Description

RLI Corporation: Inside the Underwriting Discipline That Powers Consistent Profits & What It Signals Next!

RLI Corp’s recent financial performance illustrates a complex but strategically navigated environment. The third quarter results reveal an 85% combined ratio, reflecting underwriting profitability across all segments. The company has managed to grow its book value per share by 26% year-to-date, facilitated by an 84 combined ratio and double-digit growth in investment income, ultimately achieving a return on equity exceeding 20%. Positively, RLI’s casualty segment experienced favorable growth. Net earnings in the third quarter rose to $1.35 per share, compared to $1.03 per share in the same quarter of 2024, driven by solid underwriting and investment performance. The casualty segment saw an 8% growth in gross premiums, benefiting from favorable reserve development and a reduced current accident year loss ratio compared to last year. This growth highlights RLI’s strategic focus on rate increases and expanding niche products.