EX-99.1 2 ex-99d1.htm EX-99.1 rli_Exhibit_99.1

Exhibit 99.1

Picture 1

RLI REPORTS SECOND QUARTER 2017 RESULTS

PEORIA, ILLINOIS, July 19, 2017 -- RLI Corp. (NYSE: RLI) – RLI Corp. reported second quarter 2017 net earnings of $26.2 million ($0.59 per share), compared to $29.1 million ($0.65 per share) for the second quarter of 2016.  Operating earnings for the second quarter of 2017 were $27.1 million ($0.61 per share) compared to $27.3 million ($0.61 per share) for the same period in  2016. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

Year to Date

Earnings Per Diluted Share

2017

 

2016

 

2017

 

2016

Net earnings

$

0.59

 

$

0.65

 

$

1.03

 

$

1.36

Operating earnings (1)

$

0.61

 

$

0.61

 

$

1.04

 

$

1.16

 

 

 

 

 

 

 

 

 

 

 

 

(1)  See discussion below of non-GAAP and performance measures.

 

Highlights for the quarter included:

·

Underwriting income of $19.7 million, resulting in a combined ratio of 89.3.

·

4% decline in gross premiums written.

·

Favorable development in prior years’ loss reserves resulting in a $12.8 million net increase in underwriting income.

·

Book value per share of $19.93, an increase of more than 8% from year end 2016, inclusive of dividends.

 

“We are pleased to report a strong 89 combined ratio and continued book value growth, as each of our segments were profitable in the second quarter,” said RLI Corp. Chairman & CEO Jonathan E. Michael. “Overall premium was down versus last year, due largely to re-underwriting efforts on auto-related exposures, as well as certain product exits. Despite these impacts, premium production continues to benefit from strong performance within the casualty segment. As we head into the second half of the year, our underwriters remain focused on maintaining their underwriting discipline in the face of continued competitive pressures.”

 

Underwriting Income

RLI achieved $19.7 million of underwriting income in the second quarter of 2017 on an 89.3 combined ratio, compared to $26.0 million of underwriting income on an 85.5 combined ratio in the same quarter for 2016. Results for both years include favorable development in prior years’ loss reserves which totaled $12.8 million and $14.7 million for the second quarter of 2017 and 2016, respectively.

 

The following table highlights underwriting income and combined ratios by segment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underwriting Income (1)

 

Second Quarter

 

Combined Ratio (1)

 

Second Quarter

(in millions)

 

 

2017

 

 

2016

 

 

 

2017

 

2016

Casualty

 

$

8.6

 

$
11.2

 

Casualty

 
92.8

 
90.1

Property

 

 
2.9

 

 
7.2

 

Property

 
91.7

 
80.9

Surety

 

 
8.2

 

 
7.6

 

Surety

 
73.1

 
74.5

Total

 

$
19.7

 

$
26.0

 

Total

 
89.3

 
85.5

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)  See discussion below of non-GAAP and performance measures.

 

 

--more--

Picture 2

 

Other Income

RLI’s net investment income for the quarter increased 1.5% to $13.2 million, compared to the same period in 2016.  For the six-month period ended June 30, 2017, investment income was $26.2 million versus $26.4 million for the same period in 2016. The investment portfolio’s total return was 1.8% for the quarter. The bond portfolio’s return was 1.7% in the quarter, while the equity portfolio’s return was 1.8%. Through six months, the investment portfolio’s total return was 3.6% with the bond portfolio returning 3.0% and equities returning 5.9%.

 

Comprehensive earnings, which include after-tax unrealized gains/losses from the investment portfolio, were $36.8 million for the quarter ($0.83 per share) compared to $48.1 million ($1.08 per share) for the same quarter in 2016. 

 

Equity in earnings of unconsolidated investees was $6.8 million for the quarter compared to $5.2 million from the same period last year. These results are related to Maui Jim, Inc. ($6.2 million), a producer of premium sunglasses, and Prime Holdings Insurance Services, Inc. ($0.6 million), a specialty E&S insurance company. For the second quarter of 2016, equity in earnings of unconsolidated investees from Maui Jim and Prime was $5.0 million and $0.2 million, respectively. For the six-month period ended June 30, 2017, equity in earnings of unconsolidated investees was $11.7 million versus $8.9 million in 2016.

 

Dividends Paid in the Second Quarter 2017

On June 20, 2017,  the company paid an ordinary dividend of $0.21 per share,  a $0.01 increase over the prior quarter.  RLI’s cumulative dividends, including this recent payment, total more than $632  million paid over the last five years.

 

Non-GAAP and Performance Measures

Management has included certain non-generally accepted accounting principles (“non-GAAP”) financial measures in presenting the Company’s results. Management believes that these non-GAAP measures better explain the Company’s results of operations and allow for a more complete understanding of the underlying trends in the Company’s business. These measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles (“GAAP”). In addition, our definitions of these items may not be comparable to the definitions used by other companies.

 

Operating earnings and earnings per share (EPS) from operations consist of our GAAP net earnings adjusted by the net realized gains/(losses) and taxes related thereto. Net earnings and net earnings per share are the GAAP financial measures that are most directly comparable to operating earnings and EPS from operations. A reconciliation of the operating earnings and EPS from operations to the comparable GAAP financial measures is included in the 2017 financial highlights below.  

 

Underwriting income or profit represents the pretax profitability of our insurance operations and is derived by subtracting loss and settlement expenses, policy acquisition costs and insurance operating expenses from net premium earned, which are all GAAP financial measures. The combined ratio, which is derived from components of underwriting income, is a performance measure commonly used by property and casualty insurance companies to help users of their financial information to better understand company performance.

 

Other News

At 10 a.m. central daylight time (CDT) tomorrow, July  20, 2017, RLI management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion through the Internet at  http://edge.media-server.com/m/p/2mzcz3hw.

 

Except for historical information, this news release may include forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) including, without limitation, statements reflecting our current expectations about the future performance of our company or our business segments or about future market conditions. These statements are subject to certain risk factors that could cause actual results to differ materially. Various risk factors that could affect future results are listed in the company's filings with the Securities and Exchange Commission, including the Form 10-K Annual Report for the year ended December 31, 2016.

 

--more--

2

 

 

About RLI

RLI Corp. (NYSE: RLI) is a specialty insurer serving diverse, niche property, casualty and surety markets. The company provides deep underwriting expertise and superior service to commercial and personal lines customers nationwide. RLI’s products are offered through its insurance subsidiaries RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company. All of RLI’s insurance subsidiaries are rated A+ (Superior) by A.M. Best Company. RLI has paid and increased regular dividends for 42 consecutive years and delivered underwriting profits for 21 consecutive years. To learn more about RLI, visit www.rlicorp.com.  

 

Media Contact

Aaron Jacoby

Vice President, Corporate Development

309-693-5880

Aaron.Jacoby@rlicorp.com 

 

3

 

 

Supplemental disclosure regarding the earnings impact of specific items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Earnings Per Share

 

 

 

 

2017

 

2016

 

2017

 

2016

 

 

 

 

2nd Qtr

 

2nd Qtr

 

6 Mos.

 

6 Mos.

Operating Earnings Per Share (1)

$

0.61

 

$

0.61

 

$

1.04

 

$

1.16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Specific items included in operating earnings per share: (2) (3)

 

 

 

 

 

 

 

 

 

 

 

Favorable development in casualty prior years' reserves

$

0.13

 

$

0.15

 

$

0.08

 

$

0.32

Favorable development in property prior years' reserves

$

0.01

 

$

0.04

 

$

0.04

 

$

0.03

Favorable development in surety prior years' reserves

$

0.04

 

$

0.03

 

$

0.12

 

$

0.04

Catastrophe impact

 

 

 

 

 

 

 

 

 

 

 

 

▪

2017 storms

$

(0.04)

 

$

 -

 

$

(0.04)

 

$

 -

 

▪

2016 and prior events

$

0.01

 

$

(0.06)

 

$

0.01

 

$

(0.06)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(1)

See discussion above of non-GAAP and performance measures.
(2)

Includes bonus and profit sharing-related impacts which affected other insurance and general corporate expenses.
(3)

Reserve development reflects changes from previously estimated losses.

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RLI CORP.

2017 FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2017

 

2016

 

% Change

    

2017

 

  

2016

 

 

% Change

SUMMARIZED INCOME STATEMENT DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net premiums earned

$

184,331

 

$

180,226

 
2.3

%

 

$

367,616

 

 

$

357,144

 

 
2.9

%

Net investment income

 

13,238

 

 

13,048

 
1.5

%

 

 

26,243

 

 

 

26,418

 

 
(0.7)

%

Net realized gains (losses)

 

(1,359)

 

 

2,710

 

 -

 

 

 

(735)

 

 

 

14,110

 

 

 -

 

  Consolidated revenue

 

$

196,210

 

$

195,984

 
0.1

%

 

$

393,124

 

 

$

397,672

 

 
(1.1)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss and settlement expenses

 

$

90,347

 

$

80,277

 
12.5

%

 

$

183,737

 

 

$

161,448

 

 
13.8

%

Policy acquisition costs

 

 

60,695

 

 

60,521

 
0.3

%

 

 

124,198

 

 

 

122,764

 

 
1.2

%

Insurance operating expenses

 

 

13,546

 

 

13,412

 
1.0

%

 

 

26,881

 

 

 

25,612

 

 
5.0

%

Interest expense on debt

 

 

1,857

 

 

1,856

 
0.1

%

 

 

3,713

 

 

 

3,713

 

 
0.0

%

General corporate expenses

 

 

2,535

 

 

2,768

 
(8.4)

%

 

 

5,860

 

 

 

5,143

 

 
13.9

%

  Total expenses

 

$

168,980

 

$

158,834

 
6.4

%

 

$

344,389

 

 

$

318,680

 

 
8.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 unconsolidated investees

 

 

6,806

 

 

5,191

 
31.1

%

 

 

11,744

 

 

 

8,942

 

 
31.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before income taxes

 

$

34,036

 

$

42,341

 
(19.6)

%

 

$

60,479

 

 

$

87,934

 

 
(31.2)

%

Income tax expense

 

 

7,828

 

 

13,264

 
(41.0)

%

 

 

14,443

 

 

 

27,464

 

 
(47.4)

%

  Net earnings

 

$

26,208

 

$

29,077

 
(9.9)

%

 

$

46,036

 

 

$

60,470

 

 
(23.9)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive earnings, net of tax

 

 

10,599

 

 

19,066

 
(44.4)

%

 

 

22,368

 

 

 

40,829

 

 
(45.2)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive earnings

 

$

36,807

 

$

48,143

 
(23.5)

%

 

$

68,404

 

 

$

101,299

 

 
(32.5)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

26,208

 

$

29,077

 
(9.9)

%

 

$

46,036

 

 

$

60,470

 

 
(23.9)

%

Less: Realized (gains) losses

 

 

1,359

 

 

(2,710)

 

 -

 

 

 

735

 

 

 

(14,110)

 

 

 -

 

Income tax on realized gains (losses)

 

 

(477)

 

 

949

 

 -

 

 

 

(257)

 

 

 

4,939

 

 

 -

 

Operating earnings

 

$

27,090

 

$

27,316

 
(0.8)

%

 

$

46,514

 

 

$

51,299

 

 
(9.3)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Net earnings (trailing four quarters)

 

 

 

 

 

 

 

 

 

 

 
11.5

%

 

 
14.9

%

 

 

 

 Comprehensive earnings (trailing four quarters)

 

 

 

 

 

 

 

 

 

 

 
9.2

%

 

 
17.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (in 000's)

 

 

44,519

 

 

44,423

 

 

 

 

 

44,517

 

 

 

44,381

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share

 

$

0.59

 

$

0.65

 
(9.2)

%

 

$

1.03

 

 

$

1.36

 

 
(24.3)

%

Less: Realized (gains) losses

 

 

0.03

 

 

(0.06)

 

 -

 

 

 

0.02

 

 

 

(0.31)

 

 

 -

 

Income tax on realized gains (losses)

 

 

(0.01)

 

 

0.02

 

 -

 

 

 

(0.01)

 

 

 

0.11

 

 

 -

 

EPS from operations (1)

 

$

0.61

 

$

0.61

 
0.0

%

 

$

1.04

 

 

$

1.16

 

 
(10.3)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive earnings per share

 

$

0.83

 

$

1.08

 
(23.1)

%

 

$

1.54

 

 

$

2.28

 

 
(32.5)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends per share

 

$
$
0.21

 

$
$
0.20

 
5.0

%

 

$

0.41

 

 

$

0.39

 

 
5.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Cash Flow provided by Operations

 

$

63,305

 

$

48,305

 
31.1

%

 

$

74,570

 

 

$

69,571

 

 
7.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) See discussion above of non-GAAP and performance measures.

 

 

 

 

 

 

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

RLI CORP.

2017 FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

 

 

2017

 

2016

 

% Change

SUMMARIZED BALANCE SHEET DATA:

 

 

 

 

 

 

 

 

 

Fixed income

 

$

1,651,657

 

$

1,605,209

 
2.9

%

  (amortized cost - $1,621,451 at 6/30/17)

 

 

 

 

 

 

 

 

 

  (amortized cost - $1,596,227 at 12/31/16)

 

 

 

 

 

 

 

 

 

Equity securities

 

 

387,802

 

 

369,219

 
5.0

%

  (cost - $193,052 at 6/30/17)

 

 

 

 

 

 

 

 

 

  (cost - $187,573 at 12/31/16)

 

 

 

 

 

 

 

 

 

Other invested assets

 

 

25,310

 

 

24,115

 
5.0

%

Cash and cash equivalents

 

 

39,412

 

 

23,284

 
69.3

%

  Total investments and cash

 

$

2,104,181

 

$

2,021,827

 
4.1

%

 

 

 

 

 

 

 

 

 

 

Premiums and reinsurance balances receivable

 

 

133,171

 

 

126,387

 
5.4

%

Ceded unearned premiums

 

 

52,654

 

 

52,173

 
0.9

%

Reinsurance balances recoverable on unpaid losses

 

 

280,568

 

 

288,224

 
(2.7)

%

Deferred policy acquisition costs

 

 

76,276

 

 

73,147

 
4.3

%

Property and equipment

 

 

56,547

 

 

54,606

 
3.6

%

Investment in unconsolidated investees

 

 

84,032

 

 

72,240

 
16.3

%

Goodwill and intangibles

 

 

60,582

 

 

64,371

 
(5.9)

%

Other assets

 

 

33,571

 

 

24,658

 
36.1

%

  Total assets

 

$

2,881,582

 

$

2,777,633

 
3.7

%

 

 

 

 

 

 

 

 

 

 

Unpaid losses and settlement expenses

 

$

1,183,185

 

$

1,139,337

 
3.8

%

Unearned premiums

 

 

436,477

 

 

433,777

 
0.6

%

Reinsurance balances payable

 

 

22,216

 

 

17,928

 
23.9

%

Funds held

 

 

75,152

 

 

72,742

 
3.3

%

Income taxes - deferred

 

 

79,868

 

 

64,494

 
23.8

%

Bonds payable, long-term debt

 

 

148,835

 

 

148,741

 
0.1

%

Accrued expenses

 

 

35,130

 

 

51,992

 
(32.4)

%

Other liabilities

 

 

22,985

 

 

25,050

 
(8.2)

%

  Total liabilities

 

$

2,003,848

 

$

1,954,061

 
2.5

%

  Shareholders' equity

 

 

877,734

 

 

823,572

 
6.6

%

  Total liabilities & shareholders' equity

 

$

2,881,582

 

$

2,777,633

 
3.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding (in 000's)

 

 
44,050

 

 
43,945

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

19.93

 

$

18.74

 
6.4

%

Closing stock price per share

 

$

54.62

 

$

63.13

 
(13.5)

%

Cash dividends per share - ordinary (annualized)

 

$

0.83

 

$

0.79

 
5.1

%

Cash dividends per share - special

 

$

 -

 

$

2.00

 

 

 

 

 

 

 

 

 

 

 

 

 

Statutory surplus

 

$

904,033

 

$

859,976

 
5.1

%

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RLI CORP.

2017 FINANCIAL HIGHLIGHTS

UNDERWRITING SEGMENT DATA

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

Casualty

 

Ratios

 

 

 

Property

 

Ratios

 

 

 

Surety

 

Ratios

 

 

 

Total

 

Ratios

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

160,024

 

 

 

 

$

50,099

 

 

 

 

$

30,815

 

 

 

 

$

240,938

 

 

 

Net premiums written

 

 

136,041

 

 

 

 

 

38,810

 

 

 

 

 

29,246

 

 

 

 

 

204,097

 

 

 

Net premiums earned

 

 

119,259

 

 

 

 

 

34,485

 

 

 

 

 

30,587

 

 

 

 

 

184,331

 

 

 

Net loss & settlement expenses

 

 

70,807

 
59.4

%

 

 

15,680

 
45.5

%

 

 

3,860

 
12.6

%

 

 

90,347

 
49.0

%

Net operating expenses

 

 

39,804

 
33.4

%

 

 

15,942

 
46.2

%

 

 

18,495

 
60.5

%

 

 

74,241

 
40.3

%

 Underwriting income (1)

 

$

8,648

 
92.8

%

 

$

2,863

 
91.7

%

 

$

8,232

 
73.1

%

 

$

19,743

 
89.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

161,128

 

 

 

 

$

55,835

 

 

 

 

$

33,700

 

 

 

 

$

250,663

 

 

 

Net premiums written

 

 

137,778

 

 

 

 

 

44,808

 

 

 

 

 

32,283

 

 

 

 

 

214,869

 

 

 

Net premiums earned

 

 

112,360

 

 

 

 

 

37,794

 

 

 

 

 

30,072

 

 

 

 

 

180,226

 

 

 

Net loss & settlement expenses

 

 

62,609

 
55.7

%

 

 

14,049

 
37.2

%

 

 

3,619

 
12.0

%

 

 

80,277

 
44.5

%

Net operating expenses

 

 

38,626

 
34.4

%

 

 

16,500

 
43.7

%

 

 

18,807

 
62.5

%

 

 

73,933

 
41.0

%

 Underwriting income (1)

 

$

11,125

 
90.1

%

 

$

7,245

 
80.9

%

 

$

7,646

 
74.5

%

 

$

26,016

 
85.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

Casualty

 

Ratios

 

 

 

Property

 

Ratios

 

 

 

Surety

 

Ratios

 

 

 

Total

 

Ratios

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

286,858

 

 

 

 

$

87,178

 

 

 

 

$

61,778

 

 

 

 

$

435,814

 

 

 

Net premiums written

 

 

243,232

 

 

 

 

 

67,809

 

 

 

 

 

58,794

 

 

 

 

 

369,835

 

 

 

Net premiums earned

 

 

236,243

 

 

 

 

 

70,290

 

 

 

 

 

61,083

 

 

 

 

 

367,616

 

 

 

Net loss & settlement expenses

 

 

153,208

 
64.9

%

 

 

26,013

 
37.0

%

 

 

4,516

 
7.4

%

 

 

183,737

 
50.0

%

Net operating expenses

 

 

81,268

 
34.4

%

 

 

32,610

 
46.4

%

 

 

37,201

 
60.9

%

 

 

151,079

 
41.1

%

 Underwriting income (1)

 

$

1,767

 
99.3

%

 

$

11,667

 
83.4

%

 

$

19,366

 
68.3

%

 

$

32,800

 
91.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

285,179

 

 

 

 

$

97,480

 

 

 

 

$

64,253

 

 

 

 

$

446,912

 

 

 

Net premiums written

 

 

241,995

 

 

 

 

 

77,694

 

 

 

 

 

61,280

 

 

 

 

 

380,969

 

 

 

Net premiums earned

 

 

220,953

 

 

 

 

 

76,479

 

 

 

 

 

59,712

 

 

 

 

 

357,144

 

 

 

Net loss & settlement expenses

 

 

123,358

 
55.8

%

 

 

29,261

 
38.3

%

 

 

8,829

 
14.8

%

 

 

161,448

 
45.2

%

Net operating expenses

 

 

77,364

 
35.0

%

 

 

33,775

 
44.2

%

 

 

37,237

 
62.4

%

 

 

148,376

 
41.5

%

 Underwriting income (1)

 

$

20,231

 
90.8

%

 

$

13,443

 
82.5

%

 

$

13,646

 
77.2

%

 

$

47,320

 
86.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) See discussion above of non-GAAP and performance measures.

 

 

 

 

 

 

 

 

 

 

7