Track market-moving stories before they get noisy

Financial stocks are the first to crack when markets panic, yet a handful of them kept handing investors bigger checks through both the 2008 meltdown and the 2020 shock. Four names cleared that bar, and their current yields tell only…

Financial stocks get stress-tested harder than any other sector during recessions, so an income streak that survived both the Global Financial Crisis and the pandemic shock is a genuine credential. These four names did more than survive: verified dividend records show each one paid a higher regular dividend in 2008 than in 2007, and again in 2020 than in 2019. Cincinnati Financial’s quarterly payout went from $0.56 in 2019 to $0.60 throughout 2020, and today the same company pays $0.94 per quarter. That is the shape of a dividend income stream you can actually plan around.

Cincinnati Financial (CINF) Cincinnati Financial (NASDAQ:CINF | CINF Price Prediction) yields 2.1% at a recent price of $171.08, with an annualized forward dividend of $3.76 after the board lifted the quarterly rate to $0.94.

Trailing EPS of $21.10 against a $3.62 trailing dividend leaves enormous coverage, and the payout is supported by parent-company cash and marketable securities above $5 billion plus an equity portfolio with more than $8 billion of appreciated value. Underwriting has printed 14 consecutive years of profit, and Q1 2026 combined ratio improved to 95.6% from 113.3% a year earlier. The dividend record on file shows unbroken annual increases from $0.17 quarterly in 1999 to $0.94 today, including raises through both 2008 and 2020.

For income investors, this is the archetypal sleep-well-at-night P&C compounder: low beta of 0.554, a trailing PE of 8, and a book value per share of $108.68 that anchors valuation. There is one caveat though, results are equity-heavy, so a sharp market drawdown would compress book value faster than at a bond-heavy insurer.

T. Rowe Price (TROW) T. Rowe Price (NASDAQ:TROW) is the highest-yielder in this group at 4.57%, paying $1.30 per quarter for a $5.20 annualized forward. Shares recently traded at $110.97.

The dividend is comfortably covered by trailing EPS of $9.86, the balance sheet carries $3.23 billion in cash and equivalents, and the firm has no debt-heavy financing profile to worry about. Dividend history shows a clean pattern of annual raises across both target years: the regular quarterly went from $0.24 in 2008 to $0.25 in 2009, and from $0.90 in 2020 to $1.08 in 2021. Q1 2026 alone returned $629 million to shareholders through dividends and buybacks.

The bull case is straightforward income math: a 4.57% yield from a debt-free asset manager with record AUM of $1.89 trillion and a trailing PE of 11. However, there is active-management flow risk: net client outflows of $6.5 billion in the most recent quarter show the underlying pressure that active shops still face from index funds.

Erie Indemnity (ERIE) Erie Indemnity (NASDAQ:ERIE) yields 2.22% at a recent price of $257.41, with a quarterly Class A dividend of $1.4625 and an annualized forward of $5.85.

ERIE operates as the management company for the Erie Insurance Exchange, so the earnings stream is fee income from managing the reciprocal rather than underwriting results. Trailing EPS of $11.06 covers the dividend, return on equity runs at 24.8%, and beta sits at just 0.30. The verified dividend record shows the regular quarterly rate rising from $0.40 in 2007 to $0.44 in 2008 to $0.45 in 2009, and from $0.90 in 2019 to $0.965 in 2020, with a separate $2.00 special dividend paid that December.

The bull case is a fee-based business that has raised its regular payout every year across the entire recorded history from $0.44 quarterly in 2008 to $1.4625 today. Valuation here is worth considering with a trailing PE of 24 and price-to-book of 5.5, the stock is priced like a growth compounder even after falling 24.32% over the past year.

RLI Corp (RLI) RLI Corp (NYSE:RLI) yields 1.03% on the regular quarterly dividend alone, at a recent price of $63.72. That understates what shareholders actually receive: RLI has a long habit of paying sizable special dividends, and the trailing twelve-month total is $4.68, boosted by a $2.18 special on May 29, 2026.

Trailing EPS of $4.77 against a $0.66 regular annual dividend, ROE of 25.2%, and a Q2 2026 combined ratio of 85.6 with $35.1 million of favorable prior-year reserve development. AM Best recently upgraded the group to A++ Superior. The dividend record shows regular quarterly raises within both target years, from $0.23 to $0.26 across 2008 and from $0.23 to $0.24 across 2020, plus special dividends layered on top of both years.

For income investors who accept lumpy timing, RLI has arguably the strongest specialty-underwriting franchise on this list. It’s worth noting that on a regular-dividend basis alone the yield is thin, so the total-income story depends on management continuing to declare specials that are not contractually guaranteed.

Putting the Four Together What ties CINF, TROW, ERIE, and RLI together is a verified pattern of raising regular dividends through the two nastiest financial-market environments of the past two decades. Each is US-listed, each covers its payout with room to spare, and each represents a different flavor of financial-sector income: a P&C compounder, a debt-free asset manager, a fee-based insurance manager, and a specialty underwriter. Own them for the stream (the whole point of a dividend ladder is collecting checks without ever selling a share, and our free guide walks through how to build one: Never Touch the Principal).

Contact [email protected] for any questions or corrections.

Key Takeaways RLI's Q2 net investment income rose 16.8% to $46 million, while first-half NII increased 16%. RLI's taxable fixed-income portfolio yield increased to 4.4%, supporting higher investment income. $145 million of Q2 operating cash flow funded investments averaging 4.9% yields, aiding future NII. RLI Corp.’s (RLI - Free Report) increase in net investment income (NII) appears reasonably sustainable in the near term, although the current growth rate is unlikely to persist indefinitely. In the second quarter of 2026, NII increased 16.8% to $46 million, while first-half NII rose 16% to $88.4 million.

The growth in NII has a fundamental basis rather than being driven purely by investment gains. RLI benefited from higher reinvestment rates and a larger average asset base. Its taxable fixed-income portfolio yield increased to 4.4% from 4.06%, while tax-exempt yields rose to 3.04% from 2.95%.

NII should continue to benefit from RLI's ability to reinvest operating cash flows into fixed-income securities. In the second quarter of 2026, operating cash flow of $145 million supported investment purchases carrying average yields of 4.9%, creating an opportunity to generate additional investment income over time. Investments and cash totaled approximately $4.9 billion as of June 30, 2026, providing a substantial asset base for recurring NII generation. Moreover, as older securities mature, RLI can reinvest proceeds into newer securities, although the benefit will depend on prevailing interest rates.

Even if interest rates decline, RLI could continue growing NII through portfolio expansion and strong underwriting-generated cash flows. The existing investment portfolio provides some protection against an immediate decline in NII because securities already held continue to generate contractual income. However, over time, lower rates would reduce the yields available on new investments, making asset growth increasingly important to offset reinvestment-rate pressure.

RLI's NII growth appears fundamentally supported by its sizable investment portfolio, strong operating cash generation and attractive reinvestment opportunities. While the 16-17% growth rate is unlikely to be sustained indefinitely, NII should remain a meaningful and increasingly important contributor to earnings, with future growth likely driven more by portfolio expansion and underwriting cash flows than by higher investment yields.

What About Other Insurers?Chubb Limited's (CB - Free Report) net investment income is an important earnings contributor. The metric benefits from higher interest rates and stronger portfolio yields, providing a steady source of earnings beyond underwriting profits. This helps improve profitability, offset claim volatility and strengthen overall financial performance.

The Travelers Companies, Inc.’s (TRV - Free Report) net investment income is a material contributor to the company’s results of operations, consistently providing a reliable source of earnings that complements its underwriting activities. Net investment income acts as a second earnings engine for this property and casualty insurer after underwriting profit. Thus, even if underwriting profit weakens because of higher catastrophe losses, solid net investment income can help offset earnings pressure.

RLI’s Price PerformanceShares of RLI have lost 5% in the past year against the industry’s growth of 2.5%.

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 3.36, above the industry average of 1.43.

Image Source: Zacks Investment Research

Estimate Movement for RLIThe Zacks Consensus Estimate for RLI’s third quarter of 2026 has moved down 1.8% in the past 30 days. The estimate for RLI’s fourth quarter of 2026 has moved up 1.5% in the past 30 days. The same for the full-year 2026 and 2027 EPS has moved up 1% and 0.7%, respectively, in the past 30 days.

Image Source: Zacks Investment Research

Key Takeaways RLI posted its 30th consecutive year of underwriting profit, with an 85.6 combined ratio in Q2.Casualty premiums rose 11%, led by 19% growth in Transportation and 26% in Personal Umbrella.RLI faces catastrophe risks, elevated valuation and rising E&S property competition. RLI Corp. (RLI - Free Report) shares have gained 23.3% over the past three months compared with the industry’s return of 5.2%.

The performance was driven by strong underwriting, higher investment income and premium growth. Shareholder-friendly capital returns also aided the rally. RLI had already announced a special dividend, a dividend hike and a share buyback in May.

Shares of some other industry players like The Travelers Companies, Inc. (TRV - Free Report) , W.R. Berkley Corporation (WRB - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) have gained 20.4%, 2.4% and 2.1%, respectively, over the past three months.

3-Month Price Performance: RLI, TRV, WRB, CINF & Industry
 

Image Source: Zacks Investment Research

RLI’s Growth ProjectionThe Zacks Consensus Estimate for RLI’s 2026 revenues is pegged at $1.86 billion, implying a year-over-year improvement of 4.7%. The consensus estimate for 2026 earnings per share (EPS) indicates a year-over-year decrease of 17%. The consensus estimate for 2027 EPS indicates a decrease of 3.7%, while revenues indicate an increase of 1.7% from the corresponding 2026 estimates.

Optimistic Analyst Sentiment on RLIThe company has witnessed five upward earnings estimate revisions for 2026 over the past 30 days, while 2027 estimates have seen two upward and two downward revisions in the same time frame. Thus, the Zacks Consensus Estimate for 2026 moved 4.7% north, while the 2027 earnings estimate remained unchanged over the same period.

RLI’s Favorable Return on EquityRLI’s return on equity has also been improving over the last few quarters, reflecting its efficiency in utilizing shareholders’ funds. The trailing 12-month ROE was 17.6%, better than the industry average of 7.5%.

Factors Acting in Favor of RLIRLI is one of the industry’s most profitable P&C writers and delivered its 30th consecutive year of underwriting profit in 2025. The company generated $59.9 million of underwriting income in the second quarter of 2026 with a 85.6 combined ratio, while the first-half 2026 combined ratio was 85.8.

RLI’s Casualty segment remained a key growth driver. In the second quarter of 2026, gross premiums increased 11% year over year, led by 19% growth in transportation and 26% growth in personal umbrella. Growth was supported by favorable pricing, with rates rising 17% in personal umbrella and 8% in transportation. Reduced competitive activity among some competitors is creating new business opportunities for RLI, allowing it to selectively expand its portfolio while maintaining pricing discipline.

Investment income has been improving over the last several years, primarily driven by higher reinvestment rates and a larger average asset base. Net investment income increased 16% to $88.4 million in the first half of 2026. Fixed-income purchase yields averaged 4.9%, about 60 basis points above the current book yield. Management expects investment income to keep growing if rates hold and the portfolio expands.

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. Over the past five years, the company has returned more than $1.3 billion through dividends and buybacks, while preserving capital for profitable underwriting opportunities. It has paid dividends for 199 consecutive quarters and increased regular dividends in each of the last 51 years, making the stock an attractive pick for yield-seeking investors.

The insurer has been strengthening its balance sheet by improving liquidity and leverage. As of June 30, 2026, total investments and cash reached $4.87 billion, up 4.5% from year-end 2025. 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.

RLI's Premium ValuationRLI trades at 3X book value versus 1.47 X for the industry. This premium raises sensitivity to softer pricing, catastrophe losses or slower earnings growth.

Image Source: Zacks Investment Research

Risks for RLIRLI remains exposed to catastrophe risks, incurring  $26 million in first-half 2026 catastrophe losses. Unpredictable events could raise loss costs, pressure underwriting income, and increase earnings volatility.

RLI faces rising competition in E&S property, with second quarter 2026 property GPW down 6% year over year and renewal retention falling below 70%. Softer hurricane and earthquake pricing could further pressure premium growth and underwriting margins.

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, higher investment income and improving liquidity poise the company’s growth. Impressive dividend history, higher returns and optimistic analyst sentiment are other positives. However, catastrophe risks and rising E&S property competition remain risks.

Given its premium valuation, the risk-reward profile appears balanced, making it 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 announces Q3 regular cash dividend of $0.18 per share, payable on September 15, 2026, to shareholders of record as of August 31, 2026.

Posted by Defense World Staff on Jul 29th, 2026

Dimensional Fund Advisors LP boosted its holdings in RLI Corp. (NYSE:RLI – Free Report) by 1.1% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 1,920,823 shares of the insurance provider’s stock after buying an additional 21,299 shares during the quarter. Dimensional Fund Advisors LP owned approximately 2.09% of RLI worth $109,567,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the business. UBS Group AG grew its holdings in shares of RLI by 8.7% during the 4th quarter. UBS Group AG now owns 607,176 shares of the insurance provider’s stock valued at $38,847,000 after purchasing an additional 48,563 shares during the last quarter. SG Americas Securities LLC increased its position in RLI by 1,030.2% during the 4th quarter. SG Americas Securities LLC now owns 34,009 shares of the insurance provider’s stock worth $2,176,000 after purchasing an additional 31,000 shares in the last quarter. Chase Investment Counsel Corp bought a new position in RLI in the 4th quarter valued at approximately $1,535,000. Wasatch Advisors LP boosted its position in RLI by 33.1% in the first quarter. Wasatch Advisors LP now owns 2,579,955 shares of the insurance provider’s stock valued at $147,161,000 after buying an additional 641,769 shares in the last quarter. Finally, Vanguard Group Inc. boosted its holdings in shares of RLI by 3.4% during the 4th quarter. Vanguard Group Inc. now owns 9,448,929 shares of the insurance provider’s stock valued at $604,542,000 after acquiring an additional 310,857 shares in the last quarter. Institutional investors own 77.89% of the company’s stock.

RLI Stock Performance Shares of NYSE RLI opened at $65.15 on Wednesday. The stock has a market cap of $5.99 billion, a price-to-earnings ratio of 13.69 and a beta of 0.38. RLI Corp. has a fifty-two week low of $47.26 and a fifty-two week high of $69.19. The firm’s 50-day simple moving average is $56.44 and its 200 day simple moving average is $57.43.

RLI (NYSE:RLI – Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The insurance provider reported $0.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.72 by $0.11. RLI had a return on equity of 17.61% and a net margin of 22.22%.The business had revenue of $575.57 million during the quarter, compared to the consensus estimate of $568.70 million. During the same quarter in the prior year, the company posted $0.82 earnings per share. RLI’s revenue was up 15.2% compared to the same quarter last year. On average, sell-side analysts predict that RLI Corp. will post 2.8 EPS for the current year.

RLI Increases Dividend The firm also recently announced a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Friday, May 29th were issued a $0.18 dividend. This is a boost from RLI’s previous quarterly dividend of $0.16. This represents a $0.72 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend was Friday, May 29th. RLI’s dividend payout ratio is currently 15.13%.

Insiders Place Their Bets In related news, Director David B. Duclos purchased 2,500 shares of the firm’s stock in a transaction dated Thursday, May 28th. The stock was bought at an average price of $51.99 per share, for a total transaction of $129,975.00. Following the purchase, the director directly owned 9,780 shares in the company, valued at approximately $508,462.20. This trade represents a 34.34% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Clark C. Kellogg bought 3,000 shares of the firm’s stock in a transaction on Monday, June 1st. The stock was purchased at an average cost of $50.90 per share, with a total value of $152,700.00. Following the completion of the transaction, the director directly owned 4,502 shares of the company’s stock, valued at approximately $229,151.80. The trade was a 199.73% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have bought 16,500 shares of company stock worth $858,955 over the last 90 days. Company insiders own 2.39% of the company’s stock.

Wall Street Analysts Forecast Growth A number of research analysts recently issued reports on the stock. Zacks Research upgraded shares of RLI from a “strong sell” rating to a “hold” rating in a report on Thursday, April 2nd. Weiss Ratings lowered shares of RLI from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, May 22nd. Wells Fargo & Company raised their price target on shares of RLI from $55.00 to $62.00 and gave the company an “equal weight” rating in a research note on Thursday, July 9th. Wall Street Zen downgraded RLI from a “hold” rating to a “sell” rating in a report on Monday, July 20th. Finally, UBS Group set a $74.00 target price on RLI in a research report on Tuesday. One research analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, RLI presently has an average rating of “Hold” and an average price target of $63.20.

Check Out Our Latest Analysis on RLI

RLI Company Profile (Free Report)

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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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.

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.

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.

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.

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.

More News From RLI Corp.

Let's talk about high yield stocks that are seeing strong buying from insiders.

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)-- #casualtyinsurance--RLI Corp. announces key Claim leadership promotions, naming Cory Figiel Chief Claim Officer and advancing Charles Spiekerman to Vice President, Claim.

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.

Category: Earnings Release

More News From RLI Corp.

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.

RLI Corp. (RLI) Q1 2026 Earnings Call Transcript

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.

More News From RLI Corp.

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.

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.