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RLI OPERATING RESULTS PROFITABLE DESPITE CONTINUING CATASTROPHES

 RLI OPERATING RESULTS PROFITABLE DESPITE CONTINUING CATASTROPHES
 PEORIA, Ill., Oct. 28 /PRNewswire/ -- RLI Corp. (NYSE: RLI) today reported consolidated net income for the third quarter 1992 of $3.3 million ($.57 per share) on gross sales (consisting of gross premiums written, non-insurance sales revenue and net investment income) of $61.1 million. For the same period in 1991, net income was $3.1 million ($.55 per share) on gross sales of $54.0 million. Operating earnings, excluding realized capital gains, were $.53 per share contrast to $.55 per share earned during the third quarter last year.
 For the first nine months of 1992, consolidated net income was $9.5 million ($1.66 per share) on gross sales of $176.3 million. For the same period in 1991, net income was $8.6 million ($1.52 per share) on gross sales of $161.9 million. Operating earnings, excluding realized capital gains, totaled $1.60 per share for the first nine months 1992, contrasted to $1.45 per share reported for the same period in 1991.
 Third quarter earnings were adversely impacted by catastrophe losses that included both Hurricane Andrew and Iniki, and several fire losses in California during August and September. The two hurricanes reduced quarterly earnings by approximately $600,000, or $.07 per share after tax. The California property losses reduced third quarter earnings by $574,000, or another $.07 per share, after tax.
 Net investment income before realized investment gains for the third quarter totaled $3.2 million, increasing slightly over the $3.0 million reported in the third quarter of 1991. For the first nine months 1992, net investment income before realized investment gains reached $9.5 million, a 5.9 percent increase over the $8.9 million reported during the first nine months 1991.
 Commenting on the quarter's results, Gerald D. Stephens, president and chief executive officer remarked, "Despite severe property losses incurred during the period, RLI's underwriting expertise continued to provide profitable business. We have achieved a new milestone -- shareholders' equity has broken through the $100 million mark, reaching $103.3 million at the end of the period." He also added, "RLI's balance sheet is solid. Reserves are strong and asset quality is outstanding. We're ready to face whichever way the market leads us."
 Other financial highlights for the third quarter include:
 -- Gross sales grew 13.2 percent to $61.1 million from $54.0 million reported in the same quarter the year before. Gross insurance premiums written expanded 13.9 percent to $54.8 million from $48.1 million. Net premiums written increased 41.9 percent to $29.1 million from $20.5 million, in accordance with the company's plan to rely less upon purchased reinsurance.
 -- Realized investment gains during the third quarter were $303,000 ($.03 per share after-tax) compared to a loss of $12,000 (less than $.01 per share after-tax) posted in the third quarter last year.
 -- The insurance operations combined ratio rose to 96.2 percent for the first nine months of 1992 compared to 91.6 percent reported for the year 1991. The 1992 loss ratio increased to 59.4 percent from 56.8 percent at year-end 1991, and the expense ratio also increased to 36.8 percent from 34.8 percent during the same period.
 -- At Sept. 30, 1992, shareholders' equity climbed to $103.3 million ($17.92 per share) up 11.2 percent compared to year-end 1991. The company paid $.37 per share in dividends for the first nine months of 1992.
 RLI Corp. underwrites selected property and casualty insurance products, and markets practice automation systems, contact lenses and related products to the ophthalmic industry.
 RLI CORP.
 Operating Results
 Nine Months Ended Sept. 30 1992 1991 Percent chg.
 Gross sales $176,275,828 $161,933,999 9
 Total revenue 93,299,099 74,969,030 24
 Total earnings 9,461,579 8,627,135 10
 Net earnings per share $1.66 $1.52 9
 Average shares 5,715,708 7,658,974
 Third Quarter Ended Sept. 30
 Gross sales $ 61,124,451 $ 54,004,205 13
 Total revenue 33,289,075 25,402,688 31
 Total earnings 3,258,073 3,118,696 4
 Net earnings per share $0.57 $0.55 4
 Average shares 5,750,312 7,658,974
 RLI Corp. is traded on the New York Stock Exchange, symbol RLI.
 -0- 10/28/92
 /CONTACT: James E. Zogby, treasurer of RLI Corp., 309-693-5880/
 (RLI) CO: RLI Corp. ST: Illinois IN: INS SU: ERN


TS-PS -- NY027 -- 5893 10/28/92 10:34 EST
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Publication:PR Newswire
Date:Oct 28, 1992
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