RLI absorbs Hawaii volcanic event in Q2
Specialty insurer RLI has been impacted by volcanic activity in Hawaii but managed to improve earnings in the second quarter of 2018 nevertheless.
Losses from volcanic activity in Hawaii resulted in a $5.5 million net decrease to underwriting income in the second quarter, the company said.
On May 3, 2018, the Kilauea volcano, one of the world’s most active volcanoes, erupted, several hours after a magnitude-5.0 quake struck the Big Island of Hawaii.
“Although volcanic activity in Hawaii impacted our property results, I am proud of our team’s ongoing efforts to provide outstanding service and support to our policyholders living in affected areas,” said RLI CEO Jonathan Michael.
The company reported underwriting income of $14.1 million for the second quarter after $19.7 million in the same period of 2017. The combined ratio deteriorated to 92.8 percent from 89.3 percent over the period. Gross premiums written grew to $269.8 million from $240.9 million. Net earnings were up 26.9 percent year on year in the second quarter at $33.3 million.
“We are pleased to report profitable underwriting results and strong premium growth in the second quarter,” Michael said. “We achieved a 93 combined ratio, which was driven by profitable underwriting in all segments. In addition, we posted 12 percent top line growth with contributions from multiple products across our diverse portfolio, marking our third consecutive quarter of double-digit growth,” he added.
RLI serves niche property, casualty and surety markets to commercial and personal lines customers in the US.
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