RLI - Earnings call transcript Q4 2018

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Operator

Good morning and welcome ladies and gentlemen to the RLI Corp. Fourth 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 questions 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.

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

Aaron Jacoby

the fourth Thank Welcome everyone. call to you. earnings XXXX. the morning Good of RLI for to quarter

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

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

Tom Brown

morning, and good everyone. Aaron, Thanks,

in full XX.X bringing these level profit, For ratio. earnings to at came quarter, view $X.XX of key share the Like year some combined with results. drivers fourth to the we a underwriting operating a of reported $X.XX. we of Starting provide high per

up $XX.X $XX million the up quarter losses ended offsetting $XX with and from on ratio. million bonus related of or from reserves, You'll quarter's million to at the in Hurricane recall fourth prior losses favorable of the net had of $X.X net that Michael development added million end range, million of of our loss recorded Partially offsets. $XX about This lower $X.X points hurricane year's quarter the XXXX. we to pre-announced combined XX the expense million was

was due development modest segment early primary losses primarily development amount segment, was to Casualty Our to offset the the in two and the of which XXXXs. from a contributor Surety adverse favorable

up talk in premium more Property XX% volume, was about grew was which number and these fourth and gross minute. also volatile larger trends this quarter higher will certain to trend such levels Turning of the of our Surety newer income, fourth slightly premiums particularly quarter. as in XX%, marine, up relatively From and while products written by asset base, general casualty, XX%. excess quality traditional credit we invested quarter. the an by reinvestment duration perspective, record while grew Casualty The to liability, up are transportation, in a Driving investment casualty products, XX%, in X% were are of unchanged. a higher a up. executive lines. Craig markets investment yields well continue was the equity as our as supported driven

approach perspective minute spend to our seasonal standpoint, and quarter, due benefit a slightly long-term investments from of assets, to Maui fourth had investment including a return. continue our last diversify comparison our and maximize in of to steadfast Jim using let Maui the which Jim share for income portfolio perform Both core remain the we However, Prime quarter reform. low From to and our portfolio, Outside difficult was face to although investments tax year's risk investment total rate. on equities the effective me is positive. a well, from a tax tax one-time

result lowered of XX% that of there XXXX. effective that on our the to materially to would said We are as likely couple but expect reform. our we call, expected You effective considerations tax be rate year a still a the in case, full fourth may rate recall be tax the XXXX XX% that quarter the range for

tax in in portfolio required through but XXXX of periods the sizable in pre-tax percentage rate ended XXXX, like tax us unrealized significant the with with losses record rule a preference our the First, comprehensive in as equity which significant changes prior This we of items a increases impact unrealized up income, not in to value we accounting then net in to opposed experienced years. volatility, reduction only effective new creates adopted earnings calculation. earnings

for deferred our XXXX effective tax realize issuing previously expectations. in treatment language left be tax both tax the Clarifying line items. additional enable Additionally, free fourth out items, quarter to would benefits our rate certain communicated with XXXX. tax in in tax these passed Stripping unresolved reform us

Now, results. provide I'd like commentary some to the full on year

a development million, up majority favorable and favorable segments, our our This RLI's are $XX industry year's development income underwriting XXXX perspective, we as last of points. million total, growth. For notably lower cat In underlying full from ratio favorable from us million. approach a impacted XX% XX.X, to a whole. amount. years active accounting net comparison, From was on for similar the combined from the X.X year from culture. a due of the and of full development reported testaments impacts prior from very losses our year, by year the transportation. both Meanwhile, methodical reserves was ratio perspective, represented reserving catastrophes for to to underwriting premium accident came was combined second XXXX the of recorded each segments $XX.X including net By of and three modest growth year's $XX.X our reserving consecutive we products,

growth our and contributed extremely Surety Casualty Property segments, also While this under driven market was modest competitive conditions. largely by

dividend. binding our as with on growth Property heavy XX% of last us quarterly products, in XXXX, such XXrd upped energy but catastrophic dividend This special from allowed liability, while we We and are In return capital despite marked years. growth by equity And even year operating dividend, to the year segment. transportation more executive We turn products our call XX well special year return to our $X.X as the as the a to to paying in general the general Casualty billion over the pleased pleased authority, the shareholders that, to events. with in products, Craig? return as the liability increasing the of the Craig. of mature cumulative in excess and and $X shareholders consecutive form with such newer umbrella, ended I'll

Craig Kliethermes

summing about Good some conclude into then and the everyone. Tom. I to the morning, segments you, up provide year. quarter overall results get and comments by some Thank want specific

quarter Property RLI's evidence for the XX% our of loss we combined XX healthy still drivers reported, storm resiliency. for the end achieve Hurricane for quarter were select diversified remained reported since low widespread Pretty and well largest growth our coming resulted and loss Hurricane we Growth at the and catastrophe referenced, growth the a range our largest able top-line previously economic in also severe Northridge being catastrophes portfolio Despite to the quarter. more of year, underlying loss our Tom event given marketing newer segment a the spots. overall the and across for for portfolio of the and treaty event rate we single our efforts Michael. our in with that sustain established in a the the ceded profit the estimate Michael in XXXX. given first products of profit the and in underwriting and an fact loss is to It mix further As increased and Company, impact other Michael hurricane in underwriting ratio results specialty an products, The was that earthquake time our occurred, increases history. good was very the since we

our market needed our We We starting on most generally ourselves to coming some found to felt where increased pain are flat, are have see in opportunities, is Rates submission the pride consistency that still opportunities, portfolio. our we relatively be but of Despite activity improved by of the us, creating upward this underwriting across the is most. competitors. segment. able a of with little grow Casualty, terms underwriting growth In by the was to now to and to dive I'll strong for exceptions. product go appetite to, culture. staying broad-based, let we true only were willingness XX% and more reported ratio. XX few detail accounts quarter into have pricing, This we with a our where disciplined points combined

marketing continue We our combination are personal experience, see increases starting opportunities and rate commercial and pay in modest umbrella to efforts, through customer very and investments off. technology businesses increased in of which to good a growth

have about good all year focus back progress last executive feel grew in sector products on transportation. realize recent was in and XX%, rate made We very driven. We rate double-digit portfolio accident within as in actual growth more over ended continued diversification to Transportation we've the space. their two almost they Our that the of estimates even but to years. back stabilized increases improved years this with and the

we that and We to in have markets push the in will continue succeed all rate team can XXXX.

growth auto market for look We in as remains opportunistically will exposure the turmoil. commercial

believe over We continue several energy to and in and on the get for entire are on captive were and we a years, and both reserve from pretty year. the releases newer segment casualty, We them pretty costs, added robust the authority, of late quarter including that monitor we were have continue Overall, vigilantly. binding to a new XXXX. last products broadly Casualty but calendar felt handle liability growth good program cyber a added loss in healthy amount larger the year-over-year

combined up segment. For XX% top-line and we ratio with Casualty XX the year, for ended the

quarter, XXX while Moving the segment on for a combined suffered Michael of X%. the top-line to growing ratio, Property. Hurricane impact This reporting

felt of in impact non-admitted the the business. Michael expected, As was property brunt our

flat For to wind earthquake. see rate in relatively with increases continue on rates moderate the quarter, we

catastrophe write that the opportunities Given floor XXXX firming at level. respond finding some pricing going The place hope will catastrophe new least as our a some still the business, provide moderate we rates market would or we the market and market in on is to rise are forward. activity with XXXX, to

or minimally note, its announcing pairing California that RLI check. the by Anchorage late products, ratio other exits occurred affected loss As continues a disruption competitors business. marine grow property There with their in the add some while wildfires the marine in side earthquake scale, market In and is keeping in and was several quarter. to very

years improved We have positive to and increase the in on economy existing rate of accounts. drive exposure continues growth consecutive six marine achieved

and Hawaii continues exceptional volcano claims efforts the renewed provided, team our benefit recognition of from our the homeowners to following losses. Finally, top-line marketing business from service

able XX an combined year, a top-line reported XX were ratio. ratio. XX% and X% segment Surety, we combined the reported Property the growth In grow For quarter to the top-line and for

our deep solid appetite. products We and in success. is performance have this portfolio. had and in consistent provide of in risk knowledge difficult four major very segment the long-term across ourselves remains our for We Competition discipline critical all

more arise, business market year will ended to the take the ease build and that proposition, opportunities value We of continue our X% growth try that the depth recognize exceptional relationships with XX invest opportunity. advantage an doing in of for top-line combined technology and We with prepare and next to ratio.

I conclude, generally of want reinsurance risk we half we About result spend few buy because color to took more due changes of in the million were at an We loss late of After to growth activities we our little recently. And $X million also placed a bit Before portfolio place cover want treaties Two that with and with Casualty change in X.X years. Property saw activity and growth, renewing. some an is did a quarter. our have of recent property done our our I I some XX% Casualty Property additional broadest reinsurance to exposure year-end catastrophe year. the per on in more cover repositioning for exposures. in at $X coming cover that past about offer retentions. this estimated flat for in spend pricing million segment expected our on in $XX to note paid will factoring

haste. constantly Complacency and we nurture our is that As assess We risk discipline invest trade show you ownership those address and the of culture with enemy offs reward success. strong portfolio and that products know, promise, of manage underperformers our products. requires

As investment book estate general an of exit an our a real facility result, for underperforming process business business recently are we in of healthcare we also of trust. exiting announced liability and

the diversify work In Prime reinsurers. we a from stake The believe insurance parties' million improving premium XX% forward, their this rapid going whom starting share best X% to light In our margins. of Xst impact we growth, interest. with Prime's was reduce This top-line XX% relationship with $XX year. this removes while addition, closely downward to quota in approximately we of on have all of both panel January ownership changes participation bottom-line of will continued of casualty these

to in were we combined decisions of continue with year for not aggregate largest consecutive over net highest our our We struggled top-line XX% group professional our difficult markets XX I'd and profit, in and of the believe to achieved our all losses these XXXX XXrd profitability. underwriting and lot sustaining premium our marine delivered with Both a services great easy, most underwriting be portfolio broad-based decades. our that organization gross Although, ability while like things in across two growth We and growth have catastrophe ended outperform. of of a who history. achieved RLI enhances these healthy our to recognize. moves year Accomplished ratio. to this ended and

my has favorable loss year. aggregate We that technology balance through development stewardship most future. marketing Investments the good and great our and shareholders. we're demand expect and we Our in pay and year, our a segments like all transportation realize to had across we solid of We starting in We repositioned portfolio is Chiefs. business had beloved had portfolio rate. to in off improved our exceeded portfolio, we and continues products for and as reserve across of but as stabilized the growth an prior performance City as not are which Kansas liked, excited about ourselves profitability, much

RLI the for making in their positions particularly customer continue we the future and The at level to can talent, execution. is want and of investments needed thank to relentless changes we're skill the compete sure on exceptional focus going associate service make and I highest have bright. forward. to underwriting owners We all profitability,

and to will different in different it back Aaron. are I XXXX. again We worked turn

Aaron Jacoby

the for you, Operator, questions. Craig. Thank open now we call can

Operator

first session sir. Binner FBR. will go you, ahead Thank of ahead. Randy question-and-answer our A And at we Riley this time. B. with go begin will [Operator Instructions] from question Please

Randy Binner

about renewal. million I morning. you for of the guess, reinsurance the And, Thanks. good you Hey, had additional an $X that added I mentioned $XX think of million. price question, a Craig, cover I treaty

understand sure I a better make bit of that million $XX to want reinsurance already I had. So on maybe little you fits where understood top and just the the coverage

Craig Kliethermes

tower. -- million added is to The effectively, this Craig. we Randy, Sure. bought $XXX our

that. Now, we take a XX% co-participation on

or our the tower. we $XX do you So added math, to it's of the XX top points million,

plus add per to Now, cat of that treaty per is for just that not because in be million year, I to about the our $XX the treaty coverage. on of $X $X half that of million exposure And it. additional that that additional premium, over for the cat in of we're half $X risk of just clear the cover really is going to about the that included the is other part risk the treaty, so that the pay per million we're million risk referenced, going

Okay?

Randy Binner

And wind think Is hurricane the if that to this about is exposure it? zones. adding right way in basically

Craig Kliethermes

-- the added forward. to year, we're we've opportunities over last mean, a going we going added right. think And continue I we've to it see No, few

to So at place to continue we covering things, we we be want that. regards a to and in in want to relook so make PMLs constantly sure good

Randy Binner

Okay.

growth it? So into is because the all it neutral PML of largely kind grows that

Craig Kliethermes

that to buy about the we're as would year. to mean, sense? we going that I makes I PML bought last say Does same

Randy Binner

XX, think the -- of we have Yep. so impacts. but premium And to mentioned loss you less figure then so model -- out the on bottom-line easy it's to then the casualty, the you -- I the

you that that maybe bottom-line. from pick how loss we how or the that it might with might said, you perspective can about I would expand change less a think on much So book guess, improve premium?

Craig Kliethermes

I for Well, combined had I mean combined us. is I that help mean, fairly a XXX that the of then ideas. of XXX I mean, out performed Prime ratio. in mean, a can it XXX ratio, -- in somewhere actually the part little giving because profitable I excess Prime probably was the I to I take mean, by guess, performing bit -- of group business.

So...

Operator

go we'll go our And Campbell from with KBW. question of Christopher ahead. next ahead Please

Christopher Campbell

gentlemen. morning, Good

So just on question real quick. Randy's up following

have the and you're XXX that combined to not $XX going So was million that higher? in a premium ratio of at XXXX,

Craig Kliethermes

healthcare trust say, estate will of The I I of is, and which quoted. a yes, investment less real portion the than half total that that, little the

Christopher Campbell

why reduce quota Okay. quota the And then, share -- would would Prime you you why profitable, I on is guess, or I that? more the the share eliminate if part guess...

Tom Brown

Tom. it's Chris,

than for well have probably typically was different in They and of their As and effort. RLI reinsurers it collective substantially number Craig insurance we good rate. diversify got said It it's comments, with little any were price no what the them rather his bit come They've companies of for of grown does players panel and a run sole years, a reinsurance number very diversification. market a some that on panel. a so a of

to down totality participation and our book. as as of do of or percentage hold the Our a the -- we as and model try too it overall line goes to well that

it was to that it's a And profitable Craig of of us. been kind So as win-win. piece said,

Christopher Campbell

Got it.

Tom Brown

clear... And be just to

Christopher Campbell

just will if want option But that them. it [Indiscernible] Then of be I your to there increase it sense then? -- of to an more Prime? profitable, I would -- they more would be your and diversify mean, for to I will from they panel own -- might or make ownership their derisk an opportunity of perspective, there mean, understand, reinsurers Prime

Tom Brown

would certainly our the it. owner opportunity is time. if take the -- this at And shareholder a at came look we that of not control. really The principal majority That's is an up, within

Christopher Campbell

like commercial update if trends? their auto GL on bodily I primary makes trends that it. from heard we been just what on current some can was injury And the then in mean, and they've you're book? auto sense. just, terms in like loss And of boosting you're we've loss seeing seeing picks? That get year elevated wondering, auto an Got competitors similar something commercial I your commercial

Craig Kliethermes

did This -- we is last an three we back, mean, couple obviously in stabilized two a the it's see Craig. I years years. or over increase of that

last more a at loss stabilized single-digit, but -- I'd higher little X% so or little two increases a over cost rate inflation, mid bit say getting it's maybe been the double-digit years. we've So level, elevated

far as have as and recent -- improvement because and loss So loss -- some the slight in seeing years stabilized ratios to our also the ratios, of price.

Christopher Campbell

I be does rate come conservative, But, eventually transportation, like, had more like prior script reserve you're but seeing it. seeing And I -- cost and we Got given might it do business? -- I the was the actual extra said, XX% X% mean, a think increases. you're increases, thinking you're saying on to you point Do start trying X% you I cycle with I at like the the reserve like When you commercial like and maybe about but like the number, in I'm into releases. have margin know that just Because missed loss headwinds loss reserves? more getting existing what had. auto, should pick down comfortable start

Craig Kliethermes

And have an but our accident transportation did I booking to loss current abundance what of more development cautious mean, say ratio we favorable ratio approach. kept our, we years take I So or the but -- this flat call, year-over-year. won't caution, have in we actually quarter, a for

that as continue the be, we if know on is those taken the say, we we it, is we current I word, conservative to favorable and don't years. development happened think right accident flat, I'll years, some are so kept with saw what's So prior but smart we've

Christopher Campbell

were Jim. of I the was it probably Got sale, I that one not book it's the value then, your RLI, how have it. recently? have but, And for appraised kind financial? then question Maui know, like And mean, mark-to-market had on ancillary impacted, to be you of guess, I just if book what it you on much

Craig Kliethermes

Yeah.

the will. think not XXs, in there, have I think is had carrying We value value book recently, we there's really we're XXs, extra the so appraised Jim the but in you if Maui it

Christopher Campbell

$XX so million books? the it's Okay, on

Craig Kliethermes

carrying Yeah. the on that's basis That's equity books. -- the the value

Christopher Campbell

Got it.

of own? So what do percentage you that is

Craig Kliethermes

XX%.

Christopher Campbell

Great. it. in luck Best all Got Thanks for XXXX. of the answers.

Craig Kliethermes

you. Thank

Operator

our William Jeff go next from We'll Blair. go ahead of ahead. Schmitt question with Please

Jeff Schmitt

morning, everyone. Hi. Good

there particular under I seems Obviously, Just looking in are even the while that it strengthening there there. probably XXs, you're -- they commercial be you're broad-based? adding maybe it until more a lines XXXX. is in They've losses book, other for but drivers probably that XX% look you there or Are up any auto, Casualty some at there high are mean, ex-cat XX%. been to

Tom Brown

primarily, Jeff, that this in is of these segment. products reside some where Craig Tom Brown. that That's newer mentioned

mature. little So longer-term those see we them do a view to take of

that's as it So the in just and change. to would And appropriate growing. result would -- that they're mix a we view small way think that

Craig Kliethermes

mean, umbrella, much longer tend we also where in be to. year D&O bigger a with to going we which we've to seen I'll term commercial same longer book, growth business, tail. take and approach book our, our a And the particularly our limits our the I it's to umbrella more say, because we're little conservative thing

So will just a longer to -- play and little out. bit take it

we've So seen where and that -- some additional growth. is

Jeff Schmitt

sort that flowing auto? Is increased that hitting umbrellas? is commercial you and severity of losses that umbrella there, impact through seeing I are from mean,

Craig Kliethermes

exposure. -- we significantly umbrella specifically amount the in don't because not of auto I'm space, a risks me for lot Well, of let exposure. No. RLI underlying our speak underlying like auto really just We with limit commercial

contractor of most seen in umbrella. not the the a in exposure with have not is liability I some that little we've liability the space and seen So trends, think question general and auto that trends in of book umbrella, -- and so the very person of those our asked general earlier umbrella about we

Jeff Schmitt

see. I

Okay.

seeing in kind in do probably I particularly anecdotal lines commercial But mentioned auto. Okay. seeing you -- seeing of active that? evidence the are and plaintiff that more a you're other more have And in know you bar, you'd any past

Craig Kliethermes

in the transportation and insurers public have quite be the auto where business, obviously front been bar can the and typically injuries, not play plaintiff limits we've Those at carry specifically into juries, -- space isolated seen into higher have focused. gruesome very the carry Really least seen in little We that's The autos. usually we limits. a it. been trucks accidents that involved, commercial they of pictures has involved what it's can severe. well is they There's

not something things plaintiff As liability in I maybe don't graphic, those more most that, -- mentioned, off on hasn't of they a closed accidents fell lot not of those job guess involve on they're yet. contractors, our as type that's and the of maybe not complicated, commercial really injuries lot and general like ladder I the a -- they are site, a yet or haven't there's least, little wound bar that umbrella of space, at nibbled photos around running

Operator

We'll question go Compass next ahead Please Bijan of go our with Moazami ahead. Point. from

Bijan Moazami

writing liabilities that the everyone. Is book? morning, up I commercial writing? particular, And question. to book that products big auto to a get there? I'm understanding of are much damage are trying you commercial have coming kind trucking, Good you guys And of what from is a trucks, is write. it? physical how it What cargo auto? In of you is are your how better mostly growth And guys commercial really auto then it follow two in component

Craig Kliethermes

Craig. is this Bijan,

autos, trucks not Public could And charter transportation business specialty types in. of of the So owner other which are not school about we business. buses, kind public buses, really trucking, we're segments, careers operator across auto anything book what to which larger million specialty could call, we business. have, any then a write group, fleet, bus. really three commercial business, to which commercial It's that's typically spread auto individual long ambulances books $XXX of are be from haul

as grown, years far from been we almost come our last has all couple the it's but of rate, growth, rate. As in mostly have so growth of

that what was. I So think was question your

Bijan Moazami

Yeah.

up new picking You're lot a business of there. not

Craig Kliethermes

either new your Well, but retain I the we're portion past, so accounts XX%, we've you're accounts -- you necessarily. that's sector, growth it's in space so a the insured some mostly it's We in. either new that business only in in your know, rapid there's sectors business, we of we niche always new not XXX write play accounts -- narrow XX% not always mean, whole are or about or these business, this of currently fairly

Bijan Moazami

are what trying you're I And into, getting trucks, say, not is you? that was two let's to understand

Craig Kliethermes

not us, growth No taxis... a area no. That's for

Bijan Moazami

Yeah.

to has do question with DIC. other The

much your you PML, clarify in terms writing? And If you could price in how seeing in to then what What's Thank an are DIC you're you. earthquake DIC especially writing finally, products? the California? of

Craig Kliethermes

is going all, of disclosures to by our earthquake again. we mean, first K so I I From our I this Well, shows in DIC, what I Craig this is mean, that think our to -- refer our in PML, have disclosure exposure you that.

relative relative of of to historical our As the percentage far Company. premium. least at the to parts written as pretty small X% Company, overall gross about It's a of our it's overall premium, some

Bijan Moazami

going or that pricing in is down up And segment?

Craig Kliethermes

so pretty going market The because we're we've we a The lot overall pricing, with submissions in. rates up. seeing rates consistent flat are been more are relatively seeing are come our

the because are rates the write. So to market that's business acceptable for level we're new to us more coming seeing

Operator

Mark And from will go ahead. our Instructions] we [Operator Markets. Dwelle next RBC with from go Please question ahead Capital

Mark Dwelle

Yeah. Good morning.

premium a Just which impact loss Can in contracts. ceded earned related line were expense the what to you couple -- you mean, the loss Obviously, that reinsurance or was you of loss ratio was. else? on questions indicated the walk just But quarter items under line had impacted? anything or the the I some through,

Craig Kliethermes

treaty. to Mark, question. sure the understand I'm we I not our I mean, ceded cat I say did

Mark Dwelle

additional any or was with I associated premium like ceded guess, there that? reinstatement anything

Craig Kliethermes

have we are -- our and treaty has -- reinstatement prepaid provision. prepaid per all cat those on is risk No, No. reinstatement no there our

is impact. all top-line no paid. the There So premium was

Mark Dwelle

was below but recent reinsurance Okay. that expenses it related the so I the run Was it had thought well. then apparently session, obviously anything not. The quarter there last below the insurance as outcome? year's operating quarter were to in rate, that perhaps particular to led

Tom Brown

No, Mark, it's actually Brown. things. Tom it's two

ratio. a had our reflect little that bit a top has because impact is arrangements, closer little that and arrangements. particularly I about so to the think Let reform on incentive was expense recall bonus XX% on the me my year's XXXX. opposite. historic if of and over another This impact compensation catastrophes, tax probably of was a head off on the The the norms back direct our kind go It impact of Michael I

demonstrates expense of with full year this and lower the amount So really think they aligned that, which for a truly the compensation are arrangements, really by XX% the performance. alignment when I ratio our is quarter the about we underwriting impacted talk

So are reasons line the those I this more in catastrophe two with to XXs be event low expense short expectations the a ratio primary another ratio. XX year think the would to And have for overall compared year. last lower of --

Mark Dwelle

be And reason just quarter, of whatnot? that for prior accruals a lower reversal same general bit probably would the or expense little then the corporate in

Tom Brown

Yeah. It impacts lines, correct. both

Operator

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

Jon Michael

all. you good year. quarter, good Thank A a

extreme year, talk forward the hallmarks our of shareholders. Thanks. attending In to remain for over year The premiums to to That's of to For about continuing $XX we underwriting in-spite time Michael ratio of income were up premiums need, our million, next of our our during policy XXrd up the you all investment and XX%, investment consecutive to past you their combined income our associates losses while year delivered were quarter. Discipline XX%. XX.X look and XX%. diversification was the quarter, of profitability. model. Thank up deliver XX%,

Operator

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

RLI (RLI) 24 Jan 192018 Q4 Earnings call transcript