RLI Corp (RLI)
NYSE:RLI
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RLI
(NYSE:RLI)
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Rating:78Outperform
Price Target:
$72.00
â–²(24.18% Upside)
Action:ReiteratedDate:03/04/26
The score is driven primarily by strong financial performance (profitability, low leverage, and strong cash conversion). Valuation is supportive (mid-teens P/E and strong yield), while technicals are only moderately positive due to the 200-day trend still overhead. Earnings-call commentary remains constructive but tempered by premium pressure and casualty/expense headwinds; recent financing is a modest mixed factor.
Positive Factors
Cash generation
Reliable operating and free cash flow (≈$614M in 2025) that tracks net income closely signals high earnings quality. This durable cash conversion funds dividends, special payouts, reinsurance/timing flexibility and investments in underwriting and analytics without relying on external financing.
Negative Factors
Weak premium growth
Modest to negative premium trends (Q4 -2%, FY +1%) indicate constrained organic growth and pressure from competitive markets. Over several quarters this limits leverage of fixed costs, reduces ability to expand scale profitably, and forces reliance on rate actions or selective contraction.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Reliable operating and free cash flow (≈$614M in 2025) that tracks net income closely signals high earnings quality. This durable cash conversion funds dividends, special payouts, reinsurance/timing flexibility and investments in underwriting and analytics without relying on external financing.
Read all positive factors
RLI (RLI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.33B
Dividend Yield4.05%
Average Volume (3M)732.12K
Price to Earnings (P/E)14.6
Beta (1Y)0.19
Revenue Growth3.72%
EPS Growth-16.23%
CountryUS
Employees1,147
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.94
Shares Outstanding91,920,170
10 Day Avg. Volume756,364
30 Day Avg. Volume732,117
Financial Highlights & Ratios
PEG Ratio0.92
Price to Book (P/B)3.32
Price to Sales (P/S)3.13
P/FCF Ratio9.69
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue2.86
Enterprise Value/Gross Profit9.58
Enterprise Value/Ebitda10.30
Forecast
1Y Price Target
$59.75Price Target Upside3.05% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)2.84
Revenue Forecast (FY)$2.07B
RLI Business Overview & Revenue Model
Company Description
RLI Corp., an insurance holding company, underwrites property and casualty insurance in the United States and internationally. Its Casualty segment provides commercial and personal coverage products; and general liability products, such as coverag...
How the Company Makes Money
RLI generates revenue primarily through the underwriting of insurance policies and the collection of premiums from its policyholders. The company employs a disciplined underwriting approach, which helps it achieve profitability by managing risk ef...
RLI Earnings Call Summary
Earnings Call Date:Jan 22, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call presented materially positive financial and operational achievements: strong underwriting income ($264M), improved EPS, 33% book value per share growth, 30 years of underwriting profitability, solid investment returns, targeted segment wins (personal umbrella, surety, Hawaii homeowners), and disciplined reinsurance renewals. Offsetting headwinds include modest overall premium growth (down 2% in Q4), notable pressure in E&S property premiums and competitive dynamics (hurricane and earthquake rate moderation), elevated casualty and transportation challenges (high short‑term casualty combined ratios, reserve variability, transportation severity), and a higher expense ratio. Management emphasized disciplined underwriting, investments in technology/analytics, and capital flexibility. On balance, the positive financial results, capital generation, and demonstrated underwriting discipline outweigh the operational and market pressures, leaving a constructive but vigilant outlook.Positive Updates
Sustained Underwriting Profitability
30th consecutive year of underwriting profitability; full-year underwriting income of $264 million on an ~83.6 combined ratio (management also referenced ~84 combined ratio). Q4 underwriting income was $71 million on an 82.6 combined ratio versus $22 million on a 94.4 combined ratio in Q4 last year.
Negative Updates
Modest Top-Line Growth and Premium Pressure
Top-line premium growth was modest: down 2% in Q4 and up only 1% for the full year. Several businesses experienced disciplined contraction due to competitive market dynamics.
Read all updates
Q4-2025 Updates
Positive
Negative
Sustained Underwriting Profitability
30th consecutive year of underwriting profitability; full-year underwriting income of $264 million on an ~83.6 combined ratio (management also referenced ~84 combined ratio). Q4 underwriting income was $71 million on an 82.6 combined ratio versus $22 million on a 94.4 combined ratio in Q4 last year.
Read all positive updates
Company Guidance
Management's guidance was pragmatic and metric-driven: they renewed roughly two‑thirds of reinsurance on Jan. 1, locking in 15–20% rate decreases on catastrophe programs, reducing purchased catastrophe limit by $150M (while keeping a $50M attachment) and seeing ~5% lower casualty reinsurance rates, but remain prepared to re-enter the market midterm; they expect to continue pursuing double‑digit rate increases in auto‑related lines (building on a 16% overall auto liability increase in 2025 and a 13% transportation rate increase in Q4), to push additional personal‑umbrella rate filings (personal umbrella Q4 premiums +24% with a 12% rate increase and a ~20% CA increase effective Dec. 1), and to seek accretive fixed‑income opportunities after purchase yields averaged 4.9% in the quarter (70 bps above book yield) as the portfolio returned 1.5% in Q4 and 9% for the year; this posture is supported by strong capital generation (Q4 operating EPS $0.94 vs. $0.52 prior year, Q4 underwriting income $71M, full‑year underwriting income $264M on an ~83–84 combined ratio, FY net earnings $4.37/share, comprehensive earnings $5.29 and book value per share +33%), which funded a $2.00 special dividend (plus the ordinary Q4 dividend) and underpins continued investment in underwriting, distribution and technology.RLI Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
78
Positive
Cash Flow
86
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.88B | 1.77B | 1.51B | 1.70B | 1.18B |
| Gross Profit | 561.42M | 454.63M | 390.87M | 731.77M | 459.60M |
| EBITDA | 530.45M | 441.55M | 393.11M | 736.71M | 359.39M |
| Net Income | 403.34M | 345.78M | 304.61M | 583.41M | 279.35M |
Balance Sheet | |||||
| Total Assets | 6.16B | 5.63B | 5.18B | 4.77B | 4.51B |
| Cash, Cash Equivalents and Short-Term Investments | 172.13M | 114.70M | 3.03B | 2.73B | 2.50B |
| Total Debt | 100.00M | 100.00M | 200.00M | 399.73M | 199.68M |
| Total Liabilities | 4.38B | 4.11B | 3.77B | 3.59B | 3.28B |
| Stockholders Equity | 1.78B | 1.52B | 1.41B | 1.18B | 1.23B |
Cash Flow | |||||
| Free Cash Flow | 608.70M | 555.51M | 458.34M | 244.56M | 376.60M |
| Operating Cash Flow | 614.22M | 560.22M | 464.26M | 250.45M | 384.90M |
| Investing Cash Flow | -362.13M | -318.87M | -211.80M | 48.88M | -274.83M |
| Financing Cash Flow | -240.32M | -237.98M | -238.85M | -365.31M | -83.49M |
RLI Technical Analysis
Negative
57.98
Price Trends
60.13
Negative
60.94
Negative
62.91
Negative
Market Momentum
-0.72
Positive
36.52
Neutral
3.54
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RLI, the sentiment is Negative. The current price of 57.98 is below the 20-day moving average (MA) of 60.79, below the 50-day MA of 60.13, and below the 200-day MA of 62.91, indicating a bearish trend. The MACD of -0.72 indicates Positive momentum. The RSI at 36.52 is Neutral, neither overbought nor oversold. The STOCH value of 3.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RLI.
RLI Risk Analysis
RLI disclosed 26 risk factors in its most recent earnings report. RLI reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
RLI Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $5.34B | 4.80 | 22.87% | 0.05% | -4.24% | -78.10% | |
78 Outperform | $5.33B | 14.63 | 23.08% | 4.05% | 3.72% | -16.23% | |
77 Outperform | $4.51B | 10.96 | 13.59% | 1.85% | 10.98% | 74.87% | |
77 Outperform | $6.02B | 8.17 | 19.99% | 1.97% | 5.26% | 72.46% | |
74 Outperform | $4.91B | 9.63 | 25.65% | 1.34% | 6.18% | -21.28% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
56 Neutral | $1.83B | -74.49 | 9.03% | 3.15% | 4.51% | -8.29% |
* Financial Sector Average
RLI
RLI
57.98
-16.85
-22.52%
MCY
Mercury General
88.60
32.86
58.94%
SIGI
Selective Insurance Group
74.58
-13.31
-15.14%
THG
Hanover Insurance
172.23
3.13
1.85%
KMPR
Kemper
30.89
-34.79
-52.97%
WTM
White Mountains Insurance Group
2,211.91
319.77
16.90%
RLI Corporate Events
Business Operations and StrategyPrivate Placements and Financing
RLI Completes $300 Million Senior Notes Offering
Positive
Mar 3, 2026
On March 3, 2026, RLI Corp. completed a public offering of $300 million of 5.375% senior notes due 2036, issued under a new indenture with Computershare Trust Company as trustee, with semiannual interest payments beginning June 1, 2026 and flexibl...
Dividends
RLI Maintains Quarterly Dividend, Extends 50-Year Streak
Positive
Feb 18, 2026
On February 18, 2026, RLI Corp. said its board declared an unchanged first-quarter regular cash dividend of $0.16 per share, payable March 16, 2026, to shareholders of record as of March 2, 2026. Based on an indicated annual dividend of $0.64 and ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.