RLI Reports Third Quarter 2025 Results

All share and per share data in this release reflect the two-for-one stock split that RLI executed on January 15, 2025.

Highlights for the quarter included:

• Underwriting income⁽¹⁾ of $60.5 million on a combined ratio⁽¹⁾ of 85.1.
• Gross premiums written were flat and net investment income increased 12%.
• Favorable development in prior years’ loss reserves resulted in a $13.7 million net increase in underwriting income.
• Book value per share of $20.41, an increase of 26% (inclusive of dividends) from year-end 2024.

“We are pleased to report another quarter of profitable results,” said RLI Corp. President & CEO Craig Kliethermes. “Our 85 combined ratio reflects disciplined underwriting and consistent execution of our strategy in a competitive market. Favorable reserve development and minimal catastrophe activity during the quarter supported strong underwriting results. In addition, investment income growth and solid portfolio returns contributed to a 26% increase in book value per share since year-end 2024. These results reflect the strength of our talented team and the resilience of our diversified product portfolio.”

Underwriting Income

RLI achieved $60.5 million of underwriting income in the third quarter of 2025 on an 85.1 combined ratio, compared to $40.7 million on an 89.6 combined ratio in 2024.

Results for both years include favorable development in prior years’ loss reserves, which resulted in a $13.7 million and $18.1 million net increase to underwriting income in 2025 and 2024, respectively.

The following table highlights underwriting income and combined ratios by segment for the third quarter.

Other Income

Net investment income for the quarter increased 12% to $41.3 million, compared to the same period in 2024. The investment portfolio’s total return was 3.0% for the quarter and 7.4% for the nine months ended September 30, 2025.

RLI’s comprehensive earnings were $152.3 million for the quarter ($1.65 per share), compared to $175.3 million ($1.90 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 Third Quarter of 2025

On September 19, 2025, the company paid a regular quarterly dividend of $0.16 per share, the same amount as the prior quarter. RLI’s cumulative dividends total more than $975 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

At 10 a.m. central daylight time (CDT) on October 21, 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/441675041.

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.