RLI (RLI) AI Stock Analysis

• Market Cap: $6.10B
• Dividend Yield: 3.96%
• Average Volume (3M): 787.57K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.18
• 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: 1,051,114
• 30 Day Avg. Volume: 787,573
• 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: 1.00
• Enterprise Value/Revenue: 3.31
• Enterprise Value/Gross Profit: 13.15
• Enterprise Value/Ebitda: 13.77
• 1Y Price Target: $71.00
• Price Target Upside: 9.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 83 Outperform
• Price Target: $72.00 ▲(10.89% Upside)

RLI's strong financial performance and strategic dividend announcements are the most significant factors driving its high score. The company's robust profitability, minimal leverage, and effective cash flow management underpin its financial health. Technical indicators suggest moderate positive momentum, while valuation metrics highlight a balanced growth and income potential. The earnings call provided positive insights into the company's performance, despite some challenges in specific segments.

Positive Factors

Strong Underwriting Profitability

RLI's strong underwriting profitability, indicated by an 85 combined ratio, showcases its effective risk management and operational efficiency, contributing to sustained financial health and competitive advantage in the insurance sector.

Significant Growth in Book Value

The significant growth in book value per share reflects RLI's strong financial performance and shareholder value creation, indicating robust capital management and long-term financial stability.

Leadership Succession Planning

The planned CFO transition demonstrates RLI's commitment to strong financial stewardship and proactive succession planning, ensuring continuity in leadership and strategic direction.

Negative Factors

Property Segment Premium Decline

The decline in property segment premiums suggests potential challenges in market conditions or competitive pressures, which could impact revenue growth if not addressed.

Surety Premium Downturn

The downturn in surety premiums indicates potential weaknesses in demand or market positioning, which may affect overall segment performance and revenue stability.

Challenges in Transportation Division

The decline in transportation premiums highlights competitive and market challenges, which could hinder growth and profitability in this division if not strategically managed.

RLI Business Overview & Revenue Model

Company Description

RLI Corp is a specialty insurance company that provides property and casualty insurance products, primarily through its insurance subsidiaries. The company operates in three main segments: Property, Casualty, and Surety. RLI focuses on niche markets, offering tailored insurance solutions that cater to specific industry needs, including environmental, construction, and commercial insurance. Its commitment to underwriting discipline and innovative products has positioned RLI as a leader in the specialty insurance sector.

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: Neutral
• Last Price: 64.93
• 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 Neutral. The current price of 64.93 is above the 20-day moving average (MA) of 63.59, above the 50-day MA of 61.07, and below the 200-day MA of 66.84, indicating a neutral trend. The MACD of 1.30 indicates Negative momentum. The RSI at 59.57 is Neutral, neither overbought nor oversold. The STOCH value of 76.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RLI.

RLI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RLI	83 Outperform	$6.10B	17.01	19.49%	3.96%	3.72%	-16.23%
THG	77 Outperform	$6.61B	10.72	20.02%	1.96%	5.26%	72.46%
SIGI	77 Outperform	$5.17B	13.10	12.22%	1.83%	10.98%	74.87%
WTM	73 Outperform	$5.30B	38.04	2.95%	0.05%	-4.24%	-78.10%
MCY	69 Neutral	$5.28B	11.96	21.47%	1.34%	6.18%	-21.28%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
KMPR	52 Neutral	$2.39B	10.60	9.03%	3.13%	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.

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.