In a report released yesterday, Randy Binner from B.Riley FBR reiterated a Hold rating on RLI Corp (RLI), with a price target of $69. The company’s shares closed yesterday at $87.29, close to its 52-week high of $91.49.
Binner noted:
“RLI Corp. (RLI) reported 2Q19 operating EPS of $0.66 versus B. $0.53/ $0.62. The beat to our model was mainly driven by better-than-expected reserve release in the casualty segment (~$0.08/sh) and surety segment (~$0.04/sh), higher Maui Jim earnings, and less cat loss than anticipated. Overall net premiums written were +1.9% Y/Y , compared to +0.4% forecast. Favorable reserve development was better at $17.8M versus our pretax forecast of $12.5M. The underlying combined ratio was 99.5%, compared to our forecast of 97.9% hurt by a higher loss pick in property and a higher expense ratio. Net investment income was in line with our forecast.”
According to TipRanks.com, Binner is a 5-star analyst with an average return of 13.2% and a 67.0% success rate. Binner covers the Financial sector, focusing on stocks such as American Equity Investment Life, Colony Credit Real Estate Inc, and Health Insurance Innovations.
Currently, the analyst consensus on RLI Corp is a Hold with an average price target of $72.
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Based on RLI Corp’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $65.47 million. In comparison, last year the company had a net profit of $33.25 million.
Based on the recent corporate insider activity of 81 insiders, corporate insider sentiment is negative on the stock.
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RLI Corp. operates as a holding company, which engages in the provision of insurance and underwriting services. It operates through the following segments: Casualty, Property and Surety. The Casualty segment offers healthcare and transportation insurance.
