RLI Corp.: Operating in all 50 states of America - bsc.com

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Sunday, March 13, 2016

RLI Corp.: Operating in all 50 states of America

RLI Corp. is an American Insurance company established with a motive to build and manage strong portfolio of innovative product and solution to meet the expectations of its shareholders is currently serving public with property and casualty insurance service. Mr. Gerald D. Stephens founded it in 1965 A.D. It has it’s headquarter at Peoria, Illinois, U.S. with more than 50 branches operating its services in all 50 states of United States.
RLI Corp. is reaching with its products to customers through its branches operating in all 50 states of America, which are actively marketing its products through wholesale brokers, independent agents, and retail agencies. RLI Corp. currently offers nearly 40 different types of risk management and insurance products related to property, casualty ranging from individually underwritten coverage to highly complex coverage.

Company Details:
Company Name:         RLI CORP. (NYSE - RLI)
Service              :         Insurance Service
Founded            :         1965 A.D. by Gerald D. Stephens
Headquarter      :         Peoria, Illinois, U.S.
Website URL    :         www.rlicorp.com
Mission Statement:
RLI Corp. has a mission to serve its customers with its outstanding products through its innovative risk management products and solution. RLI promises to give full dedication to provide effective services to its customers in carefully chosen niche markets. Moreover, it missions to attract outstanding talents from the market and get expertise through continuous development. It is spending a great deal of time to constantly re-evaluate and reinvigorate its business model to create an innovative product, effective customer service, and delivery system. It also missions to create shareholder’s long-term value by perusing profitable growth that will give a higher return on investment.
RLI Corp. has focused its vision on creating and managing a strong portfolio of innovative products and solutions that meets the expectation of its shareholders
It was early 1960s, when founder of the company Gerald D. Stephens realize the expense of replacing contact lens, founded a contact lens insurance agency, and named it a Replacement Lens, Inc. (RLI). RLI became one of the first insurers (pioneer) that initiated with the product “contact lens insurance” and emerged as a largest insurance company with its kind. After this success, to expand business operation, RLI entered into commercial property and liability insurance field            . It also started expand its operation through various subsidiaries, wholesale brokers, independent agents, and retail agencies.
RLI has proved to stand as a successful insurance agency in the industry and has built a strong foundation to compete with its competitor in this dynamic business environment. It has been successful to retain and attract new customers with effective customer service and solution and have maintained a good relation with its stockholders by providing a good return on their investment.

RLI Products:
RLI Insurance Subsidiaries:
RLI subsidiaries have maintained its standard and are rated with A+ “superior” by A.M. Best Company and with A+ “strong by Standard & Poor’s Rating Services. RLI Insurance Subsidiaries are here below:
1.      RLI Insurance Company
2.      Mt. Hawley Insurance Company
3.      RLI Indemnity Company
4.      Contractors Bonding and Insurance Company

RLI Products:
Most of RLI products are for business houses and some of them are for individuals. These all products are designed to meet specific needs of unique policyholders. Here is the list of RLI products.
1.      Personal Insurance Coverage
2.      Surety Bonds
3.      Business Insurance Coverage
·         Casualty
·         Marine
·         Reinsurance
·         Contractors Bonding and Insurance
·         Professional Services
·         Transportation
·         Executive Product Liability
·         Property

Financial Information:
RLI Corp. has made a long history of 50 years since 1965, which is in the service of American citizens with a diversified portfolio of property and casualty coverage, surety bonds and other insurance products. Despite of ups and down in its yearly trend, it is still in top list of insurance companies in the American insurance market.
The press release given by RLI Corp. on the date 21th July, 2015 reported an excellent result in the second quarter of 2015. It reported its operating earnings in the 2nd quarter to be $34.1 million ($0.77 per share) which greater than operating earnings of 2nd quarter, 2014 i.e., $28.9 million ($0.66 per share).

Earnings Per Diluted Share
2nd Quarters
Operating earnings
Net earnings

Highlight of 2nd Quarter, 2015:
·         Achieved a combined ratio of 79.8, because of increase in the underwriting income i.e., $34. 8million.
·         Decrease in gross premiums written by 6%, which exhibits the impacts of exit from previously announced crop re-insurance.
·         Net increase in underwriting income by $30.1million resulting from favorable improvements in previous years loss reserves.
·         Net decrease in underwriting income by $6.3million resulting from 2015 storms.
·         2% increase in book value per share from year end 2015.

Per Share Data
3 Month Ended June 30
6 Month Ended June 30
(%) Change
Weighted average shares outstanding (in 000's)
EPS from operations
$ 0.77
$ 0.66
16.7 %
$ 1.27
$ 1.23
3.3 %
Realized gains, net of tax
-56.3 %
8.0 %
Net earnings per share
$ 0.84
$ 0.82
2.4 %
$ 1.54
$ 1.48
4.1 %
Comprehensive earnings per share
$ 0.28
$ 1.27
$ 0.80
$ 2.34
-65.8 %
Cash dividends per share
$ 0.19
$ 0.18
5.6 %
$ 0.37
$ 0.35
5.7 %

(Source: RLI Corp. Reports 2nd Quarter 2015 Results)

June 30,2015
December 31, 2014
(%) change
Common shares outstanding (in 000's)
Book value per share
$ 20.07
$ 19.61
2.3 %
Closing stock price per share
$ 51.39
$ 49.40
4.0 %
Cash dividends per share - ordinary (annualized)
$ 0.75
$ 0.71
5.6 %
Cash dividends per share - special
$ -
$ 3.00
Statutory Surplus
$ 878,143
$ 849,297
3.4 %

(Source: RLI Corp. Reports 2nd Quarter 2015 Results)

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