RLI Corp.’s (RLI - Free Report) first-quarter 2018 operating earnings of 60 cents per share surpassed the Zacks Consensus Estimate by 15.4%. Moreover, the bottom line improved 36.4% year over year.
Higher underwriting income coupled with improved net investment income was primarily responsible for this upside. Also, the company witnessed a strong performance at its property and casualty segments.
Net income plunged 40% year over year to 27 cents per share.
Operational Performance
Operating revenues for the quarter totaled $204.3 million, up 4.1% year over year owing to higher net premiums earned as well as net investment income. Also, the top line outpaced the Zacks Consensus Estimate of $203 million by 0.6%.
Gross premiums written improved 11.3% year over year to $216.9 million on the back of a solid performance by the Property and Casualty segments.
Total expenses inched up 0.7% year over year to $176.7 million due to higher policy acquisition costs and insurance operating expenses.
The company reported underwriting income of $17.5 million, which surged 33.6% year over year. Combined ratio improved 210 basis points year over year to 90.8%.
The property and casualty (P&C) insurer’s net investment income improved nearly 9.4% year over year to $14.2 million. Total return from the investment portfolio was (1.5%).
Financial Update
The company exited the first quarter with total investments and cash of $2.1 billion, down 2.1% from the year-end 2017.
Book value was $18.82 per share as of Mar 31, 2018, down 2.6% from Dec 31, 2017.
Long-term debt was $148.9 million, remaining flat with the 2017-end level.
Statutory surplus grew 3.6% year over year to $895.5 million.
Net cash flow from operations surged 36.6% to $15.4 million in the quarter.
Dividend Payout
On Mar 20, 2018, the company paid out a cash dividend of 21 cents per share, same as the amount disbursed in the year-ago quarter. Over the past five years, the P&C insurer’s total cumulative dividends amounted to more than $611 million.
Zacks Rank
RLI Corp. has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Among other players from the insurance industry having reported first-quarter earnings so far, the bottom line of The Progressive Corporation (PGR - Free Report) , MGIC Investment Corporation (MTG - Free Report) and Torchmark Corporation beat the respective Zacks Consensus Estimate.
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RLI Corp.’s (RLI - Free Report) first-quarter 2018 operating earnings of 60 cents per share surpassed the Zacks Consensus Estimate by 15.4%. Moreover, the bottom line improved 36.4% year over year.
Higher underwriting income coupled with improved net investment income was primarily responsible for this upside. Also, the company witnessed a strong performance at its property and casualty segments.
Net income plunged 40% year over year to 27 cents per share.
Operational Performance
Operating revenues for the quarter totaled $204.3 million, up 4.1% year over year owing to higher net premiums earned as well as net investment income. Also, the top line outpaced the Zacks Consensus Estimate of $203 million by 0.6%.
Gross premiums written improved 11.3% year over year to $216.9 million on the back of a solid performance by the Property and Casualty segments.
Total expenses inched up 0.7% year over year to $176.7 million due to higher policy acquisition costs and insurance operating expenses.
The company reported underwriting income of $17.5 million, which surged 33.6% year over year. Combined ratio improved 210 basis points year over year to 90.8%.
The property and casualty (P&C) insurer’s net investment income improved nearly 9.4% year over year to $14.2 million. Total return from the investment portfolio was (1.5%).
Financial Update
The company exited the first quarter with total investments and cash of $2.1 billion, down 2.1% from the year-end 2017.
Book value was $18.82 per share as of Mar 31, 2018, down 2.6% from Dec 31, 2017.
Long-term debt was $148.9 million, remaining flat with the 2017-end level.
Statutory surplus grew 3.6% year over year to $895.5 million.
Net cash flow from operations surged 36.6% to $15.4 million in the quarter.
Dividend Payout
On Mar 20, 2018, the company paid out a cash dividend of 21 cents per share, same as the amount disbursed in the year-ago quarter. Over the past five years, the P&C insurer’s total cumulative dividends amounted to more than $611 million.
Zacks Rank
RLI Corp. has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Among other players from the insurance industry having reported first-quarter earnings so far, the bottom line of The Progressive Corporation (PGR - Free Report) , MGIC Investment Corporation (MTG - Free Report) and Torchmark Corporation beat the respective Zacks Consensus Estimate.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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