RLI Corp. is set to report Q4 earnings, with analysts predicting a decline in earnings per share but an increase in revenue.
Peoria: RLI Corp. is gearing up to share its Q4 earnings report soon. Analysts are expecting the company to post earnings of about $0.95 per share. That’s a drop of 38.3% from last year. But on the bright side, revenues are projected to hit around $436.37 million, which is a nice 15.3% increase compared to the same time last year.
Interestingly, the earnings estimate has been slightly adjusted down by 0.2% over the last month. This shows that analysts have been rethinking their earlier predictions. It’s always good to keep an eye on these changes before the earnings are released, as they can really influence how investors react.
When it comes to understanding how a company is doing, looking at these earnings estimates is key. They often give a clearer picture of what might happen with the stock price in the short term. So, let’s dive into what the analysts are saying about RLI Corp.’s key metrics.
For starters, analysts think the ‘Net premiums earned’ will be around $398.26 million, which is a 15.1% increase from last year. They also expect ‘Net investment income’ to reach about $38.11 million, marking a 17.1% rise.
Looking at the property segment, the ‘Net premiums earned’ is estimated to be $136.52 million, up 17.8% from the previous year. Meanwhile, the surety segment is projected to bring in $38.22 million, a 12.4% increase.
On the expense side, analysts are predicting an ‘Expense Ratio- Total’ of 38.6%, down from 40.4% last year. For the ‘Loss Ratio- Total’, they expect it to be around 57.9%, which is a jump from 42.3% last year.
As for the ‘Combined Ratio (Underwriting income ratio) – Total’, the estimate is 96.5%, compared to 82.7% last year. The surety combined ratio is expected to be 82.2%, down from 84.9% last year, while the property combined ratio is projected at 88.7%, a significant rise from 54.5% last year.
Lastly, the consensus for the ‘Combined Ratio – Casualty’ is 105.6%, up from 99% last year. The ‘Expense Ratio – Property’ is estimated at 31.8%, down from 35% last year, and the ‘Expense Ratio – Casualty’ is expected to be 36.7%, slightly better than the 37% reported last year.
In the past month, RLI Corp. shares have dipped by 6%, while the S&P 500 composite has seen a smaller drop of 3.3%. With a Zacks Rank of #3 (Hold), it looks like RLI will perform in line with the market in the near future.
