RLI (RLI) AI Stock Analysis

• Market Cap: $5.48B
• Dividend Yield: 4.38%
• Average Volume (3M): 618.16K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.26
• Revenue Growth: 10.29%
• EPS Growth: -4.70%
• Country: US
• Employees: 1,147
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.83
• Shares Outstanding: 91,829,470
• 10 Day Avg. Volume: 582,929
• 30 Day Avg. Volume: 618,162
• PEG Ratio: 1.66
• Price to Book (P/B): 4.96
• Price to Sales (P/S): 4.26
• P/FCF Ratio: 13.58
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $72.50
• Price Target Upside: 21.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 74 Outperform
• Price Target: $67.00 ▲(12.34% Upside)

RLI's strong financial performance and positive earnings call insights are the primary drivers of the score. However, bearish technical indicators and challenges in certain segments temper the overall outlook. The stock's fair valuation and attractive dividend yield provide additional support.

Positive Factors

Underwriting Profitability

RLI's strong underwriting profitability, indicated by an 85 combined ratio, highlights effective risk management and operational efficiency, which are crucial for long-term financial stability in the insurance industry.

Book Value Growth

The 26% growth in book value per share reflects RLI's ability to enhance shareholder equity, indicating robust financial health and potential for sustained investor returns.

Investment Income Increase

A 12% rise in investment income enhances RLI's revenue streams, providing a stable financial base and supporting long-term growth through diversified income sources.

Negative Factors

Property Segment Challenges

An 11% decline in property segment premiums indicates market challenges and potential revenue pressure, which could affect RLI's growth in this key sector.

Surety Premium Decline

A 3% decline in surety premiums suggests difficulties in maintaining market share, which could impact RLI's profitability and competitive position in the surety market.

Transportation Division Challenges

The 1% decline in transportation premiums highlights competitive pressures and market challenges, potentially limiting RLI's growth and profitability in this segment.

RLI Business Overview & Revenue Model

Company Description

RLI Corp (RLI) is a specialty insurance company that provides property and casualty insurance products and services. Operating primarily in the United States, RLI focuses on niche markets and offers a range of insurance solutions, including excess and surplus lines, as well as traditional insurance products. The company's core sectors include commercial lines, personal lines, and surety bonds, catering to various industries and individual clients.

How the Company Makes Money

RLI generates revenue primarily through the underwriting of insurance policies and the collection of premiums from policyholders. The company earns money by assessing risks and charging premiums that are intended to cover potential claims, operating expenses, and generate profit. Key revenue streams include the sale of specialty insurance products in commercial and personal lines, as well as fees associated with surety bonds. Additionally, RLI invests the premiums it collects in various financial instruments, which can provide further income through investment returns. The company's strategic partnerships with agents and brokers also contribute to its earnings by expanding its distribution network and market reach.

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	1.82B	1.77B	1.51B	1.70B	1.18B	983.63M
Gross Profit	967.78M	1.77B	1.51B	731.77M	1.18B	983.63M
EBITDA	387.88M	441.55M	-5.54M	736.71M	322.33M	184.64M
Net Income	323.44M	345.78M	304.61M	583.41M	279.35M	157.09M
Balance Sheet
Total Assets	5.99B	5.63B	5.18B	4.77B	4.51B	3.94B
Cash, Cash Equivalents and Short-Term Investments	1.20B	114.70M	3.03B	59.05M	88.80M	62.22M
Total Debt	100.00M	100.00M	100.00M	199.86M	199.68M	149.49M
Total Liabilities	4.26B	4.11B	3.77B	3.59B	3.28B	2.80B
Stockholders Equity	1.73B	1.52B	1.41B	1.18B	1.23B	1.14B
Cash Flow
Free Cash Flow	624.81M	555.51M	458.34M	244.56M	376.60M	257.49M
Operating Cash Flow	625.68M	560.22M	464.26M	250.45M	384.90M	263.26M
Investing Cash Flow	-410.94M	-318.87M	-211.80M	48.88M	-274.83M	-167.99M
Financing Cash Flow	-243.35M	-237.98M	-238.85M	-365.31M	-83.49M	-79.26M

RLI Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 59.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 59.64 is below the 20-day moving average (MA) of 63.48, below the 50-day MA of 65.53, and below the 200-day MA of 71.86, indicating a bearish trend. The MACD of -1.45 indicates Positive momentum. The RSI at 31.16 is Neutral, neither overbought nor oversold. The STOCH value of 7.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RLI.

RLI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCY	79 Outperform	$4.40B	11.33	21.56%	1.60%	14.93%	22.19%
SIGI	76 Outperform	$5.09B	13.28	12.19%	1.82%	12.27%	66.53%
THG	76 Outperform	$6.15B	11.26	19.23%	2.10%	4.47%	102.98%
RLI	74 Outperform	$5.48B	17.06	19.49%	4.38%	10.29%	-4.70%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WTM	65 Neutral	$4.98B	23.77	4.47%	0.05%	8.08%	-57.76%
KMPR	58 Neutral	$3.11B	9.28	12.21%	2.57%	2.75%	572.22%

RLI Corporate Events

RLI Announces Quarterly Dividend Amidst Strong Performance

On August 14, 2025, RLI Corp. announced that its Board of Directors approved a regular quarterly dividend of $0.16 per share, payable on September 19, 2025, to shareholders of record as of August 29, 2025. This announcement marks the continuation of RLI’s impressive track record of increasing dividends for 50 consecutive years, reflecting the company’s stable financial performance and commitment to delivering shareholder value.

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 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.