RLI Reports First Quarter Earnings.PEORIA, Ill. -- RLI RLI Realtors Land Institute RLI Reserve Life Index (oil industry) RLI Rhodesian Light Infantry (Rhodesian Army Unit) RLI Retail & Leisure International RLI Resource List Interoperability Corp. (NYSE NYSE See: New York Stock Exchange : RLI) - RLI Corp. reported first quarter 2008 net earnings of $25.5 million ($1.14 per share). Results for the first quarter of 2007, which included $12.3 million ($0.32 per share) of favorable development in prior years' casualty loss reserves, were $32.5 million ($1.32 per share). [TABLE OMITTED] Highlights for the quarter included: * Operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before of $23.0 million ($1.03 per share). * Combined ratio of 89.2. * Book value per share of $34.57. * Net operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. of $48.1 million. "This was an excellent quarterly result in this marketplace," said RLI Corp. President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Jonathan E. Michael. "We know how to manage our business when prices are soft, and we'll continue to be disciplined underwriters. In challenging marketplaces like the current one, we focus on building the people, products and processes we want to have in place when conditions improve. Companies that wait to react until after the marketplace turns will be too late." Underwriting profits continue RLI achieved $14.7 million of underwriting income Underwriting income For an insurance company, the difference between the premiums earned and the costs of settling claims. in the first quarter of 2008 on an 89.2 combined ratio, compared to $25.6 million of underwriting income on an 81.4 combined ratio in the same quarter for 2007. [TABLE OMITTED] Other income For the quarter, investment income grew 1.4% to $19.3 million. The investment portfolio's total return was -0.1%. The bond portfolio gained 1.7% and the equity portfolio's return was -7.2%. Comprehensive earnings, which include after-tax unrealized gains/losses from the investment portfolio, were $6.6 million for the quarter ($0.30 per share) compared to $33.1 million ($1.34 per share) for the same quarter in 2007. Other news In the first quarter of 2008, we repurchased 556,600 of our shares at an average cost of $53.37 ($29.7 million). As of March 31, 2008, we have $56.0 million of remaining capacity from the $200 million repurchase program approved in 2007. The company paid a first quarter cash dividend of $0.23 per share on April 15, 2008, the same as in the prior quarter. RLI's cumulative dividends, including this recent payment, are more than $160 million paid in 127 consecutive quarterly dividends. The company's dividend yield would be 1.8%, based on the $0.92 annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. dividend and today's closing stock price of $50.42. At 10 a.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT tomorrow, April 16, 2008, RLI management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion through the Internet at RLI's website, www.rlicorp.com. Underwriting income, operating earnings, earnings per share (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) from operations and other per share items are non-GAAP financial measures, and we believe that investors' understanding of RLI's core operating performance is enhanced by our disclosure of these financial measures. Underwriting income or profit represents the pretax profitability of our insurance operations and is derived by subtracting losses and settlement expenses, policy acquisition costs, and insurance operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. from net premium earned. Operating earnings and EPS from operations consist of our net earnings reduced by net realized investment gains and taxes related to net realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. . Our definitions of these items may not be comparable to the definitions used by other companies. Net earnings and net earnings per share are the GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). financial measures that are most directly comparable to operating earnings and EPS from operations. All earnings per share data are calculated using fully diluted shares. Combined ratio refers to a GAAP combined ratio. Except for historical information, this news release may include forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) including, without limitation, statements reflecting our current expectations about the future performance of our company or our business segments or about future market conditions. These statements are subject to certain risk factors that could cause actual results to differ materially. Various risk factors that could affect future results are listed in the company's filings with the Securities and Exchange Commission, including the Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. Annual Report for the year ended December 31, 2007. RLI, a specialty insurance company, offers a diversified portfolio of property and casualty coverages and surety bonds serving "niche" or underserved markets. RLI operates in all 50 states from office locations across the country. The company's talented associates have delivered underwriting profits in 27 of the last 31 years, including the last 12. RLI's insurance subsidiaries - RLI Insurance Company, Mt. Hawley Insurance Company and RLI Indemnity Company - are rated A+ "Superior" by A.M. Best Company and A+ "Strong" by Standard & Poor's. For additional information, contact Treasurer John Robison John Robison is the name of:
Supplemental disclosure regarding the earnings impact of specific items [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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