US property and casualty insurer RLI Corp. has reported a net loss of $2.2 million in the second quarter of 2022, compared to net earnings of $81.8 million from the same period last year.
The company’s operating earnings for the quarter were $67.4 million, a major increase from the $49.9 million it reported from last years second quarter.
Underwriting income was a strong highlight from RLI Corps’ Q2 results, as the insurer achieved $56 million on a combined ratio of 80.2, compared to $36.6 million on a 84.8 combined ratio in Q2 21.
In addition, net investment income for the quarter increased 10.9% to $18.5 million, compared to the same period in 2021. The investment portfolio’s total return was -6.1% for the quarter and -10.4% for the six months ended June 30, 2022.
However, RLI’s comprehensive loss was $99.8 million for the quarter, compared to $97 million of comprehensive earnings for the same quarter in 2021. In addition to net earnings, comprehensive loss included after-tax unrealized losses from the fixed income portfolio, due to rising interest rates.
RLI Corp. President & CEO Craig Kliethermes, commented: “We are pleased with our positive mid-year operating results, as top line premium and underwriting profitability remained strong in the second quarter. All of our underwriting segments positively contributed to the 17 percent growth in gross premium and 80 combined ratio that we achieved in the quarter.
“Market conditions continue to offer opportunities for our talented underwriters within their given niche markets. Despite the decline in book value due to the impact from the investment portfolio, we continue to generate capital through operating earnings, which were $1.49 per share. Our strong operating performance is a testament to the dedication of our employee owners and their commitment to our customers.”