RLI Corp.
- Open
- 59.48
- Day high
- 61.00
- Day low
- 59.37
- Prev close
- 59.07
- Volume
- 363K
- Mkt cap
- $5.6B
- P/E (TTM)
- 14.2
- EPS (TTM)
- $4.29
- P/B
- 3.1
- P/S
- 2.9
- Yield
- 7.67%
- Per share
- $4.66
- ▲Insiders net buying $1.1M over the last 3 months (7 open-market buys, 0 sales)
- ◆Cluster buying — multiple insiders bought within days
- 🏛Institutions mixed (13F)
RLI Corp. (RLI) is a Financial Services company listed on NYSE. The stock is down 17% over the past year. Over the trailing 3 months, insiders filed 7 open-market buys and 0 sales (SEC Form 4).
RLI Corp. (RLI) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
RLI earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 23, 2026 | $0.85 | $0.83 | -2.4% | $504M | +2.9% |
| Jan 21, 2026 | $0.76 | $0.94 | +23.7% | $466M | +4.6% |
| Oct 20, 2025 | $0.71 | $0.83 | +16.6% | $509M | -1.2% |
| Jul 21, 2025 | $0.75 | $0.84 | +12.0% | $500M | +12.2% |
| Apr 23, 2025 | $0.88 | $0.92 | +4.5% | $408M | -7.8% |
| Jan 22, 2025 | $1.05 | $0.41 | -61.0% | $439M | -1.2% |
| Oct 21, 2024 | $0.96 | $0.66 | -31.2% | $470M | -4.4% |
| Jul 22, 2024 | $1.41 | $0.86 | -39.0% | $423M | -24.7% |
| Jan 24, 2024 | $0.72 | $0.77 | +6.9% | $434M | +12.5% |
| Jul 24, 2023 | $0.60 | $0.58 | -3.3% | $382M | +2.5% |
| Apr 19, 2023 | $0.61 | $0.82 | +34.4% | $365M | +7.3% |
| Jan 25, 2023 | $0.54 | $0.77 | +42.6% | $361M | -4.6% |
RLI insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 3, 2026 | Kliethermes Craig Wofficer: CHIEF EXECUTIVE OFFICER | Buy | 5,000 | $52.00 |
| Jun 1, 2026 | KELLOGG CLARK Cdirector | Buy | 3,000 | $50.90 |
| May 29, 2026 | Duclos David B.director | Buy | 2,500 | $51.99 |
| May 28, 2026 | Kliethermes Craig Wofficer: CHIEF EXECUTIVE OFFICER | Buy | 2,000 | $52.00 |
| May 28, 2026 | Klobnak Jennifer Lofficer: CHIEF OPERATING OFFICER | Buy | 2,000 | $52.72 |
| May 26, 2026 | Kliethermes Craig Wofficer: CHIEF EXECUTIVE OFFICER | Buy | 5,000 | $52.00 |
| May 19, 2026 | Klobnak Jennifer Lofficer: CHIEF OPERATING OFFICER | Buy | 2,000 | $53.42 |
| May 15, 2026 | Graham Jordan Wdirector | Grant | 2,506 | — |
| May 15, 2026 | Angelina Michael Edirector | Grant | 2,506 | — |
| May 15, 2026 | Fleming Susan S.director | Grant | 2,506 | — |
| May 15, 2026 | MEDINI PAUL BENNETTdirector | Option | 1,681 | — |
| May 15, 2026 | STONE MICHAEL Jdirector | Grant | 2,506 | — |
| May 15, 2026 | Diefenthaler Aaron Paulofficer: CHIEF FINANCIAL OFFICER | Grant | 40,000 | $49.88 |
| May 15, 2026 | Angelina Michael Edirector | Option | 1,681 | — |
| May 15, 2026 | Duclos David B.director | Grant | 3,508 | — |
Source: RLI SEC Form 4 filings, latest Jun 3, 2026. For informational purposes only — not investment advice.
See the full RLI insider & 13F page →RLI Corp. company profile
Overview
RLI Corp. (NYSE:RLI) is a specialty insurance holding company founded in 1965 and headquartered in Peoria, Illinois. The company has built a reputation as a disciplined underwriter over nearly six decades, achieving 29 consecutive years of underwriting profitability as of 2024. RLI operates through three primary segments—Casualty, Property, and Surety—providing specialized insurance products to niche markets across the United States and internationally. The company went public in 1980 and has established itself as a conservative, profitable player in the property and casualty insurance industry.
Business
RLI Corp. operates in the property and casualty insurance industry, which provides coverage for businesses and individuals against various risks including property damage, liability claims, and performance bonds. The insurance industry functions by collecting premiums from policyholders and using these funds to pay claims when covered events occur, while investing the float (premiums collected but not yet paid out as claims) to generate additional income. The company operates through three distinct business segments: Casualty Segment (approximately 50-55% of premium revenue): This segment provides liability insurance coverage, which protects policyholders when they are legally responsible for causing injury to others or damage to their property. Key products include commercial general liability for manufacturers and contractors, professional liability (errors and omissions coverage) for technical professionals, commercial automobile insurance for trucking companies, management liability coverage including directors and officers insurance, and personal umbrella policies that provide high-limit coverage above standard auto and homeowners policies. The segment has shown consistent growth, with 14-18% premium increases in recent quarters. Property Segment (approximately 30-35% of premium revenue): This segment covers physical damage to buildings, equipment, and other property from perils like fire, wind, and theft. RLI focuses on specialized property risks including marine insurance (covering ships and cargo), excess and surplus (E&S) property insurance for hard-to-place risks, Hawaii homeowners insurance, and commercial property coverage. The company has been selective in managing catastrophe exposure, particularly from hurricanes, while capitalizing on rate increases in the hardening property market. Surety Segment (approximately 15-20% of premium revenue): Surety bonds guarantee that one party will fulfill its obligations to another party. If the bonded party fails to perform, the surety company compensates the obligee and then seeks reimbursement from the principal. RLI provides contract surety bonds for construction projects and commercial surety bonds for various business obligations. This segment typically maintains the lowest combined ratios due to the lower frequency of claims.
Revenue model
RLI makes money through the traditional insurance business model of collecting premiums and managing the underwriting cycle. The company generates revenue primarily through premium income from policyholders, supplemented by investment income from the insurance float—the money held between when premiums are collected and claims are paid. The company's profitability depends on maintaining a combined ratio below 100%, where the combined ratio equals claims paid plus operating expenses divided by premiums earned. RLI has consistently achieved combined ratios in the low-to-mid 80s, indicating strong underwriting discipline. For 2024, the company reported an 86.2% combined ratio with segments performing as follows: Property at 81%, Casualty at 97.9%, and Surety in the low 80s. Investment income provides a secondary revenue stream, with the company investing insurance reserves in fixed-income securities and equities. Investment income advanced 40% in recent years due to higher interest rates, contributing significantly to overall profitability. Several factors influence RLI's margins and profitability. Positive margin drivers include hardening insurance markets that allow for rate increases above loss cost inflation, the company's focus on specialty niches with less competition, disciplined underwriting that avoids unprofitable business, and rising interest rates that boost investment income. Negative margin pressures come from social inflation and legal system abuse that increase claim severity, particularly in casualty lines, catastrophic weather events affecting the property segment, competitive pressures from managing general agents (MGAs) and other carriers, and economic downturns that can reduce demand for surety bonds and increase claim frequency in some casualty lines. The company's customers are primarily commercial businesses, contractors, professionals, and affluent individuals seeking specialized insurance coverage. RLI distributes its products through independent agents, brokers, and direct relationships, maintaining long-term partnerships with producers who value the company's expertise and claims-paying ability.
Competitive moat
RLI's competitive moat is moderately strong and built on several key advantages that have enabled its 29-year streak of underwriting profitability. The company's primary moat stems from its specialized underwriting expertise in niche markets where scale and deep knowledge create barriers to entry. RLI has developed proprietary data, risk assessment capabilities, and claims handling expertise in areas like personal umbrella coverage, marine insurance, Hawaii homeowners, and specialized surety bonds. The company's disciplined underwriting culture represents another defensive advantage. Management consistently demonstrates the willingness to walk away from unprofitable business, even sacrificing growth when market conditions deteriorate. This discipline, evidenced by their ability to maintain profitability through multiple insurance cycles, creates a reputation advantage with agents and brokers who value reliable capacity. Financial strength and consistency provide additional moat characteristics. RLI's strong balance sheet and consistent profitability allow it to maintain market presence during hard markets when competitors retreat, and to offer competitive terms during soft markets while maintaining underwriting standards. The company's long-term relationships with reinsurers and distribution partners create switching costs and network effects. However, the moat faces several challenges. The property and casualty insurance industry is inherently competitive with relatively low barriers to entry for well-capitalized competitors. Technological disruption from insurtech companies and data analytics could erode traditional underwriting advantages. Regulatory changes and legal system developments, particularly around social inflation, create external pressures that can impact profitability regardless of underwriting skill. The emergence of aggressive MGAs and alternative capital sources in RLI's specialty markets poses ongoing competitive threats. While management notes that aggressive competitors historically "blow up" over time, the continuous influx of new capital seeking insurance returns creates persistent pricing pressure. Additionally, some of RLI's niches, particularly in property catastrophe coverage, face increasing competition from well-capitalized reinsurers and specialty carriers.
Risks & safety
RLI demonstrates a strong margin of safety with conservative financial management and consistent profitability, though recent valuation metrics suggest limited downside protection at current prices. • Solvency and Liquidity: Excellent financial position with $5.6 billion in total assets versus $4.1 billion in liabilities. Current ratio of 1.86 and minimal debt-to-equity ratio of 6.6%. Strong operating cash flow of $560 million in 2024 with free cash flow of $556 million indicates robust cash generation. • Valuation Metrics: Price-to-earnings ratio of 21.8x and price-to-book ratio of 5.0x suggest premium valuation. EV/EBITDA of 17.3x indicates moderate valuation relative to earnings. Graham number of $37.60 versus current price around $75 suggests potential overvaluation by traditional value metrics. • Other Considerations: 29 consecutive years of underwriting profitability demonstrates exceptional operational consistency. ROE of 22.7% indicates strong returns on shareholder equity. However, the insurance business model carries inherent tail risks from catastrophic events and long-tail liability claims that could impact future performance.
Recent development
Over the past few years, RLI has executed several strategic initiatives while maintaining its core underwriting discipline. The company has significantly expanded its property segment, growing premiums 24% in 2023 and continuing strong growth in specialized areas like Hawaii homeowners (up 37% in Q1 2025) and marine coverage (up 10-20% in recent quarters). This growth has been driven by both rate increases and market share gains in the hardening property market. In the casualty segment, RLI has aggressively grown its personal umbrella business, achieving 32-37% premium growth in recent periods by capitalizing on market disruptions as competitors withdrew from the challenging umbrella market. The company has leveraged its specialized expertise and data-driven approach to capture market share while maintaining underwriting discipline. Technology investments have been a key focus, with RLI implementing improved application processes, user-friendly systems, and streamlined policy issuance across business units. These investments aim to enhance efficiency and improve the customer experience while supporting growth initiatives. The company has also made strategic portfolio adjustments, including the significant sale of its Maui Jim investment for $687 million in 2022, providing substantial capital for reinvestment in insurance operations. Additionally, RLI has adjusted its reinsurance strategy, increasing first-dollar retentions from $25 million to $50 million for catastrophe coverage and modifying treaty participations to optimize risk-return profiles. Geographic and product line expansion has continued selectively, with particular focus on markets where RLI can leverage existing expertise. The company has been cautious about expanding into challenging jurisdictions like California while growing in more favorable regulatory environments.
RLI company profile · for informational purposes only — not investment advice.
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