EX-99.1 2 rli-20171018ex991cb1493.htm EX-99.1 RLI Earnings Release

Exhibit 99.1

Picture 1

RLI REPORTS THIRD QUARTER 2017 RESULTS

PEORIA, ILLINOIS, October 18, 2017 -- RLI Corp. (NYSE: RLI) – RLI Corp. reported third quarter 2017 net earnings of $1.7 million ($0.04 per share), compared to $22.3 million ($0.50 per share) for the third quarter of 2016. Operating earnings(1) for the third quarter of 2017 were $1.7 million ($0.04 per share) compared to $16.2 million ($0.37 per share) for the same period in 2016. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter

 

Year to Date

Earnings Per Diluted Share

2017

 

2016

 

2017

 

2016

Net earnings

$

0.04

 

$

0.50

 

$

1.07

 

$

1.86

Operating earnings (1)

$

0.04

 

$

0.37

 

$

1.08

 

$

1.52

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Highlights for the quarter included:

·

Underwriting loss of $14.9 million, resulting in a combined ratio of 108.2.

·

1% decline in gross premiums written, while investment income increased 5%.

·

Losses from hurricanes resulting in a $31.7 million net decrease to underwriting income.

·

Favorable development in prior years’ loss reserves resulting in a $14.9 million net increase in underwriting income.

·

Book value per share of $19.95, an increase of more than 9% from year end 2016, inclusive of dividends.

 

“Our third quarter results reflect the impact of a very active hurricane season, which contributed 17 points to the overall 108 combined ratio,” said RLI Corp. Chairman & CEO Jonathan E. Michael. “Despite this impact, our casualty and surety segments delivered strong results, with combined ratios of 97 and 70, respectively. We also managed to earn 4 cents of operating income, due to our conservative approach to risk management, the strength of our diversified product portfolio and contributions from investments. Overall premium was relatively flat in the quarter supported by modest growth in our casualty segment. Surety segment premium declined due to continued competitive market conditions and our property segment was adversely impacted by previously discussed product exits.”

 

“After many years of benign hurricane activity, recent events have solidified both our purpose and commitment to serving our policyholders in times of need. I would like to thank all RLI associates, and in particular our claim team, for providing timely and unparalleled service to our agents, brokers and insureds.”

 

Underwriting Income

RLI had  $14.9 million of underwriting loss in the third quarter of 2017 on a 108.2 combined ratio, compared to $10.6 million of underwriting income on a 94.2 combined ratio in the same quarter for 2016. The third quarter of 2017 was impacted by hurricane losses with a $31.7 million net decrease in underwriting income due to Hurricanes Harvey, Irma and Maria. Results for the three-month period ended September 30, 2017 include $14.9 million in favorable development in prior years’ loss reserves, compared to $1.4 million in unfavorable development in the prior years’ loss reserves for the comparable period in 2016.

 

--more--

Picture 2

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underwriting Income (1)

 

Third Quarter

 

Combined Ratio (1)

 

Third Quarter

(in millions)

 

 

2017

 

 

2016

 

 

 

2017

 

2016

Casualty

 

$
3.6

 

$
0.3

 

Casualty

 
97.0

 
99.8

Property

 

 

(27.5)

 

 
0.5

 

Property

 
182.0

 
98.7

Surety

 

 
9.0

 

 
9.8

 

Surety

 
69.9

 
67.5

Total

 

$

(14.9)

 

$
10.6

 

Total

 
108.2

 
94.2

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Other Income

RLI’s net investment income for the quarter increased 5.1% to $14.2 million, compared to the same period in 2016.  For the nine-month period ended September 30, 2017, investment income was $40.4 million versus $39.9 million for the same period in 2016. The investment portfolio’s total return was 1.4% for the quarter. The bond portfolio’s return was 1.0% in the quarter, while the equity portfolio’s return was 3.4%. Through nine months, the investment portfolio’s total return was 5.1% with the bond portfolio returning 4.0% and equities returning 9.5%.

 

Comprehensive earnings, which include after-tax unrealized gains/losses from the investment portfolio, were $10.2 million for the quarter ($0.23 per share) compared to $15.3 million ($0.34 per share) for the same quarter in 2016.  

 

Equity in earnings of unconsolidated investees was $3.7 million for the quarter compared to $1.9 million from the same period last year. These results are related to Maui Jim, Inc. ($3.1 million), a producer of premium sunglasses, and Prime Holdings Insurance Services, Inc. ($0.6 million), a specialty E&S insurance company. For the third quarter of 2016, equity in earnings of unconsolidated investees from Maui Jim and Prime was $1.6 million and $0.3 million, respectively. For the nine-month period ended September 30, 2017, equity in earnings of unconsolidated investees was $15.4 million versus $10.8 million in 2016.

 

Dividends Paid in the Third Quarter 2017

On September 20, 2017,  the company paid an ordinary dividend of $0.21 per share,  the same amount as the prior quarter.  RLI’s cumulative dividends total more than $635  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.

 

--more--

2

 

 

Other News

During the third quarter, the Company’s A+ (Superior) financial strength rating was affirmed by A.M. Best Company for the Company’s insurance subsidiaries – RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company.

 

On July 19, 2017, RLI was named as one of the insurance industry’s top performing companies by Ward Group for the 27th consecutive year. RLI is one of only two property casualty insurers to be recognized as a Ward’s 50® Top P&C Performer every year since the list’s inception in 1991.

 

At 10 a.m. central daylight time (CDT) tomorrow, October 19, 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 https://edge.media-server.com/m6/p/u6oeonxn.

 

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.

 

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

 

 

 

 

3rd Qtr

 

3rd Qtr

 

9 Mos.

 

9 Mos.

Operating Earnings Per Share (1)

$

0.04

 

$

0.37

 

$

1.08

 

$

1.52

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Favorable (unfavorable) development in casualty prior years' reserves

$

0.15

 

$

(0.05)

 

$

0.23

 

$

0.26

Favorable (unfavorable) development in property prior years' reserves

$

0.02

 

$

(0.03)

 

$

0.06

 

$

 -

Favorable development in surety prior years' reserves

$

0.04

 

$

0.05

 

$

0.16

 

$

0.09

Catastrophe impact

 

 

 

 

 

 

 

 

 

 

 

 

▪

Hurricanes Harvey, Irma and Maria

$

(0.46)

 

 

 -

 

 

(0.46)

 

 

 -

 

▪

2017 spring storms

$

 -

 

$

 -

 

$

(0.04)

 

$

 -

 

▪

2016 and prior events

$

0.01

 

$

(0.04)

 

$

0.02

 

$

(0.10)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(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 September 30,

 

 

Nine Months Ended September 30,

 

 

2017

 

2016

 

% Change

    

2017

 

  

2016

 

 

% Change

SUMMARIZED INCOME STATEMENT DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net premiums earned

$

182,025

 

$

183,595

 
(0.9)

%

 

$

549,641

 

 

$

540,739

 

 

1.6

%

Net investment income

 

14,187

 

 

13,504

 

5.1

%

 

 

40,430

 

 

 

39,922

 

 

1.3

%

Net realized gains (losses)

 

35

 

 

9,252

 
(99.6)

%

 

 

(700)

 

 

 

23,362

 

 

 -

 

  Consolidated revenue

 

$

196,247

 

$

206,351

 
(4.9)

%

 

$

589,371

 

 

$

604,023

 

 
(2.4)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss and settlement expenses

 

$

123,190

 

$

97,892

 

25.8

%

 

$

306,927

 

 

$

259,340

 

 

18.3

%

Policy acquisition costs

 

 

62,066

 

 

61,761

 

0.5

%

 

 

186,264

 

 

 

184,525

 

 

0.9

%

Insurance operating expenses

 

 

11,701

 

 

13,338

 
(12.3)

%

 

 

38,582

 

 

 

38,950

 

 
(0.9)

%

Interest expense on debt

 

 

1,856

 

 

1,857

 
(0.1)

%

 

 

5,569

 

 

 

5,570

 

 
(0.0)

%

General corporate expenses

 

 

1,956

 

 

2,242

 
(12.8)

%

 

 

7,816

 

 

 

7,385

 

 

5.8

%

  Total expenses

 

$

200,769

 

$

177,090

 

13.4

%

 

$

545,158

 

 

$

495,770

 

 

10.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 unconsolidated investees

 

 

3,660

 

 

1,881

 

94.6

%

 

 

15,404

 

 

 

10,823

 

 

42.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) before income taxes

 

$

(862)

 

$

31,142

 

 -

 

 

$

59,617

 

 

$

119,076

 

 
(49.9)

%

Income tax expense (benefit)

 

 

(2,596)

 

 

8,879

 

 -

 

 

 

11,847

 

 

 

36,343

 

 
(67.4)

%

  Net earnings

 

$

1,734

 

$

22,263

 
(92.2)

%

 

$

47,770

 

 

$

82,733

 

 
(42.3)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive earnings (loss), net of tax

 

 

8,444

 

 

(6,931)

 

 -

 

 

 

30,812

 

 

 

33,898

 

 
(9.1)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive earnings

 

$

10,178

 

$

15,332

 
(33.6)

%

 

$

78,582

 

 

$

116,631

 

 
(32.6)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

1,734

 

$

22,263

 
(92.2)

%

 

$

47,770

 

 

$

82,733

 

 
(42.3)

%

Less: Realized (gains) losses

 

 

(35)

 

 

(9,252)

 
(99.6)

%

 

 

700

 

 

 

(23,362)

 

 

 -

 

Income tax on realized gains (losses)

 

 

12

 

 

3,237

 
(99.6)

%

 

 

(245)

 

 

 

8,176

 

 

 -

 

Operating earnings

 

$

1,711

 

$

16,248

 
(89.5)

%

 

$

48,225

 

 

$

67,547

 

 
(28.6)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Net earnings (trailing four quarters)

 

 

 

 

 

 

 

 

 

 

 
9.2

%

 

 
13.2

%

 

 

 

 Comprehensive earnings (trailing four quarters)

 

 

 

 

 

 

 

 

 

 

 
8.7

%

 

 
17.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (in 000's)

 

 

44,515

 

 

44,492

 

 

 

 

 

44,517

 

 

 

44,416

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share

 

$

0.04

 

$

0.50

 
(92.0)

%

 

$

1.07

 

 

$

1.86

 

 
(42.5)

%

Less: Realized (gains) losses

 

 

 -

 

 

(0.21)

 

 -

 

 

 

0.02

 

 

 

(0.52)

 

 

 -

 

Income tax on realized gains (losses)

 

 

 -

 

 

0.08

 

 -

 

 

 

(0.01)

 

 

 

0.18

 

 

 -

 

EPS from operations (1)

 

$

0.04

 

$

0.37

 
(89.2)

%

 

$

1.08

 

 

$

1.52

 

 
(28.9)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive earnings per share

 

$

0.23

 

$

0.34

 
(32.4)

%

 

$

1.77

 

 

$

2.63

 

 
(32.7)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends per share

 

$

$0.21

 

$
$
0.20

 

5.0

%

 

$

0.62

 

 

$

0.59

 

 

5.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Cash Flow provided by Operations

 

$

71,363

 

$

53,429

 

33.6

%

 

$

145,933

 

 

$

123,000

 

 

18.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

RLI CORP.

2017 FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 

 

 

 

2017

 

2016

 

% Change

SUMMARIZED BALANCE SHEET DATA:

 

 

 

 

 

 

 

 

 

Fixed income

 

$

1,713,558

 

$

1,605,209

 

6.7

%

  (amortized cost - $1,680,321 at 9/30/17)

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Equity securities

 

 

393,213

 

 

369,219

 

6.5

%

  (cost - $189,212 at 9/30/17)

 

 

 

 

 

 

 

 

 

  (cost - $187,573 at 12/31/16)

 

 

 

 

 

 

 

 

 

Other invested assets

 

 

25,998

 

 

24,115

 

7.8

%

Cash and cash equivalents

 

 

38,802

 

 

23,284

 

66.6

%

  Total investments and cash

 

$

2,171,571

 

$

2,021,827

 

7.4

%

 

 

 

 

 

 

 

 

 

 

Premiums and reinsurance balances receivable

 

 

127,388

 

 

126,387

 

0.8

%

Ceded unearned premiums

 

 

54,186

 

 

52,173

 

3.9

%

Reinsurance balances recoverable on unpaid losses

 

 

291,074

 

 

288,224

 

1.0

%

Deferred policy acquisition costs

 

 

77,782

 

 

73,147

 

6.3

%

Property and equipment

 

 

55,770

 

 

54,606

 

2.1

%

Investment in unconsolidated investees

 

 

88,374

 

 

72,240

 

22.3

%

Goodwill and intangibles

 

 

59,427

 

 

64,371

 
(7.7)

%

Other assets

 

 

30,948

 

 

24,658

 

25.5

%

  Total assets

 

$

2,956,520

 

$

2,777,633

 

6.4

%

 

 

 

 

 

 

 

 

 

 

Unpaid losses and settlement expenses

 

$

1,253,729

 

$

1,139,337

 

10.0

%

Unearned premiums

 

 

443,110

 

 

433,777

 

2.2

%

Reinsurance balances payable

 

 

21,006

 

 

17,928

 

17.2

%

Funds held

 

 

75,294

 

 

72,742

 

3.5

%

Income taxes - deferred

 

 

84,982

 

 

64,494

 

31.8

%

Bonds payable, long-term debt

 

 

148,881

 

 

148,741

 
0.1

%

Accrued expenses

 

 

35,682

 

 

51,992

 
(31.4)

%

Other liabilities

 

 

14,680

 

 

25,050

 
(41.4)

%

  Total liabilities

 

$

2,077,364

 

$

1,954,061

 

6.3

%

  Shareholders' equity

 

 

879,156

 

 

823,572

 

6.7

%

  Total liabilities & shareholders' equity

 

$

2,956,520

 

$

2,777,633

 

6.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding (in 000's)

 

 

44,060

 

 
43,945

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

19.95

 

$

18.74

 

6.5

%

Closing stock price per share

 

$

57.36

 

$

63.13

 
(9.1)

%

Cash dividends per share - ordinary (annualized)

 

$

0.83

 

$

0.79

 
5.1

%

Cash dividends per share - special

 

$

 -

 

$

2.00

 

 -

 

 

 

 

 

 

 

 

 

 

 

Statutory surplus

 

$

900,972

 

$

859,976

 

4.8

%

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RLI CORP.

2017 FINANCIAL HIGHLIGHTS

UNDERWRITING SEGMENT DATA

(Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

Casualty

 

Ratios

 

 

 

Property

 

Ratios

 

 

 

Surety

 

Ratios

 

 

 

Total

 

Ratios

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

145,016

 

 

 

 

$

44,613

 

 

 

 

$

30,804

 

 

 

 

$

220,433

 

 

 

Net premiums written

 

 

122,421

 

 

 

 

 

35,207

 

 

 

 

 

29,499

 

 

 

 

 

187,127

 

 

 

Net premiums earned

 

 

118,393

 

 

 

 

 

33,559

 

 

 

 

 

30,073

 

 

 

 

 

182,025

 

 

 

Net loss & settlement expenses

 

 

73,895

 
62.4

%

 

 

46,037

 
137.2

%

 

 

3,258

 
10.8

%

 

 

123,190

 
67.7

%

Net operating expenses

 

 

40,944

 
34.6

%

 

 

15,041

 
44.8

%

 

 

17,782

 
59.1

%

 

 

73,767

 
40.5

%

 Underwriting income (loss) (1)

 

$

3,554

 
97.0

%

 

$

(27,519)

 
182.0

%

 

$

9,033

 
69.9

%

 

$

(14,932)

 
108.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

141,078

 

 

 

 

$

48,334

 

 

 

 

$

32,181

 

 

 

 

$

221,593

 

 

 

Net premiums written

 

 

116,246

 

 

 

 

 

39,323

 

 

 

 

 

29,978

 

 

 

 

 

185,547

 

 

 

Net premiums earned

 

 

115,619

 

 

 

 

 

37,532

 

 

 

 

 

30,444

 

 

 

 

 

183,595

 

 

 

Net loss & settlement expenses

 

 

75,912

 
65.7

%

 

 

20,425

 
54.4

%

 

 

1,555

 
5.1

%

 

 

97,892

 
53.3

%

Net operating expenses

 

 

39,448

 
34.1

%

 

 

16,639

 
44.3

%

 

 

19,012

 
62.4

%

 

 

75,099

 
40.9

%

 Underwriting income (loss) (1)

 

$

259

 
99.8

%

 

$

468

 
98.7

%

 

$

9,877

 
67.5

%

 

$

10,604

 
94.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

 

GAAP

 

 

 

 

Casualty

 

Ratios

 

 

 

Property

 

Ratios

 

 

 

Surety

 

Ratios

 

 

 

Total

 

Ratios

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

431,874

 

 

 

 

$

131,791

 

 

 

 

$

92,582

 

 

 

 

$

656,247

 

 

 

Net premiums written

 

 

365,653

 

 

 

 

 

103,016

 

 

 

 

 

88,293

 

 

 

 

 

556,962

 

 

 

Net premiums earned

 

 

354,636

 

 

 

 

 

103,849

 

 

 

 

 

91,156

 

 

 

 

 

549,641

 

 

 

Net loss & settlement expenses

 

 

227,103

 
64.0

%

 

 

72,050

 
69.4

%

 

 

7,774

 
8.5

%

 

 

306,927

 
55.8

%

Net operating expenses

 

 

122,212

 
34.5

%

 

 

47,651

 
45.9

%

 

 

54,983

 
60.3

%

 

 

224,846

 
40.9

%

 Underwriting income (loss) (1)

 

$

5,321

 
98.5

%

 

$

(15,852)

 
115.3

%

 

$

28,399

 
68.8

%

 

$

17,868

 
96.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

426,257

 

 

 

 

$

145,814

 

 

 

 

$

96,434

 

 

 

 

$

668,505

 

 

 

Net premiums written

 

 

358,241

 

 

 

 

 

117,017

 

 

 

 

 

91,258

 

 

 

 

 

566,516

 

 

 

Net premiums earned

 

 

336,572

 

 

 

 

 

114,011

 

 

 

 

 

90,156

 

 

 

 

 

540,739

 

 

 

Net loss & settlement expenses

 

 

199,270

 
59.2

%

 

 

49,686

 
43.6

%

 

 

10,384

 
11.5

%

 

 

259,340

 
48.0

%

Net operating expenses

 

 

116,812

 
34.7

%

 

 

50,414

 
44.2

%

 

 

56,249

 
62.4

%

 

 

223,475

 
41.3

%

 Underwriting income (loss) (1)

 

$

20,490

 
93.9

%

 

$

13,911

 
87.8

%

 

$

23,523

 
73.9

%

 

$

57,924

 
89.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

7