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RLI
(NYSE:RLI)
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Rating:72Outperform
Price Target:
$74.00
▲(14.09% Upside)
Action:Reiterated
Date:10/23/26
RLI’s score is driven primarily by strong financial performance (healthy profitability and ROE with conservative leverage) and a constructive earnings-call backdrop highlighting continued underwriting strength and investment income growth. Valuation is supportive with a moderate P/E and high stated dividend yield. The main constraint is technical positioning: the stock is in an uptrend but appears overbought (high RSI/Stoch), increasing near-term pullback risk.
Positive Factors
Disciplined underwriting profitability
RLI continues to generate strong underwriting profits, demonstrating effective risk selection, pricing discipline, and expense control across its specialty portfolio. A combined ratio well below 100% supports durable earnings quality and gives management flexibility to withdraw from markets when returns are inadequate.
Negative Factors
Competitive pressure in key lines
Additional capacity from MGAs, standard carriers, and other market participants is reducing renewal retention and premium volume in important specialty lines. Persistent competition can limit pricing power, slow premium growth, and force RLI to accept lower volumes even when underwriting discipline remains strong.
Read all positive and negative factors
Positive Factors
Negative Factors
Disciplined underwriting profitability
RLI continues to generate strong underwriting profits, demonstrating effective risk selection, pricing discipline, and expense control across its specialty portfolio. A combined ratio well below 100% supports durable earnings quality and gives management flexibility to withdraw from markets when returns are inadequate.
Read all positive factors
RLI (RLI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.76B
Dividend Yield7.32%
Average Volume (3M)861.97K
Price to Earnings (P/E)14.9
Beta (1Y)0.07
Revenue Growth6.25%
EPS GrowthN/A
CountryUS
Employees1,193
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)4.29
Shares Outstanding91,772,970
10 Day Avg. Volume1,065,710
30 Day Avg. Volume861,967
Financial Highlights & Ratios
PEG Ratio0.92
Price to Book (P/B)3.32
Price to Sales (P/S)3.13
P/FCF Ratio9.69
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue2.79
Enterprise Value/Gross Profit5.16
Enterprise Value/Ebitda10.41
Forecast
1Y Price Target
$59.50Price Target Upside-8.26% Downside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)3.16
Revenue Forecast (FY)$2.10B
RLI Business Overview & Revenue Model
Company Description
RLI Corp. is an insurance holding company that underwrites a comprehensive portfolio of property and casualty (P&C) insurance products, operating across the United States and internationally. Its business is primarily structured into three segment...
How the Company Makes Money
RLI primarily makes money through (1) underwriting income and (2) investment income generated from investing its insurance float.
1) Underwriting (insurance and surety) revenue and profit
- Premiums and fees: RLI collects insurance premiums from ...
RLI Earnings Call Summary
Earnings Call Date:Oct 19, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 27, 2027
Earnings Call Sentiment Positive
The call was broadly positive, supported by consistent underwriting profitability, 2% premium growth, strong investment income growth, capital returns, favorable reserve development, and management's confidence in its diversified portfolio and 2026 finish. However, GAAP earnings and comprehensive earnings declined, the combined and loss ratios deteriorated modestly, and several businesses faced meaningful competitive pressure and premium declines. The positive operating results and management outlook significantly outweighed the challenges.Positive Updates
Consistent Profitable Quarterly Performance
RLI reported an overall combined ratio of 86.2%, gross premium growth of 2%, a 13% increase in net investment income to $46.7 million, and book value growth of 10% from year-end 2025, inclusive of dividends and share repurchases.
Negative Updates
GAAP Net Earnings Declined
Third-quarter GAAP net earnings were $0.88 per share, down from $1.35 in the year-ago period. Management attributed the difference primarily to comparable changes in the value of equity securities between periods.
Read all updates
Q3-2026 Updates
Positive
Negative
Consistent Profitable Quarterly Performance
RLI reported an overall combined ratio of 86.2%, gross premium growth of 2%, a 13% increase in net investment income to $46.7 million, and book value growth of 10% from year-end 2025, inclusive of dividends and share repurchases.
Read all positive updates
Company Guidance
Management expects personal umbrella rate increases to return to double-digit levels during 2027, with the next approved rate filing effective January 1; they expect to get some positive terms and conditions as reinsurance renews and expect a positive result for RLI for 1/1, while noting it is early days and a lot of negotiation yet to happen. RLI is well positioned for a strong finish to 2026, does not forecast a specific top line for Steadily, and expects E&S property’s market to continue to soften, with still a ways to go.RLI Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.94B | 1.88B | 1.77B | 1.51B | 1.70B | 1.18B |
| Gross Profit | 1.05B | 561.42M | 454.63M | 390.87M | 731.77M | 459.60M |
| EBITDA | 520.90M | 530.45M | 441.55M | 393.11M | 736.71M | 359.39M |
| Net Income | 395.10M | 403.34M | 345.78M | 304.61M | 583.41M | 279.35M |
Balance Sheet | ||||||
| Total Assets | 6.45B | 6.16B | 5.63B | 5.18B | 4.77B | 4.51B |
| Cash, Cash Equivalents and Short-Term Investments | 4.85B | 1.69B | 3.29B | 3.03B | 2.73B | 2.50B |
| Total Debt | 297.04M | 100.00M | 100.00M | 200.00M | 399.73M | 199.68M |
| Total Liabilities | 4.75B | 4.38B | 4.11B | 3.77B | 3.59B | 3.28B |
| Stockholders Equity | 1.70B | 1.78B | 1.52B | 1.41B | 1.18B | 1.23B |
Cash Flow | ||||||
| Free Cash Flow | 531.54M | 608.70M | 555.51M | 458.34M | 244.56M | 376.60M |
| Operating Cash Flow | 539.48M | 614.22M | 560.22M | 464.26M | 250.45M | 384.90M |
| Investing Cash Flow | -298.65M | -362.13M | -318.87M | -211.80M | 48.88M | -274.83M |
| Financing Cash Flow | -247.24M | -240.32M | -237.98M | -238.85M | -365.31M | -83.49M |
RLI Technical Analysis
Positive
64.86
Price Trends
60.46
Positive
59.34
Positive
57.06
Positive
Market Momentum
0.63
Negative
73.06
Negative
90.25
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RLI, the sentiment is Positive. The current price of 64.86 is above the 20-day moving average (MA) of 57.56, above the 50-day MA of 60.46, and above the 200-day MA of 57.06, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 73.06 is Negative, neither overbought nor oversold. The STOCH value of 90.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RLI.
RLI Risk Analysis
RLI disclosed 30 risk factors in its most recent earnings report. RLI reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
RLI Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $8.47B | 15.21 | 26.66% | 0.24% | 15.82% | 28.42% | |
81 Outperform | $3.70B | 18.14 | 21.61% | 0.32% | 60.27% | 30.93% | |
80 Outperform | $1.12B | 18.04 | 13.73% | ― | 24.59% | 25.14% | |
72 Outperform | $5.76B | 14.90 | 22.50% | 7.32% | 6.25% | ― | |
72 Outperform | $2.73B | 13.89 | 16.84% | ― | 37.99% | 34.78% | |
69 Neutral | $351.37M | 10.17 | 0.02% | 5.83% | 3.83% | 18.23% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
RLI
RLI
67.01
10.73
19.07%
GBLI
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24.27
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PLMR
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SKWD
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33.39%
BOW
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34.10
9.14
36.62%
RLI Corporate Events
Dividends
RLI Declares Unchanged Third-Quarter Cash Dividend for 2026
Positive
Aug 13, 2026
RLI Corp., a specialty insurer serving niche property, casualty and surety markets nationwide, operates through highly rated insurance subsidiaries and has built a reputation for consistent underwriting profitability and decades of consecutive div...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.