RLI - Earnings call transcript Q1 2018

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Operator

Good morning and welcome, ladies and gentlemen, to the RLI Corporation First Quarter Earnings Teleconference. At this time, I would like to inform you that this conference is being recorded, and that all participants are in a listen-only mode. At the request of the Company, we will open the conference up for question and answers after the presentation.

Before we get started, let me remind everyone that through the course of the teleconference, RLI management may make comments that reflect their intentions, beliefs, and expectations for the future.

As always, these forward-looking statements are subject to certain risk factors which could cause actual results to differ materially. listed annual Company’s be Form are including SEC reviewed factors the in XX-K, risk in various the filings, carefully. These which should Securities contains has Exchange first Company filed Form with The a quarter results. Commission press the the that release announcing X-K and share make financial per results. operations, management and may to earnings non-GAAP during reference RLI which call are the operating earnings from of measures or earnings net after-tax earnings and per gains earnings realized the operating operations of share RLI’s consist of after elimination investment losses. from believes but comparable management operating reporting companies’ gauging is core operating in RLI’s of this useful may measure performance definitions earnings. across to periods, be not other The Form earnings net X-K earnings. operating and reconciliation contains between available The the at Company’s Form website and X-K release are at www.rlicorp.com. press RLI’s Corporate would Mr. Vice President, I to over like now Development, turn the to conference Jacoby. Aaron ahead, sir. go Please

Aaron Jacoby

Good XXXX. for Welcome RLI to Thank to everyone. of the the quarter you. Earnings morning first Call

Jon today’s to comments Tom Brown, President give Officer; opening on Chief on conditions. Operating will call me some Then, financial talk market first and the Joining I’m Craig Chairman President are Kliethermes, operations Craig about over results. brief and to and the call Vice and CFO. Tom CEO; and to Michael, quarter’s Senior turn going

Jon open will Next, questions, Tom? with to the comments. we’ll some closing call finish and

Tom Brown

Thanks, Aaron, and good morning.

evening, last quarter reported first were share. earnings As XXXX $X.XX per operating

between a change into unrealized and net pretax equity in detailed let net for losses losses earnings me from earnings results net accounting is volatility comparing accounting results. first color release, get bit in were and cause but when accounting whereas effective in do of can earnings. the the comprehensive GAAP reflected more tax on quarterly changed here. an portfolio, other securities income. change requiring for FASB operating earnings gains the mention the this recognition in gains difference I which want press Before the quarter, provide and to I in This quarter, non-GAAP exacerbates This historically unrealized

reconciling quarter, to recognized operating on to portfolio. historical we million of earnings, in One operating release eliminate considered tax earnings by net impacted $XX.X on a result to the periods measure a net year’s when other between earnings measure lower pretax $X.XX decline additional result in be losses one quarter, The treatment comparing the favorably our GAAP and in Refer but between from gains investment the rate to portfolio. consistent does entire reconciliation. corporate equity note, earnings. similar to should of operating the and earnings elected amount further We the During reconcile first per which item to reflect is realized details operating the for earnings earnings tax the of last reform of share our this quarters.

and both top-line back Turning fashion the year bottom-line We results. operating to from in perspective. a good started

storms, Our XX; $X loss $XX net first this to quarter in in the in from our million was ratio X development about storm quarter, losses prior winter of compared offsetting the amount last the from year. principally favorable benefited million ratio of a million nominal was numerous Partially combined year’s reserve quarter Northeast.

XX segments’ with pleased surety. casualty, combined each of in property, ratios, our XX a in We’re and XX

quarter the from adverse positive favorably coverages adversely. favorably improvement net of developed significant of XXXX $X developed segment of a auto-related by first Most is casualty casualty reserve development. when which lines impacted Our million XXXX in development was first quarter

million was $X property favorable modestly marine. at exclusively Our segment from

underwriting and development. positive performance net segment $X derived Finally, a favorable across commercial. our from primarily underlying from reserve coupled Overall, were our results with diverse product in surety million, development of had portfolio contract favorable

example this been the in advanced an premium but of exception in had fourth underwriting across market. surety. is will did we modest previously very we The accelerated growth an pace in where competitive topline, quarter, more products XX% our decline our same shortly all surety discuss segments in in detail rate quarter, the with from of most to experience and the we the discipline three a growth experienced trend running. Turning written Craig gross in

are However, with segment’s pleased XX. at ratio very we the combined

Moving This commercial a transportation, as bulk newer casualty, core personal to a from and but of that segment on has topline our products XX%. such grew products in benefited also umbrella. D&O, is growth and

Complementing income. our this products was fourth consecutive strong to segment first such the investment property with income quarter marine each income. investment were property A equity led to major up Holdings Jim investment Prime XX% as as investees, up slightly a of and X% our coupled the in first underwriting marking the asset of larger Maui was of Lastly, higher Earnings XXXX. in compared in E&S and yields quarter from the base invested performance, growth quarter XXXXm increase contributed. by

-- tax effective our rate. to Turning

but XXXX. preference reform, Our depressed tax to tax the principally unrealized to comparable compared This in disproportionately being on equity for quarter the effective items of rate to quarter was the as XXXX. portfolio, due XX% resulting when earnings tax losses the percentage first the higher XX% inclusion also is pretax in compared a

March over will in business year. income And and the end quarter In a rise the the to operating the brought down equity slightly quarter, fundamentals the were start overall, very value in interest at turn and strong I call $XX.XX conclusion, first rates to Our XX. the of strong markets to with Craig. that the in but book decline during the

Craig Kliethermes

growth. A top the a solid Thanks, of Tom. XX with all. morning, combined year second the start ratio and XX% Good quarter to line consecutive

say that more are it The the but to people more across market underlying think, up, is to year. competitors are loss seeing we which with some this which are compete. in as is opportunities far self-induced is the we trends still are continuing means year last so ended reacting competitive, very our niches cost Submissions I momentum shopping we pain. fair and

is for our opportunities and when to points underwriting many right. discipline the confidence touch the provides breadth product provides Our time capitalize

growth in technology, the and most portfolio. we fueled distribution as our an last across new continues well of product improving as be This relationships organic partners, new over evolution started by existing of continued product economy, years. to the several This saw quarter, growth investment

also standard pen on quote the the see a we to We given foothold MGAs competitors’ to rational required. retrenching hang new to a around business are still opportunities. not moving behavior trying or a if challenging more hard room us space. been price where markets in in In recently specialty continue be be those nearer have several more we to prudent, allowing up places the gain markets observed in market. our level, We have are To clear,

quarter. we calls. on grew in XX% increases have this improved talk particularly segment. and loss while the last top more a with casualty, our Transportation and invested combined bit services reporting line by on-site results from in Let line little better we in a control business. about transportation line bottom the XX new producers X%. of ground, me result grew prior as top visiting products, agency boots was same up loss our much a In customers Rate The year renewals continue the but development year most line time, over At ratio. across XX% with

prices. respectively. products deeper personal and results X% bottom past umbrella The newer Both commercial in continued newer are continued several producer and drivers line and grow I’ve deliver established products products to as X% modestly mentioned investments technology, Our relationships, to also well. in higher and quarters.

off to throw We to they nearly these the of generally growth growth little until that gain products segment. some from line This of generate these important deliver maturity. for as profit they continue top note half level products the premium is underwriting

to pleased on more this severity environment an very are deliver remain vigilant litigation rising medical and profit in for a segment, we we Although inflation underwriting underlying costs. based pro-plaintiff

posting grew segment. points storm of three major in realized quarter, ratio combined an our Northeast growth XX across segment property this despite products XX%, this of while losses. all We Our X

mostly exposed Both E&S about business, products renewal XX%. closer business, which of XX%. up Our is is while and to pricing over grew grew XX%, pricing up wind quake Wind CAT was made earthquake flat. by the property

market to new last coming We’re quake. seeing us submissions as and both than be to in the seems business XX% wind about year more

For business willing of are of but floor. level the has now, market a returned write pricing NGAs to some our number CAT sanity below to there still

and X%, as respectively they to were marine business more scale. and Hawaii build needed and up homeowners distribution XX% continue Our

We are pleased of this with the segment. overall direction

Surety ratio most Our continues itself. struggle growth was competitive. and remains down XX of X% topline combined the segment to for The surety for the quarter. speaks for

new established by products all All challenged remain aggressive players. more profitable of entrants are our this and underlying in segment but

partners suffered technology the to position arise, appetite year like-minded demand, of specializing our better Contract grow to Although the opportunities flattened solid prevail. reduction with, deeply the in a But, line sureties with underwriting start top remains more fighting and our construction has looking as consistent, bottom-line even market economy advantage Overall, in less top Discipline and taking good for bottom in while and this and differentiating. to has results. they increased. the investing for and will number have of regulation experience surety public energy segment, has overall spending ultimately the customer make most. helped

deep helps and their narrowly space Our us and have personnel very of focused more knowledge which underwriters claim deliver are consistently.

new well-tended We our while realizing initiatives to nurture the prune of continue underperformers, portfolio. benefits

execute balance discipline specialty confidence portfolio arise. give strong, and where us underwriting diverse sheet to is and our the Our opportunities

employee, owners for quarter. At differently. over it and think works. Aaron of that our RLI, open associates to our talented difference Our to this all I’ll questions. again you. for we Thank And delivered turn it And shareholders, up

Aaron Jacoby

Thanks, Craig.

open call can You the for now questions.

Operator

comes And our question from KBW. with Instructions] today first Arash [Operator Soleimani

Your line open. is

Arash Soleimani

we’re is Craig, the to that accelerated comments said has morning. know fair not you first pricing say to on I market Good Thanks. made But, pricing. in hard quarter and fourth you the some from a it quarter? obviously

Craig Kliethermes

increased more risen new of And in I mean, but as we really is general, seems pricing have think do the on the market are in certainly spots, I lot to a getting in would I a coming growth, our submissions spots, from to I opportunities. say mentioned that -- level business.

changed a hasn’t really pricing from standpoint. much level quoting Our

it But, actually we would than that almost was quote that quote sometimes before. our we’re competitive that reaching think laugh the quote, was quote it is it not at was finding more for any same same sometimes more even business. And out high at now, We’re present level our too and when put much brokers rate our high. too not before, because

the Other So, been. than A some where continues has be maybe wind to is up; of where I actually noticeably and think momentum getting the I more. up in a pricing transportation pricing is to of pricing mentioned up, a the last look where be has stayed we is didn’t pricing the Overall, more little lot before. over pretty not hurricane, bit we stable areas, up. are quarters couple continues renewal pain

auto-related risk, in our starting still now on to board still we’re business. wind So, the we’re getting rate getting area, and the across on rate get professional liability rate for renewals

Arash Soleimani

Thanks. renewal Can repeat were, you increases what wind rate the again?

Tom Brown

was number. X%, think was it I the

Arash Soleimani

said was flat. You quake

You said, right?

Tom Brown

Yes.

Arash Soleimani

the expense Okay, year-over-year. ratio of investments thanks. That’s in was casualty, And bit up that because in new products? a

Craig Kliethermes

said Arash, casualty? you in

Arash Soleimani

Yes.

Craig Kliethermes

newer I the mix. as Yes. to characterize It’s products is up as would well modestly. it just

Arash Soleimani

Okay.

In -- a is that terms XX% two in of seeing year? in mentioned than last saw we what on quarters market, rate year Based you’re growth more the guys the of you run the that in row. reasonable the maybe -- what earlier a does

Craig Kliethermes

we quarter, continues. I direction; can play sure. for the quarters tell But, Arash, last by it two obviously, quarter hope we you we it like

Operator

next Randy we will go And Binner. to

Randy Binner

from transportation in like book. came I most casualty majority comments have lines right, And transport? that your Is it the was that about a the development. out sounds question it of the of the redundancy of reserve

Tom Brown

really got look it at year-over-year. to You

quarter. And you third quarter to quarter fairly favorably, quarters, stabilize started first it through been nominally was those to in if it only same first QX the was It you into in three, really not saw, been in recall heels and fair industry noise, where ‘XX. the XXXX, only of as quarter QX be quarter adverse adverse. nominally we first stabilizing not prior XXXX. on QX it’s take the started continues four you the -- through amount If There but XXXX for appears of it’s seeing the the of then, to over

Randy Binner

need I guess, that. more saying -- maybe redundant, so And just stable you’re it’s clarify I maybe than to but

was an So, for of was it more redundancies me made breakeven. it something in on casualty was think kind it basis the like that Because happened else? or segment, just that transportation, absolute the

Tom Brown

that if adverse million in in first casualty Good share casualty -- adverse and some I from compare the quarter favorable clarification. excess it coming umbrella, to lion’s The had about of which XXXX development it, GL or created development QX if the casualty. you $X I -- ‘XX. you’re a offsetting transportation books. $X And segment favorable was that the is look GL in to the million, to trying the netted swung and think But loss, saying,

Randy Binner

more That accident year gotten Yes. -- really saying I’m on basis kind for was of the like the last thinking kind a like, little a sounds you early where instance -- that or of ‘XX of absolute would it reset Is year. a and it’s levels more for like, reserves I not stabilizing seem had and redundant. more ‘XX case, had up it’s transport thinking that’s fair… the

Craig Kliethermes

get had in mean, -- think call. on box when half product the comment the and I I so, like I penalty some made while. Craig. tend is year to a I or for this we a the previous ago development, has to transportation Randy, tend mean,

cautious line lot see out going I of an to of But, years extended to of time. not look very stable. accident not results out product for that that a of point, They’re period releases getting process. anytime the we’re do soon, going worse. think so, Probably be to So, current with Tom’s

Randy Binner

it. kind developing just accident of that’s Got GL letting years go and there? what you umbrella, and are for then, And well

Tom Brown

would for -- that again. is say, this Tom, I

CUP You’re seeing and primarily years. accident and GL and and ‘XX largely the from ‘XX they’re PUP,

Randy Binner

was have other for then, significantly category? mid-single-digit in mentioned just for that But, you have what wise item, I casually, rate in housekeeping do think But you then, say, you growth missed other I’d rate And transport. may one one umbrella category, had up it.

Craig Kliethermes

We two products. umbrella have

have both umbrella personal We products. and umbrella commercial the the

than healthy So, been growth. are that of other our a mean, mature both seeing many long them have I of products for time. And a are much those products. around they’re more

the Our so. plus been businesses, business XX years, have couple those underwriters been a been mean, have I for of that those relatively lot -- years. last of for we’ve But in flat

years, we’re personal So, the feel over last CUP well, We the of pretty years. seeing bit little about more grown a last the been couple has for umbrella has good -- a flatter that. little guess, I several

Randy Binner

rate I about And lines And level. how across debate an number ask is a for question insurance there kind the of other to of higher the ongoing wanted is definitely tax of are more domestic companies companies make of away competitive tax a more extent maybe the markets. some even your rational may the to more compete and But, kind comments break. stabilizing lower

feel tax out there are like lower behavior rate is not? is you question the So, affecting -- do or you the

Jon Michael

is This Jon.

mid-single-digit it starting factors course, lot But, there affects Of an behavior. a are that is point of affecting behavior, has Our industry return. right?

give We that’s And so, as cases, probably starting customers. of -- go our of part employees. it some pressure In there’s point, our right? to through do give And a pressure, that flow that, quarter let And the you obviously to last to to it to some to with we the shareholders. going to there’s to shareholders. rate went that back told

but are ourselves, pressure that different competitive the factors environment see And go into So, that there’s so. a there yes, it gets we think. of I shared lot

Craig Kliethermes

underwriters clear are be not pretax. profit, on our To yes, underwriting paid --

So, not based on after-tax.

Operator

next to go we’ll Jeff And Schmidt.

Jeff Schmidt

underwriting think teams, everyone. from XX%, are? growth morning, products. Good about they the you from what more of on casualty or similar generated? Can are said in Hi. at you Question maybe are books that’s products internally over the those provide book, detail coming little coming these a And half new I

Craig Kliethermes

Yes.

a that continues because a we a years little have issues. than casualty them, quarters. for time. they did of with clip, the small continue mentioned to we actually timing to didn’t share continues which five investment grow. We E&S not started around So, been showing that been over quota arrangement, but rest reinsurance ago But or grow to in have our to some have momentum for this get we at started a some in in And but Craig. that’s continues of that then been book the business to that products These the healthcare and We arrangement is pace insureds are couple quarter which to this started is business, products mentioned. at been are much cyber been a had grow operation brand-new things have They of years, past so. around some our us, but have some results, lower business healthy that start things several in space that four, gain although other I four momentum. or grow two, momentum. for they’re bit around adding -- Three five authority for binding a continuing small prime, for a We of the energy

Jeff Schmidt

PUP the been several particular, over years? in quarters they’ve last I for guess, the around why two if

Craig Kliethermes

this our than this been our it their a know contribution to is has maybe quarter that -- we it’s Craig. this Again, more-established contribution saw across is I Because less growth. growth don’t of any products. even actually greater quarter lot

So, the have products, attributed back previous quarters, necessarily products would the for really PUP more half weren’t to around pace. well growth same if drove have -- that But, actual attributed you the been been while. a products at those this growing in other go that the quarter

products. previous driven So, more was -- in growth they quarter by were new probably

good healthier mix, thought products profitability handle. they So, about still, of this but be there’s our long made We wouldn’t some is new we term unless some right, think products uncertainty because we actually money. growing a have established we pretty

feel it’s driving the overall output we growth. healthier why much as like far feel that’s topline So, -- as

Jeff Schmidt

underlying be casualty Okay. been How highest, loss cost And basis underlying XXX of quite few XX%; a up at loss points versus to is then, in much years. it’s the business looks ratio, year-over-year, looking to just mix that trends. XXX

Tom Brown

newer are underlying combined ratio I expense also but on the the there. is earlier, driving these loss up in those said I up slight just newer mature costs. driving Also, similar mix for would say the uptick lines again, more products. products Jeff,

into growth of we and you a the at get view -- in look our take that As newer products, longer-term cost trends. we newer loss

Craig Kliethermes

it impact of the overall a in especially as starting first a has inflation. an cost up year assuming know certain point, level inflation. aren’t that working loss with keeping we quarter loss last are And the prices really We that from as we’re cost

So, a raising of frankly, up probably It’s end in year-over-year. cost getting if you Unless think to your loss back most assumption, look, excess first ratio. are and we quarters, from you’re more then up quarters, loss prior equation. going go your math price you’re I

Tom Brown

Tom coming other transportation optimistic is taking of to kind just of sight get of the don’t of again, casually. shouldn’t it. industry, it’s the one Jeff, coming having too we fact claims, gone through a back hard reunderwriting that, approach took at cautious quickly that that a on a -- And lose And heels in too to in look we’re review right.

Operator

next question Heleniak. our from And Scott come will

Scott Heleniak

morning. Good Hi.

it believe you You you I E&S. you guys E&S. improvement growth you mentioned property then, I that this if lot last in hadn’t talking a about seen sure were pretty And property. And irrational was quarter, talked or in was not in quarter, significant whole about. know behavior E&S, pricing not said I’m of some

So, I comments significant and the those you’re could opportunities up square wondering E&S competition growth E&S. the you’re seeing versus there. you’re saying you the within the where opportunity Where if was just on seeing

Craig Kliethermes

Sure.

E&S referring Scott. You’re to property,

rates this quarter. renewal a as last positive high but increase I as we I hurricane we mean, reported I reported on not on that the So, think -- quarter X% last believe

on seeing little business is more and are really get rate book. side. opportunity to What seen So, renewal we’ve a growing ability on a new momentum the is we

actually that’s And and out has get and put before, out and our mentioned I hurricane -- the both in and ballgame. before quotes put been look, think -- we And same we we’ve rate better. the I applied So, a earthquake. take-up quote the we’re we now didn’t

tough it’s on to Now was tough get it’s tougher, renewals, last quarter. still still on rate earthquake is tougher and earthquake this quarter, it

higher we’re seeing renewals quake. opportunities when -- across led brokers business to they’re go of believe than a people higher new other rate seeing to up But when we’re on on the than and happens just you’re on the raising And the not closer. XX%, quoting. are still We’re sometimes talking based that competition board. levels That you’re lot is that the then competition, XX% you’re movement

So, we’re see opportunities we didn’t getting before. those that

Scott Heleniak

areas some And or so, CAT particular region? Midwest is is that it fair Northeast, those there be areas a impacted could that it are or is say of to loss just exposed

Craig Kliethermes

last There was loss, that. a wind, woke that rate quake but between catastrophe is And There Well, Southeast the And can a the in to that in And the little market apparently most is Southeast, in chunk clear. and by it��s write of a anecdotal. of new then even little a taken bit Northeast, have, hurricane But, have years hurricane the quake on Houston business that was earthquake just what some has be We of in obviously seen we cumulative people created you quake, the have have attribute was our has as exposure a more some to bit and was the year of up think seen activity then, in that I brokers not market. this big a if Miami far also -- in quake. decreases it. buyers there Mexican quake. the you we awareness. though it it’s

seen maybe on a quake new now significant number, a $XXX, number their I there $XX it’s have worth it the increased price and rates it half, last of time, not because quake; So, insureds the buyers awareness. may one the might have been checked is that market. we’ve now buy, But, the mean dropped but these plus much be and significant of in

quake whether over people most don’t that’s phenomena, if there period that need coverage, forget or that it’s Now cases. a in they think because no and usually lasts optional time, a of temporary because not, is

Scott Heleniak

the you medical legal rising costs. mentioned And and

getting any before, seen any increases, where seeing is you are mind? is you’ve that that that particular a may in and -- little but bit you have those think, mentioned is better particular maybe -- there economy that accelerating areas I the as

Craig Kliethermes

things always industry think there continue seen it’s cases, predominately happen whole down. get [Ph] mean, product new find but little that’s a stall. in think me new get that always wrong, mean, is auto-related trying It’s to been verdicts I that I big read plaintiff they’re I wary time. they yourself involved, they aggressive. some successful is the becomes we’re increased personal mean, usually lines, -- a come what it some can try verdicts. think Anytime, a -- avenues of and we’ve there I doesn’t I be they felt not severity. And and trend. Don’t to I of that attorneys always certainly, injury you most some gradually in have But bigger for -- have industry over spike of that because bit

sudden, reserves. loss there that XX% your cost you the of assumed, pretty on look X instead a back and behind of was a of realize X% All ball a or can and X% increase quick get year-over-year you you that

years, But, year, the I to reason be So, loss rate we widespread, much inflation another to number of our I we at than carefully. higher the at casualty, going adequacy. That’s watch it’s previous a accident continue cost the eat to away continue at mean, cautious. continue we is say assuming wouldn’t continue that to but beginning why book to probably year

Scott Heleniak

last just the then, That’s the -- on tax rate. on helpful. the is And question

basis. is in range I’m good -- be you a wondering XX% to higher a bit think operating it been to for XX% guided the that still income the just to like on before. rate? number XX% It little use, I But XX% somewhere might tax to looks

Tom Brown

[ph] can said the and and earnings. in in upper gains the think there is that rate a unrealized a rate. Yes. going -- putting back also create teens this what as mid tax have then to I going But operating I effective lot tax effective think mean, on loss earlier, I still report the eq for volatility reasonably I to bearing it’s to is

Operator

[Operator Instructions] next Ron to go we’ll Bobman. And

Ron Bobman

that’s growth about the guess, Could then, of sorry, to figures. you a the result. and of, categories call ratio, are as response you had your laughing quotes transportation. of question I’ll seeing? factor, sort diminished provided the you’re about agents talk Thanks. the and I that is one sort hit in of the -- the whether in in appetite or laughing a I eliminated transportation if your I’m if what your where quarter sort

Craig Kliethermes

the reported was is of driven. that Ron. This And I that I About that XX% line. product half was Craig, think for rate growth price

think industry. of about And all truck we is shopping both business is not really as seeing a and well other where a an the that’s still that rate transportation child that there a poster for competitive would seeing more very is by very, area little there There by more reported but The as some would are be put one wouldn’t that It’s transportation the within segment. going submissions. a we’re actually little pain still I renewal as up very, So, I going I And say driven I the two X% And on, new have rate. that’s very, the increases. submissions. us more one felt on certain the we’re of are space. necessarily new competitive. retrenchment say would lot lot within classes that

that we that’s submissions areas they classes spaces like and metro those because We opportunities are rate, tend there bit, biggest continue the And to are seeing there a continue up rate we like. a and too. to is not big of there. Rates, lot everybody that outside see new else little get are to but we and getting driver we the in

Ron Bobman

It the guess I at your like quotes sounds like although ratio, -- successful a hit are winning submissions greater said you degree your aren’t you’re dramatically up, now.

Craig Kliethermes

in that little same. up retentions The about the bit think I are ratio dramatic. a hit holding Our is it’s business, not

So, we watch constantly. those

get the You hit is to see you let ratio, the you going want hard more. you’re testing to market always your are market enough, and retention, pushing watch to

those, You you the reaching you want bit retention to your leaving if money want on much too might also don’t don’t But want and you of not that. be bit. envelope push on then a the pull do to table, probably -- because the little don’t to climb drop some continues to may want maybe want a you retention little to back

Ron Bobman

evident, underlying you’ve the loss reached be Is over year achieved that of What’s of the position adequacy, evident it book sort year all adequacy What this reached or becomes auto degree has will of be a data overshooting? a over achieved the excess? of rate you’ve sort -- data? loss that a the in evidence year that makes of in it is this of signs commercial basically the degree or increase

Craig Kliethermes

And to more say the for is rate. getting competitors, I loss hear rate; mean had know got think, longest keep certainly to And where think adverse not money results to want couple time, years think people that some the probably you stop for say -- they to -- or didn’t talk quarter, know for would for make of seeing a And I can loss a at some see to I’ve to part top is of maybe reached right where finally I the ratio the is reserves people point got they you you that feedback those what the more -- more I is Well, from it, way from like that. the ratio, where bottom you’d you’d that don’t we get right? gives get I any than the a I you’re but for Then standpoint we bleeding as that the to development. and industry, guess I evaluate then losses do loop that worse. kind equate

So, rate, much they that that more more rate. need much

making are combined to I not ratio kind where the auto or at, the start an any you So, But think you’re it’s XXX you excess in money And assess I to and that they not. then attractive, commercial range. industry, need think can as reserves the of particularly XXX, of is stabilize.

You’re not good any tail money and making a of make any aren’t very to there. rates it’s business enough long money, not line interest

Ron Bobman

And is are deficiencies about But, that -- ‘XX company trying will I some table the stable, ‘XX ‘XX books, is your the talking like, line? cohorts cohorts only to will stable, in for right? those books, guess ‘XX base look you the you’re reserve in look hopefully -- increasingly book ‘XX books, at those point, up some make -- of those or do your

Craig Kliethermes

say, for for commercial Well, development didn’t out those we ‘XX of we’d we any I our ‘XX, auto. think really talked release money years and about

mean, going -- hold But to think to I want we to the gun. don’t I it good now. want steady. right looks We’re don’t I jump

put You either. back doesn’t right want to release have reserves, tell them a story to That then good you up.

Operator

There turn the to no will now back Michael. I Mr. questions. are conference further Jonathan

Jon Michael

appreciate Thanks appreciate it; I all for questions. joining. I the

double-digit the growth. We’re to two again pleased Thank quarter. in very we will of a much. And you you row talk next with quarters

Operator

participating if gentlemen, number X-XXX-XXX-XXXX for all for you and ID now to XXXXXXX. All may call, wish Ladies our of may so This do you Thank an with access today. concludes by nice parties a dialing and replay this have disconnect. conference the you for day.

RLI (RLI) 19 Apr 182018 Q1 Earnings call transcript