NYSE$RLI

Rli Corp · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

RLI Corp reported earnings for Q3 2022, which were impacted by Hurricane Ian but also saw growth across all product segments.

RLI Corp. reported a significant increase in net earnings for the third quarter of 2022, primarily driven by the sale of Maui Jim, Inc. While operating earnings decreased slightly compared to the same period in 2021, the company experienced underwriting profit despite catastrophe losses related to Hurricane Ian and continued growth across all three product segments.

  • Net earnings were $439.9 million ($9.61 per share), compared to $29.2 million ($0.64 per share) for Q3 2021.
  • Operating earnings for the third quarter of 2022 were $23.0 million ($0.50 per share), compared to $25.6 million ($0.56 per share) for the same period in 2021.
  • Underwriting income of $8.8 million on a combined ratio of 97.0.
  • Net earnings include $437.7 million ($9.56 per diluted share) related to the sale of Maui Jim, Inc.

Headline financials

Total Revenue

$859M

Previous: $270M+217.8%
EPS (adj)

$0.50

Previous: $0.65-23.1%
Combined Ratio

97.0%

Previous: 94.6%+2.5%
Capital Expenditures

-$4.43M

Previous: -$5.01M+11.4%
Free Cash Flow

$435M

Previous: $24.2M+1696.6%
Net Income

$440M

Previous: $29.2M+1404.3%
Operating Income

$839M

Previous: $255M+229.1%
Gross Profit

$859M

Previous: $270M+217.8%
Cash & Equivalents

$724M

Previous: $89.6M+707.3%
Total Assets

$5.21B

Previous: $4.43B+17.6%

Revenue & EPS history

Rli · Revenue · Quarterly

$859M

Q3 2022+217.8%vs Q3 2021
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

Rli · $291M total across 3 segments · Q3 2022

  • Casualty
    $180M
  • Property
    $80.8M
  • Surety
    $31M

Forward guidance

RLI's third quarter results were impacted by Hurricane Ian, but the company still managed to produce an underwriting profit. RLI also experienced continued growth across all three product segments.

Tailwinds

  • RLI's financial strength allows it to fulfill its promise to help restore its customers’ businesses and livelihoods following catastrophic events.
  • The company produced an underwriting profit during the quarter.
  • RLI experienced continued growth across all three product segments.
  • Net investment income for the quarter increased 19.2% to $21.3 million, compared to the same period in 2021.
  • Book value per share of $30.72, an increase of 16% (inclusive of dividends) from year-end 2021.

Headwinds

  • Hurricane Ian had an impact on the third quarter results.
  • The investment portfolio’s total return was -3.4% for the quarter
  • Equity in earnings (loss) of Maui Jim, Inc. was -$18.0 million for the quarter, primarily due to transaction related expenses from the sale of the company.
  • Property segment had an underwriting loss of $8.3 million with a combined ratio of 110.3%.
  • Operating earnings for the third quarter of 2022 were $23.0 million ($0.50 per share), compared to $25.6 million ($0.56 per share) for the same period in 2021.

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 Q3 2022

Historical avgQ3 2022

+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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