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RLI to Hike Shareholders' Value, Okays Special Cash Dividend
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Shares of RLI Corp. (RLI - Free Report) moved up 2.9% in the after-market trading session, reflecting shareholders’ optimism as the board of directors approved a special cash dividend of $7.00 per share. This Zacks Rank #3 (Hold) specialty property-casualty insurer has been paying special dividends since 2011. The latest approval marks the 13th straight special dividend.
RLI estimates to pay out $320 million for the special dividend, well supported by its strong financial position. The underwriter maintains a solid balance sheet with sufficient liquidity and strong cash flow. Over the last five years, the P&C insurer’s total cumulative dividends amounted to more than $513 million.
Concurrently, the board of directors announced a regular quarterly cash dividend of 26 cents per share. RLI has been paying dividends for 184 consecutive quarters and increased regular dividends in the last 47 straight years, increasing at a nine-year (2014-2022) CAGR of 4.2%. RLI’s dividend yield of 0.9% betters the industry average of 0.4%.
The special and the quarterly dividends will be paid out on Dec 20 to shareholders of record as of Nov 30, 2022.
This Zacks Rank #3 (Hold) insurer is one of the industry’s most profitable P&C writers, with an impressive track record of delivering 26 consecutive years of underwriting profitability. The insurer stays focused on maintaining long-term industry-leading combined ratios and book value growth. RLI’s diversified product portfolio, a strong local branch-office network, a focus on specialty insurance lines growth via organic opportunities and acquisitions, and financial strength should continue to help boost shareholders’ returns. RLI boasts shareholders’ returns of 16.2% in the past 20 years, outperforming the S&P 500 and the S&P P&C Index.
Given a solid capital level in the insurance industry and an improving operating backdrop favoring strong operational performance, insurers like Assurant Inc. (AIZ - Free Report) and American Financial Group’s (AFG - Free Report) have resorted to effective capital deployment to enhance shareholders’ value.
In November 2022, Assurant’s board approved a 2.9% hike in its quarterly dividend. The recent hike marked the 18th consecutive dividend increase by Assurant since its initial public offering in 2004. Effective capital deployment highlights AIZ’s commitment toward prudent capital management, reflecting its sustained operational performance over a period of time and its sound financial prospects.
In November 2022, American Financial Group also declared a special cash dividend of $2 per share, the aggregate of which will be nearly $170 million. American Financial Group’s 1.7% dividend yield betters the industry average of 0.4%, making the stock attractive for yield-seeking investors. AFG’s robust operating profitability in the property and casualty segment and effective capital management support shareholder returns.
The bottom line of MGIC Investment surpassed earnings estimates in each of the last four quarters, the average being 36.32%. The Zacks Consensus Estimate for MGIC Investment’s 2022 and 2023 earnings has moved 5.9% and 0.4% north, respectively, in the past seven days.
Price Performance
Shares of RLI have gained 17.3% year to date compared with the industry’s increase of 7.3%. Superior underwriting discipline and sound capital structure should help shares trend higher.
Image Source: Zacks Investment Research
Shares of American Financial have gained 2.5% and 22.4% in a year’s time while that of Assurant and MGIC Investment lost 21% and 8.7% in the same time frame.
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RLI to Hike Shareholders' Value, Okays Special Cash Dividend
Shares of RLI Corp. (RLI - Free Report) moved up 2.9% in the after-market trading session, reflecting shareholders’ optimism as the board of directors approved a special cash dividend of $7.00 per share. This Zacks Rank #3 (Hold) specialty property-casualty insurer has been paying special dividends since 2011. The latest approval marks the 13th straight special dividend.
RLI estimates to pay out $320 million for the special dividend, well supported by its strong financial position. The underwriter maintains a solid balance sheet with sufficient liquidity and strong cash flow. Over the last five years, the P&C insurer’s total cumulative dividends amounted to more than $513 million.
Concurrently, the board of directors announced a regular quarterly cash dividend of 26 cents per share. RLI has been paying dividends for 184 consecutive quarters and increased regular dividends in the last 47 straight years, increasing at a nine-year (2014-2022) CAGR of 4.2%. RLI’s dividend yield of 0.9% betters the industry average of 0.4%.
The special and the quarterly dividends will be paid out on Dec 20 to shareholders of record as of Nov 30, 2022.
This Zacks Rank #3 (Hold) insurer is one of the industry’s most profitable P&C writers, with an impressive track record of delivering 26 consecutive years of underwriting profitability. The insurer stays focused on maintaining long-term industry-leading combined ratios and book value growth. RLI’s diversified product portfolio, a strong local branch-office network, a focus on specialty insurance lines growth via organic opportunities and acquisitions, and financial strength should continue to help boost shareholders’ returns. RLI boasts shareholders’ returns of 16.2% in the past 20 years, outperforming the S&P 500 and the S&P P&C Index.
Given a solid capital level in the insurance industry and an improving operating backdrop favoring strong operational performance, insurers like Assurant Inc. (AIZ - Free Report) and American Financial Group’s (AFG - Free Report) have resorted to effective capital deployment to enhance shareholders’ value.
In November 2022, Assurant’s board approved a 2.9% hike in its quarterly dividend. The recent hike marked the 18th consecutive dividend increase by Assurant since its initial public offering in 2004. Effective capital deployment highlights AIZ’s commitment toward prudent capital management, reflecting its sustained operational performance over a period of time and its sound financial prospects.
In November 2022, American Financial Group also declared a special cash dividend of $2 per share, the aggregate of which will be nearly $170 million. American Financial Group’s 1.7% dividend yield betters the industry average of 0.4%, making the stock attractive for yield-seeking investors. AFG’s robust operating profitability in the property and casualty segment and effective capital management support shareholder returns.
A Stock to Consider
A better-ranked stock from the multi-line insurance industry includes MGIC Investment Corporation (MTG - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The bottom line of MGIC Investment surpassed earnings estimates in each of the last four quarters, the average being 36.32%. The Zacks Consensus Estimate for MGIC Investment’s 2022 and 2023 earnings has moved 5.9% and 0.4% north, respectively, in the past seven days.
Price Performance
Shares of RLI have gained 17.3% year to date compared with the industry’s increase of 7.3%. Superior underwriting discipline and sound capital structure should help shares trend higher.
Image Source: Zacks Investment Research
Shares of American Financial have gained 2.5% and 22.4% in a year’s time while that of Assurant and MGIC Investment lost 21% and 8.7% in the same time frame.