RLI (RLI) AI Stock Analysis

• Market Cap: $6.22B
• Dividend Yield: 3.89%
• Average Volume (3M): 677.05K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.27
• Revenue Growth: 10.29%
• EPS Growth: -4.70%
• Country: US
• Employees: 1,147
• Sector: Financial
• Sector Strength: 76
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.84
• Shares Outstanding: 91,829,470
• 10 Day Avg. Volume: 437,590
• 30 Day Avg. Volume: 677,046
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 3.74
• Enterprise Value/Gross Profit: 7.02
• Enterprise Value/Ebitda: 17.52
• 1Y Price Target: $74.00
• Price Target Upside: 10.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 76 Outperform
• Price Target: $76.00 ▲(13.15% Upside)

RLI's strong financial performance and stable dividend policy are significant strengths, contributing to a solid overall score. Technical analysis indicates some bearish trends, which slightly offset the positive financial and earnings call insights. The company's valuation is fair, with an attractive dividend yield supporting the score.

Positive Factors

Earnings

RLI reported second-quarter operating EPS of $0.84, which is higher than the consensus of $0.79.

Negative Factors

Growth Slowdown

Top-line growth fell to 5% for the quarter compared to 13% in the year-ago period.

Margin Decline

Margin took a step back this quarter as both the expense ratio and underlying loss ratio increased.

Property Segment Performance

The property segment declined 10% in the quarter as competition picks up and rates decline, affecting top-line growth.

Reserves and Litigation

Uncertainty around favorable reserves due to higher litigation rates and greater severity presents downside potential for the commercial P&C sector, including RLI.

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 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.77B	1.51B	1.70B	1.18B	983.63M
Gross Profit	1.77B	1.51B	731.77M	1.18B	983.63M
EBITDA	441.55M	-5.54M	736.71M	322.33M	184.64M
Net Income	345.78M	304.61M	583.41M	279.35M	157.09M
Balance Sheet
Total Assets	5.63B	5.18B	4.77B	4.51B	3.94B
Cash, Cash Equivalents and Short-Term Investments	114.70M	3.03B	59.05M	88.80M	62.22M
Total Debt	100.00M	100.00M	199.86M	199.68M	149.49M
Total Liabilities	4.11B	3.77B	3.59B	3.28B	2.80B
Stockholders Equity	1.52B	1.41B	1.18B	1.23B	1.14B
Cash Flow
Free Cash Flow	555.51M	458.34M	244.56M	376.60M	257.49M
Operating Cash Flow	560.22M	464.26M	250.45M	384.90M	263.26M
Investing Cash Flow	-318.87M	-211.80M	48.88M	-274.83M	-167.99M
Financing Cash Flow	-237.98M	-238.85M	-365.31M	-83.49M	-79.26M

RLI Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 67.17
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 67.17 is below the 20-day moving average (MA) of 67.29, below the 50-day MA of 68.60, and below the 200-day MA of 75.15, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 45.62 is Neutral, neither overbought nor oversold. The STOCH value of 22.60 is Neutral, 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
THG	81 Outperform	$6.21B	11.58	19.23%	2.00%	4.47%	102.98%
MCY	79 Outperform	$4.27B	10.95	21.56%	1.65%	14.93%	22.19%
RLI	76 Outperform	$6.22B	19.26	19.49%	3.89%	10.29%	-4.70%
SIGI	75 Outperform	$4.76B	12.85	12.19%	1.92%	12.27%	66.53%
WTM	69 Neutral	$4.73B	22.82	4.47%	0.06%	8.08%	-57.76%
Sector *	68 Neutral	$17.88B	11.66	10.24%	3.76%	9.66%	1.70%
KMPR	58 Neutral	$3.37B	10.24	12.21%	2.35%	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.