RLI's Modest Growth and Margin Challenges Lead to Hold RatingWe expect that top-line growth will likely trend in the low to midsingle digits through 2026. Margin also took a step back this quarter despite conservative underwriting efforts as both the expense ratio and underlying loss ratio ticked up. Upward pressure on the loss ratio should continue due to several factors including: increasing severity and hardening legal environment in casualty lines, greater mix shift toward higher-loss casualty lines as the property segment continues to decline, and less favorable reserve development going forward. We believe that a high-80s combined ratio is achievable going forward, although this will pressure earnings growth in 2026. Due to this potential risk, and its impact on forward earnings growth, we continue to rate RLI Market Perform.