RLI Corp shares plunge 8% as This autumn outcomes disappoint

NEW YORK – RLI Corp . (NYSE:RLI) shares fell 8% in after-hours buying and selling on Wednesday after the specialty insurer reported fourth quarter earnings that fell effectively wanting analyst expectations.

The Peoria, Illinois-based firm posted adjusted earnings per share of $0.41 for the quarter, lacking the consensus estimate of $1.02 by a large margin. Income got here in at $439.12 million, additionally under the $464.46 million analysts have been anticipating.

RLI’s underwriting earnings dropped sharply to $22.2 million in This autumn, in comparison with $59.8 million in the identical interval final yr. The corporate’s mixed ratio, a key measure of underwriting profitability, deteriorated to 94.4% from 82.7% a yr in the past.

“Regardless of an lively hurricane season and extremely aggressive setting, we achieved an 86 mixed ratio for the complete yr, marking our twenty ninth consecutive yr of underwriting profitability,” stated RLI Corp. President & CEO Craig Kliethermes.

For the complete yr 2024, RLI reported internet earnings of $345.8 million, or $3.74 per share, up from $304.6 million, or $3.31 per share, in 2023. Gross premiums written elevated 11% to $2.01 billion.

The corporate stated Hurricane Milton resulted in a $42.4 million internet lower in underwriting earnings in the course of the fourth quarter. Regardless of the earnings miss, RLI maintained its monitor document of returning capital to shareholders, paying a particular dividend of $2.00 per share in December.

This text was generated with the assist of AI and reviewed by an editor. For extra info see our T&C.