PEORIA, Ill. (AP) -- Insurance company RLI Corp. said Wednesday that it will spend $105 million on a special dividend for its shareholders.
The cash dividend of $5.00 per share is in addition to its regular quarterly cash dividend of 32 cents per share. Both dividends are payable on Dec. 20 to shareholders of record as of Nov. 30.
CEO Jonathan Michael said the company was able to make the payment given its strong balance sheet, solid cash position and confidence in its business. RLI has returned more than $570 million to shareholders since the beginning of 2008 in the form of dividends and share repurchases.
RLI also said Wednesday that it expects pre-tax losses from Hurricane Sandy in the range of $15 million to $20 million. The estimate is based on reported claim activity to date and projections based on the company's catastrophe management systems, so actual losses may be different.
The specialty insurance company, based in Peoria, Ill., offers property and casualty coverage and surety bonds for niche and underserved markets across the country.