RLI Corp. (NYSE:RLI)

Seek100 (26.76) Submitted: 12/23/2011 2:16:32 PM : Start Price: $66.98 RLI Score: -21.87

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.

WillSurfForFood (88.56) Submitted: 12/21/2011 5:15:27 PM : Start Price: $66.76 RLI Score: -23.01

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

KCinAustria (< 20) Submitted: 12/8/2011 4:00:01 PM : Start Price: $63.08 RLI Score: -16.71

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.

Profesrebel (38.71) Submitted: 2/13/2011 6:41:30 PM : Start Price: $46.71 RLI Score: +32.65

great valuation number, profitability, and insider buying

mukwonago53149 (< 20) Submitted: 1/16/2011 10:46:03 PM : Start Price: $43.20 RLI Score: +41.72

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

drum1234 (71.84) Submitted: 1/8/2011 12:46:45 PM : Start Price: $43.15 RLI Score: +39.31

One of the best over the long term.

PearlandTX (97.62) Submitted: 12/20/2010 7:44:28 PM : Start Price: $43.12 RLI Score: +37.74

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

Whoovzdaman (< 20) Submitted: 7/8/2008 5:19:30 PM : Start Price: $39.37 RLI Score: -52.45

asdf

Colli002 (73.92) Submitted: 5/3/2008 5:50:32 AM : Start Price: $38.66 RLI Score: +68.19

Good Value play - stable growth

ersaco (< 20) Submitted: 3/6/2007 4:01:26 PM : Start Price: $42.19 RLI Score: +48.11

Niche Player, good track record