RLI (RLI) AI Stock Analysis

• Market Cap: $6.97B
• Dividend Yield: 0.79%
• Average Volume (3M): 344.25K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 0.26
• Revenue Growth: 9.18%
• EPS Growth: -16.06%
• Country: US
• Employees: 1,147
• Sector: Financial
• Sector Strength: 83
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.92
• Shares Outstanding: 91,773,030
• 10 Day Avg. Volume: 342,430
• 30 Day Avg. Volume: 344,251
• PEG Ratio: -1.29
• Price to Book (P/B): 4.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.64
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 3.99
• Enterprise Value/Ebitda: 7.62
• 1Y Price Target: $74.00
• Price Target Upside: -2.54% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: $86.00 ▲(13.26%Upside)

RLI's strong financial performance is the most significant factor driving its score, showcasing robust profitability and cash flow efficiency. Technical analysis supports stability, although the valuation suggests a premium pricing. The earnings call presented both opportunities and challenges, indicating a balanced outlook. The dividend increase further enhances shareholder value.

Positive Factors

Casualty Premiums

Casualty gross written premiums beat expectations, growing 18% compared to the 15% estimate.

Market Position

RLI shares are believed to deserve to trade at a premium to peers due to the company's exemplary underwriting and book value growth track record, as well as management's ability to capitalize on hard market conditions.

Negative Factors

Earnings

RLI reported operating EPS of $0.41, missing the estimate of $0.54 and consensus of $0.52, primarily due to a higher-than-projected Casualty loss ratio and lower-than-expected equity in earnings of unconsolidated investees.

Growth Challenges

Growing competition in specialty lines and lighter premium growth are expected to result in a challenging environment for RLI Corp.

Market Share

RLI is expected to lose a small portion of the total E&S market share to competitors who may be more willing to reduce margins to maintain growth.

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 coverage for third-party liability of commercial insureds, including manufacturers, contractors, apartments, and mercantile. It also offers coverages for security guards and in the areas of onshore energy-related businesses and environmental liability for underground storage tanks, contractors and asbestos, and environmental remediation specialists; and professional liability coverages focuses on providing errors and omission coverage to small to medium-sized design, technical, computer, and miscellaneous professionals. This segment provides commercial automobile liability and physical damage insurance to local, intermediate and long haul truckers, public transportation entities, and other types of specialty commercial automobile risks; incidental and related insurance coverages; inland marine coverages; management liability coverages, such as directors and officers liability insurance, fiduciary liability and coverages, employment practice liability, and for various classes of risks, including public and private businesses; and healthcare liability and home business insurance products. The company's Property segment offers commercial property, cargo, hull, protection and indemnity, marine liability, inland marine, homeowners' and dwelling fire, and other property insurance products. Its Surety segment offers commercial surety bonds for medium to large-sized businesses; small bonds for businesses and individuals; and bonds for small to medium-sized contractors. The company also underwrites various reinsurance coverages. It markets its products through branch offices, brokers, carrier partners, and underwriting and independent agents. RLI Corp. was founded in 1965 and is headquartered in Peoria, Illinois.

How the Company Makes Money

RLI Corp. generates revenue primarily through the underwriting of insurance policies and investment income. The company's key revenue streams include premiums collected from policyholders in its Casualty, Property, and Surety segments. The Casualty segment covers general liability, commercial and personal umbrella, and transportation insurance, while the Property segment includes commercial property, marine, and earthquake insurance. The Surety segment provides contract, commercial, and fidelity bonding for small to large businesses. Additionally, RLI earns income from investing its reserves and surplus funds into a diversified portfolio of securities, which contributes significantly to its overall earnings. The company also benefits from strategic partnerships and a strong distribution network that enhance its market reach and customer base.

RLI Financial Statement Overview

Summary

RLI demonstrates strong financial health across all major verticals. The income statement shows high profitability despite some fluctuations in net margins. The balance sheet reflects a stable financial position with low leverage and strong equity. Cash flow metrics are exceptional, showcasing efficient cash management and growth in free cash flow. The company is well-positioned within the industry, though monitoring margin trends will be crucial.

Income Statement

The company's income statement shows strong profitability metrics. The TTM (Trailing-Twelve-Months) gross profit margin is impressive, indicating high efficiency. However, the net profit margin saw a decline from the previous year, which requires attention. Revenue growth has been inconsistent, but the company has maintained positive EBIT and EBITDA margins, reflecting operational efficiency.

Balance Sheet

RLI's balance sheet is solid with a low debt-to-equity ratio, implying low financial leverage. The equity ratio is robust, suggesting financial stability. However, the return on equity (ROE) has fluctuated, reflecting variable profitability. Overall, the company maintains a strong equity base, minimizing financial risk.

Cash Flow

The cash flow metrics are strong, characterized by a significant growth in free cash flow. The operating cash flow to net income ratio is healthy, indicating efficient conversion of income to cash. The company's ability to generate free cash flow surpasses net income, highlighting robust cash flow management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.74B	1.77B	1.52B	1.70B	1.18B	983.63M
	Gross Profit
1.73B	1.77B	1.52B	1.70B	1.18B	983.63M
	EBIT
348.11M	438.79M	-28.17M	720.81M	344.32M	189.84M
	EBITDA
115.28M	438.75M	-5.54M	736.71M	322.33M	184.64M
	Net Income Common Stockholders
281.09M	345.78M	304.61M	583.41M	279.35M	157.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.06M	39.79M	36.42M	59.05M	88.80M	62.22M
	Total Assets
5.73B	5.63B	5.18B	4.77B	4.51B	3.94B
	Total Debt
100.00M	100.00M	100.00M	199.86M	199.68M	149.49M
	Net Debt
72.94M	60.21M	63.58M	177.04M	110.87M	87.27M
	Total Liabilities
4.12B	4.11B	3.77B	3.59B	3.28B	2.80B
	Stockholders Equity
1.60B	1.52B	1.41B	1.18B	1.23B	1.14B
Cash Flow		Free Cash Flow
588.11M	555.51M	458.34M	244.56M	376.60M	257.49M
	Operating Cash Flow
592.79M	560.22M	464.26M	250.45M	384.90M	263.26M
	Investing Cash Flow
-369.22M	-318.87M	-211.80M	48.88M	-274.83M	-167.99M
	Financing Cash Flow
-241.07M	-237.98M	-238.85M	-365.31M	-83.49M	-79.26M

RLI Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 75.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RLI, the sentiment is Positive. The current price of 75.93 is above the 20-day moving average (MA) of 75.28, above the 50-day MA of 75.82, and below the 200-day MA of 77.30, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 52.59 is Neutral, neither overbought nor oversold. The STOCH value of 50.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RLI.

RLI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXS	82 Outperform	$8.41B	10.47	15.43%	1.65%	6.76%	54.56%
THG	79 Outperform	$6.29B	14.59	15.74%	2.00%	3.09%	168.29%
RLI	76 Outperform	$6.97B	24.98	17.99%	0.79%	9.18%	-16.06%
SIGI	71 Outperform	$5.31B	23.84	7.48%	1.70%	13.37%	-35.09%
AFG	66 Neutral	$10.45B	13.14	18.51%	2.48%	3.76%	-9.12%
Sector *	64 Neutral	$12.85B	9.81	7.59%	16985.65%	12.30%	-7.71%
WTM	63 Neutral	$4.68B	158.55	0.61%	0.05%	-4.09%	-94.77%

RLI Corporate Events

RLI Corp. Announces New Chairman After Shareholder Meeting

On May 13, 2025, RLI Corp. held its annual meeting of shareholders where several key decisions were made. The shareholders elected nominees to the Board of Directors, appointed David B. Duclos as Chairman, approved executive compensation on an advisory basis, and ratified Deloitte & Touche LLP as the independent registered public accounting firm for 2024.

The most recent analyst rating on (RLI) stock is a Hold with a $76.00 price target. To see the full list of analyst forecasts on RLI stock, see the RLI Stock Forecast page.

RLI Announces 6.7% Dividend Increase for 2025

On May 13, 2025, RLI Corp. announced a 6.7% increase in its regular quarterly dividend to $0.16 per share, payable on June 20, 2025, to shareholders of record as of May 30, 2025. This marks the 50th consecutive year of dividend increases, reflecting RLI’s consistent financial performance and commitment to returning value to shareholders, with a current dividend yield of 0.86% based on the latest stock price.

The most recent analyst rating on (RLI) stock is a Hold with a $76.00 price target. To see the full list of analyst forecasts on RLI stock, see the RLI Stock Forecast page.