RLI Reports Second Quarter 2025 Results
'RLI delivered solid earnings and continued book value growth in the second quarter.'
Share
All share and per share data in this release reflect the two-for-one stock split that RLI executed on January 15, 2025.
(1)
See discussion below: Non-GAAP and Performance Measures.
Expand
Highlights for the quarter included:
Underwriting income (1) of $62.2 million on a combined ratio (1) of 84.5.
Gross premiums written were flat and net investment income increased 16%.
Favorable development in prior years' loss reserves resulted in a $24.4 million net increase in underwriting income.
Book value per share of $18.89, an increase of 16% (inclusive of dividends) from year-end 2024.
'RLI delivered solid earnings and continued book value growth in the second quarter,' said RLI Corp. President & CEO Craig Kliethermes. 'We posted an 85 combined ratio, underscoring our underwriting discipline in a highly competitive market. Investment income increased as we put operating cash flow to work in a favorable interest rate environment. Collectively, these results contributed to a 16% increase in book value since year-end 2024. These achievements reflect the strength of our team and their commitment to driving sustained value and long-term profitable growth.'
Underwriting Income
RLI achieved $62.2 million of underwriting income in the second quarter of 2025 on an 84.5 combined ratio, compared to $70.0 million on an 81.5 combined ratio in 2024.
Results for both years include favorable development in prior years' loss reserves, which resulted in a $24.4 million and $19.8 million net increase to underwriting income in 2025 and 2024, respectively.
The following table highlights underwriting income and combined ratios by segment for the second quarter.
(1)
See discussion below: Non-GAAP and Performance Measures.
Expand
Other Income
Net investment income for the quarter increased 16% to $39.4 million, compared to the same period in 2024. The investment portfolio's total return was 2.9% for the quarter and 4.2% for the six months ended June 30, 2025.
RLI's comprehensive earnings were $143.0 million for the quarter ($1.55 per share), compared to $74.1 million ($0.80 per share) for the same quarter in 2024. In addition to net earnings, comprehensive earnings for 2025 included after-tax unrealized gains from the fixed income portfolio, due to declining interest rates.
Dividends Paid in Second Quarter of 2025
On June 20, 2025, the company paid a regular quarterly dividend of $0.16 per share, a $0.01 increase over the prior quarter. RLI's cumulative dividends total more than $971 million paid over the last five years.
Non-GAAP and Performance Measures
Management has included certain non-generally accepted accounting principles (non-GAAP) financial measures in presenting the company's results. Management believes that these non-GAAP measures further explain the company's results of operations and allow for a more complete understanding of the underlying trends in the company's business. These measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles (GAAP). In addition, our definitions of these items may not be comparable to the definitions used by other companies.
Operating earnings and operating earnings per share (EPS) consist of our GAAP net earnings adjusted by net realized gains/(losses), net unrealized gains/(losses) on equity securities and taxes related thereto. Net earnings and net earnings per share are the GAAP financial measures that are most directly comparable to operating earnings and operating EPS. A reconciliation of the operating earnings and operating EPS to the comparable GAAP financial measures is included in the 2025 financial highlights below.
Underwriting income or profit represents the pretax profitability of our insurance operations and is derived by subtracting loss and settlement expenses, policy acquisition costs and insurance operating expenses from net premium earned, which are all GAAP financial measures. The combined ratio, which is derived from components of underwriting income, is a performance measure commonly used by property and casualty insurance companies and is calculated as the sum of loss and settlement expenses, policy acquisition costs and insurance operating expenses, divided by net premiums earned, which are all GAAP measures.
Other News
On July 8, 2025, RLI was named one of the insurance industry's top-performing companies for the 35th consecutive year by Ward Benchmarking, a business unit of Aon. RLI is the only property & casualty insurance company to be recognized as a Ward's 50® P&C Top Performer every year since the list's inception in 1991.
At 10 a.m. central daylight time (CDT) on July 22, 2025, RLI management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion at https://events.q4inc.com/attendee/671576926.
Except for historical information, this news release may include forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) including, without limitation, statements reflecting our current expectations about the future performance of our company or our business segments or about future market conditions. These statements are subject to certain risk factors that could cause actual results to differ materially. Various risk factors that could affect future results are listed in the company's filings with the Securities and Exchange Commission, including the Form 10-K Annual Report for the year ended December 31, 2024.
About RLI
RLI Corp. (NYSE: RLI) is a specialty insurer serving niche property, casualty and surety markets. The company provides deep underwriting expertise and superior service to commercial and personal lines customers nationwide. RLI's products are offered through its insurance subsidiaries – RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company. All of RLI's insurance subsidiaries are rated A+ (Superior) by AM Best Company. RLI has paid and increased regular dividends for 50 consecutive years and delivered underwriting profits for 29 consecutive years. To learn more about RLI, visit www.rlicorp.com.
Supplemental disclosure regarding the earnings impact of specific items:
(1)
Reserve development reflects changes from previously estimated losses.
(2)
See discussion above: Non-GAAP and Performance Measures.
(3)
Items included in operating earnings per share are after tax and incorporates incentive and profit sharing-related impacts which affected policy acquisition, insurance operating and general corporate expenses.
Expand
RLI CORP
2025 FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended June 30,
Six Months Ended June 30,
SUMMARIZED INCOME STATEMENT DATA:
2025
2024
% Change
2025
2024
% Change
Net premiums earned
$
401,904
$
379,065
6.0
%
$
800,249
$
739,741
8.2
%
Net investment income
39,418
33,961
16.1
%
76,144
66,808
14.0
%
Net realized gains (losses)
15,004
(192
)
NM
29,916
5,802
NM
Net unrealized gains on equity securities
43,500
3,608
NM
1,182
48,922
(97.6
)
%
Consolidated revenue
$
499,826
$
416,442
20.0
%
$
907,491
$
861,273
5.4
%
Loss and settlement expenses
184,578
167,799
10.0
%
361,816
311,623
16.1
%
Policy acquisition costs
125,502
113,921
10.2
%
249,189
224,375
11.1
%
Insurance operating expenses
29,594
27,321
8.3
%
56,468
56,024
0.8
%
Interest expense on debt
1,350
1,604
(15.8
)
%
2,685
3,222
(16.7
)
%
General corporate expenses
4,754
4,140
14.8
%
7,702
9,150
(15.8
)
%
Total expenses
$
345,778
$
314,785
9.8
%
$
677,860
$
604,394
12.2
%
Equity in earnings of unconsolidated investees
2,467
1,646
49.9
%
5,515
6,415
(14.0
)
%
Earnings before income taxes
$
156,515
$
103,303
51.5
%
$
235,146
$
263,294
(10.7
)
%
Income tax expense
32,179
21,311
51.0
%
47,596
53,402
(10.9
)
%
Net earnings
$
124,336
$
81,992
51.6
%
$
187,550
$
209,892
(10.6
)
%
Other comprehensive earnings (loss), net of tax
18,701
(7,843
)
NM
48,731
(20,514
)
NM
Comprehensive earnings
$
143,037
$
74,149
92.9
%
$
236,281
$
189,378
24.8
%
Operating earnings (1):
Net earnings
$
124,336
$
81,992
51.6
%
$
187,550
$
209,892
(10.6
)
%
Less:
Net realized (gains) losses
(15,004
)
192
NM
(29,916
)
(5,802
)
NM
Income tax on realized gains (losses)
3,150
(41
)
NM
6,282
1,218
NM
Net unrealized gains on equity securities
(43,500
)
(3,608
)
NM
(1,182
)
(48,922
)
NM
Income tax on unrealized gains on equity securities
9,136
757
NM
248
10,273
NM
Operating earnings
$
78,118
$
79,292
(1.5
)
%
$
162,982
$
166,659
(2.2
)
%
Return on Equity:
Net earnings (trailing four quarters)
19.7
%
23.6
%
Comprehensive earnings (trailing four quarters)
23.5
%
25.3
%
Per Share Data:
Diluted:
Weighted average shares outstanding (in 000's)
92,518
92,358
92,512
92,338
Net earnings per share
$
1.34
$
0.89
50.6
%
$
2.03
$
2.27
(10.6
)
%
Less:
Net realized (gains) losses
(0.16
)
—
NM
(0.32
)
(0.06
)
NM
Income tax on realized gains (losses)
0.03
—
NM
0.06
0.01
NM
Net unrealized gains on equity securities
(0.47
)
(0.04
)
NM
(0.01
)
(0.53
)
NM
Income tax on unrealized gains on equity securities
0.10
0.01
NM
—
0.11
NM
Operating earnings per share (1)
$
0.84
$
0.86
(2.3
)
%
$
1.76
$
1.80
(2.2
)
%
Expand
(1)
See discussion above: Non-GAAP and Performance Measures.
NM = Not Meaningful
Expand
RLI CORP
2025 FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)
June 30,
December 31,
2025
2024
% Change
SUMMARIZED BALANCE SHEET DATA:
Fixed income, at fair value
$
3,420,761
$
3,175,796
7.7
%
(amortized cost - $3,573,679 at 6/30/25)
(amortized cost - $3,391,159 at 12/31/24)
Equity securities, at fair value
810,959
736,191
10.2
%
(cost - $487,656 at 6/30/25)
(cost - $417,897 at 12/31/24)
Short-term investments
115,662
74,915
54.4
%
Other invested assets
57,266
57,939
(1.2
)
%
Cash and cash equivalents
21,414
39,790
(46.2
)
%
Total investments and cash
$
4,426,062
$
4,084,631
8.4
%
Accrued investment income
31,113
28,319
9.9
%
Premiums and reinsurance balances receivable
252,931
230,534
9.7
%
Ceded unearned premiums
121,090
124,955
(3.1
)
%
Reinsurance balances recoverable on unpaid losses
761,719
755,425
0.8
%
Deferred policy acquisition costs
180,765
166,214
8.8
%
Property and equipment
41,722
43,172
(3.4
)
%
Investment in unconsolidated investees
61,183
56,477
8.3
%
Goodwill and intangibles
53,562
53,562
0.0
%
Income taxes - deferred
—
7,793
(100.0
)
%
Other assets
60,660
77,720
(22.0
)
%
Total assets
$
5,990,807
$
5,628,802
6.4
%
Unpaid losses and settlement expenses
$
2,806,889
$
2,693,470
4.2
%
Unearned premiums
1,034,176
984,140
5.1
%
Reinsurance balances payable
32,773
44,681
(26.7
)
%
Funds held
120,019
97,380
23.2
%
Income taxes - current
10,009
749
NM
Income taxes - deferred
3,475
—
NM
Short-term debt
100,000
100,000
—
%
Accrued expenses
80,958
124,242
(34.8
)
%
Other liabilities
67,847
62,173
9.1
%
Total liabilities
$
4,256,146
$
4,106,835
3.6
%
Shareholders' equity
1,734,661
1,521,967
14.0
%
Total liabilities & shareholders' equity
$
5,990,807
$
5,628,802
6.4
%
OTHER DATA:
Common shares outstanding (in 000's)
91,829
91,738
Book value per share
$
18.89
$
16.59
13.9
%
Closing stock price per share
$
72.22
$
82.42
(12.4
)
%
Statutory surplus
$
1,829,236
$
1,787,312
2.3
%
NM = Not Meaningful
Expand
RLI CORP
2025 FINANCIAL HIGHLIGHTS
UNDERWRITING SEGMENT DATA
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended June 30,
2025
Gross premiums written
$
306,610
$
211,817
$
43,854
$
562,281
Net premiums written
256,245
160,919
39,895
457,059
Net premiums earned
234,638
130,664
36,602
401,904
Net loss & settlement expenses
141,260
60.2
%
38,459
29.4
%
4,859
13.3
%
184,578
45.9
%
Net operating expenses
85,089
36.3
%
42,694
32.7
%
27,313
74.6
%
155,096
38.6
%
2024
Gross premiums written
$
286,556
$
236,014
$
40,803
$
563,373
Net premiums written
238,892
183,453
37,554
459,899
Net premiums earned
209,100
134,097
35,868
379,065
Net loss & settlement expenses
121,850
58.3
%
41,382
30.9
%
4,567
12.7
%
167,799
44.3
%
Net operating expenses
76,935
36.8
%
39,535
29.4
%
24,772
69.1
%
141,242
37.2
%
Underwriting income (1)
$
10,315
95.1
%
$
53,180
60.3
%
$
6,529
81.8
%
$
70,024
81.5
%
Expand
Six Months Ended June 30,
2025
Gross premiums written
$
585,064
$
381,869
$
86,454
$
1,053,387
Net premiums written
491,852
282,655
79,643
854,150
Net premiums earned
463,686
263,208
73,355
800,249
Net loss & settlement expenses
287,095
61.9
%
71,184
27.0
%
3,537
4.8
%
361,816
45.2
%
Net operating expenses
166,231
35.9
%
85,598
32.6
%
53,828
73.4
%
305,657
38.2
%
2024
Gross premiums written
$
531,885
$
416,378
$
83,785
$
1,032,048
Net premiums written
444,520
316,624
76,388
837,532
Net premiums earned
407,376
263,508
68,857
739,741
Net loss & settlement expenses
231,322
56.8
%
73,959
28.1
%
6,342
9.2
%
311,623
42.1
%
Net operating expenses
152,065
37.3
%
78,653
29.8
%
49,681
72.2
%
280,399
37.9
%
Underwriting income (loss) (1)
$
23,989
94.1
%
$
110,896
57.9
%
$
12,834
81.4
%
$
147,719
80.0
%
Expand
(1)
See discussion above: Non-GAAP and Performance Measures
Expand
Category: Earnings Release.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
23 minutes ago
- Yahoo
FMC Corporation (FMC) Declares Quarterly Dividend; KeyBanc Raises PT Ahead of Upcoming Q2 Results
FMC Corporation (NYSE:FMC), a cheaply priced stock popular among hedge funds and offering upside potential, is included in our list of the . A person inspecting a lithium-ion battery that is being recycled. On July 14, 2025, KeyBanc increased its price target on FMC Corporation (NYSE:FMC) from $53 to $61, maintaining an 'Overweight' rating. For a stock that is trading at $43.21 as of the time of writing, representing a 41.17% upside, per the analyst. The analyst signals growing optimism around the company's growth potential. Meanwhile, two days later, FMC Corporation (NYSE:FMC)'s board declared a regular quarterly dividend of $0.58 per share, payable on October 16, 2025. Amid the volatile market environment, this points to the company's commitment to shareholder returns and operational resilience. With decades of experience in developing and producing lithium amides, lithium alkoxides, lithium metal hydrides, alkyllithiums, and aryllithiums, FMC Corporation (NYSE:FMC) has enabled the production of agricultural and pharmaceutical intermediates. It is included in our list of cheap lithium stocks. FMC Corporation (NYSE:FMC), a global agricultural sciences company, offers sustainable crop protection and precision agriculture solutions. It is included in our list of cheap lithium stocks. While we acknowledge the potential of FMC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 11 Most Undervalued Cloud Stocks Under $10 According to Hedge Funds and 11 Best Mineral Stocks to Buy According to Hedge Funds. Disclosure: None.
Yahoo
23 minutes ago
- Yahoo
Centene Corporation (CNC) Cuts Outlook After $1.8B ACA Revenue Hit
We recently compiled a list of Centene Corporation tops our list for being one of the most undervalued stocks. Centene Corporation (NYSE:CNC) tops the list for being one of the cheap stocks to buy. It is a major U.S. managed care organization, serving over 1 in 15 Americans through government programs like Medicaid, Medicare, and ACA exchanges, with a focus on underinsured populations. In July 2025, the company withdrew its 2025 earnings guidance after uncovering challenges in the ACA Marketplace. New actuarial data from 22 of its 29 states showed slower-than-expected membership growth and higher morbidity, meaning enrollees are sicker and costlier than anticipated. As a result, the business revised its risk adjustment revenue down by $1.8 billion, which could impact earnings by $2.75 per share. In response, Centene Corporation (NYSE:CNC) is re-evaluating its 2026 ACA pricing to reflect rising claims and morbidity trends, particularly in states with the largest member base. The company is also emphasizing its operational improvements, streamlining its business, divesting non-core assets, and strengthening its Medicaid and Medicare services. 15 States with the Best Healthcare in the US This development echoes a broader industry trend, as competitors face similar volatility in the ACA exchanges. With enhanced federal subsidies set to expire in 2026, it will be a pivotal year, making pricing corrections and policy adaptations crucial. Centene Corporation (NYSE:CNC) remains focused on core government-backed offerings, investing in Medicare quality and expanding behavioral health, aiming for resilience amid uncertainty. While we acknowledge the potential of CNC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23 minutes ago
- Yahoo
2 Top Dividend Stocks to Buy Right Now and Hold Forever
Key Points Amgen can replenish its lineup thanks to a deep pipeline. AbbVie has a knack for getting around headwinds. Both drugmakers have strong dividend track records. 10 stocks we like better than Amgen › Over the long run, dividends can make a significant difference in your returns, whether you choose to reinvest the payouts or retain the cash for other purposes. However, many companies that offer dividends aren't exactly attractive to hold on to for a long time. Some have somewhat shaky underlying operations, and others are not inclined to regularly raise their dividends. Thankfully, some income stocks on the market don't have these issues, and their shares are worth holding on to forever. Let's consider two examples: Amgen (NASDAQ: AMGN) and AbbVie (NYSE: ABBV). 1. Amgen If you're an income-seeking investor, Amgen has several qualities that you'll appreciate. First, it's a leader in healthcare, a defensive industry. The demand for the medicines that the company develops -- some of which are lifesaving -- won't stop even during economic downturns, nor will physicians stop prescribing them. Amgen is well equipped to perform regardless of economic conditions. The drugmaker generates consistent revenue and earnings. Second, it continues to innovate. True, it has encountered clinical setbacks of late; its investigational weight management medicine, MariTide, didn't perform as well in mid-stage studies as expected. However, the company recently reported phase 3 results for bemarituzumab, a medicine it's developing for gastric cancer, the fifth leading cause of cancer death worldwide. This product now appears likely to secure regulatory approval and make a meaningful contribution to Amgen's results for a while. The company will continue to face competition and patent cliffs, but it's been able to perform well over the long run despite these challenges, thanks to its innovative abilities. Amgen can also rely on licensing deals and acquisitions to bolster its lineup and pipeline. In 2023, it acquired Horizon Therapeutics and its medicine for thyroid eye disease, Tepezza, for about $28 billion. Amgen has been able to push Tepezza's reach far beyond what the smaller Horizon would have been able to accomplish; it earned approval for the medicines in countries like Japan and Brazil, while pouring money into advertising and marketing efforts. Third, Amgen has a strong track record of dividend payments. The biotech initiated a payout in 2011, and since then, it's increased its dividends every single year. It currently offers a forward yield of 3.1%, considerably higher than the S&P 500's average of 1.3%. And the cash payout ratio of 46.5% appears reasonable, leaving ample room for further payout increases. Amgen's ability to develop novel lifesaving medicines, its consistent financial results, and its regular payout increases make it a top dividend stock to buy and hold for the long term. 2. AbbVie Although AbbVie has lagged behind the market over the past three years, this period highlights the company's resilient qualities. After losing patent exclusivity in January 2023 for Humira, an immunology medicine that was its best-selling drug and also the most lucrative in the industry's history, management predicted that the company would return to top-line growth in 2025. AbbVie resumed revenue growth last year, ahead of schedule. It's not rare for drugmakers to go through several years of declining revenue following a major patent cliff, nor is it necessarily a cause for concern. AbbVie's ability to bounce back as quickly as it did speaks volumes about the strength of its underlying business, its ability to navigate competition -- biosimilar and otherwise -- and its long-term prospects. True, the company encountered a significant setback when a seemingly promising candidate for schizophrenia called emraclidine, which it had gotten its hands on through an acquisition, failed mid-stage studies. AbbVie has faced similar problems before and has bounced back. The company had bet on a cancer medicine called Rova-T to be a significant growth driver post-Keytruda. However, this medicine failed in the clinic. Instead, AbbVie is now relying on Skyrizi and Rinvoq, two immunosuppressants, to drive top-line growth. These medicines have surpassed its own expectations, and they should continue to be significant contributors for years to come. The company has consistently found ways to overcome setbacks and challenges. Its financial results remain robust; the pipeline is deep; the balance sheet is strong. And its dividend track record is outstanding: AbbVie is a Dividend King, boasting 53 consecutive years of payout increases. Its forward yield now tops 3.4%, while the cash payout ratio of 61.8% is still reasonable. This is another dividend stock that you could safely include in a long-term portfolio. Should you invest $1,000 in Amgen right now? Before you buy stock in Amgen, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Amgen wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 28, 2025 Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie and Amgen. The Motley Fool has a disclosure policy. 2 Top Dividend Stocks to Buy Right Now and Hold Forever was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
