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August 5, 2024 Newswires No comments

Investor Presentation 2nd Quarter, 2024

U.S. Markets via PUBT

2024

OUR PURPOSE, VISION, MISSION & STRATEGY

Our purpose, vision, mission and strategy serve as the foundation of our balanced growth plan.

Purpose Vision Mission Strategy

Protect people and	Be the recognized	Provide industry-leading	Create sustainable value
organizations from life's	performance leader of the	specialty risk	and differentiate RLI in the
uncertainties to help them	U.S. specialty insurance	management solutions	marketplace through
explore, create, build and	industry.	that are convenient,	industry-leading products,
thrive.		tailored and fill unmet	unmatched expertise and
		customer needs.	exceptional customer
			service.

RLI OVERVIEW

RLI is a domestic, specialty insurance company that handles its own underwriting and claims.

Underwriting

Company

__________________

Hire talented, entrepreneurial underwriters with narrow & deep knowledge
Focus on difficult markets that require unique expertise
Encourage a strong feedback loop between underwriting and claims
Underwriting discipline and results are paramount

	Growth through	Ownership
	Culture &
	Discipline	Compensation
__________________	__________________
•	Emphasize profitable,	• Underwriting leadership
	organic product growth	compensation is tied to
•	Explore talent acquisition	product specific
underwriting profit
	& start-ups

Selectively consider balance sheet acquisitions that preserve RLI's unique culture

91% Institutions & other public investors

 9% Insiders & Employee Stock Ownership Plan ("ESOP")

Diversified

Insurance Product

Portfolio

__________________

Products are run like stand-alone, largely- autonomous, businesses
Maintain a highly diverse product portfolio to reduce corporate risk
Many products are tailored to fill a void in the market

Capital

Management

__________________

Retain enough capital to meet policyholder needs
Lean into profitable underwriting opportunities when they arise
Retuexcess capital to shareholders
Maintain our ability to raise traditional third party capital as needed

OUR STRATEGY

Customer Focus

Customer Experience
Growth Adjacencies

	Trusted		Ease of Use
	Partnerships

		Value Creation
Community		Continuous
•	People		Improvement
•	Cultural Adaptability		•	Tech Investment
		Stability	•	Innovation

How We Create Value

By sharing our expertise and offering exceptional service to our customers, our highly engaged employees create lasting relationships and can see the impact they make on our business.

We incorporate our customers' feedback to ensure our products meet their needs and that we remain a stable, trusted partner that is easy to work with and fulfills our promise to pay claims owed.

Our shareholders benefit from our diversified, resilient business model, which produces consistent financial performance.

COMPETITIVE ADVANTAGES

RLI will capitalize on its competitive advantages to drive profitable growth.

WE CARE

Relationship oriented
Community minded
Responsible
Sustainable
Continuously improve

EMPOWERED

Responsive
Accountable
Curious
Distributed decision making
Flat structure

PRUDENT

Rational
Principled
Diversified
Resilient
Downside risk management
Long-termoutlook

SERVICE ORIENTED

Problem solvers
Dedicated
Transparent
Authentic
Humble

UNDERWRITE

FOR PROFIT

Specialists
Deep expertise
Tailored products in niche markets
Collaborative feedback
Aligned compensation
Shared rewards

REPUTATION

People focused
Disciplined
Strive for excellence
Consistent
Stable

6	Interwoven, complementary and fortified by a common DNA

FINANCIAL STRENGTH AND STABILITY

Our financial track record has been stellar for decades - a testament to our ownership culture and reputation as an excellent underwriting company.

A+

SUPERIOR

4.9/5

STARS ON

STRONG

WARD'S 50

TOP P&C PERFORMER FOR 34 YEARS1

(1)Only insurer to be recognized every year since inception

SELECT MARKET INFORMATION

RLI has a rich history as a publicly traded company and has consistently created value for its shareholders.

Ticker / Exchange	RLI / NYSE

Share Price (as of 6/30/2024)	$140.69

Annual Dividend / Yield (as of 6/30/2024)	$1.16 / 0.82%

Market Cap	$6.44 billion

Annual Gross Premium (Trailing 4 qtr.)	$1,916 million

Employees	1,089

Leadership Average Industry Experience	28 Years

20 Year Annual Shareholder Return	15.6%

Q2 2024 FINANCIAL UPDATE

			Second Quarter				Year to Date
		2024			2023	% Change		2024		2023	% Change

Earnings Per Diluted Share
Net earnings	$	1.78		$	1.69	5.3%	$	4.55	$	3.83	18.8%
Operating earnings	$	1.72	$	1.16	48.3%	$	3.61	$	2.79	29.4%
Net Premiums Earned (in millions)
Casualty	$	209.1		$	187.1	11.8%	$	407.4	$	373.1	9.2%
Property	$	134.1	$	101.8	31.7%	$	263.5	$	190.6	38.2%
Surety	$	35.9		$	33.4	7.5%	$	68.8	$	66.3	3.8%
Total	$	379.1	$	322.3	17.6%	$	739.7	$	630.0	17.4%
Underwriting Income (Loss) (in millions)
Casualty	$	10.3		$	7.0	47.1%	$	24.0	$	38.8	(38.1)%
Property	$	53.2	$	25.9	105.4%	$	110.9	$	54.3	104.2%
Surety	$	6.5		$	8.3	(21.7)%	$	12.8	$	16.0	(20.0)%
Total	$	70.0	$	41.2	69.9%	$	147.7	$	109.1	35.4%
Combined Ratio
Casualty		95.1			96.3			94.1		89.6
Property		60.3			74.6			57.9		71.5
Surety		81.8			75.0			81.4		75.8
Total		81.5			87.2			80.0		82.7

Other 2Q24 Highlights

11% increase in gross premiums written
18% increase in net investment income
Favorable development in prior years' loss reserves, resulting in a $19.8 million net increase in underwriting income
Book value per share of $34.64, an increase of 14% (inclusive of dividends) from year-end 2023

DIVERSIFIED PRODUCT PORTFOLIO: NET PREMIUM1

Product diversification has fueled our growth & financial success.

E&S: 39% of NWP1

Specialty Admitted: 61% of NWP1

E&S Property2

Earthquake2

General Liability2

Excess Liability2

Other

Executive Products

Transportation

Casualty

Property(56%)Professional Services

(34%)

Surety

(10%)Commercial

Package

Marine

Hawaii Homeowners/Other

Contract	Personal
Commercial	Umbrella
Transactional

10(1) Trailing 4 Quarters Net Written Premium

Exclusively E&S line

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RLI Corporation published this content on 05 August 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2024 19:59:26 UTC.