RLI Corp. has reported a full year underwriting income of $173.2 million on a combined ratio of 86.6%, compared to $178.2 million on a combined ratio of 84.4% in 2022.
The firm explained that favourable development in prior years’ loss reserves resulted in a $95.3 million net increase in underwriting income in 2023, which was partially offset by $81.2 million of Hawaiian wildfire and other storm losses. Comparatively, favourable development in prior years’ loss reserves resulted in a $106.5 million net increase in underwriting income in 2022, which was partially offset by $44.4 million of hurricane and storm losses.
In Q4 2023 alone, RLI achieved $59.8 million of underwriting income on a combined ratio of 82.7%, compared to $54 million on a combined ratio of 82.1% in 2022.
Meanwhile, RLI’s full year net premiums earned grew 13.1% year over year to $1.3 billion, while full year net investment income jumped 39.9% to $120.4 million.
Total net earnings for the full year fell 47.8% to $304.6 million from $583.4 million in 2022. However, for Q4 2023 alone, net earnings were $114.6 million, up from $97.8 million in Q4 of 2022.
Comprehensive earnings for the full year 2023, which included after-tax unrealised gains from the fixed-income portfolio due to declining interest rates, were $367.4 million, compared to $304.5 million in 2022.
RLI Corp. President & CEO Craig Kliethermes, commented, “Continued premium growth across all product segments drove RLI’s strong fourth quarter performance and supported our 28th consecutive year of underwriting profit.
“Gross premiums written grew 13% in the quarter and we achieved an 83 combined ratio. Underwriting and investment income were solid contributors to quarterly operating earnings of $1.54 per share and book value growth of 31% from year-end 2022.”
Kliethermes continued, “Our success during the year is a reminder that underwriting discipline and financial strength put us in the best position to fulfil our promise to policyholders and provide superior customer service.”
“As we turn our focus to 2024, I want to thank our associate owners who drive RLI forward every day. Their dedication is a testament to our ability to meet the challenges and opportunities that lie ahead.”
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