Read Larry Connors' blog – Short Term Trading Strategies
While the operating profit of $28.7 million, or $1.32 a share, was 14.2 percent below the profit of $33.4 million, or $1.53 a share, in the second quarter of 2008, company officials lauded company efforts during the continuing downturn.
"The results of the second quarter show that we effectively managed challenging market and economic conditions," said CEO Jonathan E. Michael in a prepared statement. "Our underwriting skill, financial discipline and new product initiatives position us to achieve growth as market conditions improve."
Unlike the first quarter, RLI realized gains in investments in the second quarter, which helped the company post a net profit of $34.1 million, or $1.57 a share in the quarter, 11.8 percent below the net profit of $38.7 million, or $1.77 a share, in the second quarter last year.
RLI posted a net loss of $1.8 million in the first quarter this year because of heavy investment losses. That helped bring down first-half profits by nearly 50 percent, but the company nonetheless had a net profit of $32.3 million, or $1.48 a share in the first six months, compared with $64.1 million, or $2.91 a share, last year.
RLI said it began focusing its asset allocation "on limiting the impact of volatility in the equity markets, while placing a higher portfolio allocation to short-term investments."
Operating profit for the first six months was $51.1 million, compared with $56.4 million in the first half of 2008, a decline of 9.4 percent.
RLI had underwriting income of $25.1 million in the second quarter on a combined ratio of 79.5 (the amount of claims divided by earned premiums), compared with underwriting income of $29.1 million on a combined ratio of 78 during the second quarter of 2008.
Underwriting income was down slightly in each of three main categories, including casualty, property and surety policies, the company said.
RLI paid a second-quarter cash dividend of 27 cents a share on July 15, a one-cent increase over the prior quarter's dividend.
The company announced that, during the quarter, its A-plus rating by A.M. Best was reaffirmed by the industry rating agency. A.M. Best attributed the rating to "superior capitalization, outstanding long-term operating profitability and financial flexibility."
Also, on July 6, RLI was named to Ward's 50 Top P&C Performers group for the 19th consecutive year. RLI is one of only five property and casualty insurers, from among more than 3,100 companies, to be recognized every year since the group's inception in 1991.
Paul Gordon can be reached at 686-3288 or pgordon@pjstar.com
To see more of the Journal Star or to subscribe to the newspaper, go to http://www.pjstar.com. Copyright (c) 2009, Journal Star, Peoria, Ill. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
