RLI Corp reports posts mixed Q3 results, NII up 15%

NEW YORK - RLI Corp (NYSE:RLI ) reported better-than-expected third quarter earnings on Monday, though revenue fell short of analyst estimates. The specialty insurer's shares edged up 0.65% in after-hours trading following the release.

RLI posted adjusted earnings per share of $1.31 for the third quarter, surpassing the analyst consensus of $0.97 by $0.34. However, revenue came in at $470 million, below the $491.28 million analysts had projected.

The company's underwriting income rose significantly to $40.7 million, compared to just $4.2 million in the same quarter last year. This improvement came despite $32.7 million in losses from Hurricanes Beryl and Helene during the period.

"Despite the storm activity in the third quarter, we continued to find opportunities for balanced top line growth across our portfolio," said RLI Corp. President & CEO Craig Kliethermes. "Our diversified business model, sound risk selection and disciplined underwriting resulted in a solid 90 combined ratio."

Gross premiums written increased 13% year-over-year to $507.8 million. Net investment income also saw healthy growth, rising 15% to $36.7 million.

The company reported a combined ratio of 89.6% for the quarter, a substantial improvement from 98.7% in Q3 2023. A combined ratio below 100% indicates an underwriting profit.

RLI's book value per share rose to $38.17 as of September 30, up 26% year-to-date including dividends.

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Source: Investing.com