RLI Corp.

RLI
Financial Analysis · Updated May 18, 2026 · Coverage 2026-Q2
TTM ROIC
21.5%
FY2025 · Net Income / (Equity + Debt); $403M / $1,878M invested capital · WACC ~9.5% · Moat spread +12pp

Financial Snapshot


ticker: RLI step: 04 generated: 2026-05-13 source: quick-research

RLI Corp. (RLI) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue ~$1.3B ~$1.5B $1.770B +17.1%
Underwriting Income $178.2M $173.2M $210.7M +21.7%
Combined Ratio 84.4% 86.6% 86.2% improving
Net Investment Income $142.3M

FY2025 (record year): Revenue $1.882B (+6.3%); underwriting income $264.2M (+25.4%); combined ratio 83.6% (best in recent history); net investment income $159.7M; net income $403M total; special dividend $2.00/share ($183.7M returned). 30th consecutive year of underwriting income. Gross premiums written >$2B for first time in 2024 (sustained 2025). Book value per share grew 33% (inclusive of dividends) in FY2025. Q4 2025 net earnings $91.2M ($0.99/share). Q2 2025 EPS $1.34 (+50% YoY) on 84.5 combined ratio.

Cash Flow & Balance Sheet

Metric Value
Consecutive Underwriting Profit Years 30 (as of FY2025)
Consecutive Dividend Increases 50 years
Special Dividends Frequent (Q4 2025: $2.00/share)
E&S Gross Premiums $783M (39% of total gross premiums)
Specialty Admitted $1.2B (60% of total gross premiums)

RLI's float (premiums held before claims paid) is invested in fixed income, providing investment income in addition to underwriting income. Unlike catastrophe-exposed P&C insurers, RLI's combined ratio rarely spikes above 95% because it actively avoids excessive catastrophe concentrations while still participating in E&S property market hardening.

Key Ratios (approximate)

  • P/E: ~13–15x (net income $403M / ~92M shares = ~$4.38 EPS; stock ~$56–65)
  • Combined Ratio: 83.6% (FY2025) vs. industry avg ~96%
  • Revenue Growth: +17.1% (FY2024); +6.3% (FY2025, moderating as market softens)
  • Underwriting Margin: ~14% (264M / 1.882B revenue)

Growth Profile

RLI has grown from ~$1.3B (FY2022) to $1.882B (FY2025) revenue — 45% growth in 3 years — largely driven by specialty market hardening (rate increases across all lines post-COVID). Premium growth is moderating (1% in 2025) as market conditions normalize, but the combined ratio improvement (86.6% → 83.6%) shows underwriting quality improving even as volume moderates. The 30-year consecutive underwriting profit streak is the clearest indicator of long-term quality.

Forward Estimates

  • FY2026: Revenue moderate growth (1–5%); combined ratio ~84–87% range; EPS $4–5
  • Analyst consensus PT: $91.13 (12 analysts; wide range $52 Jefferies to $182 Wolfe Research)
  • More recent consensus: 7 analysts Hold, avg PT $66 (+17%)
  • Key watch: Property segment premium trends; casualty reserve development

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $RLI.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/rli/financials/md · → thesis · → memo