RLI stays on special dividend streak despite 2020 industry challenges

US specialty insurer RLI Corp has declared a special cash dividend for the 11th year in a row that will see investors receive $1.00 per share for a total payout of around $45mn, as well as a regular quarterly cash dividend of $0.24 per share.

The dividends will be paid out on 18 December to shareholders of record as of 30 November.

Commenting on the payouts, RLI chairman and CEO Jonathan Michael said: “Despite the challenges that 2020 has presented, RLI has proven to be resilient and persistent in its commitment to creating value for all stakeholders.”

He added: “Our strong financial performance this year has enabled us to return over $45mn to shareholders, and we remain focused on identifying profitable growth opportunities.”

The executive said that, including the latest announced dividends, RLI has returned more than $1.1bn to shareholders over the last ten years.

The Peoria, Illinois-based insurer is on course for 45 straight years of regular cash dividend increases, with a 5.1 percent growth rate over the last 10 years, based on its run rate as of May this year.

It also boasts average annual growth in book value per share of 16.7 percent over the last 10 years, including dividends.

Its strong performance has included 24 consecutive years of a sub-100 combined ratio and average operating return on equity over the last decade of 12.4 percent.

RLI reported Q3 earnings that significantly outperformed analysts’ expectations and provided bullish commentary on pricing, including in the booming E&S market.

The carrier had been expected to break even on operating earnings per share for the third quarter – based on Wall Street consensus forecasts – but instead reported $0.42 operating earnings per share.