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RLI Approves Special Cash Dividend to Share More Profit
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RLI Corp.’s (RLI - Free Report) board of directors approved a special cash dividend of $2.00 per share. This Zacks Rank #2 (Buy) specialty property-casualty insurer has been paying special dividends since 2011. The latest approval marks the 14th straight special dividend.
RLI expects to pay $91 million as special dividend. The underwriter maintains a solid balance sheet with sufficient liquidity and strong cash flow. Over the last 10 years, the P&C insurer’s total cumulative dividends amounted to more than $1.37 million.
Concurrently, the board of directors announced a regular quarterly cash dividend of 27 cents per share. RLI has been paying dividends for 187 consecutive quarters and increased regular dividends in the last 48 straight years. Its dividends increased at a seven-year (2016-2023) CAGR of 3.9%. RLI’s dividend yield of 0.8% betters the industry average of 0.3%.
The special and the quarterly dividends will be paid out on Dec 20 to shareholders of record as of Nov 30, 2023.
This Zacks Rank #3 (Hold) insurer is one of the industry’s most profitable P&C writers, with an impressive track record of delivering 27 consecutive years of underwriting profitability. RLI Corp. President & CEO Craig Kliethermes stated, “RLI’s ability to return $91 million to shareholders amid a year of unprecedented catastrophe activity and while retiring $150 million in senior debt is a testament to the strength of our business model.”
This insurer stays focused on maintaining long-term industry-leading combined ratios and book value growth. RLI’s diversified product portfolio, strong local branch-office network, 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.
Shares of RLI have gained 1.5% in the past three months against the industry’s decrease of 0.8%. Superior underwriting discipline and sound capital structure should help shares trend higher.
Image Source: Zacks Investment Research
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) , American Financial Group (AFG - Free Report) and Brown and Brown Inc. (BRO - Free Report) have resorted to effective capital deployment to enhance shareholders’ value.
In November 2023, Assurant’s board approved a 3% hike in its quarterly dividend. The recent hike marked the 19th 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 2023, American Financial Group also declared a special cash dividend of $1.50 per share, the aggregate of which will be nearly $126 million. American Financial Group’s 2.6% dividend yield is better than the industry average of 0.3%, making the stock an attractive pick for yield-seeking investors. AFG’s robust operating profitability at the property and casualty segment and effective capital management support shareholder returns.
In October 2023, the board of directors of Brown & Brown approved a 13% hike in its dividend. This marks the 30th straight year of dividend hikes. The strong capital and liquidity position enables BRO to enhance shareholder value via dividend increases. Moreover, consistent operational results have helped the insurer generate solid cash flows for the deployment of strategic initiatives as well as to implement shareholder-friendly moves.
Image: Bigstock
RLI Approves Special Cash Dividend to Share More Profit
RLI Corp.’s (RLI - Free Report) board of directors approved a special cash dividend of $2.00 per share. This Zacks Rank #2 (Buy) specialty property-casualty insurer has been paying special dividends since 2011. The latest approval marks the 14th straight special dividend.
RLI expects to pay $91 million as special dividend. The underwriter maintains a solid balance sheet with sufficient liquidity and strong cash flow. Over the last 10 years, the P&C insurer’s total cumulative dividends amounted to more than $1.37 million.
Concurrently, the board of directors announced a regular quarterly cash dividend of 27 cents per share. RLI has been paying dividends for 187 consecutive quarters and increased regular dividends in the last 48 straight years. Its dividends increased at a seven-year (2016-2023) CAGR of 3.9%. RLI’s dividend yield of 0.8% betters the industry average of 0.3%.
The special and the quarterly dividends will be paid out on Dec 20 to shareholders of record as of Nov 30, 2023.
This Zacks Rank #3 (Hold) insurer is one of the industry’s most profitable P&C writers, with an impressive track record of delivering 27 consecutive years of underwriting profitability. RLI Corp. President & CEO Craig Kliethermes stated, “RLI’s ability to return $91 million to shareholders amid a year of unprecedented catastrophe activity and while retiring $150 million in senior debt is a testament to the strength of our business model.”
This insurer stays focused on maintaining long-term industry-leading combined ratios and book value growth. RLI’s diversified product portfolio, strong local branch-office network, 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.
Shares of RLI have gained 1.5% in the past three months against the industry’s decrease of 0.8%. Superior underwriting discipline and sound capital structure should help shares trend higher.
Image Source: Zacks Investment Research
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) , American Financial Group (AFG - Free Report) and Brown and Brown Inc. (BRO - Free Report) have resorted to effective capital deployment to enhance shareholders’ value.
In November 2023, Assurant’s board approved a 3% hike in its quarterly dividend. The recent hike marked the 19th 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 2023, American Financial Group also declared a special cash dividend of $1.50 per share, the aggregate of which will be nearly $126 million. American Financial Group’s 2.6% dividend yield is better than the industry average of 0.3%, making the stock an attractive pick for yield-seeking investors. AFG’s robust operating profitability at the property and casualty segment and effective capital management support shareholder returns.
In October 2023, the board of directors of Brown & Brown approved a 13% hike in its dividend. This marks the 30th straight year of dividend hikes. The strong capital and liquidity position enables BRO to enhance shareholder value via dividend increases. Moreover, consistent operational results have helped the insurer generate solid cash flows for the deployment of strategic initiatives as well as to implement shareholder-friendly moves.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.