NYSE$RLI

Rli Corp · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

RLI Corp. reported first quarter results with net earnings of $73.0 million and operating earnings of $39.6 million.

RLI Corp. reported a strong first quarter with significant growth in net earnings, driven by underwriting income and favorable development in prior years' loss reserves, despite challenges from winter storms. The company's combined ratio was 86.9, and premium volume increased across all three segments.

  • Underwriting income of $29.9 million achieved with a combined ratio of 86.9.
  • Gross premiums written increased by 20%, or 10% adjusting for prior year transportation premium returns.
  • Net favorable development in prior years’ loss reserves resulted in a $31.4 million increase in underwriting income.
  • Winter storms caused a $13.6 million net decrease in underwriting income.

Headline financials

Total Revenue

$287M

Previous: $118M+143.3%
EPS (adj)

$0.87

Previous: $0.66+31.8%
Combined Ratio

86.9%

Previous: 92.0%-5.5%
Capital Expenditures

-$887K

Previous: -$1.91M+53.6%
Free Cash Flow

$72.1M

Previous: -$63.2M+214.2%
Net Income

$73M

Previous: -$61.3M+219.2%
Operating Income

$269M

Previous: $104M+158.9%
Gross Profit

$287M

Previous: $118M+143.3%
Cash & Equivalents

$94.9M

Previous: $42.7M+122.3%
Total Assets

$3.97B

Previous: $3.38B+17.6%

Revenue & EPS history

Rli · Revenue · Quarterly

$287M

Q1 2021+143.3%vs Q1 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Rli · $322M total across 3 segments · Q2 2023

  • Casualty
    $187M
  • Property
    $102M
  • Surety
    $33.4M

Forward guidance

RLI will continue to build on its 25 consecutive years of underwriting profitability and focus on growing book value through employee dedication.

Tailwinds

  • Continued focus on underwriting profitability.
  • Emphasis on growing book value.
  • Dedication of employee owners.
  • Growth opportunities across the portfolio
  • Premium volume was up over last year in all three segments

Headwinds

  • Active winter storm season
  • Net investment income decreased 7.6%
  • Comprehensive earning decreased
  • Other comprehensive earnings decreased
  • General corporate expenses increased

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.1%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+2.6%

Avg return

30 days after

48%

33 / 69 earnings

Positive

+14.2%

Q2 2020

Best reaction

-13.6%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.1%-8.7%-8.1%
Q4 2025-3.0%-2.9%+3.1%
Q3 2025+2.6%+2.8%+7.4%
Q2 2025-1.0%+0.7%-0.8%
Q1 2025-3.7%-5.1%-4.1%
Q4 2024-8.1%-6.6%-4.5%
Q3 2024-2.4%-4.7%+8.0%
Q2 2024+3.1%+5.4%+7.4%
Q1 2024+4.0%+2.8%+5.3%
Q4 2023-4.6%-5.0%+0.4%
Q3 2023+3.2%-1.7%+3.7%
Q2 2023-2.0%-1.8%-5.3%
Q1 2023+11.6%+9.5%-2.4%
Q4 2022-1.7%-2.1%-0.9%
Q3 2022-0.5%+8.1%+15.5%
Q2 2022+1.6%-0.6%+4.4%
Q1 2022+7.2%+4.0%+5.7%
Q4 2021-0.2%+1.6%-1.1%
Q3 2021+2.2%+4.1%+5.6%
Q2 2021-2.6%+0.0%+3.3%
Q1 2021-0.8%-0.5%-6.4%
Q4 2020-3.3%-4.5%+2.0%
Q3 2020+11.0%+8.4%+22.0%
Q2 2020+14.2%+8.6%+11.3%
Q1 2020-13.6%-16.5%-6.6%
Q4 2019-1.1%+1.2%-2.5%
Q3 2019+5.7%+8.3%+7.2%
Q2 2019+2.7%+0.5%+4.9%
Q1 2019+6.4%+6.9%+14.4%
Q4 2018-3.3%-4.1%+4.7%
Q3 2018-3.4%-4.8%+1.2%
Q2 2018+2.2%+6.3%+12.9%
Q1 2018+0.2%-0.4%+4.9%
Q4 2017+4.8%+6.5%+1.1%
Q3 2017+3.5%+0.3%+2.5%
Q2 2017+5.1%+5.5%-0.1%
Q1 2017-9.1%-3.9%-7.0%
Q4 2016+2.3%-0.2%-1.3%
Q3 2016-12.0%-14.9%-7.4%
Q2 2016+0.7%+0.6%+1.5%
Q1 2016-4.8%
Q4 2015+6.2%
Q3 2015+4.8%
Q2 2015+6.5%
Q1 2015-3.4%
Q4 2014-0.4%
Q3 2014-0.5%
Q2 2014-2.1%
Q1 2014+1.2%
Q4 2013-3.1%
Q3 2013+4.0%
Q2 2013+1.8%
Q1 2013-3.4%
Q4 2012+0.9%
Q3 2012+3.7%
Q2 2012-0.3%
Q1 2012+1.0%
Q4 2011-1.6%
Q3 2011-4.8%
Q2 2011-5.6%
Q1 2010+0.5%
Q1 2011+0.7%
Q4 2008+1.1%
Q4 2010+1.1%
Q3 2010-0.2%
Q3 2009-0.2%
Q2 2010-2.7%
Q4 2009-2.7%
Q2 2009-2.7%

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