Key Takeaways RLI beat Q2 earnings and revenue estimates on premium growth and higher investment income.Favorable reserve development supported Property and Surety results despite higher catastrophe losses.Weaker Casualty underwriting and higher expenses partly offset strength, while share buybacks continued. RLI Corp. (RLI - Free Report) reported second-quarter 2026 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate by 16.9%. The bottom line increased 1.2% from the prior-year quarter.
The quarterly results reflect continued premium growth, higher investment income and favorable prior-year reserve development. However, weaker underwriting performance in the casualty segment partly offset these positives.
Operational PerformanceOperating revenues for the reported quarter were $463 million, up 4.9% year over year, driven by higher net premiums earned and net investment income. The top line beat the Zacks Consensus Estimate by 1.6%.
Gross premiums written (GPW) increased 3.1% year over year to $579.7 million, driven by strong growth in the casualty segment. Our estimate was $592.9 million.
Net investment income increased 16.8% year over year to $46 million. The Zacks Consensus Estimate was $42.7 million, while our estimate for the metric was pegged at $40.7 million. The investment portfolio’s total return was 3.4% in the second quarter.
Total expenses increased 6.4% year over year to $367.9 million, primarily due to higher policy acquisition costs, insurance operating expenses and interest expense on debt. Our estimate was $376.8 million.
Underwriting income fell 3.7% year over year to $59.9 million. Our estimate was $53.1 million. The combined ratio deteriorated 110 basis points year over year to 85.6, reflecting higher catastrophe losses. Our estimate was 87.2.
Segmental ResultsCasualty lines’ GPW rose 10.6% year over year to $339 million. The figure was above our estimate of $338.1 million.
The underwriting income decreased significantly to $1.7 million from $8.3 million, down 79% year over year. The combined ratio deteriorated 280 bps year over year to 99.3%. The figure was above our estimate of 98.4%.
Property lines’ GPW fell 5.9% year over year to $199.3 million. The figure was below our estimate of $207.7 million.
The underwriting income increased to $53.5 million, up 8.1%, supported by favorable reserve development. The combined ratio improved 530 bps year over year to 56.8%. Our estimate was 65.2%.
Surety lines’ GPW declined 5.7% year over year to $41.4 million. The figure was below our estimate of $47.1 million.
The underwriting income improved 5.4% year over year to $4.7 million. The combined ratio improved 70 bps year over year to 87.2%. Our estimate was 84.8%.
RLI's Financial UpdateRLI exited the second quarter with total investments and cash of $4.9 billion, up 4.5% from 2025-end level.
Book value was $19.09 per share as of June 30, 2026, up 11% from Dec. 31, 2025.
Net cash flow from operations was $145.2 million, down 16.9% year over year.
The statutory surplus increased 5.2% from 2025-end to $1.94 billion as of June 30, 2026.
Return on equity was 24.5%, expanding 480 bps from the year-ago period.
RLI’s Capital Deployment UpdateOn June 12, 2026, the insurer paid a regular quarterly dividend of 18 cents per share for the second quarter. RLI’s cumulative dividends totaled more than $1.3 billion over the last five years.
On May 14, 2026, the board of directors approved a $250 million share repurchase program. The company repurchased 0.2 million shares for $12 million during the second quarter. As of June 30, 2026, $238 million remained available under the authorization.
RLI’s Zacks RankRLI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Another InsurerFirst American Financial Corporation (FAF - Free Report) reported second-quarter 2026 operating earnings of $2.08 per share, which beat the Zacks Consensus Estimate by 15.6% and rose 35.9% year over year. Operating revenues climbed 15% to $2.1 billion, driven by growth in direct premiums, escrow fees, and Information and other revenues. The top line surpassed the consensus estimate by 4.4%.
Direct premiums and escrow fees reached $794.1 million, marking a 14.8% increase from the prior-year level. Investment income totaled $183.7 million in the second quarter, up 14.7% year over year. The figure exceeded both our estimate and the Zacks Consensus Estimate of $182.3 million.
The Travelers Companies, Inc. (TRV - Free Report) reported second-quarter 2026 core income of $10.04 per share, which beat the Zacks Consensus Estimate of $5.21 by 92.7%. The bottom line climbed 54% year over year. Revenues of $12.09 billion missed the Zacks Consensus Estimate of $12.27 billion by 1.5%.
Net investment income rose 14% year over year to $1.07 billion pre-tax ($883 million after tax). The combined ratio improved 670 basis points year over year to 83.6%, reflecting lower catastrophe losses, stronger reserve development and a better underlying combined ratio.
W.R. Berkley Corporation (WRB - Free Report) reported second-quarter 2026 operating income of $1.27 per share, which beat the Zacks Consensus Estimate by 16.5%. The bottom line increased 21% year over year. Operating revenues totaled $3.8 billion, up 3.6% year over year. The top line surpassed the consensus estimate by 1.87%.
W.R. Berkley’s net premiums written were about $3.4 billion, up 2.4% year over year. The figure surpassed our estimate of $3.4 billion. The consolidated combined ratio (a measure of underwriting profitability) improved 160 basis points year over year to 90, missing the Zacks Consensus Estimate of 92.
Palomar’s High-Risk Insurance Strategy Is Paying Off BigRLI NYSE: RLI reported another quarter of profitable underwriting and higher investment income, with management emphasizing disciplined growth, capital returns and selectivity in increasingly competitive specialty insurance markets.
President and Chief Executive Officer Craig Kliethermes said the company generated an 86 combined ratio, grew gross premiums written by 3%, increased net investment income by 17% and produced a 25% return on equity during the second quarter. He also noted that RLI returned capital to shareholders through both a special dividend and share repurchases.
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3 Recession-Resistant Stocks: Low Beta, High Margins, Low Debt“Markets change; our principles don’t,” Kliethermes said, pointing to underwriting discipline, relationships with producers and insureds, and capital management as key drivers of the company’s performance.
Operating Earnings Edge Higher as Investment Income Rises Chief Financial Officer Aaron Diefenthaler said RLI reported second-quarter operating earnings of $0.83 per share, compared with $0.82 per share in the prior-year period. On a GAAP basis, net earnings were $1.82 per share, up from $1.34 per share a year earlier.
Don't Overlook Hidden Gem Kinsale As Rallies To New HighsThe gap between operating and net earnings was largely driven by the company’s equity portfolio. Diefenthaler said RLI recognized $103 million of unrealized gains on equity securities in the quarter, compared with $44 million last year. Realized gains totaled $9 million, which he described as reflecting modest portfolio rebalancing.
Underwriting income was $59.9 million. The company’s combined ratio was 85.6, compared with 84.5 last year. The loss ratio improved by 0.4 percentage points to 45.5, while the expense ratio increased 1.5 points to 40.1 due to personnel-related costs, acquisition expenses and technology investments.
Results included $39.8 million of favorable development on prior-year loss reserves, compared with $27.6 million in the second quarter of 2025. The quarter also included $10 million of net incurred losses from 2026 catastrophe events.
Net investment income increased 17% to $46 million. Diefenthaler said operating cash flow of $145 million supported fixed-income purchases with yields averaging 4.9% during the quarter. Total investments and cash were approximately $4.9 billion at quarter-end.
Casualty Growth Led by Umbrella and Transportation Chief Operating Officer Jen Klobnak said casualty premium rose 11% in the quarter, with rates up 10%. Personal umbrella and transportation were the primary drivers.
Personal umbrella premium increased 26%, supported by a 17% rate increase. Klobnak said the rate increase was influenced by higher approved rate filings in California and Florida, though she expects rate increases in the second half of the year to moderate as some filings earn through the book. She said the company has also targeted growth in non-coastal states, which RLI views as more favorable from a litigation standpoint.
Transportation premium rose 19%, including an 8% rate increase. Klobnak said some accounts renewed at or near expiring pricing because of strong account performance and prior rate actions. She also said new claim counts continued to decline for the second consecutive year, contributing to management’s confidence and supporting a reserve release in the quarter.
Casualty brokerage premium declined 6% amid greater competition from other excess and surplus carriers, managing general agents and standard markets. Klobnak said producers and insureds are seeking broader coverage for less rate, while RLI is “picking our spots.”
The casualty segment posted a 99.3 combined ratio, helped by $13 million of favorable development on prior-year reserves. Diefenthaler said contributors to favorable development included excess liability, transportation, the Professional Services Group and Executive Products.
Property Premium Declines as Competition Increases RLI’s property segment produced a 56.8 combined ratio, benefiting from lighter catastrophe activity and favorable prior-year development. Property gross premium fell 6% as competitive dynamics persisted in the excess and surplus property market.
Klobnak said the market has become increasingly competitive, with some submissions being sent to more than 45 markets. She said standard markets are re-entering classes they exited during the recent hard market and offering broader terms for less premium.
Despite rate pressure, Klobnak said RLI’s underwriters are still achieving pricing near the company’s benchmark, which she said equates to its targeted risk-adjusted return. She said the company is holding the line on terms and conditions that will matter when claims are handled after losses occur. Renewal retention in property has declined to just under 70%.
Hawaii homeowners premium grew 9%, including a 12% rate increase. Marine premium increased 7%, including a 1% rate increase, in what Klobnak described as an increasingly competitive market.
Surety Premium Falls, but Underwriting Remains Profitable Surety premium declined 6% in the quarter. Klobnak attributed the decline primarily to moderating renewable energy construction activity, customs bonds that required larger limits last year, and RLI’s decision to exit some larger accounts where management no longer believed risk-adjusted returns justified the exposure.
The surety segment posted an 87.2 combined ratio, modestly better than last year and supported by $3.4 million of favorable development. Diefenthaler said the loss ratio improvement was partly offset by a three-point increase in the expense ratio due to infrastructure investments and higher acquisition expenses.
Klobnak said surety loss ratios are beginning to move higher across the industry, particularly in construction and some renewable energy projects, though she said RLI has not seen those losses in its own book. She said the company wants to keep its book “clean” so it can take advantage of opportunities if market disruption develops.
Capital Returns Include Special Dividend and Buybacks RLI paid a regular quarterly dividend of $0.18 per share and a $2.00 special dividend, returning just over $200 million to shareholders. The company also authorized a new $250 million share repurchase program.
Diefenthaler said RLI repurchased approximately 235,000 shares during the quarter at an average price of $51.25. About $238 million remained available under the authorization at June 30. He described buybacks as a complementary way to return capital, not necessarily a replacement for special dividends, and said there is no set timetable for using the remaining authorization.
Comprehensive earnings were $166 million, or $1.80 per share, compared with $143 million, or $1.55 per share, last year. Adjusting for dividends and share repurchases, book value per share increased 11% from year-end 2025.
Management also emphasized service and relationships as competitive advantages. Klobnak said RLI is using technology to improve efficiency but continues to prioritize direct engagement with producers and insureds. Kliethermes said the company’s culture is built around ownership and long-term value creation, adding that RLI will invest when it can generate attractive returns and return capital when it cannot.
About RLI (NYSE:RLI)RLI Corporation NYSE: RLI is a specialty property and casualty insurance company focused on underwriting niche risks for businesses and individuals. Headquartered in Peoria, Illinois, the company operates through a network of independent agents and brokers, offering customized coverage solutions. RLI's approach emphasizes disciplined underwriting, targeted product development and strong customer service to maintain profitability and long-term growth.
Founded in 1965 as Replacement Lens, Inc, RLI initially provided insurance for contact lens manufacturers before shifting its focus to specialty insurance in the 1980s.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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RLI Corp. (RLI - Free Report) came out with quarterly earnings of $0.83 per share, beating the Zacks Consensus Estimate of $0.71 per share. This compares to earnings of $0.84 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +16.90%. A quarter ago, it was expected that this specialty insurance company would post earnings of $0.85 per share when it actually produced earnings of $0.83, delivering a surprise of -2.35%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
RLI Corp., which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $463.14 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.61%. This compares to year-ago revenues of $441.32 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
RLI Corp. shares have lost about 5.9% since the beginning of the year versus the S&P 500's gain of 9.7%.
What's Next for RLI Corp.?While RLI Corp. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for RLI Corp. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.54 on $458.53 million in revenues for the coming quarter and $2.75 on $1.83 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the bottom 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
HCI Group (HCI - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This property and casualty insurance holding company is expected to post quarterly earnings of $5.08 per share in its upcoming report, which represents a year-over-year change of -1.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
HCI Group's revenues are expected to be $240.67 million, up 8.5% from the year-ago quarter.
RLI Corp. (RLI - Free Report) reported $463.14 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 4.9%. EPS of $0.83 for the same period compares to $0.84 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $455.81 million, representing a surprise of +1.61%. The company delivered an EPS surprise of +16.9%, with the consensus EPS estimate being $0.71.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how RLI Corp. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net operating expenses - Total: 40.1% versus the four-analyst average estimate of 39.2%.Net loss & settlement expenses - Total: 45.5% versus the four-analyst average estimate of 49.7%.Underwriting income (loss) - Total: 85.6% versus 88.8% estimated by four analysts on average.Underwriting income (loss) - Surety: 87.2% versus the three-analyst average estimate of 89.1%.Underwriting income (loss) - Property: 56.8% versus 66.9% estimated by three analysts on average.Underwriting income (loss) - Casualty: 99.3% compared to the 99.1% average estimate based on three analysts.Net operating expenses - Property: 35.2% compared to the 33.9% average estimate based on two analysts.Net premiums earned: $417.1 million versus $411.24 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +3.8% change.Net investment income: $46.04 million compared to the $42.71 million average estimate based on four analysts. The reported number represents a change of +16.8% year over year.Net premiums earned- Property: $123.79 million versus the three-analyst average estimate of $118.33 million. The reported number represents a year-over-year change of -5.3%.Net premiums earned- Surety: $36.39 million compared to the $38.21 million average estimate based on three analysts. The reported number represents a change of -0.6% year over year.Net premiums earned- Casualty: $256.92 million versus $254.58 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +9.5% change.View all Key Company Metrics for RLI Corp. here>>>
Shares of RLI Corp. have returned +11.8% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
PEORIA, Ill.--(BUSINESS WIRE)-- #casualtyinsurance--RLI reported second quarter 2026 net earnings of $168.0 million, or $1.82 per share, and operating earnings of $76.9 million, or $0.83 per share.
PEORIA, Ill.--(BUSINESS WIRE)--RLI Corp. (NYSE: RLI) announced today that James H. Bradshaw has been appointed to its Board of Directors. His appointment is effective July 15, 2026, and expires at RLI’s next shareholders’ meeting in May 2027, at which time he will stand for re-election.
“His extensive industry experience, strategic perspective and deep understanding of RLI’s business model will bring valuable insight to our Board and help guide RLI’s profitable growth and continued long-term success.”
Share Bradshaw is Chairman of Gallagher Re North America, a role he assumed in 2024 after more than a decade serving as Chief Executive Officer at Gallagher Re North America and its predecessor, Willis Re North America. Prior to joining Willis Re North America, Bradshaw held leadership and underwriting positions with Guy Carpenter and Chubb. He has more than 40 years of experience in insurance industry leadership, strategy and market development.
“We are pleased to welcome Jim to our Board of Directors,” said RLI Corp. Board Chairman Dave Duclos. “His extensive industry experience, strategic perspective and deep understanding of RLI’s business model will bring valuable insight to our Board and help guide RLI’s profitable growth and continued long-term success.”
ABOUT RLI
RLI Corp. (NYSE: RLI) is a specialty insurer serving niche property, casualty and surety markets. The company provides deep underwriting expertise and superior service to commercial and personal lines customers nationwide. RLI’s products are offered through its insurance subsidiaries RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company. All of RLI’s subsidiaries are rated A++ “Superior” by AM Best Company. To learn more about RLI, visit www.rlicorp.com.
Wall Street expects a year-over-year decline in earnings on higher revenues when RLI Corp. (RLI - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 22, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis specialty insurance company is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of -15.5%.
Revenues are expected to be $455.81 million, up 3.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for RLI Corp.?For RLI Corp., the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.71%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that RLI Corp. will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that RLI Corp. would post earnings of $0.85 per share when it actually produced earnings of $0.83, delivering a surprise of -2.35%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
RLI Corp. doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Key Takeaways RLI is expanding through product diversification and broader distribution to drive premium growth. RLI has delivered 30 consecutive years of underwriting profitability, supported by conservative underwriting. RLI has paid dividends for 198 straight quarters and increased regular dividends for 50 consecutive years.
Image Source: Zacks Investment Research
RLI shares have lost 12% in the past year against the industry’s return of 6.6%.
With a market capitalization of $5.65 billion, the average volume of shares traded in the last three months was 0.9 million.
RLI Trading Above 50-Day and 200-Day Moving AveragesShares of RLI closed at $61.46 and are trading above the 50-day and 200-day simple moving averages (SMAs) at $53.44 and $59.14, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
Image Source: Zacks Investment Research
RLI’s Growth Projection EncouragesThe Zacks Consensus Estimate for RLI’s 2026 revenues is pegged at $1.83 billion, implying a year-over-year improvement of 3.2%.
The consensus estimate for 2027 earnings per share and revenues indicates an increase of 0.6% and 3%, respectively, from the corresponding 2026 estimates.
RLI’s Favorable Return on CapitalRLI’s return on equity (ROE) has also been improving over the last few quarters, reflecting its efficiency in utilizing shareholders’ funds. The trailing 12 months ROE was 17.7%, which compared favorably with the industry average of 7.4%.
Average Target Price for RLI Suggests UpsideBased on short-term price targets offered by five analysts, the Zacks average price target is $64 per share. The average suggests a potential 5.5% upside from the last closing price.
Image Source: Zacks Investment Research
Factors Acting in Favor of RLIRLI continues to grow through product diversification. Its compelling product portfolio, focus on introducing new products, re-underwriting of several of its products, sturdy business expansion, sustained rate increase and expanded distribution position this insurer well to generate an improved top line.
A conservative underwriting and reserving policy helps RLI achieve favorable reserve releases from the prior years despite incurring catastrophe losses.
RLI is one of the industry’s most profitable P&C writers, with an impressive track record of delivering 29 consecutive years of underwriting profitability.
This insurer has been enhancing shareholders' value by distributing wealth in the form of dividend hikes, special dividends and share buybacks. It boasts an impressive dividend track record. It has paid dividends for 198 consecutive quarters and increased regular dividends in each of the last 50 years, making the stock an attractive pick for yield-seeking investors.
The insurer has been strengthening its balance sheet by improving liquidity and leverage. A sound capital structure helps it meet the interests of its policyholders, enhance operations in the insurance sector and drive its book value for the long term.
End NotesRLI is one of the industry’s most profitable P&C writers, with an impressive track record of delivering 30 consecutive years of underwriting profitability. A strong local branch office network, a broad range of product offerings, and a focus on specialty insurance lines should continue to contribute to its superior profitability. The stock's impressive dividend history makes it an attractive pick for yield-seeking investors.
Given its premium valuation, it is prudent to wait for a better entry point for this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PEORIA, Ill.--(BUSINESS WIRE)-- #casualtyinsurance--RLI was named to the Ward's 50® list for the 36th consecutive year and remains the only insurance company recognized every year since 1991.
Key Takeaways RLI has raised its regular dividend for 51 straight years and hiked quarterly payout by 12.5% in May 2026. RLI declared a $2.00-per-share special dividend and approved a new $250 million share repurchase program. Strong underwriting, operating cash flow and disciplined capital management aid shareholder returns. RLI Corp. (RLI - Free Report) has a disciplined and shareholder-friendly capital deployment strategy that balances investments in business growth with consistent capital returns. The company generates strong underwriting profits and operating cash flow, enabling it to return excess capital while maintaining a conservatively capitalized balance sheet.
RLI has increased its regular dividend for 51 consecutive years, demonstrating a long-standing commitment to returning cash to shareholders. In May 2026, the board increased the quarterly dividend by 12.5% to 18 cents per share. When capital exceeds business needs, RLI distributes excess cash through special dividends. The company declared a $2.00-per-share special dividend in May 2026, totaling approximately $184 million, continuing its history of periodic special dividend payments.
RLI's board of directors authorized a new share repurchase program to return more value to investors. With the latest authorization, the board approved the issuance of up to $250 million of the company’s outstanding common stock in May 2026.
Management emphasizes maintaining financial flexibility and capital adequacy before distributing excess capital, ensuring the company can support underwriting growth and withstand catastrophe losses. Strong underwriting profitability, recurring operating cash flow, investment income, a conservatively capitalized balance sheet and disciplined risk management provide RLI with the financial strength and flexibility to deploy capital efficiently while creating long-term shareholder value.
RLI's capital allocation strategy is a key investment strength. The combination of regular dividend increases, periodic special dividends, opportunistic share repurchases and continued investment in the business reflects disciplined capital management that has consistently enhanced long-term shareholder value.
What About Its Peers?First American Financial Corporation (FAF - Free Report) follows a balanced capital-return strategy that combines a steadily growing dividend with opportunistic share repurchases. FAF generally uses a combination of regular dividend increases and selective share repurchases to distribute excess capital. FAF has increased its dividend for more than 15 consecutive years, reflecting management's commitment to returning capital through various housing market environments.
American Financial Group, Inc. (AFG - Free Report) has one of the most shareholder-friendly capital allocation policies in the U.S. insurance sector. AFG regularly generates capital that is needed to support underwriting operations. Returning excess capital to shareholders in the form of regular and special cash dividends and through opportunistic share repurchases is an important and effective component of American Financial’s capital management strategy. The combination of growing regular dividends, frequent special dividends, opportunistic buybacks and strong underwriting profitability has enabled the company to deliver substantial cash returns to investors over time.
RLI’s Price PerformanceShares of RLI have lost 14.2% in the past year against the industry.
Image Source: Zacks Investment Research
RLI’s Expensive ValuationThe stock is overvalued compared with its industry. It is currently trading at a price-to-book ratio of 3.11, above the industry average of 1.49.
Image Source: Zacks Investment Research
Estimate Movement for RLIThe Zacks Consensus Estimate for RLI’s third-quarter 2026 has moved down 1.8% in the past 60 days. The same for the full-year 2026 and 2027 EPS has moved up 1.8% and 2.6%, respectively, in the past 60 days.
PEORIA, Ill.--(BUSINESS WIRE)--RLI Corp. (NYSE: RLI) – RLI today announced the launch of its Entertainment & Amusement insurance product and the appointment of Kym Tormey as Vice President, Entertainment & Amusement, to lead the business.
"This launch reflects RLI’s continued focus on identifying opportunities to serve specialized markets through deep underwriting expertise, exceptional service and strong distribution relationships."
Share RLI’s Entertainment & Amusement product is designed to serve a broad range of businesses across the industry, including amusement parks, family entertainment centers, fairs, festivals, mobile amusements, concessionaires and similar attractions. Property and casualty coverage is available on a non-admitted basis in all 50 states.
"This launch reflects RLI’s continued focus on identifying opportunities to serve specialized markets through deep underwriting expertise, exceptional service and strong distribution relationships," said Jen Klobnak, Chief Operating Officer. "We’re excited to welcome Kym to RLI. Her extensive industry experience and proven leadership will help us deliver tailored solutions that meet the evolving needs of the entertainment and amusement marketplace."
Tormey brings more than 35 years of insurance industry experience, including nine years leading specialty entertainment and amusement insurance programs. Before joining RLI, she held leadership roles at AXA XL, XL Group, Arch Insurance Group and Royal & Sun Alliance. She will lead the strategic growth and underwriting operations of RLI’s Entertainment & Amusement business.
ABOUT RLI
RLI Corp. (NYSE: RLI) is a specialty insurer serving niche property, casualty and surety markets. The company provides deep underwriting expertise and superior service to commercial and personal lines customers nationwide. RLI’s products are offered through its insurance subsidiaries RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company. All of RLI’s subsidiaries are rated A++ “Superior” by AM Best Company. To learn more about RLI, visit www.rlicorp.com.
PEORIA, Ill.--(BUSINESS WIRE)--RLI Corp. (NYSE: RLI) – RLI Corp. announced today that it will release its second quarter 2026 earnings after market close on Wednesday, July 22, 2026.
The company will hold its quarterly conference call to discuss second quarter results on Thursday, July 23, 2026, at 10:00 a.m. CDT. This call is being webcast by Q4 and can be accessed at https://events.q4inc.com/attendee/465043342.
ABOUT RLI
RLI Corp. (NYSE: RLI) is a specialty insurer serving niche property, casualty and surety markets. The company provides deep underwriting expertise and superior service to commercial and personal lines customers nationwide. RLI’s products are offered through its insurance subsidiaries RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company. All of RLI’s subsidiaries are rated A++ “Superior” by AM Best Company. RLI has paid and increased regular dividends for 51 consecutive years and delivered underwriting profits for 30 consecutive years. To learn more about RLI, visit www.rlicorp.com.
PEORIA, Ill.--(BUSINESS WIRE)--RLI Corp. (NYSE: RLI) -- RLI Corp. today announced that Kevin Brownell, Assistant Vice President, Claim, has been promoted to Vice President, Claim. In his new role, Brownell will provide executive leadership and oversight for RLI’s Casualty claim operations.
“His contributions have helped strengthen our Casualty claim operations, enhancing technical excellence and customer service. We are confident he will continue to build on that success in his new role.”
Share“Kevin is a respected leader with deep claims expertise, sound judgment and a strong commitment to service excellence,” said RLI Corp. Chief Operating Officer Jen Klobnak. “His contributions have helped strengthen our Casualty claim operations, enhancing technical excellence and customer service. We are confident he will continue to build on that success in his new role.”
Brownell joined RLI in 2018 as Claim Director and was promoted to Assistant Vice President, Claim in 2023. He brings more than 25 years of insurance claims and legal experience to his new role. Brownell earned a bachelor’s degree from the University of Illinois Urbana-Champaign and a Juris Doctor from the University of Illinois College of Law.
ABOUT RLI
RLI Corp. (NYSE: RLI) is a specialty insurer serving niche property, casualty and surety markets. The company provides deep underwriting expertise and superior service to commercial and personal lines customers nationwide. RLI’s products are offered through its insurance subsidiaries RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company. All of RLI’s subsidiaries are rated A++ “Superior” by AM Best Company. To learn more about RLI, visit www.rlicorp.com.
Bridgefront Capital LLC purchased a new stake in RLI Corp. (NYSE: RLI) in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 10,746 shares of the insurance provider's stock, valued at approximately $701,000. Several other hedge funds and other
PEORIA, Ill.--(BUSINESS WIRE)--RLI Corp. (NYSE: RLI) – RLI Corp. announced today that it will release its first quarter 2026 earnings after market close on Wednesday, April 22, 2026.
The company will hold its quarterly conference call to discuss first quarter results on Thursday, April 23, 2026, at 12 p.m. CDT. This call is being webcast by Q4 and can be accessed at https://events.q4inc.com/attendee/570395995.
ABOUT RLI
RLI Corp. (NYSE: RLI) is a specialty insurer serving niche property, casualty and surety markets. The company provides deep underwriting expertise and superior service to commercial and personal lines customers nationwide. RLI’s products are offered through its insurance subsidiaries RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company. All of RLI’s subsidiaries are rated A++ “Superior” by AM Best Company. RLI has paid and increased regular dividends for 50 consecutive years and delivered underwriting profits for 30 consecutive years. To learn more about RLI, visit www.rlicorp.com.
SG Americas Securities LLC boosted its position in shares of RLI Corp. (NYSE: RLI) by 1,030.2% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 34,009 shares of the insurance provider's stock after purchasing an additional 31,000 shares
PEORIA, Ill.--(BUSINESS WIRE)--RLI Corp. (NYSE: RLI) reported first quarter 2026 net earnings of $54.9 million ($0.60 per share), compared to $63.2 million ($0.68 per share) for the first quarter of 2025. Operating earnings(1) for the first quarter of 2026 were $76.8 million ($0.83 per share), compared to $82.5 million ($0.89 per share) for the same period in 2025.
"We entered 2026 with positive underwriting results, delivering an 86 combined ratio across our diversified specialty portfolio.”
Share First Quarter
Earnings Per Diluted Share
2026
2025
Net earnings
$
0.60
$
0.68
Operating earnings (1)(2)
$
0.83
$
0.89
Highlights for the quarter included:
Underwriting income(1) of $57.8 million on a combined ratio(1) of 86.0. Net investment income increased 15%, while gross premiums written increased 3%. Favorable development in prior years’ loss reserves resulted in a $31.3 million net increase in underwriting income. Book value per share of $19.54, an increase of 2% (inclusive of dividends) from year-end 2025. "We entered 2026 with positive underwriting results, delivering an 86 combined ratio across our diversified specialty portfolio,” said RLI Corp. President & CEO Craig Kliethermes. “Our core performance remained solid to start the year. Gross premiums written grew 3%, led by our casualty segment, and net investment income increased 15%, contributing meaningfully to quarterly results and reflecting the continued strength of our investment portfolio.”
“In a dynamic market, we remain focused on disciplined underwriting, rate adequacy and strategically deploying capital to take advantage of opportunities and reward our shareholders.”
Underwriting Income
RLI achieved $57.8 million of underwriting income in the first quarter of 2026 on an 86.0 combined ratio, compared to $70.5 million on an 82.3 combined ratio in 2025.
Results for both years include favorable development in prior years’ loss reserves, which resulted in a $31.3 million and $27.4 million net increase to underwriting income in 2026 and 2025, respectively.
The following table highlights underwriting income and combined ratios by segment for the first quarter.
Underwriting Income(1)
Combined Ratio(1)
(in millions)
2026
2025
2026
2025
Casualty
$
7.3
$
2.1
Casualty
97.1
99.1
Property
48.2
56.9
Property
61.9
57.1
Surety
2.3
11.5
Surety
93.7
68.5
Total
$
57.8
$
70.5
Total
86.0
82.3
(1) See discussion below: Non-GAAP and Performance Measures.
Other Income
Net investment income for the quarter increased 15% to $42.3 million, compared to the same period in 2025. The investment portfolio’s total return was -0.4% for the quarter.
RLI’s comprehensive earnings were $29.5 million for the quarter ($0.32 per share), compared to $93.2 million ($1.01 per share) for the same quarter in 2025. In addition to net earnings, comprehensive earnings for 2026 included after-tax unrealized losses from the fixed income portfolio, due to rising interest rates.
Dividends Paid in First Quarter of 2026
On March 16, 2026, the company paid a regular quarterly dividend of $0.16 per share, the same amount as the prior quarter. RLI’s cumulative dividends total more than $1.1 billion paid over the last five years.
Non-GAAP and Performance Measures
Management has included certain non-generally accepted accounting principles (non-GAAP) financial measures in presenting the company’s results. Management believes that these non-GAAP measures further explain the company’s results of operations and allow for a more complete understanding of the underlying trends in the company’s business. These measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles (GAAP). In addition, our definitions of these items may not be comparable to the definitions used by other companies.
Operating earnings and operating earnings per share (EPS) consist of our GAAP net earnings adjusted by net realized gains/(losses), net unrealized gains/(losses) on equity securities and taxes related thereto. Equity in earnings of unconsolidated investees and the related taxes were excluded from operating earnings and operating EPS beginning in the fourth quarter of 2025. The change was made to present a consistent approach in excluding all unrealized changes in equity investments. Operating earnings and operating EPS for prior periods have been recast to conform to the current definition. Net earnings and net earnings per share are the GAAP financial measures that are most directly comparable to operating earnings and operating EPS. A reconciliation of the operating earnings and operating EPS to the comparable GAAP financial measures is included in the 2026 financial highlights below.
Underwriting income or profit represents the pretax profitability of our insurance operations and is derived by subtracting loss and settlement expenses, policy acquisition costs and insurance operating expenses from net premium earned, which are all GAAP financial measures. The combined ratio, which is derived from components of underwriting income, is a performance measure commonly used by property and casualty insurance companies and is calculated as the sum of loss and settlement expenses, policy acquisition costs and insurance operating expenses, divided by net premiums earned, which are all GAAP measures.
Other News
During the first quarter, the company’s AM Best financial strength rating was upgraded to A++ (Superior) for the company’s insurance subsidiaries – RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company. AM Best also upgraded the Long-Term Issuer Credit Ratings (ICR) for each RLI company to “aa+” (Superior) and upgraded the ICR of RLI’s publicly traded parent holding company, RLI Corp., to “a+” (Excellent).
At 12 p.m. central daylight time (CDT) on April 23, 2026, RLI management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion at https://events.q4inc.com/attendee/570395995.
Except for historical information, this news release may include forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) including, without limitation, statements reflecting our current expectations about the future performance of our company or our business segments or about future market conditions. These statements are subject to certain risk factors that could cause actual results to differ materially. Various risk factors that could affect future results are listed in the company's filings with the Securities and Exchange Commission, including the Form 10-K Annual Report for the year ended December 31, 2025.
About RLI
RLI Corp. (NYSE: RLI) is a specialty insurer serving niche property, casualty and surety markets. The company provides deep underwriting expertise and superior service to commercial and personal lines customers nationwide. RLI’s products are offered through its insurance subsidiaries – RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company. All of RLI’s insurance subsidiaries are rated A++ (Superior) by AM Best Company. RLI has paid and increased regular dividends for 50 consecutive years and delivered underwriting profits for 30 consecutive years. To learn more about RLI, visit www.rlicorp.com.
Supplemental disclosure regarding the earnings impact of specific items:
Reserve Development(1) and Catastrophe Losses,
Net of Reinsurance
Three Months Ended
March 31,
(Dollars in millions, except per share amounts)
2026
2025
Favorable development in casualty prior years' reserves
$
14.5
$
5.1
Favorable development in property prior years' reserves
$
20.6
$
17.6
Favorable development in surety prior years' reserves
$
0.4
$
8.3
Net incurred losses related to:
2026 catastrophe events
$
(16.0)
$
—
2025 and prior catastrophe events
$
—
$
(12.0)
Operating Earnings Per Share
Three Months Ended
March 31,
2026
2025
Operating Earnings Per Share(2)(3)
$
0.83
$
0.89
Specific items included in operating earnings per share:(1)(4)
Net favorable development in casualty prior years' reserves
$
0.10
$
0.02
Net favorable development in property prior years' reserves
$
0.16
$
0.14
Net favorable development in surety prior years' reserves
$
—
$
0.07
Net incurred losses related to:
2026 catastrophe events
$
(0.12)
$
—
2025 and prior catastrophe events
$
—
$
(0.09)
RLI CORP
2026 FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended March 31,
SUMMARIZED INCOME STATEMENT DATA:
2026
2025
% Change
Net premiums earned
$
411,386
$
398,345
3.3
%
Net investment income
42,321
36,726
15.2
%
Net realized gains
9,559
14,912
(35.9)
%
Net unrealized gains (losses) on equity securities
(39,396)
(42,318)
(6.9)
%
Consolidated revenue
$
423,870
$
407,665
4.0
%
Loss and settlement expenses
193,244
177,238
9.0
%
Policy acquisition costs
132,075
123,687
6.8
%
Insurance operating expenses
28,280
26,874
5.2
%
Interest expense on debt
2,353
1,335
76.3
%
General corporate expenses
2,724
2,948
(7.6)
%
Total expenses
$
358,676
$
332,082
8.0
%
Equity in earnings of unconsolidated investees
2,147
3,048
(29.6)
%
Earnings before income taxes
$
67,341
$
78,631
(14.4)
%
Income tax expense
12,456
15,417
(19.2)
%
Net earnings
$
54,885
$
63,214
(13.2)
%
Other comprehensive earnings (loss), net of tax
(25,366)
30,030
NM
Comprehensive earnings
$
29,519
$
93,244
(68.3)
%
Operating earnings(1):
Net earnings
$
54,885
$
63,214
(13.2)
%
Less:
Net realized gains
(9,559)
(14,912)
(35.9)
%
Income tax on realized gains
2,007
3,132
(35.9)
%
Net unrealized (gains) losses on equity securities
39,396
42,318
(6.9)
%
Income tax on unrealized gains (losses) on equity securities
(8,273)
(8,888)
(6.9)
%
Equity in earnings of unconsolidated investees
(2,147)
(3,048)
(29.6)
%
Income tax on equity in earnings of unconsolidated investees
451
641
(29.6)
%
Operating earnings(2)
$
76,760
$
82,457
(6.9)
%
Return on Equity:
Net earnings
22.5
%
17.6
%
Comprehensive earnings
24.2
%
19.8
%
Per Share Data:
Diluted:
Weighted average shares outstanding (in 000's)
92,187
92,528
Net earnings per share
$
0.60
$
0.68
(11.8)
%
Less:
Net realized gains
(0.10)
(0.16)
(37.5)
%
Income tax on realized gains
0.01
0.03
(66.7)
%
Net unrealized (gains) losses on equity securities
0.43
0.46
(6.5)
%
Income tax on unrealized gains (losses) on equity securities
(0.09)
(0.09)
(0.0)
%
Equity in earnings of unconsolidated investees
(0.02)
(0.03)
(33.3)
%
Income tax on equity in earnings of unconsolidated investees
—
—
—
%
Operating earnings per share(1)(2)
$
0.83
$
0.89
(6.7)
%
Comprehensive earnings per share
$
0.32
$
1.01
(68.3)
%
Cash dividends per share - ordinary
$
0.16
$
0.15
6.7
%
Net cash flow provided by operations
$
42,829
$
103,514
(58.6)
%
RLI CORP
2026 FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)
March 31,
December 31,
2026
2025
% Change
SUMMARIZED BALANCE SHEET DATA:
Fixed income, at fair value
$
3,528,692
$
3,533,336
(0.1)
%
(amortized cost - $3,669,921 at 3/31/26)
(amortized cost - $3,642,362 at 12/31/25)
Equity securities, at fair value
864,912
898,876
(3.8)
%
(cost - $539,859 at 3/31/26)
(cost - $534,311 at 12/31/25)
Short-term investments
386,219
120,562
NM
Other invested assets
60,509
59,281
2.1
%
Cash and cash equivalents
49,121
51,565
(4.7)
%
Total investments and cash
$
4,889,453
$
4,663,620
4.8
%
Accrued investment income
30,456
30,026
1.4
%
Premiums and reinsurance balances receivable
243,451
212,226
14.7
%
Ceded unearned premiums
118,476
124,669
(5.0)
%
Reinsurance balances recoverable on unpaid losses
740,503
746,798
(0.8)
%
Deferred policy acquisition costs
176,187
172,648
2.0
%
Property and equipment
39,809
40,733
(2.3)
%
Investment in unconsolidated investees
56,053
53,521
4.7
%
Goodwill and intangibles
53,562
53,562
0.0
%
Other assets
53,873
63,683
(15.4)
%
Total assets
$
6,401,823
$
6,161,486
3.9
%
Unpaid losses and settlement expenses
$
2,927,929
$
2,886,819
1.4
%
Unearned premiums
991,717
991,636
0.0
%
Reinsurance balances payable
23,455
40,580
(42.2)
%
Funds held
134,215
127,242
5.5
%
Income taxes - current
26,797
29,724
(9.8)
%
Income taxes - deferred
5,566
21,769
(74.4)
%
Short-term debt
50,000
100,000
(50.0)
%
Long-term debt
297,247
—
NM
Accrued expenses
68,016
128,597
(47.1)
%
Other liabilities
80,491
56,923
41.4
%
Total liabilities
$
4,605,433
$
4,383,290
5.1
%
Shareholders' equity
1,796,390
1,778,196
1.0
%
Total liabilities & shareholders' equity
$
6,401,823
$
6,161,486
3.9
%
OTHER DATA:
Common shares outstanding (in 000's)
91,934
91,879
Book value per share
$
19.54
$
19.35
1.0
%
Closing stock price per share
$
57.04
$
63.98
(10.8)
%
Statutory surplus
$
1,814,648
$
1,846,615
(1.7)
%
NM = Not Meaningful
RLI CORP
2026 FINANCIAL HIGHLIGHTS
UNDERWRITING SEGMENT DATA
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended March 31,
GAAP
GAAP
GAAP
GAAP
Casualty
Ratios
Property
Ratios
Surety
Ratios
Total
Ratios
2026
Gross premiums written
$
307,014
$
154,763
$
42,109
$
503,886
Net premiums written
260,372
118,393
38,895
417,660
Net premiums earned
248,566
126,378
36,442
411,386
Net loss & settlement expenses
152,832
61.5
%
33,854
26.8
%
6,558
18.0
%
193,244
47.0
%
Net operating expenses
88,441
35.6
%
44,339
35.1
%
27,575
75.7
%
160,355
39.0
%
Underwriting income (1)
$
7,293
97.1
%
$
48,185
61.9
%
$
2,309
93.7
%
$
57,787
86.0
%
2025
Gross premiums written
$
278,454
$
170,052
$
42,600
$
491,106
Net premiums written
235,607
121,736
39,748
397,091
Net premiums earned
229,048
132,544
36,753
398,345
Net loss & settlement expenses
145,835
63.7
%
32,725
24.7
%
(1,322)
(3.6)
%
177,238
44.5
%
Net operating expenses
81,142
35.4
%
42,904
32.4
%
26,515
72.1
%
150,561
37.8
%
Underwriting income (1)
$
2,071
99.1
%
$
56,915
57.1
%
$
11,560
68.5
%
$
70,546
82.3
%
(1) See discussion above: Non-GAAP and Performance Measures.
RLI Corp. (RLI - Free Report) came out with quarterly earnings of $0.83 per share, missing the Zacks Consensus Estimate of $0.85 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -1.78%. A quarter ago, it was expected that this specialty insurance company would post earnings of $0.76 per share when it actually produced earnings of $0.94, delivering a surprise of +23.68%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
RLI Corp., which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $453.71 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.06%. This compares to year-ago revenues of $435.07 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
RLI Corp. shares have lost about 8.7% since the beginning of the year versus the S&P 500's gain of 3.2%.
What's Next for RLI Corp.?While RLI Corp. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for RLI Corp. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.72 on $457.49 million in revenues for the coming quarter and $2.78 on $1.82 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, American Coastal Insurance (ACIC - Free Report) , has yet to report results for the quarter ended March 2026.
This property and casualty insurance company is expected to post quarterly earnings of $0.44 per share in its upcoming report, which represents a year-over-year change of +4.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
American Coastal Insurance's revenues are expected to be $75.78 million, up 5% from the year-ago quarter.
For the quarter ended March 2026, RLI Corp. (RLI - Free Report) reported revenue of $453.71 million, up 4.3% over the same period last year. EPS came in at $0.83, compared to $0.92 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $453.45 million, representing a surprise of +0.06%. The company delivered an EPS surprise of -1.78%, with the consensus EPS estimate being $0.85.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how RLI Corp. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net loss & settlement expenses - Total: 47% versus the three-analyst average estimate of 46.1%.Net operating expenses - Total: 39% compared to the 38.6% average estimate based on three analysts.Underwriting income (loss) - Total: 86% compared to the 84.6% average estimate based on three analysts.Underwriting income (loss) - Casualty: 97.1% versus 98.2% estimated by three analysts on average.Underwriting income (loss) - Property: 61.9% compared to the 59.8% average estimate based on three analysts.Underwriting income (loss) - Surety: 93.7% versus the three-analyst average estimate of 76.9%.Net loss & settlement expenses - Property: 26.8% versus the two-analyst average estimate of 28.5%.Net premiums earned: $411.39 million versus $406.88 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +3.3% change.Net investment income: $42.32 million compared to the $40.23 million average estimate based on three analysts. The reported number represents a change of +15.2% year over year.Net premiums earned- Surety: $36.44 million versus $36.3 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -0.9% change.Net premiums earned- Property: $126.38 million versus the three-analyst average estimate of $123.06 million. The reported number represents a year-over-year change of -4.7%.Net premiums earned- Casualty: $248.57 million versus the three-analyst average estimate of $247.52 million. The reported number represents a year-over-year change of +8.5%.View all Key Company Metrics for RLI Corp. here>>>
Shares of RLI Corp. have returned +0.7% over the past month versus the Zacks S&P 500 composite's +8.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Key Takeaways RLI Q1 earnings missed estimates, with net income down 13.2% due to catastrophe losses RLI revenue rose 4.4% on higher premiums and investment income and surpassed consensus estimates.RLI casualty premiums grew 10%, while property and surety underwriting income declined. RLI Corp. (RLI - Free Report) reported first-quarter 2026 operating earnings of 83 cents per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 13.2% from the prior-year quarter.
The quarterly results reflect underwriting strain from catastrophe losses, though investment income and casualty growth offer resilience.
Operational PerformanceOperating revenues for the reported quarter were $454 million, up 4.4% year over year, driven by higher net premiums earned and net investment income. The top line beat the Zacks Consensus Estimate by 1%.
Net investment income increased 15.2% year over year to $42.3 million. The Zacks Consensus Estimate was $40.2 million, while our estimate for the metric was pegged at $38.3 million. The investment portfolio’s total return was -0.4% in the quarter.
Total expenses increased 8% year over year to $385.7 million, primarily due to higher loss and settlement expenses and interest expense on debt. Our estimate was $349.4 million.
Underwriting income fell 18% year over year to $57.8 million. Our estimate was $71.4 million. The combined ratio deteriorated 370 basis points (bps) year over year to 86, reflecting higher catastrophe losses. Our estimate was 82.
Segmental ResultsCasualty lines’ GPW rose 10.3% year over year to $307.0 million. The figure was below our estimate of $300.9 million.
The underwriting income increased significantly to $7.3 million from $2.1 million, up 249% year over year, supported by strong premium growth. The combined ratio improved 200 bps year over year to 97.1%. The figure was below our estimate of 99%.
Property lines’ GPW fell 9.0% year over year to $154.8 million. The figure was below our estimate of $180.1 million.
The underwriting income declined to $48.2 million, down 15.3% primarily due to catastrophe losses and lower premium volumes. The combined ratio deteriorated 480 bps year over year to 61.9%. Our estimate was 55%.
Surety lines’ GPW remained largely flat at $42.1 million. The figure was on par with our estimate.
The underwriting income dropped sharply to $2.3 million from $11.6 million, reflecting weaker reserve development and higher expenses. The combined ratio worsened significantly to 93.7% from 68.5%, up 2,520 bps year over year. Our estimate was 74.7%.
Financial UpdateRLI exited the quarter with total investments and cash of $4.9 billion, up 4.8% from 2025-end.
Book value was $19.54 per share as of March. 31, 2026, up 1% from the figure as of Dec. 31, 2025.
Net cash flow from operations was $42.8 million, down 58.6% year over year.
The statutory surplus decreased 1.7% from 2025-end to $1.8 billion as of March. 31, 2025.
Return on equity was 22.5%, expanding 490 bps from the year-ago period.
Dividend UpdateOn March 16, 2026, the insurer paid a regular quarterly dividend of 16 per cent per share for the first quarter. RLI’s cumulative dividends totaled more than $1.1 billion, paid over the last five years.
Zacks RankRLI currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Another InsurerThe Travelers Companies, Inc. (TRV - Free Report) reported first-quarter 2025 core income of $7.71 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line surged fourfold year over year. Travelers’ total revenues remain flat from the year-ago quarter to $11.9 billion. The top-line figure, however, missed the Zacks Consensus Estimate by 3.7%.
Net written premiums increased 2% year over year to a record $10.3 billion, driven by strong growth across Business Insurance and Bond & Specialty Insurance segments. Net investment income increased 8.4% year over year to $1 billion. The figure matched the Zacks Consensus Estimate.
The Progressive Corporation (PGR - Free Report) first-quarter 2026 earnings per share of $4.96 beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year.
Operating revenues grew 8.2% year over year to $22.3 billion driven by 8% higher net premiums earned, a 12.7% increase in net investment income, a 3.5% rise in fees and other revenues, and 13.5% higher service revenues. The top line missed the Zacks Consensus Estimate by 1.2%. Net premiums earned grew 8% to $20.9 billion. The reported figure beat the Zacks Consensus Estimate by 1.5%.
W.R. Berkley Corporation (WRB - Free Report) reported first-quarter 2026 operating income of $1.30 per share, which beat the Zacks Consensus Estimate by 15%. The bottom line increased 28.7% year over year.
Total revenues were $ 3.7 billion, up 5% year over year, driven by higher net premiums earned, improved net investment income, higher revenues from non-insurance businesses and increased other income. The top line missed the consensus estimate by 0.28%. W.R. Berkley’s net premiums written were about $3.2 billion, up 1.3% year over year. The figure missed our estimate as well as the Zacks Consensus Estimate of $3.18 billion.
RLI (NYSE:RLI) reported another quarter of underwriting profitability to open 2026, posting an 86 combined ratio and 3% growth in gross premiums written as higher investment income helped offset increased catastrophe losses and a more competitive pricing environment in several lines.
President and CEO Craig Kliethermes said the company “feel[s] good about how we’ve started 2026,” calling results “still excellent, but a bit more tempered” compared with a strong first quarter last year, primarily due to catastrophe activity and the “normal variability that comes with taking on insurance risk.” He also described a marketplace influenced by broker-owned facilities and MGAs and pointed to “rate acceleration and market disruption in wheels-based products” as an area of opportunity if approached with discipline.
Quarterly results and investment performance Chief Financial Officer Aaron Diefenthaler said operating earnings were $0.83 per share, down from $0.89 in the year-ago quarter, reflecting “solid underwriting performance” and a 15% increase in investment income. On a GAAP basis, net earnings were $0.60 per share versus $0.68 last year.
Diefenthaler attributed the gap between operating earnings and GAAP net earnings to equity market performance, noting that the “largest driver of the differential” was a negative return in RLI’s equity portfolio and “$39 million of unrealized losses.” Total portfolio return was negative 0.4% for the quarter, with income partially offsetting price declines in both stocks and bonds. He added that fixed income purchase yields averaged 4.8%, about 60 basis points above the portfolio’s book yield, as the company focused on investment-grade fixed income amid market volatility.
Underwriting income totaled $58 million, supported by $35.5 million of favorable prior-year reserve development. This benefit was partially offset by $16 million of catastrophe losses and a higher underlying combined ratio, Diefenthaler said.
Segment performance: Casualty growth, property pressure, and variable surety results RLI’s casualty segment led top-line growth. Diefenthaler said casualty gross premium grew 10%, driven by Personal Umbrella and Commercial Transportation, both benefiting from rate increases. The segment posted a 97 combined ratio, improving by two points year over year, and included $14.5 million of favorable prior-year reserve development that was “broad-based,” with contributions from Executive Products, General Liability, Professional Services, and Transportation. Of the quarter’s $16 million in catastrophe losses, $2 million was attributed to packaged businesses in Casualty.
Property gross premium declined 9% due largely to rate decreases in E&S Property, although Marine and Hawaii Homeowners provided offsets. Property produced a 62 combined ratio, supported by $20.6 million of favorable prior-year reserve development, which Diefenthaler said provided a 16-point benefit to the segment’s loss ratio. Property catastrophe losses totaled $14 million, including storms in Hawaii.
Surety gross premium was down about 1%, and the segment reported a 94 combined ratio. Diefenthaler noted results were affected by “limited favorable prior year development compared to a strong release last year,” emphasizing that surety loss activity can be volatile and meaningfully influence results over short periods.
Operational updates: Pricing, competition, and underwriting posture COO Jennifer Klobnak said the company achieved “another quarter of underwriting profit” and maintained growth “even as market conditions have become more challenging.” She said casualty segment premium increased 10% and rates were also up 10%.
Personal Umbrella: Premium grew 23% and the rate increase was 16%. Klobnak said RLI expects increases to continue as recent approvals earn into the book. She also described the company’s shift in new business away from “more hazardous states like California, Florida, and New York” to “less litigious states like those in the Midwest” following pricing, commission, and producer-management actions. On California specifically, she cited a 20% rate increase effective Dec. 1 and said growth continues but “at a much smaller pace” after additional underwriting actions, including a higher attachment point and selective commission reductions. Transportation: Premium increased 27%, with auto liability renewal rate increases up 15%. Klobnak said growth was driven by new business opportunities with insureds that invest in risk management and where RLI could achieve adequate returns. She added that submissions were up 15% as competitors pulled back in some classes, and new claim counts were down 14% versus the first quarter of 2025. In response to analyst questions about severity risk, Klobnak emphasized risk selection and said RLI still declines about 90% of transportation submissions. E&S Casualty and General Liability: E&S Casualty premium was down 4%, which Klobnak attributed to a slower start in binding amid economic and construction-industry uncertainty, despite submissions being up 14%. In the Q&A, she described construction activity in parts of the Northeast as “a bit paused,” with project starts delayed by weather and other factors; she said the pipeline was “full” with more quotes out, but binding can take 6–12 months for some accounts. In property, Klobnak said E&S Property premium declined 16% as market capacity remained “plentiful.” She reported renewal rate change down 19% for hurricane and 16% for earthquake. She also said competition has increased from the admitted market, including programs targeting classes such as hotels and restaurants, and described competitors as sometimes waiving terms that RLI views as important to maintaining underwriting discipline.
Still, Klobnak said that while RLI is “giving back some rate,” accounts it binds are priced above technical benchmark pricing. She also noted reduced reinsurance costs and “manageable spring storm losses” supported results. In a later question on property net retention, Klobnak confirmed that an uptick was driven by lower reinsurance costs and said she did not anticipate “huge changes” in reinsurance for the remainder of the year.
Marine posted what Klobnak called its “largest premium quarter since inception,” with nearly $47 million in premium, up 4% year over year, alongside favorable reserve releases. Hawaii Homeowners premium and rates each rose 12% as the company responded to multiple Kona storm events using local claims staff, which she said can strengthen long-term relationships despite near-term impact on results.
In surety, Klobnak described a “very competitive” market, with contract and transactional lines showing single-digit growth offset by a small decline in commercial surety. She said one large contract surety loss from a prior-period claim affected results, calling it an isolated incident. Asked whether further adverse development is expected, she said RLI has reserved for “basically the worst-case scenario” and does not expect adverse development. In another exchange, management referenced a $5 million retention in relation to reinsurance for the surety loss.
Capital, cash flow, and ratings Diefenthaler said operating cash flow was $43 million, down $60 million from the prior-year quarter, impacted by tax credit purchase activity, bonuses paid, and higher paid losses. He also highlighted that the tax credit purchase contributed to an 18.5% effective tax rate.
On financing, Diefenthaler said the company raised $300 million of long-term debt in late February with a 5.375% coupon and 10-year maturity, which he said returned leverage to its historic average. RLI also repaid and upsized its revolving credit facility with PNC Bank, increasing backstop liquidity at the parent to $150 million.
Adjusting comprehensive earnings for dividends, Diefenthaler said book value per share increased 2% from year-end 2025. He also noted AM Best upgraded the RLI group to A++.
In closing remarks, Kliethermes reiterated that the environment “presents both opportunity and temptation” and said RLI’s focus remains on underwriting discipline and willingness to step back when risk-adjusted returns do not meet expectations. “We’re optimistic,” he said, “not because the environment is easy, but because we know how to operate in environments like this.”
About RLI (NYSE:RLI) RLI Corporation (NYSE:RLI) is a specialty property and casualty insurance company focused on underwriting niche risks for businesses and individuals. Headquartered in Peoria, Illinois, the company operates through a network of independent agents and brokers, offering customized coverage solutions. RLI’s approach emphasizes disciplined underwriting, targeted product development and strong customer service to maintain profitability and long-term growth.
Founded in 1965 as Replacement Lens, Inc, RLI initially provided insurance for contact lens manufacturers before shifting its focus to specialty insurance in the 1980s.
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PEORIA, Ill.--(BUSINESS WIRE)--RLI Corp. (NYSE: RLI) – RLI Corp. today announced that its Board of Directors declared a special cash dividend of $2.00 per share of common stock, which is expected to total approximately $184 million, and a regular quarterly cash dividend of $0.18 per share, a 12.5% increase over the prior quarter. The Board also authorized a new share repurchase program of up to $250 million of the company’s outstanding common stock. The company’s stock price was one of the factors in the Board’s decision to authorize the repurchase program.
“This share repurchase program, special dividend and 51st consecutive annual increase in our regular dividend reflect the strength of our business and our confidence in RLI’s long-term strategy,” said RLI Corp. President & CEO Craig W. Kliethermes.
Share “This share repurchase program, special dividend and 51st consecutive annual increase in our regular dividend reflect the strength of our business and our confidence in RLI’s long-term strategy,” said RLI Corp. President & CEO Craig W. Kliethermes. “These actions underscore our disciplined approach to capital management while maintaining the flexibility to invest in growth opportunities.”
Both dividends are payable on June 12, 2026, to shareholders of record as of May 29, 2026. RLI has increased its regular dividend in each of the past 51 years.
Repurchases under the program may be made from time to time in the open market, through privately negotiated transactions or by other means in accordance with applicable securities laws. There is no expiration date for the repurchase program. The timing, volume, and method of repurchases will depend on a variety of factors, including market conditions, share price and capital needs. The program does not obligate the company to acquire any specific number of shares and may be suspended or discontinued at any time. The company expects to fund repurchases through available cash and operating cash flow.
Except for historical information, this news release may include forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) including, without limitation, statements reflecting our current expectations about the future performance of our company or our business segments or about future market conditions. These statements are subject to certain risk factors that could cause actual results to differ materially. Various risk factors that could affect future results are listed in the company's filings with the Securities and Exchange Commission, including the Form 10-K Annual Report for the year ended December 31, 2025.
ABOUT RLI
RLI Corp. (NYSE: RLI) is a specialty insurer serving niche property, casualty and surety markets. The company provides deep underwriting expertise and superior service to commercial and personal lines customers nationwide. RLI’s products are offered through its insurance subsidiaries RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company. All of RLI’s subsidiaries are rated A++ “Superior” by AM Best Company. RLI has paid and increased regular dividends for 51 consecutive years and delivered underwriting profits for 30 consecutive years. To learn more about RLI, visit www.rlicorp.com.
Key Takeaways RLI approved a $2 special dividend and raised its quarterly payout by 12.5%. RLI authorized a new $250M share repurchase program to boost shareholder returns. RLI marked its 17th straight special dividend and 51st annual regular dividend hike. RLI Corp.’s (RLI - Free Report) board of directors approved a special cash dividend of $2.00 per share, which is expected to amount to approximately $184 million. This specialty property-casualty insurer has been paying special dividends since 2011. The latest approval marks the 17th straight special dividend.
The board also approved a hike in the company’s quarterly dividend to enhance shareholder value. RLI will now pay out a dividend of 18 cents per share, reflecting an increase of 12.5% from the prior quarter.
RLI's board of directors authorized a new share repurchase program to return more value to investors. With the latest authorization, the board approved the issuance of up to $250 million of the company’s outstanding common stock.
This share repurchase program, special dividend and the 51st consecutive annual increase in the regular dividend reflect the strength of the business and the insurer’s confidence in the long-term strategy.
The special and the increased dividends will be paid out on June 12, 2026, to its shareholders of record as of May 29.
RLI’s Impressive Dividend HistoryRLI has been paying dividends for 198 consecutive quarters and has increased regular dividends for 51 straight years. Based on the stock’s May 14 closing price of $49.88, the new dividend will yield 1.28%, which is better than the industry average of 0.2%.
Financial Strength and Capital ManagementThis insurer is one of the industry’s most profitable P&C writers, with an impressive track record of delivering its 30th consecutive year of underwriting profitability. It remains focused on maintaining long-term industry-leading combined ratios and book value growth. RLI’s diversified product portfolio, focus on growth in specialty insurance lines via organic opportunities and acquisitions, and financial strength should continue to help boost shareholders’ returns.
The company has a strong balance sheet, with sufficient liquidity and strong cash flow, helping it meet the interests of the policyholders, enhance operations in the insurance sector and support long-term book-value growth. In February 2026, A M Best raised its financial strength rating to A+ (Excellent), while the outlook was revised to stable from positive. Ratings for its operating subsidiaries were upgraded to A++ (Superior) with a stable outlook. Its statutory surplus was $1.81 billion as of March 31, 2026. Net cash flow from operations was $42.8 million for the first three months of 2026.
RLI maintains a conservative underwriting and reserving policy and continues to achieve favorable reserve releases from the prior years. Return on equity, a profitability measure of how efficiently a company utilizes its shareholders' money, was 17.7% in the trailing 12 months, which compares favorably with the industry average of 7.3%.
Zacks Rank and Price PerformanceShares of this Zacks Rank #4 (Sell) property and casualty insurer have lost 34.1% in the past year compared with the industry’s decline of 6.8%.
Image Source: Zacks Investment Research
Other Insurers on the Same PathIn April 2026, board of directors of The Travelers Companies, Inc. (TRV - Free Report) declared a 14% increase in quarterly cash dividend to $1.25 per share, marking 22 consecutive years of dividend rise at a compound annual growth rate of 8% over that period. The dividend will be paid out on June 30, 2026, to shareholders of record as of June 10. This policy reflects management’s confidence in underlying earnings power and the durability of cash generation across cycles.
Backed by a solid capital position and operational excellence, Sun Life Financial Inc. (SLF - Free Report) announced a 4.3% increase in its dividend in May 2026 to reinforce the commitment to providing strong returns to shareholders. The amount will be paid out on June 30, 2026, to shareholders of record at the close of business on May 27. Its dividend payout ratio is targeted within the 40-50% range. The company repurchases shares, reflecting its strong cash and capital generation in its businesses. SLF remains focused on improving ROE while retaining flexibility for growth opportunities.
Stock to Consider A better-ranked stock from the property and casualty insurance industry is First American Financial Corporation (FAF - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
First American Financial's earnings have a solid track record of beating estimates in each of the last four quarters, with an average being 22.01%. In the past year, shares of FAF have climbed 11.4%. The Zacks Consensus Estimate for FAF’s 2026 and 2027 earnings implies year-over-year growth of 11% and 6.1%, respectively.
RLI Corp., a dividend aristocrat, has experienced an -18% YTD stock decline, raising questions about its valuation premium. RLI maintains more than 50 years of gradual dividend increases, supplemented by regular special dividends, supporting a strong shareholder return profile. Underwriting performance remains strong, with a combined ratio below 90%, reflecting resilience in niche P&C markets.
Key Takeaways CB lifted its annual dividend 5.2% to $4.08 per share, extending its dividend growth streak to 33 years. Chubb approved a new $7.5B share repurchase program effective July 2026. Strong cash flow, disciplined underwriting and a diversified business support steady capital returns. Chubb Limited’s (CB - Free Report) board of directors recently approved a 5.2% hike in its dividend to $4.08 per share annually or $1.02 per share quarterly. The first installment of this meatier dividend will be paid out on July 2, 2026, to shareholders of record as of June 12, 2026. This recent dividend hike marks the 33rd straight year of dividend increase.
Management also authorized a new $7.5 billion share repurchase program effective July 1, 2026. The existing approval remains in place until June 30, 2026.
CB’s Impressive Dividend HistoryCB has an impressive history of deploying capital that includes distributing wealth to shareholders via dividend raises and share buybacks. Dividend has increased at an eight-year (2018-2026) CAGR of 4.6%. Based on the stock’s May 21 closing price of $330.26, the new dividend will yield 1.18%, which is better than the industry average of 0.2%. This makes the stock an attractive pick for yield-seeking investors.
Financial Strength and Capital ManagementChubb Limited maintains a strong capital return strategy through consistent dividend payments and share repurchases, reflecting its solid earnings base, disciplined underwriting and robust cash generation.
Chubb Limited generates healthy cash flows from its diversified insurance operations across property and casualty (P&C), life insurance, accident and health, and reinsurance businesses. Stable premium growth and disciplined underwriting support consistent earnings, enabling steady capital returns.
Chubb boasts solid capitalization and liquidity levels, supported by strong reserve adequacy and financial discipline. Its healthy balance sheet allows the company to return excess capital to shareholders while maintaining sufficient reserves for catastrophe losses and growth initiatives.
Its diversified geographic footprint and broad product portfolio reduce earnings volatility, creating a stable financial base to sustain and gradually increase dividends while continuing repurchase programs over time.
Return on equity, a profitability measure of how efficiently a company utilizes its shareholders' money, was 14.3% in the trailing 12 months, which compares favorably with the industry average of 7.4%.
Zacks Rank and Price PerformanceShares of this Zacks Rank #3 (Hold) property and casualty insurer have gained 15% in the past year, outperforming the industry’s decline of 4.3% and the Finance sector’s growth of 12.8%.
Image Source: Zacks Investment Research
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Insurers on the Same PathIn April 2026, the board of directors of The Travelers Companies, Inc. (TRV - Free Report) declared a 14% increase in quarterly cash dividend to $1.25 per share, marking the 22nd consecutive year of dividend increases at a compound annual growth rate of 8% over that period. The dividend will be paid out on June 30, 2026, to shareholders of record as of June 10, 2026. This policy reflects management’s confidence in underlying earnings power and the durability of cash generation across cycles.
Backed by a solid capital position and operational excellence, Sun Life Financial Inc. (SLF - Free Report) announced a 4.3% increase in its dividend in May 2026 to reinforce its commitment to providing strong returns to shareholders. The amount will be paid out on June 30, 2026, to shareholders of record at the close of business on May 27. Its dividend payout ratio is targeted within the 40-50% range. The company repurchases shares, reflecting its strong cash and capital generation in its businesses. SLF remains focused on improving ROE while retaining flexibility for future growth opportunities.
In May 2026, RLI Corp.’s (RLI - Free Report) board of directors approved a special cash dividend of $2.00 per share, which is expected to amount to approximately $184 million. The latest approval marks the 17th straight special dividend. The board of RLI also approved a hike in the company’s quarterly dividend, reflecting an increase of 12.5% from the prior quarter. The board of directors authorized a new share repurchase program. With the latest authorization, the board approved the issuance of up to $250 million of the company’s outstanding common stock. RLI Corp. has a strong balance sheet, with sufficient liquidity and strong cash flow, helping it meet the interests of its policyholders and support long-term book-value growth.
A month has gone by since the last earnings report for RLI Corp. (RLI - Free Report) . Shares have lost about 3.5% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is RLI Corp. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
RLI Q1 Earnings Miss Estimates, Investment Income Increases Y/Y
RLI Corp. reported first-quarter 2026 operating earnings of 83 cents per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 13.2% from the prior-year quarter. The quarterly results reflect underwriting strain from catastrophe losses, though investment income and casualty growth offer resilience.
Operational PerformanceOperating revenues for the reported quarter were $454 million, up 4.4% year over year, driven by higher net premiums earned and net investment income. The top line beat the Zacks Consensus Estimate by 1%.
Gross premiums written (GPW) increased 3% year over year to $503.9 million, driven by strong growth in the casualty segment (up 10%). Our estimate was $523.9 million.
Net investment income increased 15.2% year over year to $42.3 million. The Zacks Consensus Estimate was $40.2 million, while our estimate for the metric was pegged at $38.3 million. The investment portfolio’s total return was -0.4% in the quarter.
Total expenses increased 8% year over year to $385.7 million, primarily due to higher loss and settlement expenses and interest expense on debt. Our estimate was $349.4 million.
Underwriting income fell 18% year over year to $57.8 million. Our estimate was $71.4 million. The combined ratio deteriorated 370 basis points (bps) year over year to 86, reflecting higher catastrophe losses. Our estimate was 82.
Segmental ResultsCasualty lines’ GPW rose 10.3% year over year to $307.0 million. The figure was below our estimate of $300.9 million. The underwriting income increased significantly to $7.3 million from $2.1 million, up 249% year over year, supported by strong premium growth. The combined ratio improved 200 bps year over year to 97.1%. The figure was below our estimate of 99%.
Property lines’ GPW fell 9.0% year over year to $154.8 million. The figure was below our estimate of $180.1 million. The underwriting income declined to $48.2 million, down 15.3% primarily due to catastrophe losses and lower premium volumes. The combined ratio deteriorated 480 bps year over year to 61.9%. Our estimate was 55%.
Surety lines’ GPW remained largely flat at $42.1 million. The figure was on par with our estimate. The underwriting income dropped sharply to $2.3 million from $11.6 million, reflecting weaker reserve development and higher expenses. The combined ratio worsened significantly to 93.7% from 68.5%, up 2,520 bps year over year. Our estimate was 74.7%.
Financial UpdateRLI exited the quarter with total investments and cash of $4.9 billion, up 4.8% from 2025-end. Book value was $19.54 per share as of March. 31, 2026, up 1% from the figure as of Dec. 31, 2025. Net cash flow from operations was $42.8 million, down 58.6% year over year. The statutory surplus decreased 1.7% from 2025-end to $1.8 billion as of March. 31, 2025. Return on equity was 22.5%, expanding 490 bps from the year-ago period.
Dividend UpdateOn March 16, 2026, the insurer paid a regular quarterly dividend of 16 per cent per share for the first quarter. RLI’s cumulative dividends totaled more than $1.1 billion, paid over the last five years.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.
VGM ScoresCurrently, RLI Corp. has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock has a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise RLI Corp. has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
On June 10, 2026, RLI Corp (RLI) shares rose 3.2% to a current price of $53.94. This price movement comes amidst a 52-week range of $47.26 to $74.41, reflecting
