Exhibit 99.1
RLI REPORTS FOURTH QUARTER AND YEAR-END 2016 RESULTS
PEORIA, ILLINOIS, January 25, 2017 -- RLI Corp. (NYSE: RLI) – RLI Corp. reported fourth quarter 2016 net earnings of $32.2 million ($0.72 per share), compared to $33.9 million ($0.76 per share) for the fourth quarter of 2015. For the year ended December 31, 2016, net earnings were $114.9 million ($2.59 per share), compared to $137.5 million ($3.12 per share) for the 2015 fiscal year. Operating earnings for the fourth quarter of 2016 were $24.9 million ($0.56 per share) compared to $24.6 million ($0.56 per share) for the same period in 2015. For the year ended December 31, 2016, operating earnings were $92.4 million ($2.08 per share) compared to $111.7 million ($2.53 per share) for the 2015 fiscal year.
| | | | | | | | | | | |
| Fourth Quarter | | Full Year |
Earnings Per Diluted Share | 2016 | | 2015 | | 2016 | | 2015 |
Net earnings | $ | 0.72 | | $ | 0.76 | | $ | 2.59 | | $ | 3.12 |
Operating earnings (1) | $ | 0.56 | | $ | 0.56 | | $ | 2.08 | | $ | 2.53 |
| | | | | | | | | | | |
(1) See discussion below of non-GAAP and performance measures. |
Highlights for the quarter included:
| · | | Underwriting income of $18.2 million, resulting in a combined ratio of 90.3. |
| · | | 3% growth in gross premiums written. |
| · | | Favorable development in prior years’ loss reserves resulting in a $12.2 million net increase to underwriting income. |
| · | | Losses from Hurricane Matthew resulting in a $6.6 million net decrease to underwriting income. |
| · | | Special dividend of $2.00 per share, representing $87.9 million returned to shareholders. |
Highlights for the year included:
| · | | Underwriting income of $76.1 million, resulting in a combined ratio of 89.5. |
| · | | 2% growth in gross premiums written. |
| · | | Favorable development in prior years’ loss reserves resulting in a $36.4 million net increase to underwriting income. |
| · | | 21st consecutive year of a combined ratio below 100. |
| · | | Book value per share of $18.74, an increase of 14% from year end 2015, inclusive of dividends. |
“I am pleased to report that 2016 was another excellent year for RLI,” said RLI Corp. Chairman & CEO Jonathan E. Michael. “In addition to growing our top line, we reported an 89.5 combined ratio for the year, marking our 12th consecutive year of achieving a combined ratio below 90. We returned over $120 million to our shareholders in the form of regular and special dividends, bringing the total amount returned to shareholders over the past 10 years to more than $1.2 billion. RLI’s track record of profitability is a testament to our talented underwriters and associates, who continue to provide great service to our customers, identify market opportunities and remain highly disciplined in the selection and pricing of risks. We congratulate and thank our team for their strong performance and for delivering value to our shareholders.”
Underwriting Income
RLI achieved $18.2 million of underwriting income in the fourth quarter of 2016 on a 90.3 combined ratio, compared to $22.5 million of underwriting income on an 87.4 combined ratio in the same quarter for 2015.
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For the year, RLI achieved $76.1 million of underwriting income on an 89.5 combined ratio, compared to $108.6 million of underwriting income on an 84.5 combined ratio in 2015. Results for both years include favorable development in prior years’ loss reserves which totaled $36.4 million and $60.6 million for 2016 and 2015, respectively.
The following table highlights annual underwriting income and combined ratios by segment.
| | | | | | | | | | | | |
Underwriting Income (1) | | | | Combined Ratio (1) | | |
(in millions) | | | 2016 | | | 2015 | | | | 2016 | | 2015 |
Casualty | | $ | 36.3 | | $ | 46.3 | | Casualty | | 92.0 | | 88.8 |
Property | | | 12.8 | | | 29.0 | | Property | | 91.6 | | 83.1 |
Surety | | | 27.0 | | | 33.3 | | Surety | | 77.8 | | 71.5 |
Total | | $ | 76.1 | | $ | 108.6 | | Total | | 89.5 | | 84.5 |
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(1) See discussion below of non-GAAP and performance measures. |
Other Income
RLI’s net investment income for the quarter fell 4.4% to $13.2 million, compared to the same period in 2015. For the year ended December 31, 2016, investment income was $53.1 million versus $54.6 million for the same period in 2015. The investment portfolio’s total return was -1.2% for the quarter. The bond portfolio’s return was -2.3% in the quarter, while the equity portfolio’s return was 3.9%. For the year ended December 31, 2016, the investment portfolio’s total return was 5.7% with the bond portfolio returning 3.2% and equities returning 16.3%.
Comprehensive earnings, which include after-tax unrealized gains/losses from the investment portfolio, were -$2.9 million for the quarter (-$0.06 per share) compared to $34.9 million ($0.79 per share) for the same quarter in 2015. Full-year comprehensive earnings were $113.8 million ($2.56 per share), compared to $89.9 million ($2.04 per share) in 2015.
Equity in earnings of Maui Jim, Inc., a producer of premium sunglasses, was -$0.1 million (reflecting seasonal sales results) and offset $0.1 million of earnings from Prime Holdings Insurance Services, Inc., a specialty E&S insurance company. For the year ended December 31, 2016, equity in earnings of unconsolidated investees from Maui Jim and Prime was $9.7 million and $1.1 million, respectively, compared to $9.9 million and $1.0 million in 2015 from Maui Jim and Prime, respectively. During the quarter, RLI received a $9.9 million dividend from Maui Jim, which resulted in a tax benefit on dividends received from affiliates of $2.8 million ($0.06 per share).
Special and Regular Dividends
On December 23, 2016, RLI paid a special cash dividend of $2.00 per share, resulting in a tax benefit of $2.4 million ($0.05 per share) as dividends to the ESOP are fully deductible, and a regular quarterly dividend of $0.20 per share for a combined total of $96.7 million. RLI has paid dividends for 162 consecutive quarters and increased regular dividends in each of the last 41 years. Over the last 10 years, the company’s regular quarterly dividend has grown an average of 7.2% per year.
Non-GAAP and Performance Measures
Management has included certain non-generally accepted accounting principles (“non-GAAP”) financial measures in presenting the Company’s results. Management believes that these non-GAAP measures better explain the Company’s results of operations and allow for a more complete understanding of the underlying trends in the Company’s business. These measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles (“GAAP”). In addition, our definitions of these items may not be comparable to the definitions used by other companies.
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Operating earnings and earnings per share (EPS) from operations consist of our GAAP net earnings adjusted by the net realized gains/(losses) and taxes related thereto. Net earnings and net earnings per share are the GAAP financial measures that are most directly comparable to operating earnings and EPS from operations. A reconciliation of the operating earnings and EPS from operations to the comparable GAAP financial measures is included in the 2016 financial highlights below.
Underwriting income or profit represents the pretax profitability of our insurance operations and is derived by subtracting loss and settlement expenses, policy acquisition costs and insurance operating expenses from net premium earned, which are all GAAP financial measures. The combined ratio, which is derived from components of underwriting income, is a performance measure commonly used by property and casualty insurance companies to help users of their financial information to better understand company performance.
Other News
At 10 a.m. central standard time (CST) tomorrow, January 26, 2017, RLI management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion through the Internet at http://edge.media-server.com/m/p/ohgjem7s.
Except for historical information, this news release may include forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) including, without limitation, statements reflecting our current expectations about the future performance of our company or our business segments or about future market conditions. These statements are subject to certain risk factors that could cause actual results to differ materially. Various risk factors that could affect future results are listed in the company's filings with the Securities and Exchange Commission, including the Form 10-K Annual Report for the year ended December 31, 2015.
About RLI
RLI Corp. (NYSE: RLI) is a specialty insurer serving diverse, niche property, casualty and surety markets. The company provides deep underwriting expertise and superior service to commercial and personal lines customers nationwide. RLI’s products are offered through its insurance subsidiaries RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company. All of RLI’s insurance subsidiaries are rated A+ (Superior) by A.M. Best Company. RLI has paid and increased regular dividends for 41 consecutive years and delivered underwriting profits for 21 consecutive years. To learn more about RLI and its 50-year history of financial strength, visit www.rlicorp.com.
Media Contact
Aaron Jacoby
Vice President, Corporate Development
309-693-5880
Aaron.Jacoby@rlicorp.com
Supplemental disclosure regarding the earnings impact of specific items:
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| | | Operating Earnings Per Share |
| | | | 2016 | | 2015 | | 2016 | | 2015 |
| | | | 4th Qtr | | 4th Qtr | | 12 Mos. | | 12 Mos. |
Operating Earnings Per Share (1) | $ | 0.56 | | $ | 0.56 | | $ | 2.08 | | $ | 2.53 |
| | | | | | | | | | | | | | |
Specific items included in operating earnings per share: (2) (3) | | | | | | | | | | | |
| Favorable development in casualty prior years' reserves | $ | 0.23 | | $ | 0.06 | | $ | 0.48 | | $ | 0.63 |
| Favorable (unfavorable) development in property prior years' reserves | $ | (0.02) | | $ | 0.02 | | $ | (0.02) | | $ | 0.07 |
| Favorable (unfavorable) development in surety prior years' reserves | $ | (0.01) | | $ | 0.02 | | $ | 0.08 | | $ | 0.16 |
| Catastrophe impact | | | | | | | | | | | |
| ▪ | 2016 storms | $ | (0.10) | | $ | - | | $ | (0.20) | | $ | - |
| ▪ | 2015 and prior events | $ | (0.01) | | $ | (0.01) | | $ | - | | $ | (0.12) |
| Gain from tax benefit of special dividend to ESOP (4) | $ | 0.05 | | $ | 0.06 | | $ | 0.05 | | $ | 0.06 |
| Gain from tax benefit applicable to Maui Jim dividend (5) | $ | 0.06 | | $ | - | | $ | 0.06 | | $ | - |
| | | | | | | | | | | | | | |
| (1) | See discussion above of non-GAAP and performance measures. |
| (2) | Includes bonus and profit sharing-related impacts which affected other insurance and general corporate expenses. |
| (3) | Reserve development reflects changes from previously estimated losses. |
| (4) | Dividends paid in an ESOP on employer securities are fully deductible from taxable income and result in a 35% tax benefit. |
| (5) | As required under the accounting standard for income taxes, the gain reflects the tax benefit of applying the lower tax rate applicable to dividends received from an affiliate (7%) as compared to the corporate capital gains tax rate (35%) on which tax estimates were based. |
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RLI CORP. |
2016 FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in thousands, except per share amounts) |
| | | | | | | | | | | | | | | | | | |
| | Three Months Ended December 31, | | | Twelve Months Ended December 31, |
| | 2016 | | 2015 | | % Change | | 2016 | | 2015 | | % Change |
SUMMARIZED INCOME STATEMENT DATA: | | | | | | | | | | | | | | | | | |
Net premiums earned | $ | 187,869 | | $ | 179,371 | | 4.7 | % | | $ | 728,608 | | $ | 700,161 | | 4.1 | % |
Net investment income | | 13,153 | | | 13,754 | | (4.4) | % | | | 53,075 | | | 54,644 | | (2.9) | % |
Net realized gains | | 11,283 | | | 14,207 | | (20.6) | % | | | 34,645 | | | 39,829 | | (13.0) | % |
Consolidated revenue | | $ | 212,305 | | $ | 207,332 | | 2.4 | % | | $ | 816,328 | | $ | 794,634 | | 2.7 | % |
| | | | | | | | | | | | | | | | | | |
Loss and settlement expenses | | $ | 90,438 | | $ | 80,584 | | 12.2 | % | | $ | 349,778 | | $ | 299,045 | | 17.0 | % |
Policy acquisition costs | | | 65,087 | | | 62,113 | | 4.8 | % | | | 249,612 | | | 241,078 | | 3.5 | % |
Insurance operating expenses | | | 14,143 | | | 14,183 | | (0.3) | % | | | 53,093 | | | 51,480 | | 3.1 | % |
Interest expense on debt | | | 1,856 | | | 1,856 | | 0.0 | % | | | 7,426 | | | 7,426 | | 0.0 | % |
General corporate expenses | | | 2,785 | | | 2,887 | | (3.5) | % | | | 10,170 | | | 9,837 | | 3.4 | % |
Total expenses | | $ | 174,309 | | $ | 161,623 | | 7.8 | % | | $ | 670,079 | | $ | 608,866 | | 10.1 | % |
| | | | | | | | | | | | | | | | | | |
Equity in earnings (loss) of | | | | | | | | | | | | | | | | | | |
unconsolidated investees | | | 10 | | | (127) | | - | | | | 10,833 | | | 10,914 | | (0.7) | % |
| | | | | | | | | | | | | | | | | | |
Earnings before income taxes | | $ | 38,006 | | $ | 45,582 | | (16.6) | % | | $ | 157,082 | | $ | 196,682 | | (20.1) | % |
Income tax expense | | | 5,819 | | | 11,729 | | (50.4) | % | | | 42,162 | | | 59,138 | | (28.7) | % |
Net earnings | | $ | 32,187 | | $ | 33,853 | | (4.9) | % | | $ | 114,920 | | $ | 137,544 | | (16.4) | % |
| | | | | | | | | | | | | | | | | | |
Other comprehensive earnings (loss), net of tax | | | (35,062) | | | 1,054 | | - | | | | (1,164) | | | (47,609) | | (97.6) | % |
| | | | | | | | | | | | | | | | | | |
Comprehensive earnings (loss) | | $ | (2,875) | | $ | 34,907 | | - | | | $ | 113,756 | | $ | 89,935 | | 26.5 | % |
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Operating earnings: (1) | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Net earnings | | $ | 32,187 | | $ | 33,853 | | (4.9) | % | | $ | 114,920 | | $ | 137,544 | | (16.4) | % |
Less: Realized gains | | | (11,283) | | | (14,207) | | (20.6) | % | | | (34,645) | | | (39,829) | | (13.0) | % |
Income tax on realized gains | | | 3,950 | | | 4,972 | | (20.6) | % | | | 12,126 | | | 13,939 | | (13.0) | % |
Operating earnings | | $ | 24,854 | | $ | 24,618 | | 1.0 | % | | $ | 92,401 | | $ | 111,654 | | (17.2) | % |
| | | | | | | | | | | | | | | | | | |
Return on Equity: | | | | | | | | | | | | | | | | | | |
Net earnings (trailing four quarters) | | | | | | | | | | | | 13.2 | % | | 16.1 | % | | |
Comprehensive earnings (trailing four quarters) | | | | | | | | | | | | 13.1 | % | | 10.5 | % | | |
| | | | | | | | | | | | | | | | | | |
Per Share Data | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Diluted: | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding (in 000's) | | | 44,398 | | | 44,335 | | | | | | 44,432 | | | 44,131 | | | |
| | | | | | | | | | | | | | | | | | |
Net earnings per share | | $ | 0.72 | | $ | 0.76 | | (5.3) | % | | $ | 2.59 | | $ | 3.12 | | (17.0) | % |
Less: Realized gains | | | (0.25) | | | (0.32) | | (21.9) | % | | | (0.78) | | | (0.90) | | (13.3) | % |
Income tax on realized gains | | | 0.09 | | | 0.12 | | (25.0) | % | | | 0.27 | | | 0.31 | | (12.9) | % |
EPS from operations (1) | | $ | 0.56 | | $ | 0.56 | | 0.0 | % | | $ | 2.08 | | $ | 2.53 | | (17.8) | % |
| | | | | | | | | | | | | | | | | | |
Comprehensive earnings per share | | $ | (0.06) | | $ | 0.79 | | - | | | $ | 2.56 | | $ | 2.04 | | 25.5 | % |
| | | | | | | | | | | | | | | | | | |
Cash dividends per share - ordinary | | $ | 0.20 | | $ | 0.19 | | 5.3 | % | | $ | 0.79 | | $ | 0.75 | | 5.3 | % |
Cash dividends per share - special | | $ | 2.00 | | $ | 2.00 | | 0.0 | % | | $ | 2.00 | | $ | 2.00 | | 0.0 | % |
| | | | | | | | | | | | | | | | | | |
Net Cash Flow provided by Operations | | $ | 51,463 | | $ | 31,219 | | 64.8 | % | | $ | 174,463 | | $ | 152,586 | | 14.3 | % |
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(1) See discussion above of non-GAAP and performance measures. | | | | | | |
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RLI CORP. |
2016 FINANCIAL HIGHLIGHTS |
(Unaudited) |
(Dollars in thousands, except per share amounts) |
| | | | | | | | | |
| | | | | | | | | |
| | December 31, | | December 31, | | | |
| | 2016 | | 2015 | | % Change |
SUMMARIZED BALANCE SHEET DATA: | | | | | | | | | |
Fixed income | | $ | 1,605,209 | | $ | 1,538,110 | | 4.4 | % |
(amortized cost - $1,596,227 at 12/31/16) | | | | | | | | | |
(amortized cost - $1,518,156 at 12/31/15) | | | | | | | | | |
Equity securities | | | 369,219 | | | 375,424 | | (1.7) | % |
(cost - $187,573 at 12/31/16) | | | | | | | | | |
(cost - $202,437 at 12/31/15) | | | | | | | | | |
Other invested assets | | | 24,115 | | | 20,666 | | 16.7 | % |
Cash and cash equivalents | | | 23,284 | | | 17,343 | | 34.3 | % |
Total investments and cash | | $ | 2,021,827 | | $ | 1,951,543 | | 3.6 | % |
| | | | | | | | | |
Premiums and reinsurance balances receivable | | | 126,387 | | | 143,662 | | (12.0) | % |
Ceded unearned premiums | | | 52,173 | | | 52,833 | | (1.2) | % |
Reinsurance balances recoverable on unpaid losses | | | 288,224 | | | 297,844 | | (3.2) | % |
Deferred policy acquisition costs | | | 73,147 | | | 69,829 | | 4.8 | % |
Property and equipment | | | 54,606 | | | 47,102 | | 15.9 | % |
Investment in unconsolidated investees | | | 72,240 | | | 70,784 | | 2.1 | % |
Goodwill and intangibles | | | 64,371 | | | 71,294 | | (9.7) | % |
Other assets | | | 24,658 | | | 30,574 | | (19.3) | % |
Total assets | | $ | 2,777,633 | | $ | 2,735,465 | | 1.5 | % |
| | | | | | | | | |
Unpaid losses and settlement expenses | | $ | 1,139,337 | | $ | 1,103,785 | | 3.2 | % |
Unearned premiums | | | 433,777 | | | 422,094 | | 2.8 | % |
Reinsurance balances payable | | | 17,928 | | | 37,556 | | (52.3) | % |
Funds held | | | 72,742 | | | 54,254 | | 34.1 | % |
Income taxes - deferred | | | 64,494 | | | 63,993 | | 0.8 | % |
Bonds payable, long-term debt | | | 148,741 | | | 148,554 | | 0.1 | % |
Accrued expenses | | | 51,992 | | | 55,742 | | (6.7) | % |
Other liabilities | | | 25,050 | | | 26,018 | | (3.7) | % |
Total liabilities | | $ | 1,954,061 | | $ | 1,911,996 | | 2.2 | % |
Shareholders' equity | | | 823,572 | | | 823,469 | | 0.0 | % |
Total liabilities & shareholders' equity | | $ | 2,777,633 | | $ | 2,735,465 | | 1.5 | % |
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| | | | | | | | | |
OTHER DATA | | | | | | | | | |
| | | | | | | | | |
Common shares outstanding (in 000's) | | | 43,945 | | | 43,544 | | | |
| | | | | | | | | |
Book value per share | | $ | 18.74 | | $ | 18.91 | | (0.9) | % |
Closing stock price per share | | $ | 63.13 | | $ | 61.75 | | 2.2 | % |
Cash dividends per share - ordinary (annualized) | | $ | 0.79 | | $ | 0.75 | | 5.3 | % |
Cash dividends per share - special | | $ | 2.00 | | $ | 2.00 | | 0.0 | % |
| | | | | | | | | |
Statutory Surplus | | $ | 859,976 | | $ | 865,268 | | (0.6) | % |
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RLI CORP. |
2016 FINANCIAL HIGHLIGHTS |
UNDERWRITING SEGMENT DATA |
(Unaudited) |
(Dollars in thousands, except per share amounts) |
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Three Months Ended December 31, | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | GAAP | | | | | | GAAP | | | | | | GAAP | | | | | | GAAP | |
| | | Casualty | | Ratios | | | | Property | | Ratios | | | | Surety | | Ratios | | | | Total | | Ratios | |
2016 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Gross premiums written | | $ | 134,092 | | | | | $ | 40,322 | | | | | $ | 31,945 | | | | | $ | 206,359 | | | |
Net premiums written | | | 111,841 | | | | | | 32,153 | | | | | | 30,442 | | | | | | 174,436 | | | |
Net premiums earned | | | 118,271 | | | | | | 38,156 | | | | | | 31,442 | | | | | | 187,869 | | | |
Net loss & settlement expenses | | | 60,637 | | 51.3 | % | | | 21,664 | | 56.8 | % | | | 8,137 | | 25.9 | % | | | 90,438 | | 48.1 | % |
Net operating expenses | | | 41,795 | | 35.3 | % | | | 17,571 | | 46.1 | % | | | 19,864 | | 63.2 | % | | | 79,230 | | 42.2 | % |
Underwriting income (loss) (1) | | $ | 15,839 | | 86.6 | % | | $ | (1,079) | | 102.9 | % | | $ | 3,441 | | 89.1 | % | | $ | 18,201 | | 90.3 | % |
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2015 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Gross premiums written | | $ | 126,074 | | | | | $ | 42,735 | | | | | $ | 31,770 | | | | | $ | 200,579 | | | |
Net premiums written | | | 104,877 | | | | | | 33,284 | | | | | | 30,353 | | | | | | 168,514 | | | |
Net premiums earned | | | 106,406 | | | | | | 42,840 | | | | | | 30,125 | | | | | | 179,371 | | | |
Net loss & settlement expenses | | | 59,194 | | 55.6 | % | | | 17,537 | | 40.9 | % | | | 3,853 | | 12.8 | % | | | 80,584 | | 44.9 | % |
Net operating expenses | | | 39,073 | | 36.7 | % | | | 18,498 | | 43.2 | % | | | 18,725 | | 62.2 | % | | | 76,296 | | 42.5 | % |
Underwriting income (loss) (1) | | $ | 8,139 | | 92.3 | % | | $ | 6,805 | | 84.1 | % | | $ | 7,547 | | 75.0 | % | | $ | 22,491 | | 87.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Twelve Months Ended December 31, | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | GAAP | | | | | | GAAP | | | | | | GAAP | | | | | | GAAP | |
| | | Casualty | | Ratios | | | | Property | | Ratios | | | | Surety | | Ratios | | | | Total | | Ratios | |
2016 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Gross premiums written | | $ | 560,349 | | | | | $ | 186,136 | | | | | $ | 128,379 | | | | | $ | 874,864 | | | |
Net premiums written | | | 470,082 | | | | | | 149,170 | | | | | | 121,700 | | | | | | 740,952 | | | |
Net premiums earned | | | 454,843 | | | | | | 152,167 | | | | | | 121,598 | | | | | | 728,608 | | | |
Net loss & settlement expenses | | | 259,907 | | 57.1 | % | | | 71,350 | | 46.9 | % | | | 18,521 | | 15.2 | % | | | 349,778 | | 48.0 | % |
Net operating expenses | | | 158,607 | | 34.9 | % | | | 67,985 | | 44.7 | % | | | 76,113 | | 62.6 | % | | | 302,705 | | 41.5 | % |
Underwriting income (loss) (1) | | $ | 36,329 | | 92.0 | % | | $ | 12,832 | | 91.6 | % | | $ | 26,964 | | 77.8 | % | | $ | 76,125 | | 89.5 | % |
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2015 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Gross premiums written | | $ | 519,670 | | | | | $ | 208,370 | | | | | $ | 125,546 | | | | | $ | 853,586 | | | |
Net premiums written | | | 435,409 | | | | | | 166,659 | | | | | | 119,903 | | | | | | 721,971 | | | |
Net premiums earned | | | 412,248 | | | | | | 170,924 | | | | | | 116,989 | | | | | | 700,161 | | | |
Net loss & settlement expenses | | | 218,414 | | 53.0 | % | | | 69,851 | | 40.9 | % | | | 10,780 | | 9.2 | % | | | 299,045 | | 42.7 | % |
Net operating expenses | | | 147,571 | | 35.8 | % | | | 72,048 | | 42.2 | % | | | 72,939 | | 62.3 | % | | | 292,558 | | 41.8 | % |
Underwriting income (loss) (1) | | $ | 46,263 | | 88.8 | % | | $ | 29,025 | | 83.1 | % | | $ | 33,270 | | 71.5 | % | | $ | 108,558 | | 84.5 | % |
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(1) See discussion above of non-GAAP and performance measures. | | | | | | | | | |
