RLI Corp. (NYSE:RLI)

CAPS Rating: 5 out of 5

The Company offers specialty insurance coverage designed to meet specific insurance needs of targeted insured groups and underwrites particular types of coverage for certain markets that are underserved by the insurance industry.

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Member Avatar CheerUp (65.86) Submitted: 1/28/2014 10:19:40 PM : Outperform Start Price: $42.14 RLI Score: -2.29

Specialty Property, Casualty, Surety Insurer. $1.8B cap. Profitable every year. Dividend growth every year. Highly efficient (consistently low combined ratio). Disciplined risk-management means no huge losses from earthquakes or hurricanes. Firming product pricing. Forward dividend 1.5% BUT end-of-year special dividend paid last 4 years. Officers, employees are shareholders. Focus on returning value to shareholders. Stock up 50% in 2013, currently down 20% from all time high due to (then) high PE. Another huge quarter surprise (Q4 2013) and the stock got kicked to the curb. Jan 15, 2014 two for one split. Just 2 CEOs over 55 year history.

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Member Avatar BaseBawl (46.53) Submitted: 10/2/2013 8:08:35 AM : Outperform Start Price: $42.07 RLI Score: -8.14

Amy Calistri hidden yield due to unbalanced dividend payout.

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Member Avatar Seek100 (31.84) Submitted: 12/23/2011 2:16:32 PM : Outperform Start Price: $32.00 RLI Score: -12.78

great insurance company with dividend and special dividend when they have excess cash. Great combine ratio for years. Great company to hold with dividend and to wait for the eventual "hard" market for insurance.

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Member Avatar WillSurfForFood (88.33) Submitted: 12/21/2011 5:15:27 PM : Outperform Start Price: $31.90 RLI Score: -14.01

amazing 20 year run, have a look at the long term chart.

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Member Avatar KCinAustria (< 20) Submitted: 12/8/2011 4:00:01 PM : Outperform Start Price: $30.14 RLI Score: -6.32

Why I bought RLI today:
1) Profit margins rising and as high as 20%; consistently over 10% the last 10 years
2) ROE historically between 10-20%, typically around 15%
3) An easy to understand business (insurance) that won't be going away in the next decade (or century).
4) Not a capital intensive industry (in fact, about the opposite).
5) Significantly higher profit margins than competitors (such as Travelers), and a lower P/E ratio.
6) Have a solid enough balance sheet to provide a special dividend 2 straight years.
7) Management is shareholder friendly enough to give special dividends.
8) Management gives an annual dividend (currently a 1.7% yield) which has been steadily rising, and the payout ratio is well under 50%
9) Based on 130M owner earnings, and an 8% discount rate, and 3% growth forever, they're worth 2.6B. I estimate their intrinsic value at 3B, and their current market cap is 1.47B. (In other words, there's a reasonable margin of safety.)
10) They actually are consistently profitable from their underwriting business (ie, combined ratio is less than 100%)
11) They're flying under the radar, and insurance isn't exactly a 'high flying' industry at the moment.

NOTE: I calculate owner earnings as Income+Depreciation&Amort-Capital Expenses.

FULL DISCLOSURE: Should be obvious, but I am LONG RLI. I have no shares of TRV. I do not short any company, nor do any of the puts/calls stuff.

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Member Avatar mukwonago53149 (< 20) Submitted: 1/16/2011 10:46:03 PM : Outperform Start Price: $20.64 RLI Score: +64.40

http://www.fivecentnickel.com/2011/01/10/investing-in-the-dividend-champions/

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Member Avatar drum1234 (70.34) Submitted: 1/8/2011 12:46:45 PM : Outperform Start Price: $20.61 RLI Score: +61.74

One of the best over the long term.

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Member Avatar PearlandTX (96.38) Submitted: 12/20/2010 7:44:28 PM : Outperform Start Price: $20.60 RLI Score: +60.01

solid performer. share price recently dropped far more than the amount of a $7 special-dividend.

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Member Avatar Whoovzdaman (< 20) Submitted: 7/8/2008 5:19:30 PM : Underperform Start Price: $18.81 RLI Score: -78.10

asdf

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Member Avatar Colli002 (73.73) Submitted: 5/3/2008 5:50:32 AM : Outperform Start Price: $18.47 RLI Score: +95.99

Good Value play - stable growth

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Member Avatar ersaco (< 20) Submitted: 3/6/2007 4:01:26 PM : Outperform Start Price: $20.16 RLI Score: +71.95

Niche Player, good track record

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Member Avatar ratskins (82.46) Submitted: 12/28/2006 8:55:05 PM : Outperform Start Price: $20.87 RLI Score: +67.15

I am surprised to see RLI has no rating as of 12/28/06. It is up for me 58% in 2.5 years and is surprisingly non-volatile. It has minimal debt, does not dilute is shares, and has profit margins pushing 20%, as well as long term consistent growth.

Results 1 - 12 of 12

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