On this page of StockholderLetter.com we present the latest annual shareholder letter from RLI CORP — ticker symbol RLI. Reading current and past RLI letters to shareholders can bring important insights into the investment thesis.

 •  2/23/2024 Letter Continued (Full PDF)
 •  2/24/2023 RLI Stockholder Letter
 •  More "Insurance Brokers" Category Stockholder Letters
 •  RLI Benford's Law Stock Score = 95

RLI Shareholder/Stockholder Letter Transcript:

20
23
R L I C O R P.
ANNUAL
REPORT ON
FORM 10K

2023 YEAR IN REVIEW
02
FINANCIAL HIGHLIGHTS
03
OUR PURPOSE, VISION,
MISSION & VALUES
04
LETTER TO SHAREHOLDERS
08
OUR LEADERSHIP TEAM
10
SELECTED FINANCIAL DATA
12
INVESTOR INFORMATION

FINANCIAL HIGHLIGHTS
In thousands, except combined ratio, per-share data and return on equity
2023
Gross premiums written

1,806,660
2022

% Change
1,565,486
15.4%
Net premiums written
1,427,747
1,241,536
15.0%
Consolidated revenue
1,511,994
1,697,992
-11.0%
Net earnings
304,611
583,411
-47.8%
Operating earnings(2)
227,740
214,636
6.1%
GAAP combined ratio
86.6
84.4
2.6%
1,413,514
1,177,341
20.1%


12.74
-48.1%
4.94
4.69
5.3%
Regular
1.07
1.03
3.9%
Special
2.00
7.00
-71.4%
Book value(3)
30.97
25.89
19.6%
133.12
131.27
1.4%
23.3%
48.6%
-52.1%
(1)
Total shareholders    equity
Per-share data:
Net earnings (diluted)(1)
Operating earnings (diluted)(2)
6.61
Cash dividends declared:
Year-end closing stock price
Return on equity(1)
3
(1)
The 2022 amounts included $434.4 million ($9.49 per diluted share) related to the sale of Maui Jim, Inc.
(2)
See discussion of non-GAAP measures in note 1 of the SELECTED FINANCIAL DATA section on page 11 of the YEAR IN REVIEW wrap.
(3)
With the inclusion of dividends paid (regular and special), book value per share growth was 31% year over year.





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LETTER TO SHAREHOLDERS
DEAR SHAREHOLDERS,
I   m pleased to share that RLI reported excellent financial
results in 2023. We achieved profitability and strong top line
growth, despite the impact of the Hawaiian wildfires, which
resulted in the largest net catastrophe loss in our company   s
history.
Through our superior service, hallmark underwriting discipline,
diversified product portfolio and prudent fiscal management,
we helped many customers recover from unexpected events
during the year. Our strong capital position also allowed us to
return $140 million to shareholders through regular quarterly
dividends and a special dividend.
These achievements are a testament to the strength and
resilience of RLI   s business model and the commitment of
our talented team.
PEOPLE, CULTURE & RELATIONSHIPS
While our business model and financial track record set
us apart in the industry, what truly differentiates RLI is
our people, culture and focus on building meaningful
relationships.
We hire talented associates who share our values and provide
them with the opportunity to become owners of the company
through shared rewards and our Employee Stock Ownership
Plan. This unique ownership culture enhances our financial
performance and success by fostering shared accountability
and an alignment of employee and shareholder interests.
It also means our associates instill more care and
commitment into the work they do and the personal
connections they cultivate with our customers, distribution
partners and one another.
ABOUT OUR BUSINESS
As a U.S.-based specialty insurance company, RLI provides
risk management solutions that are convenient, tailored
and fill unmet customer needs. To this end, we consciously
manage our business to ensure we can always fulfill our
commitments to customers. We carried out this mission during
the Hawaiian wildfires by providing exceptional support to
policyholders, helping them navigate and recover in the midst
of a terrible tragedy. The quality of service we provide builds
long-term loyalty and goodwill and enhances our reputation.
MARKET CONDITIONS
In 2023, the insurance industry experienced an active year
of natural catastrophes, a challenging regulatory environment
and persistent economic, social and loss-cost inflation.
At its core, RLI is an underwriting company with a highly
diversified portfolio of products. In exchange for a fair
premium, we take on risks that individuals and organizations
are unable or unwilling to bear alone. Our niche property,
casualty and surety products are distributed through a
network of trusted, specialized wholesale and retail brokers
and independent agents.
UNDERWRITING RESULTS
We posted underwriting income of $173 million on an 86.6
combined ratio, compared to $178 million on an 84.4
combined ratio in 2022. In addition to achieving our 28th
consecutive year of underwriting profitability, we succeeded in
growing our top line, exceeding $1.8 billion in premium. Gross
premiums written grew 15 percent in 2023, fueled by growth
across most of our product portfolio.
RLI is financially strong and stable. Our balance sheet is
endorsed by an A+ (Superior) rating from AM Best and an
A (Strong) rating from S&P. In addition, 2023 marked our
33rd year on Ward   s 50 top performing insurance companies
list. RLI is the only insurance company to have earned this
recognition every year since the list   s inception.
5
Despite these challenges, broader economic conditions and
rate increases supported top line momentum. Our team
leaned into new growth opportunities, leveraging our market
expertise, deep relationships and consistent underwriting
appetite to serve more customers.
RLI   s casualty segment experienced a 4 percent increase in
gross premiums written on a 92.2 combined ratio. Premium
growth was tempered by competitive market conditions
within our executive products business and our exit of the
energy casualty business in 2023. Overall, we are optimistic



 2/23/2024 Letter Continued (Full PDF)