RLI’S INCOME LIFTED BY RESERVE DEVELOPMENT AND UNREALISED GAINS
US property/casualty group RLI saw its third-quarter net earnings rise 31% to $42.4m, as favourable reserve development more than doubled to $24.8m and unrealised gains jumped to $28.1m. Operating income per share dropped to 42¢ from 57¢ but beat analysts’ forecast of a 10¢ per share loss. With higher losses from hurricanes and other catastrophes, underwriting income fell 92% to $1.15m and the combined ratio added six points to 99.5%. Gross written premiums grew 9.4% to $302.9m. For the first nine months of the year, the Illinois-based group’s net income fell 47% to $73.3m, reflecting a swing to $27.6m in unrealised losses and a 16.7% decline in underwriting income to $42.6m. The combined ratio added 1.6 points to 93.4%, while gross written premiums grew 5.6% to $835.8m.
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