RLI (RLI) AI Stock Analysis

• Market Cap: $5.66B
• Dividend Yield: 4.26%
• Average Volume (3M): 615.21K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.16
• Revenue Growth: 3.72%
• EPS Growth: -16.23%
• Country: US
• Employees: 1,147
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.83
• Shares Outstanding: 91,837,840
• 10 Day Avg. Volume: 571,839
• 30 Day Avg. Volume: 615,209
• 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: 1.08
• Enterprise Value/Revenue: 3.31
• Enterprise Value/Gross Profit: 13.15
• Enterprise Value/Ebitda: 13.77
• 1Y Price Target: $71.00
• Price Target Upside: 15.13% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: $73.00 ▲(18.37% Upside)

RLI's strong financial performance and positive earnings call sentiment are the most significant factors contributing to its high score. The company's robust profitability, minimal leverage, and effective cash flow management are complemented by a reasonable valuation and attractive dividend yield. Technical indicators suggest potential resistance, but the overall outlook remains positive.

Positive Factors

Strong Underwriting Profitability

The strong underwriting profitability across segments indicates effective risk management and operational efficiency, contributing to sustainable financial performance.

Partnership with Netradyne

The partnership with Netradyne enhances RLI's value proposition in the transportation sector, potentially reducing claims and improving customer retention through innovative safety solutions.

Low Leverage

Minimal leverage provides RLI with financial flexibility and reduces risk, supporting long-term stability and the ability to invest in growth opportunities.

Negative Factors

Decline in Free Cash Flow Growth

A decline in free cash flow growth could limit RLI's ability to fund operations and investments, potentially impacting future growth and financial health if the trend continues.

Property Segment Premium Decline

Declining premiums in the property segment may indicate competitive pressures or market challenges, potentially affecting revenue and profitability in this key area.

Surety Premium Downturn

A downturn in surety premiums suggests challenges in maintaining market share or pricing power, which could affect RLI's growth in this segment.

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 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 effectively. Key revenue streams include premiums from its property, casualty, and surety insurance segments. Additionally, RLI earns investment income from its portfolio of invested assets, which consists of fixed-income securities and equity investments. Strategic partnerships with brokers and agents also enhance its distribution network, contributing to policy sales and overall revenue growth.

RLI Financial Statement Overview

Summary

RLI exhibits strong financial health with robust profitability, minimal leverage, and effective cash flow management. The company maintains strong revenue growth and efficient capital utilization, though there is a slight concern regarding the recent decline in free cash flow growth.

Income Statement

RLI has demonstrated consistent revenue growth with a TTM growth rate of 2.16%. The company maintains strong profitability, evidenced by a TTM net profit margin of 19.02% and an EBIT margin of 23.78%. Despite a slight decline in EBITDA margin, the overall profitability metrics remain robust, indicating effective cost management and operational efficiency.

Balance Sheet

RLI's balance sheet is characterized by a very low debt-to-equity ratio of 0.016, indicating minimal leverage and a strong equity position. The return on equity (ROE) is solid at 12.71% TTM, reflecting efficient use of equity capital. The equity ratio is high, suggesting financial stability and a strong asset base.

Cash Flow

The cash flow statement shows a slight decline in free cash flow growth at -6.37% TTM, which could be a concern if it continues. However, the operating cash flow to net income ratio is strong at 5.33, indicating good cash generation relative to net income. The free cash flow to net income ratio is nearly 1, showing that the company effectively converts its earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.86B	1.77B	1.51B	1.70B	1.18B	987.68M
Gross Profit	466.31M	454.63M	390.87M	731.77M	459.60M	307.76M
EBITDA	445.36M	441.55M	393.11M	736.71M	359.39M	204.88M
Net Income	353.02M	345.78M	304.61M	583.41M	279.35M	157.09M
Balance Sheet
Total Assets	6.25B	5.63B	5.18B	4.77B	4.51B	3.94B
Cash, Cash Equivalents and Short-Term Investments	1.65B	114.70M	3.03B	2.73B	2.50B	2.26B
Total Debt	100.00M	100.00M	200.00M	399.73M	199.68M	149.49M
Total Liabilities	4.37B	4.11B	3.77B	3.59B	3.28B	2.80B
Stockholders Equity	1.87B	1.52B	1.41B	1.18B	1.23B	1.14B
Cash Flow
Free Cash Flow	585.01M	555.51M	458.34M	244.56M	376.60M	257.49M
Operating Cash Flow	585.53M	560.22M	464.26M	250.45M	384.90M	263.26M
Investing Cash Flow	-349.30M	-318.87M	-211.80M	48.88M	-274.83M	-167.99M
Financing Cash Flow	-244.25M	-237.98M	-238.85M	-365.31M	-83.49M	-79.26M

RLI Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 61.67
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 61.67 is above the 20-day moving average (MA) of 60.52, above the 50-day MA of 60.47, and below the 200-day MA of 67.51, indicating a neutral trend. The MACD of 0.54 indicates Negative momentum. The RSI at 58.38 is Neutral, neither overbought nor oversold. The STOCH value of -4.56 is Positive, 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
RLI	81 Outperform	$5.66B	16.15	19.49%	4.26%	3.72%	-16.23%
SIGI	78 Outperform	$4.77B	12.17	12.22%	1.99%	10.98%	74.87%
THG	77 Outperform	$6.62B	10.74	20.02%	1.94%	5.26%	72.46%
MCY	69 Neutral	$5.13B	11.67	21.47%	1.67%	6.18%	-21.28%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WTM	65 Neutral	$5.15B	36.82	2.95%	0.05%	-4.24%	-78.10%
KMPR	52 Neutral	$2.38B	10.62	9.03%	3.15%	4.51%	-8.29%

RLI Corporate Events

RLI Announces CFO Retirement and Successor Appointment

On November 12, 2025, RLI Corp. announced that Todd W. Bryant, the Chief Financial Officer, will retire from his role on December 31, 2025, after over 30 years with the company. Bryant will remain in an advisory role through mid-2026 to support the transition of responsibilities to his successor, Aaron P. Diefenthaler, who has been appointed as the new CFO effective January 1, 2026. Diefenthaler, who has been with RLI since 2012, will receive an increased salary and participate in the Market Value Potential Executive Incentive Program as part of his new role. This leadership change reflects RLI’s commitment to strong financial stewardship and proactive succession planning.

The most recent analyst rating on (RLI) stock is a Buy with a $67.00 price target. To see the full list of analyst forecasts on RLI stock, see the RLI Stock Forecast page.

RLI Announces Special and Regular Dividends

On November 13, 2025, RLI Corp. announced that its Board of Directors approved a special cash dividend of $2.00 per share, totaling approximately $184 million, and a regular quarterly dividend of $0.16 per share. Both dividends are scheduled for payment on December 19, 2025, to shareholders recorded by November 28, 2025. This move reflects RLI’s robust financial position and commitment to long-term shareholder value, having returned over $1.6 billion to shareholders in the past decade.

The most recent analyst rating on (RLI) stock is a Buy with a $67.00 price target. To see the full list of analyst forecasts on RLI stock, see the RLI Stock Forecast page.

RLI Corp’s Omission of Key Disclosures: A Risk to Investor Confidence and Market Reputation

RLI Corp faces a business risk related to the lack of disclosures in certain regulatory areas, such as mine safety and unregistered sales of equity securities, which are marked as not applicable. This absence of information could raise concerns among stakeholders about the company’s transparency and compliance with industry regulations. While these specific disclosures may not be directly relevant to RLI Corp’s operations, the omission might still affect investor confidence and potentially impact the company’s reputation in the financial market. Therefore, it is crucial for RLI Corp to ensure clarity and transparency in all regulatory aspects to mitigate any potential risks associated with perceived non-compliance.

RLI Corp. Reports Strong Q3 2025 Earnings Growth

RLI Corp. is a specialty insurer that operates in niche property, casualty, and surety markets, offering deep underwriting expertise and superior service to both commercial and personal lines customers across the United States. The company is known for its consistent dividend payments and strong underwriting performance.

RLI Corp’s Earnings Call: Strong Growth Amid Challenges

RLI Corp’s recent earnings call painted a picture of robust financial health, with strong growth in book value and underwriting profitability. The sentiment was largely positive, bolstered by increases in investment income. However, there were noted challenges in the property segment and a decline in surety premiums, which present areas of concern for the company.