to thank RLI’s talented associates for their ongoing work to deliver value to our shareholders.”
