RLI Corp (RLI) has reported a 4.92 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $32.19 million, or $0.72 a share in the quarter, compared with $33.85 million, or $0.76 a share for the same period last year.
Revenue during the quarter went up marginally by 2.40 percent to $212.30 million from $207.33 million in the previous year period. Net premium earned for the quarter increased 4.74 percent or $8.50 million to $187.87 million.
Total expenses move up
Operating income for the quarter was $38 million, compared with $45.71 million in the previous year period. Net investment income was at $13.15 million for the quarter, down 4.37 percent or $0.60 million from year-ago period. The company has recorded a gain on investments of $11.28 million in the quarter compared with a gain of $14.21 million for the previous year period.
"I am pleased to report that 2016 was another excellent year for RLI," said RLI Corp. chairman & chief executive officer Jonathan E. Michael. "In addition to growing our top line, we reported an 89.5 combined ratio for the year, marking our 12th consecutive year of achieving a combined ratio below 90. We returned over $120 million to our shareholders in the form of regular and special dividends, bringing the total amount returned to shareholders over the past 10 years to more than $1.2 billion. RLI’s track record of profitability is a testament to our talented underwriters and associates, who continue to provide great service to our customers, identify market opportunities and remain highly disciplined in the selection and pricing of risks. We congratulate and thank our team for their strong performance and for delivering value to our shareholders."
Liabilities outpace assets growth
Total assets increased 1.54 percent or $42.17 million to $2,777.63 million on Dec. 31, 2016. On the other hand, total liabilities were at $1,954.06 million as on Dec. 31, 2016, up 2.20 percent or $42.06 million from year-ago. Return on assets stood at 1.23 percent in the quarter, down 0.08 from 1.30 percent in the last year period. At the same time, return on equity was at 3.91 percent in the quarter, down 0.20 from 4.11 percent in the last year period.
Investments move up marginally
Investments stood at $2,070.78 million as on Dec. 31, 2016, up 3.28 percent or $65.80 million from year-ago. Meanwhile, yield on investments went down 5 basis points to 0.64 percent in the quarter. Net premiums and other receivables decreased 12.02 percent or $17.28 million over the year to $126.39 million on Dec. 31, 2016.
Total debt was at $221.48 million as on Dec. 31, 2016, up 9.21 percent or $18.68 million from year-ago. Shareholders equity was almost stable over the past one year at $823.57 million on Dec. 31, 2016. As a result, debt to equity ratio went up 2 basis points to 0.27 percent in the quarter from 0.25 percent in the last year period.
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