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RLI Corp (RLI)
NYSE:RLI
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RLI (RLI) AI Stock Analysis

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RLI

RLI

(NYSE:RLI)

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Outperform 74 (OpenAI - 4o)
Rating:74Outperform
Price Target:
$67.00
â–²(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 (RLI) vs. SPDR S&P 500 ETF (SPY)

RLI Business Overview & Revenue Model

Company DescriptionRLI 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 MoneyRLI 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 Earnings Call Summary

Earnings Call Date:Oct 20, 2025
(Q3-2025)
|
Next Earnings Date:Jan 28, 2026
Earnings Call Sentiment Neutral
RLI demonstrated strong financial performance with significant growth in book value and underwriting profitability, supported by increases in investment income. However, challenges in the property segment and surety premium declines indicate areas of concern.
Q3-2025 Updates
Positive Updates
Strong Underwriting Profitability
RLI achieved an 85 combined ratio with underwriting profitability across all segments, contributing to a 20% plus return on equity.
Significant Growth in Book Value
Book value per share has grown 26% year to date inclusive of dividends.
Increase in Net Investment Income
There was a 12% increase in investment income, contributing to the overall financial performance.
Hawaii Homeowners Growth
Premiums in the Hawaii homeowners segment were up 33% in the quarter, with a 16% rate increase.
Improvement in Casualty Segment
Casualty gross premiums advanced 8%, with a 98 combined ratio for Q3.
Negative Updates
Property Segment Premium Decline
The property segment experienced an 11% decline in gross premiums, influenced by rate and exposure declines in U.S. property.
Surety Premium Downturn
Surety's gross premium was down 3% over last year, driven by modest declines in commercial and contract.
Challenges in Transportation Division
Transportation premium was down 1% for the quarter due to competition and market challenges, despite achieving 15% rate increases.
Company Guidance
During RLI Corp.'s third quarter 2025 earnings call, the management highlighted several key metrics showcasing their financial performance. The company achieved an 85 combined ratio, indicating underwriting profitability across all segments. Year-to-date, the book value per share has increased by 26%, inclusive of dividends, with a return on equity exceeding 20%. Operating earnings per share for the quarter were reported at $0.83, supported by underwriting performance and a 12% rise in investment income. The total combined ratio was 85.1%, an improvement from the previous year's 89.6%, largely due to a benign hurricane season. While the property segment saw an 11% decline in gross premiums, it maintained a strong 60 combined ratio. Meanwhile, the casualty segment grew its gross premiums by 8%, achieving a 98 combined ratio, with notable reserve releases. The surety segment posted an 85 combined ratio despite a modest premium decline. Overall, RLI continues to demonstrate strong financial health by navigating market volatility and maintaining a stable underwriting strategy.

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
85
Very Positive
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
78
Positive
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
90
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.82B1.77B1.51B1.70B1.18B983.63M
Gross Profit967.78M1.77B1.51B731.77M1.18B983.63M
EBITDA387.88M441.55M-5.54M736.71M322.33M184.64M
Net Income323.44M345.78M304.61M583.41M279.35M157.09M
Balance Sheet
Total Assets5.99B5.63B5.18B4.77B4.51B3.94B
Cash, Cash Equivalents and Short-Term Investments1.20B114.70M3.03B59.05M88.80M62.22M
Total Debt100.00M100.00M100.00M199.86M199.68M149.49M
Total Liabilities4.26B4.11B3.77B3.59B3.28B2.80B
Stockholders Equity1.73B1.52B1.41B1.18B1.23B1.14B
Cash Flow
Free Cash Flow624.81M555.51M458.34M244.56M376.60M257.49M
Operating Cash Flow625.68M560.22M464.26M250.45M384.90M263.26M
Investing Cash Flow-410.94M-318.87M-211.80M48.88M-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 Price59.64
Price Trends
50DMA
65.53
Negative
100DMA
68.22
Negative
200DMA
71.86
Negative
Market Momentum
MACD
-1.45
Positive
RSI
31.16
Neutral
STOCH
7.18
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 Risk Analysis

RLI disclosed 28 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$4.40B11.3321.56%1.60%14.93%22.19%
76
Outperform
$5.09B13.2812.19%1.82%12.27%66.53%
76
Outperform
$6.15B11.2619.23%2.10%4.47%102.98%
74
Outperform
$5.48B17.0619.49%4.38%10.29%-4.70%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
65
Neutral
$4.98B23.774.47%0.05%8.08%-57.76%
58
Neutral
$3.11B9.2812.21%2.57%2.75%572.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RLI
RLI
59.64
-17.81
-23.00%
MCY
Mercury General
79.96
15.01
23.11%
SIGI
Selective Insurance Group
83.60
-10.04
-10.72%
THG
Hanover Insurance
171.82
24.65
16.75%
KMPR
Kemper
49.31
-12.15
-19.77%
WTM
White Mountains Insurance Group
1,920.91
89.90
4.91%

RLI Corporate Events

DividendsFinancial Disclosures
RLI Announces Quarterly Dividend Amidst Strong Performance
Positive
Aug 14, 2025

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.

Executive/Board ChangesShareholder Meetings
RLI Corp. Announces New Chairman After Shareholder Meeting
Neutral
May 19, 2025

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.

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.Date of analysis: Oct 21, 2025