PEORIA, Ill. - RLI Corp . (NYSE:RLI), a specialty insurance company, has declared a special cash dividend of $4.00 per share and a regular quarterly dividend of $0.29 per share. The total payout for the special dividend is estimated to be around $183 million. Additionally, the company has announced a two-for-one stock split.
Shareholders of record by November 29, 2024, will be eligible for both dividends, payable on December 20, 2024. The stock split is scheduled for shareholders on record as of December 31, 2024, with the distribution of new shares set for January 15, 2025. Trading on a post-split basis will commence on January 16, 2025. Dividends will be distributed based on the pre-split stock count.
RLI Corp's President and CEO, Craig W. Kliethermes, expressed satisfaction in delivering significant returns to shareholders, attributing the company's ability to do so to disciplined underwriting and robust capital management, even in the face of an active hurricane season.
RLI Corp specializes in property, casualty, and surety insurance for niche markets, operating through its subsidiaries RLI Insurance Company, Mt. Hawley Insurance Company, and Contractors Bonding and Insurance Company. The subsidiaries have an A+ Superior rating from AM Best Company. RLI has a history of increasing regular dividends for 49 consecutive years and has reported underwriting profits for 28 straight years.
This financial update is based on a press release statement from RLI Corp.
In other recent news, RLI Corp, a specialty insurance company, reported a strong third quarter. Despite significant hurricane activity, RLI Corp's operating earnings were $1.31 per share, with a 15% increase in investment income. The firm's gross premiums rose by 13%, led by growth in the Casualty, Surety, and Property segments. The company's comprehensive earnings reached $3.79 per share, and the book value per share increased to $38.17, marking a 26% rise from the end of 2023.
RLI Corp also highlighted its commitment to underwriting discipline and strategic investments for growth. Despite a softening property market and the anticipated significant pretax losses due to Hurricane Milton, the company remains optimistic about future opportunities. Investments in staff, training, and technology are expected to drive profitable growth.
The firm is actively educating producers about its personal umbrella and transportation offerings. Even with competitive pressures and economic challenges, RLI Corp continues to demonstrate resilience and a strategic focus on underwriting discipline, coupled with technology and staff development investments. These recent developments underscore the company's ability to navigate market disruptions and maintain strong relationships with producers.
InvestingPro Insights
RLI Corp's recent announcement of a special dividend and stock split aligns with its strong financial performance and shareholder-friendly policies. According to InvestingPro data, RLI boasts a market capitalization of $7.63 billion and an impressive revenue growth of 22.63% over the last twelve months as of Q3 2024. This growth trajectory supports the company's ability to offer substantial returns to shareholders.
An InvestingPro Tip highlights that RLI has maintained dividend payments for 49 consecutive years, which is consistent with the information provided in the article. This long-standing commitment to dividends underscores the company's financial stability and dedication to shareholder value.
Another relevant InvestingPro Tip indicates that RLI is trading near its 52-week high, reflecting investor confidence in the company's performance and outlook. This aligns with the positive sentiment expressed by CEO Craig W. Kliethermes regarding the company's disciplined underwriting and capital management.
The company's price-to-earnings ratio of 18.13 suggests a reasonable valuation, especially considering its strong growth metrics. Additionally, RLI's operating income margin of 29.45% for the last twelve months ending Q3 2024 demonstrates its operational efficiency, which likely contributes to its ability to maintain consistent dividend payments and offer special dividends.
For investors seeking more comprehensive insights, InvestingPro offers 10 additional tips for RLI Corp, providing a deeper understanding of the company's financial health and market position.
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