RLI Corp (RLI)
NYSE:RLI
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RLI
(NYSE:RLI)
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Rating:67Neutral
Price Target:
$57.00
â–¼(-3.42% Downside)
Action:DowngradedDate:04/25/26
RLI scores well on financial strength and earnings quality (strong margins, conservative leverage, cash flow backing earnings), and the latest update supports a disciplined underwriting story despite near-term headwinds. The main drag is weak technicals (broadly below moving averages with negative momentum), while valuation is helped by a high dividend yield but moderated by a mid-to-high P/E.
Positive Factors
Conservative Balance Sheet
Low leverage and a conservative capital structure give RLI durable resilience through underwriting cycles. With minimal debt relative to equity the company can absorb loss volatility, maintain ratings support, fund targeted growth or return capital without forcing distressed asset sales.
Negative Factors
Earnings and ROE Volatility
RLI’s earnings and ROE have shown material swings across recent years, reducing predictability of underwriting earnings and capital returns. This variability complicates multi-period planning and increases the chance that one-off reserve development or catastrophe years will pressure capital allocation and payout consistency.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Low leverage and a conservative capital structure give RLI durable resilience through underwriting cycles. With minimal debt relative to equity the company can absorb loss volatility, maintain ratings support, fund targeted growth or return capital without forcing distressed asset sales.
Read all positive factors
RLI (RLI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.73B
Dividend Yield4.05%
Average Volume (3M)601.60K
Price to Earnings (P/E)24.0
Beta (1Y)0.20
Revenue Growth9.01%
EPS Growth40.14%
CountryUS
Employees1,147
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)4.29
Shares Outstanding91,938,330
10 Day Avg. Volume552,378
30 Day Avg. Volume601,598
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 Cap1.05
Enterprise Value/Revenue2.61
Enterprise Value/Gross Profit6.97
Enterprise Value/Ebitda9.69
Forecast
1Y Price Target
$60.00Price Target Upside1.66% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)2.77
Revenue Forecast (FY)$2.04B
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 makes money primarily through (1) underwriting income and (2) investment income generated from its insurance operations. Underwriting income is earned when the premiums collected on policies and surety bonds exceed the company’s costs to servi...
RLI Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
Earnings Call Sentiment Positive
The call presented a mix of encouraging operating and underwriting results alongside notable near-term headwinds. Highlights include an 86% combined ratio, underwriting income of $58 million, 10% casualty growth with rate increases, a 15% rise in net investment income, a successful $300 million long-term debt issuance, and an AM Best upgrade to A++. Offsetting these positives were lower operating and GAAP EPS, $39 million of unrealized equity losses, a $60 million decline in operating cash flow, catastrophe losses (~$16 million), and continued pressure in property and certain E&S markets. Management emphasized disciplined underwriting, selective growth, and continued investment in analytics and talent. Overall the company appears financially strong and well-positioned, but near-term volatility and market softening in some lines are being carefully managed.Positive Updates
Strong Underwriting Performance and Combined Ratio
Generated an 86% combined ratio for the quarter and reported underwriting income of $58 million, supported by favorable prior-year reserve development of $35.5 million.
Negative Updates
Decline in Operating and GAAP Earnings Per Share
Operating earnings were $0.83 per share versus $0.89 a year ago (down ~6.7%). On a GAAP basis, net earnings were $0.60 per share versus $0.68 a year ago (down ~11.8%).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Underwriting Performance and Combined Ratio
Generated an 86% combined ratio for the quarter and reported underwriting income of $58 million, supported by favorable prior-year reserve development of $35.5 million.
Read all positive updates
Company Guidance
Management's guidance stressed continued disciplined, selective growth with an emphasis on rate adequacy and underwriting discipline—expecting growth to persist as recent rate approvals earn into the book—backed by Q1 metrics: gross premiums +3% (casualty +10%, transportation +27%, personal umbrella +23%, property -9%, marine ≈$47M +4%, Hawaii homeowners premiums +12%, surety -1%), operating EPS $0.83 vs $0.89 y/y, GAAP EPS $0.60 vs $0.68, operating income supported by $58M of underwriting income (including $35.5M favorable prior‑year development and $16M of catastrophes), consolidated combined ratio 86% (casualty 97%, property 62%, surety 94%), operating cash flow $43M (down $60M), portfolio total return -0.4% with fixed‑income purchase yields ~4.8% (~50 bps above book yield), late‑February $300M 10‑year debt at 5.38% and a $150M revolver, comprehensive EPS $0.32, book value per share +2% vs YE2025, and an AM Best upgrade to A++; near‑term reinsurance strategy is largely unchanged (most reinsurance renewed 1/1, ~60%), and management reiterated continued investment in data/AI, careful risk selection, and willingness to wait for attractive opportunities.RLI Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
78
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.90B | 1.88B | 1.77B | 1.51B | 1.70B | 1.18B |
| Gross Profit | 712.18M | 561.42M | 454.63M | 390.87M | 731.77M | 459.60M |
| EBITDA | 512.05M | 530.45M | 441.55M | 393.11M | 736.71M | 359.39M |
| Net Income | 395.01M | 403.34M | 345.78M | 304.61M | 583.41M | 279.35M |
Balance Sheet | ||||||
| Total Assets | 6.40B | 6.16B | 5.63B | 5.18B | 4.77B | 4.51B |
| Cash, Cash Equivalents and Short-Term Investments | 1.94B | 172.13M | 114.70M | 3.03B | 2.73B | 2.50B |
| Total Debt | 347.25M | 100.00M | 100.00M | 200.00M | 399.73M | 199.68M |
| Total Liabilities | 4.61B | 4.38B | 4.11B | 3.77B | 3.59B | 3.28B |
| Stockholders Equity | 1.80B | 1.78B | 1.52B | 1.41B | 1.18B | 1.23B |
Cash Flow | ||||||
| Free Cash Flow | 550.36M | 608.70M | 555.51M | 458.34M | 244.56M | 376.60M |
| Operating Cash Flow | 553.54M | 614.22M | 560.22M | 464.26M | 250.45M | 384.90M |
| Investing Cash Flow | -538.33M | -362.13M | -318.87M | -211.80M | 48.88M | -274.83M |
| Financing Cash Flow | 6.86M | -240.32M | -237.98M | -238.85M | -365.31M | -83.49M |
RLI Technical Analysis
Neutral
59.02
Price Trends
59.90
Negative
60.70
Negative
61.88
Negative
Market Momentum
-0.28
Negative
51.95
Neutral
72.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RLI, the sentiment is Neutral. The current price of 59.02 is above the 20-day moving average (MA) of 57.89, below the 50-day MA of 59.90, and below the 200-day MA of 61.88, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 51.95 is Neutral, neither overbought nor oversold. The STOCH value of 72.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
85 Outperform | $6.57B | 8.24 | 20.92% | 1.97% | 6.41% | 66.30% | |
80 Outperform | $4.91B | 11.67 | 12.93% | 1.85% | 8.76% | 99.32% | |
79 Outperform | $5.36B | 1.59 | 22.87% | 0.05% | 29.96% | 377.33% | |
74 Outperform | $5.33B | 9.63 | 25.65% | 1.34% | 9.44% | 15.60% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $4.73B | 23.95 | 13.40% | 4.05% | 9.01% | 40.14% | |
56 Neutral | $2.01B | -74.49 | 5.08% | 3.15% | 3.36% | -55.22% |
* Financial Sector Average
RLI
RLI
51.50
-19.86
-27.83%
MCY
Mercury General
96.27
38.63
67.01%
SIGI
Selective Insurance Group
82.08
-4.96
-5.69%
THG
Hanover Insurance
186.84
21.95
13.31%
KMPR
Kemper
34.15
-25.24
-42.49%
WTM
White Mountains Insurance Group
2,163.50
378.34
21.19%
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.