Peoria based RLI Corporation released its fourth quarter earnings Thursday, reporting $19.2
million or 89 cents per share, down 31.9 percent year over year but beating the Zacks Consensus Estimate of 44 cents per share. Lower underwriting results were largely the reason for the
year over year drop. Net premiums in the quarter were $147.7 million, up 1.9 percent over year.
Underwriting income for RLI was $8.5 million, down nearly 66.8 percent over year, primarily
because of Hurricane Sandy. Total expenses during the quarter were $142.7 million and the
increase was primiarly driven by higher loss and settlement expense as well as higher
policy acquisition costs. In the fourth quarter, RLI paid a dividend of 32 cents per share, and on
December 2012 paid an extraordinary cash dividend of $5 per share. Its quarterly dividend has
grown at an average of 13.8 percent over the last 10 years.