RLI (RLI) AI Stock Analysis

• Market Cap: $6.45B
• Dividend Yield: 7.37%
• Average Volume (3M): 495.97K
• Price to Earnings (P/E): 23.1
• Beta (1Y): 0.27
• Revenue Growth: 9.18%
• EPS Growth: -16.06%
• Country: US
• Employees: 1,147
• Sector: Financial
• Sector Strength: 78
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.84
• Shares Outstanding: 91,773,030
• 10 Day Avg. Volume: 525,726
• 30 Day Avg. Volume: 495,967
• PEG Ratio: -1.22
• Price to Book (P/B): 4.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.97
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 3.74
• Enterprise Value/Ebitda: 7.14
• 1Y Price Target: $81.50
• Price Target Upside: 17.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 72 Outperform
• Price Target: $82.00 ▲(18.24%Upside)

RLI's overall score reflects its strong financial health and a positive corporate event, offset by mixed technical signals and moderate valuation. The earnings call provided a balanced view, highlighting both strengths and challenges, resulting in a cautiously optimistic outlook.

Positive Factors

Casualty Premium Growth

Casualty gross written premiums beat expectations, growing 18% compared to the 15% estimate.

Underwriting Excellence

RLI shares are believed to deserve to trade at a premium to peers due to the company's exemplary underwriting and book value growth track record, as well as management's ability to capitalize on hard market conditions.

Negative Factors

Earnings Miss

RLI reported operating EPS of $0.41, missing the estimate of $0.54 and consensus of $0.52, primarily due to a higher-than-projected Casualty loss ratio and lower-than-expected equity in earnings of unconsolidated investees.

Premium Growth Challenges

Growing competition in specialty lines and lighter premium growth are expected to result in a challenging environment for RLI Corp.

Top-line Growth Decline

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

RLI Business Overview & Revenue Model

Company Description

RLI Corp. is a specialty insurance company based in the United States, providing a diverse range of property and casualty insurance products. The company operates through multiple segments, including Casualty, Property, and Surety, offering innovative insurance solutions tailored to niche markets. RLI is known for its financial strength, underwriting expertise, and commitment to serving its customers with specialized insurance coverage.

How the Company Makes Money

RLI Corp. generates revenue primarily through the underwriting of insurance policies and investment income. The company's key revenue streams include premiums collected from policyholders in its Casualty, Property, and Surety segments. The Casualty segment covers general liability, commercial and personal umbrella, and transportation insurance, while the Property segment includes commercial property, marine, and earthquake insurance. The Surety segment provides contract, commercial, and fidelity bonding for small to large businesses. Additionally, RLI earns income from investing its reserves and surplus funds into a diversified portfolio of securities, which contributes significantly to its overall earnings. The company also benefits from strategic partnerships and a strong distribution network that enhance its market reach and customer base.

RLI Financial Statement Overview

Summary

RLI demonstrates strong financial health with impressive profitability metrics, a solid balance sheet with low leverage, and excellent cash flow management. Despite fluctuations in net margins, the company's financial position is robust.

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	1.52B	1.70B	1.18B	983.63M
Gross Profit	1.77B	1.52B	1.70B	1.18B	983.63M
EBITDA	438.75M	-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	39.79M	36.42M	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: 69.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 69.35 is below the 20-day moving average (MA) of 71.16, below the 50-day MA of 73.18, and below the 200-day MA of 76.96, indicating a bearish trend. The MACD of -0.94 indicates Positive momentum. The RSI at 37.06 is Neutral, neither overbought nor oversold. The STOCH value of 23.66 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	75 Outperform	$5.94B	13.79	15.74%	2.66%	3.09%	168.29%
AXS	74 Outperform	$7.64B	9.51	15.43%	1.83%	6.76%	54.56%
RLI	72 Outperform	$6.45B	23.11	17.99%	7.37%	9.18%	-16.06%
SIGI	72 Outperform	$5.44B	24.42	7.48%	1.68%	13.37%	-35.09%
WTM	69 Neutral	$4.67B	158.34	0.61%	0.06%	-4.09%	-94.77%
Sector *	67 Neutral	$16.88B	11.72	9.78%	4.17%	11.83%	-7.72%
AFG	66 Neutral	$10.65B	13.39	18.51%	7.88%	3.76%	-9.12%

RLI Corporate Events

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.

RLI Announces 6.7% Dividend Increase for 2025

On May 13, 2025, RLI Corp. announced a 6.7% increase in its regular quarterly dividend to $0.16 per share, payable on June 20, 2025, to shareholders of record as of May 30, 2025. This marks the 50th consecutive year of dividend increases, reflecting RLI’s consistent financial performance and commitment to returning value to shareholders, with a current dividend yield of 0.86% based on the latest stock price.

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.