Property Line PressureRLI’s earnings in the property line will be pressured as the company reprices or non-renews highly profitable policies increasingly targeted by other carriers.
Underwriting ProfitA reversion to the prior mean, other things equal, would knock a quarter off RLI’s underwriting profit.
ValuationThe valuation is full, at 22x next year’s earnings, above the group norm in the mid-teens, suggesting limited upside potential.