On Dec 31, 2014, shares of RLI Corp. (RLI) hit a 52-week high of $50.68, driven by an effective capital deployment, product launch and as well as solid quarterly performances. With 0.2 million shares exchanging hands in the last trading session, the stock finally closed at $49.40. The stock returned 1.96% in one-year period.
To return more value to its shareholders, the board of directors approved a special dividend of $3 per share. RLI Corp. has been paying special dividends to its shareholders over the past few years. This is in addition to the company’s regular dividend payout, which currently yields 1.46%. RLI Corp. has been paying regular dividend for 154 straight quarters. It has also increased dividends in each of the last 39 years.
To better serve customers, RLI Corp. launched its Healthcare Liability Division, offering coverages for integrated hospital systems, long-term care facilities, outpatient care facilities and clinical research providers. This initiative will not only benefit customers with enhanced product offering but also help to open avenues for growth.
With respect to its performance this Zacks Rank #3 (Hold) property and casualty insurer delivered positive earnings surprises in three of the last four quarters with an average beat of 18.58%.
The Zacks Consensus Estimate for 2014 witnessed upward revisions on this slew of positives. It increased 1.6% to $2.51 over the last 60 days. The expected long-term earnings growth rate is currently pegged at 8%.
Other Stocks to Consider
Better-ranked property casualty insurers worth consideration include AmTrust Financial Services, Inc. (AFSI), W.R. Berkley Corp. (WRB) and Arch Capital Group Ltd. (ACGL). All these sport Zacks Rank #1 (Strong Buy).
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