RLI Corp. RLI reported third-quarter 2020 operating earnings of 42 cents per share against the Zacks Consensus Estimate of a loss of 10 cents per share. However, the bottom line plunged 26.3% from the prior-year quarter.The company’s Casualty and Surety segments delivered solid performances in the quarter. Nonetheless, an active hurricane season weighed on the upside.The company’s results benefited from higher premiums, offset by higher expenses.RLI Corp. Price, Consensus and EPS Surprise RLI Corp. price-consensus-eps-surprise-chart | RLI Corp. QuoteOperational PerformanceOperating revenues for the reported quarter were $233 million, up 1.7% year over year. This upside can be attributed to higher net premiums earned, partially offset by reduced net investment income. However, the top line missed the Zacks Consensus Estimate by 1.3%.Gross premiums written increased 9.3% year over year to $302.9 million. This uptick can be attributed to solid performance of Casualty, Surety and Property segments. Net premiums written of $235 million increased 6.5% on a year-over-year basis, primarily due to higher premiums written in the Casualty and Property segments.However, net investment income declined 5.6% year over year to $16.5 million.Total expenses increased 8.9% year over year to $220 million, primarily due to higher loss and settlement expenses, interest expense on debt and general corporate expenses.The company reported underwriting income of $1.2 million, which decreased 91.2% from the year-ago period primarily due to weak performance of the Property segment, partially offset by solid performance of the Casualty and Surety segments.Combined ratio deteriorated 600 basis points (bps) year over year to 99.5%.Financial UpdateThe company exited the third quarter with total investments and cash of $2.7 billion, up 7.3% from 2019 end.Book value was $24.40 per share as of Sep 30, 2020, up 10% from the figure as of Dec 31, 2019.Long-term debt was $149.4 million, which inched up 0.1% from 2019 end.Statutory surplus increased 1.7% to $1.05 billion as of Sep 30, 2020 from the figure as of Dec 31, 2019.Return on equity was 16.9%, reflecting a contraction of 490 bps year over year.Net cash flow provided by operations was $79.5 million in the quarter under review, down 2.4% from the year-ago period.Dividend UpdateOn Sep 18, the company paid out a cash dividend of 24 cents per share, the same amount as the prior quarter. Dividends totaled more than $532 million in the last five years.Zacks Rank & Performance of Other InsurersRLI currently carries a Zacks Rank #5 (Strong Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Among other insurance industry players, which have reported third-quarter earnings so far, the bottom line of The Progressive Corporation PGR, The Travelers Companies TRV and W. R. Berkley WRB beat the Zacks Consensus Estimate for earnings.Breakout Biotech Stocks with Triple-Digit Profit PotentialThe biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Travelers Companies, Inc. (TRV): Free Stock Analysis Report W.R. Berkley Corporation (WRB): Free Stock Analysis Report RLI Corp. (RLI): Free Stock Analysis Report The Progressive Corporation (PGR): Free Stock Analysis Report To read this article on Zacks.com click here.