EPS Forecast
Revenue Forecast
Exhibit 99.1
RLI REPORTS FOURTH QUARTER AND YEAR-END 2019 RESULTS
PEORIA, ILLINOIS, January 22, 2020 -- RLI Corp. (NYSE: RLI) – RLI Corp. reported fourth quarter 2019 net earnings of $53.4 million ($1.18 per share), compared to net losses of $20.7 million (-$0.46 per share) for the fourth quarter of 2018. Operating earnings(1) for the fourth quarter of 2019 were $28.6 million ($0.63 per share), compared to $17.8 million ($0.40 per share) for the same period in 2018.
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Fourth Quarter |
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Year to Date |
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Earnings Per Diluted Share |
2019 |
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2018 |
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2019 |
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2018 |
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Net earnings (loss) |
$ |
1.18 |
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$ |
(0.46) |
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$ |
4.23 |
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$ |
1.43 |
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Operating earnings (1) |
$ |
0.63 |
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$ |
0.40 |
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$ |
2.57 |
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$ |
2.05 |
(1)See discussion below: Non-GAAP and Performance Measures.
Highlights for the quarter included:
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· |
Underwriting income(1) of $16.5 million on a combined ratio(1) of 92.4. |
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· |
6% increase in gross premiums written. |
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· |
Net favorable development in prior years’ loss reserves, resulting in a $16.2 million net increase in underwriting income. |
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· |
Special dividend of $1.00 per share, representing $44.9 million returned to shareholders. |
Highlights for the year included:
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· |
Underwriting income(1) of $67.6 million on a combined ratio(1) of 91.9. |
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· |
8% increase in gross premiums written and 11% increase in net investment income. |
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Net favorable development in prior years’ loss reserves, resulting in a $62.8 million net increase in underwriting income. |
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· |
24th consecutive year of underwriting profit(1). |
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Book value per share of $22.18, an increase of 33% from year-end 2018, inclusive of dividends. |
“RLI achieved strong financial results in 2019, surpassing $1 billion in gross premiums written and statutory surplus for the first time in our company’s history,” said RLI Corp. Chairman & CEO Jonathan E. Michael. “Favorable market and competitive conditions supported consistent top line growth during the quarter and year. Through the efforts of our talented underwriters, we achieved an overall combined ratio of 91.9, marking our 24th consecutive year of underwriting profit. Book value grew 33% in 2019, a hallmark of our financial strength that allows us to provide customers and shareholders with exceptional value. RLI continues to be a reliable insurance carrier with a consistent risk appetite that offers protection and stability to its customers during times of change. I want to thank all RLI associates for their commitment to our customers and contributions to our performance during the year. We will remain focused on continuing the positive momentum in 2020.”
Underwriting Income
RLI had $16.5 million of underwriting income in the fourth quarter of 2019 on a 92.4 combined ratio, compared to $2.2 million of underwriting income on a 98.9 combined ratio in the same quarter for 2018.
For the year, RLI achieved $67.6 million of underwriting income on a 91.9 combined ratio, compared to $41.6 million on a 94.7 combined ratio in 2018. Results for both years include net favorable development in prior years’ loss reserves, which totaled $62.8 million and $44.3 million for 2019 and 2018, respectively.
--more--
The following table highlights underwriting income and combined ratios for the year by segment.
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Underwriting Income(1) |
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Combined Ratio(1) |
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(in millions) |
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2019 |
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2018 |
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2019 |
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2018 |
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Casualty |
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$ |
20.6 |
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$ |
11.1 |
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Casualty |
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96.3 |
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97.9 |
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Property |
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18.2 |
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0.9 |
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Property |
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88.9 |
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99.4 |
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Surety |
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28.8 |
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29.6 |
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Surety |
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75.3 |
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75.0 |
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Total |
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$ |
67.6 |
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$ |
41.6 |
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Total |
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91.9 |
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94.7 |
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(1) |
See discussion below: Non-GAAP and Performance Measures. |
Other Income
RLI’s net investment income for the quarter increased 4.8% to $17.8 million, compared to the same period in 2018. For the year ended December 31, 2019, net investment income was $68.9 million versus $62.1 million for the same period in 2018. The investment portfolio’s total return was 1.8% for the quarter and 11.6% for the year.
Comprehensive earnings were $47.9 million for the quarter ($1.06 per share), compared to -$12.9 million (-$0.29 per share) for the same quarter in 2018. Full-year comprehensive earnings were $258.7 million ($5.72 per share), compared to $30.2 million ($0.67 per share) in 2018. In addition to net earnings, comprehensive earnings included after-tax unrealized gains/(losses) from the fixed income portfolio.
Equity in earnings of Maui Jim, Inc., a producer of premium sunglasses, was $0.7 million for the quarter, reflecting seasonal sales results. Equity in earnings of Prime Holdings Insurance Services, Inc., a specialty insurance company, was $2.5 million. Comparatively, for the fourth quarter of 2018, equity in earnings of unconsolidated investees from Maui Jim and Prime was -$0.8 million and $1.0 million, respectively. For the year ended December 31, 2019, equity in earnings of unconsolidated investees was $13.6 million from Maui Jim and $7.4 million from Prime, compared to $12.5 million and $3.6 million, respectively, for the prior year. During the quarter, RLI received a $13.2 million dividend from Maui Jim, which resulted in a tax benefit on dividends received from affiliates of $1.8 million ($0.04 per share).
Special and Regular Dividends
On December 20, 2019, the company paid a special cash dividend of $1.00 per share and a regular quarterly dividend of $0.23 per share for a combined total of $55.2 million. RLI has paid dividends for 174 consecutive quarters and increased regular dividends in each of the last 44 years. Over the last 10 years, the company has returned nearly $1.25 billion to shareholders and the regular quarterly dividend has grown an average of 5.1% per year.
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 further 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), net unrealized gains/(losses) on equity securities 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 2019 financial highlights below.
--more--
2
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 and is calculated as the sum of loss and settlement expenses, policy acquisition costs and insurance operating expenses, divided by net premiums earned, which are all GAAP measures.
Other News
During the fourth quarter, the company’s A+ (Superior) financial strength rating was affirmed by AM Best Company for the company’s insurance subsidiaries – RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company.
At 10 a.m. central standard time (CST) tomorrow, January 23, 2020, 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/mmc/p/yth7kqwv.
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, 2018.
About RLI
RLI Corp. (NYSE: RLI) is a specialty insurer serving 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 AM Best Company. RLI has paid and increased regular dividends for 44 consecutive years and delivered underwriting profits for 24 consecutive years. To learn more about RLI, visit www.rlicorp.com.
Media Contact
Aaron Diefenthaler
Vice President, Chief Investment Officer & Treasurer
309-693-5846
Aaron.Diefenthaler@rlicorp.com
3
Supplemental disclosure regarding the earnings impact of specific items:
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Operating Earnings Per Share |
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2019 |
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2018 |
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2019 |
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2018 |
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4th Qtr |
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4th Qtr |
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12 Mos. |
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12 Mos. |
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Operating Earnings Per Share(1) |
$ |
0.63 |
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$ |
0.40 |
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$ |
2.57 |
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$ |
2.05 |
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Specific items included in operating earnings per share:(2) (3) |
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Net favorable development in casualty prior years' reserves |
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$ |
0.30 |
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$ |
0.20 |
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$ |
0.98 |
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$ |
0.55 |
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Net favorable (unfavorable) development in property prior years' reserves |
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$ |
(0.03) |
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$ |
- |
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$ |
(0.01) |
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$ |
0.07 |
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Net favorable (unfavorable) development in surety prior years' reserves |
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$ |
- |
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$ |
(0.04) |
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$ |
0.11 |
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$ |
0.12 |
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Catastrophe impact |
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▪ |
2019 storms |
$ |
(0.02) |
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$ |
- |
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$ |
(0.14) |
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$ |
- |
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▪ |
2018 and prior events |
$ |
0.01 |
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$ |
(0.34) |
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$ |
0.02 |
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$ |
(0.57) |
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Gain from tax benefit of special dividend to ESOP(4) |
$ |
0.01 |
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$ |
0.01 |
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$ |
0.01 |
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$ |
0.01 |
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Gain from tax benefit applicable to Maui Jim dividend(5) |
$ |
0.04 |
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$ |
- |
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$ |
0.04 |
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$ |
- |
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Gain from tax benefit of change in corporate tax law(6) |
$ |
- |
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$ |
0.05 |
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$ |
- |
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$ |
0.05 |
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(1) |
See discussion above: Non-GAAP and Performance Measures. |
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(2) |
Includes incentive and profit sharing-related impacts which affected policy acquisition, insurance operating and general corporate expenses. |
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(3) |
Reserve development reflects changes from previously estimated losses. |
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(4) |
Dividends paid on employer securities in an ESOP are fully deductible from taxable income and resulted in a 21% tax benefit. |
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(5) |
As required under the accounting standard for income taxes, the gain reflects the tax benefit of applying the lower tax rate applicable to dividends received from an affiliate (7.35%) as compared to the corporate capital gains tax rate (21%) on which tax estimates were based. |
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(6) |
The gain reflects the tax benefit of applying the rules enacted under the Tax Cuts and Jobs Act of 2017. |
4
RLI CORP
2019 FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)
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Three Months Ended December 31, |
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Twelve Months Ended December 31, |
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SUMMARIZED INCOME STATEMENT DATA: |
2019 |
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2018 |
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% Change |
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2019 |
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2018 |
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% Change |
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Net premiums earned |
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$ |
215,626 |
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$ |
204,002 |
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5.7 |
% |
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$ |
839,111 |
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$ |
791,366 |
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6.0 |
% |
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Net investment income |
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17,775 |
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16,962 |
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4.8 |
% |
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68,870 |
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62,085 |
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10.9 |
% |
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Net realized gains |
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477 |
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15,507 |
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(96.9) |
% |
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17,520 |
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63,407 |
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(72.4) |
% |
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Net unrealized gains (losses) on equity securities |
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30,876 |
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(64,200) |
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- |
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78,090 |
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(98,735) |
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- |
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Consolidated revenue |
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$ |
264,754 |
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$ |
172,271 |
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53.7 |
% |
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$ |
1,003,591 |
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$ |
818,123 |
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22.7 |
% |
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Loss and settlement expenses |
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$ |
106,210 |
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$ |
123,888 |
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(14.3) |
% |
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$ |
413,416 |
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$ |
428,193 |
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(3.5) |
% |
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Policy acquisition costs |
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74,111 |
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66,265 |
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11.8 |
% |
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288,697 |
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267,738 |
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7.8 |
% |
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Insurance operating expenses |
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18,833 |
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11,612 |
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62.2 |
% |
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69,430 |
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53,803 |
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29.0 |
% |
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Interest expense on debt |
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2,005 |
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1,861 |
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7.7 |
% |
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7,588 |
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7,437 |
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2.0 |
% |
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General corporate expenses |
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3,544 |
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1,556 |
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127.8 |
% |
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12,686 |
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9,427 |
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34.6 |
% |
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Total expenses |
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$ |
204,703 |
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$ |
205,182 |
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(0.2) |
% |
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$ |
791,817 |
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$ |
766,598 |
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3.3 |
% |
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Equity in earnings of unconsolidated investees |
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3,167 |
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203 |
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- |
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20,960 |
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16,056 |
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30.5 |
% |
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Earnings (loss) before income taxes |
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$ |
63,218 |
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$ |
(32,708) |
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- |
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$ |
232,734 |
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$ |
67,581 |
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244.4 |
% |
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Income tax expense (benefit) |
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9,840 |
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(12,048) |
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- |
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41,092 |
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3,402 |
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- |
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Net earnings (loss) |
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$ |
53,378 |
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$ |
(20,660) |
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- |
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$ |
191,642 |
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$ |
64,179 |
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198.6 |
% |
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Other comprehensive earnings (loss), net of tax |
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(5,461) |
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7,772 |
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- |
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67,045 |
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(33,997) |
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- |
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Comprehensive earnings (loss) |
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$ |
47,917 |
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$ |
(12,888) |
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- |
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$ |
258,687 |
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$ |
30,182 |
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- |
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Operating earnings(1): |
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Net earnings (loss) |
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$ |
53,378 |
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$ |
(20,660) |
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- |
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$ |
191,642 |
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$ |
64,179 |
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198.6 |
% |
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Less: |
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Realized gains |
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(477) |
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(15,507) |
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(96.9) |
% |
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(17,520) |
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(63,407) |
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(72.4) |
% |
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Income tax on realized gains |
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|
100 |
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3,256 |
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(96.9) |
% |
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3,679 |
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13,315 |
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(72.4) |
% |
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Unrealized (gains) losses on equity securities |
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(30,876) |
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64,200 |
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- |
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(78,090) |
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98,735 |
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- |
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Income tax on unrealized gains (losses) on equity securities |
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6,484 |
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(13,482) |
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- |
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16,399 |
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(20,734) |
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- |
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Operating earnings |
|
$ |
28,609 |
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$ |
17,807 |
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60.7 |
% |
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$ |
116,110 |
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$ |
92,088 |
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26.1 |
% |
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Return on Equity: |
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Net earnings (trailing four quarters) |
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20.6 |
% |
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7.6 |
% |
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Comprehensive earnings (trailing four quarters) |
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27.8 |
% |
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3.6 |
% |
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Per Share Data: |
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Diluted: |
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Weighted average shares outstanding (in 000's) |
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45,409 |
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44,497 |
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45,257 |
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44,835 |
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Net earnings (loss) per share |
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$ |
1.18 |
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$ |
(0.46) |
|
- |
|
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$ |
4.23 |
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$ |
1.43 |
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|
195.8 |
% |
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Less: |
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Realized gains |
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(0.01) |
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|
(0.35) |
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(97.1) |
% |
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(0.38) |
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|
(1.42) |
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(73.2) |
% |
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Income tax on realized gains |
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|
- |
|
|
0.07 |
|
(100.0) |
% |
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|
0.08 |
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|
0.30 |
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|
(73.3) |
% |
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Unrealized (gains) losses on equity securities |
|
|
(0.68) |
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|
1.44 |
|
- |
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|
(1.72) |
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|
2.20 |
|
|
- |
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Income tax on unrealized gains (losses) on equity securities |
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|
0.14 |
|
|
(0.30) |
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- |
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|
0.36 |
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|
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(0.46) |
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|
- |
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EPS from operations(1) |
|
$ |
0.63 |
|
$ |
0.40 |
|
57.5 |
% |
|
$ |
2.57 |
|
|
$ |
2.05 |
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|
25.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive earnings (loss) per share |
|
$ |
1.06 |
|
$ |
(0.29) |
|
- |
|
|
$ |
5.72 |
|
|
$ |
0.67 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends per share - ordinary |
|
$ |
0.23 |
|
$ |
0.22 |
|
4.5 |
% |
|
$ |
0.91 |
|
|
$ |
0.87 |
|
|
4.6 |
% |
|
Cash dividends per share - special |
|
$ |
1.00 |
|
$ |
1.00 |
|
0.0 |
% |
|
$ |
1.00 |
|
|
$ |
1.00 |
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Flow provided by Operations |
|
$ |
90,155 |
|
$ |
53,733 |
|
67.8 |
% |
|
$ |
276,917 |
|
|
$ |
217,102 |
|
|
27.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
See discussion above: Non-GAAP and Performance Measures. |
5
RLI CORP
2019 FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
||
|
|
|
2019 |
|
2018 |
|
% Change |
|||
|
SUMMARIZED BALANCE SHEET DATA: |
|
|
|
|
|
|
|
|
|
|
Fixed income, at fair value |
|
$ |
1,983,086 |
|
$ |
1,760,515 |
|
12.6 |
% |
|
(amortized cost - $1,915,278 at 12/31/19) |
|
|
|
|
|
|
|
|
|
|
(amortized cost - $1,776,465 at 12/31/18) |
|
|
|
|
|
|
|
|
|
|
Equity securities, at fair value |
|
|
460,630 |
|
|
340,483 |
|
35.3 |
% |
|
(cost - $262,131 at 12/31/19) |
|
|
|
|
|
|
|
|
|
|
(cost - $220,373 at 12/31/18) |
|
|
|
|
|
|
|
|
|
|
Other invested assets |
|
|
70,441 |
|
|
51,542 |
|
36.7 |
% |
|
Cash and cash equivalents |
|
|
46,203 |
|
|
41,690 |
|
10.8 |
% |
|
Total investments and cash |
|
$ |
2,560,360 |
|
$ |
2,194,230 |
|
16.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Premiums and reinsurance balances receivable |
|
|
160,369 |
|
|
152,576 |
|
5.1 |
% |
|
Ceded unearned premiums |
|
|
93,656 |
|
|
71,174 |
|
31.6 |
% |
|
Reinsurance balances recoverable on unpaid losses |
|
|
384,517 |
|
|
364,999 |
|
5.3 |
% |
|
Deferred policy acquisition costs |
|
|
85,044 |
|
|
84,934 |
|
0.1 |
% |
|
Property and equipment |
|
|
53,121 |
|
|
54,692 |
|
(2.9) |
% |
|
Investment in unconsolidated investees |
|
|
103,836 |
|
|
94,967 |
|
9.3 |
% |
|
Goodwill and intangibles |
|
|
54,127 |
|
|
54,534 |
|
(0.7) |
% |
|
Other assets |
|
|
50,691 |
|
|
32,959 |
|
53.8 |
% |
|
Total assets |
|
$ |
3,545,721 |
|
$ |
3,105,065 |
|
14.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid losses and settlement expenses |
|
$ |
1,574,352 |
|
$ |
1,461,348 |
|
7.7 |
% |
|
Unearned premiums |
|
|
540,213 |
|
|
496,505 |
|
8.8 |
% |
|
Reinsurance balances payable |
|
|
25,691 |
|
|
22,591 |
|
13.7 |
% |
|
Funds held |
|
|
83,358 |
|
|
72,309 |
|
15.3 |
% |
|
Income taxes - deferred |
|
|
56,727 |
|
|
24,238 |
|
134.0 |
% |
|
Bonds payable, long-term debt |
|
|
149,302 |
|
|
149,115 |
|
0.1 |
% |
|
Accrued expenses |
|
|
66,626 |
|
|
45,124 |
|
47.7 |
% |
|
Other liabilities |
|
|
54,064 |
|
|
26,993 |
|
100.3 |
% |
|
Total liabilities |
|
$ |
2,550,333 |
|
$ |
2,298,223 |
|
11.0 |
% |
|
Shareholders' equity |
|
|
995,388 |
|
|
806,842 |
|
23.4 |
% |
|
Total liabilities & shareholders' equity |
|
$ |
3,545,721 |
|
$ |
3,105,065 |
|
14.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding (in 000's) |
|
|
44,869 |
|
|
44,504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
22.18 |
|
$ |
18.13 |
|
22.3 |
% |
|
Closing stock price per share |
|
$ |
90.02 |
|
$ |
68.99 |
|
30.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Statutory surplus |
|
$ |
1,029,671 |
|
$ |
829,775 |
|
24.1 |
% |
6
RLI CORP
2019 FINANCIAL HIGHLIGHTS
UNDERWRITING SEGMENT DATA
(Unaudited)
(Dollars in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
GAAP |
|
|
|
|
|
GAAP |
|
|
|
|
|
GAAP |
|
|
|
|
|
GAAP |
|
|
|
|
|
Casualty |
|
Ratios |
|
|
|
Property |
|
Ratios |
|
|
|
Surety |
|
Ratios |
|
|
|
Total |
|
Ratios |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
$ |
179,542 |
|
|
|
|
$ |
64,638 |
|
|
|
|
$ |
29,650 |
|
|
|
|
$ |
273,830 |
|
|
|
|
Net premiums written |
|
|
141,963 |
|
|
|
|
|
47,956 |
|
|
|
|
|
27,945 |
|
|
|
|
|
217,864 |
|
|
|
|
Net premiums earned |
|
|
142,791 |
|
|
|
|
|
43,828 |
|
|
|
|
|
29,007 |
|
|
|
|
|
215,626 |
|
|
|
|
Net loss & settlement expenses |
|
|
82,994 |
|
58.1 |
% |
|
|
20,680 |
|
47.2 |
% |
|
|
2,536 |
|
8.7 |
% |
|
|
106,210 |
|
49.3 |
% |
|
Net operating expenses |
|
|
53,848 |
|
37.7 |
% |
|
|
19,017 |
|
43.4 |
% |
|
|
20,079 |
|
69.3 |
% |
|
|
92,944 |
|
43.1 |
% |
|
Underwriting income (loss) (1) |
|
$ |
5,949 |
|
95.8 |
% |
|
$ |
4,131 |
|
90.6 |
% |
|
$ |
6,392 |
|
78.0 |
% |
|
$ |
16,472 |
|
92.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
$ |
177,665 |
|
|
|
|
$ |
47,822 |
|
|
|
|
$ |
31,916 |
|
|
|
|
$ |
257,403 |
|
|
|
|
Net premiums written |
|
|
147,615 |
|
|
|
|
|
34,710 |
|
|
|
|
|
30,103 |
|
|
|
|
|
212,428 |
|
|
|
|
Net premiums earned |
|
|
136,404 |
|
|
|
|
|
37,822 |
|
|
|
|
|
29,776 |
|
|
|
|
|
204,002 |
|
|
|
|
Net loss & settlement expenses |
|
|
83,372 |
|
61.1 |
% |
|
|
33,429 |
|
88.4 |
% |
|
|
7,087 |
|
23.8 |
% |
|
|
123,888 |
|
60.7 |
% |
|
Net operating expenses |
|
|
44,333 |
|
32.5 |
% |
|
|
15,659 |
|
41.4 |
% |
|
|
17,885 |
|
60.1 |
% |
|
|
77,877 |
|
38.2 |
% |
|
Underwriting income (loss) (1) |
|
$ |
8,699 |
|
93.6 |
% |
|
$ |
(11,266) |
|
129.8 |
% |
|
$ |
4,804 |
|
83.9 |
% |
|
$ |
2,237 |
|
98.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
GAAP |
|
|
|
|
|
GAAP |
|
|
|
|
|
GAAP |
|
|
|
|
|
GAAP |
|
|
|
|
|
Casualty |
|
Ratios |
|
|
|
Property |
|
Ratios |
|
|
|
Surety |
|
Ratios |
|
|
|
Total |
|
Ratios |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
$ |
704,192 |
|
|
|
|
$ |
241,425 |
|
|
|
|
$ |
119,385 |
|
|
|
|
$ |
1,065,002 |
|
|
|
|
Net premiums written |
|
|
564,979 |
|
|
|
|
|
181,974 |
|
|
|
|
|
113,384 |
|
|
|
|
|
860,337 |
|
|
|
|
Net premiums earned |
|
|
558,458 |
|
|
|
|
|
164,022 |
|
|
|
|
|
116,631 |
|
|
|
|
|
839,111 |
|
|
|
|
Net loss & settlement expenses |
|
|
330,156 |
|
59.1 |
% |
|
|
73,614 |
|
44.9 |
% |
|
|
9,646 |
|
8.3 |
% |
|
|
413,416 |
|
49.3 |
% |
|
Net operating expenses |
|
|
207,701 |
|
37.2 |
% |
|
|
72,265 |
|
44.0 |
% |
|
|
78,161 |
|
67.0 |
% |
|
|
358,127 |
|
42.6 |
% |
|
Underwriting income (loss) (1) |
|
$ |
20,601 |
|
96.3 |
% |
|
$ |
18,143 |
|
88.9 |
% |
|
$ |
28,824 |
|
75.3 |
% |
|
$ |
67,568 |
|
91.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
$ |
654,194 |
|
|
|
|
$ |
202,917 |
|
|
|
|
$ |
126,105 |
|
|
|
|
$ |
983,216 |
|
|
|
|
Net premiums written |
|
|
547,177 |
|
|
|
|
|
155,601 |
|
|
|
|
|
120,397 |
|
|
|
|
|
823,175 |
|
|
|
|
Net premiums earned |
|
|
523,472 |
|
|
|
|
|
149,261 |
|
|
|
|
|
118,633 |
|
|
|
|
|
791,366 |
|
|
|
|
Net loss & settlement expenses |
|
|
329,763 |
|
63.0 |
% |
|
|
83,822 |
|
56.2 |
% |
|
|
14,608 |
|
12.3 |
% |
|
|
428,193 |
|
54.1 |
% |
|
Net operating expenses |
|
|
182,569 |
|
34.9 |
% |
|
|
64,555 |
|
43.2 |
% |
|
|
74,417 |
|
62.7 |
% |
|
|
321,541 |
|
40.6 |
% |
|
Underwriting income (loss) (1) |
|
$ |
11,140 |
|
97.9 |
% |
|
$ |
884 |
|
99.4 |
% |
|
$ |
29,608 |
|
75.0 |
% |
|
$ |
41,632 |
|
94.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
See discussion above: Non-GAAP and Performance Measures. |
7