RLI Reports Fourth Quarter and Year-End 2025 Results
PEORIA, Ill.--( BUSINESS WIRE)--RLI Corp. (NYSE: RLI) reported fourth quarter 2025 net earnings of $91.2 million ($0.99 per share), compared to $40.9 million ($0.44 per share) for the fourth quarter of 2024. Operating earnings (1) for the fourth quarter of 2025 were $86.4 million ($0.94 per share), compared to $48.3 million ($0.52 per share) for the same period in 2024.
“We achieved an 83 combined ratio, underscoring our ability to produce positive underwriting results in a highly competitive market while remaining focused on profitability.”
Fourth Quarter
Year to Date
Earnings Per Diluted Share
2025
2024
2025
2024
Net earnings
$
0.99
$
0.44
$
4.37
$
3.74
Operating earnings (1)(2)
$
0.94
$
0.52
$
3.47
$
2.91
See discussion below: Non-GAAP and Performance Measures.
(2)
Equity in earnings of unconsolidated investees and the related taxes were removed from operating earnings and operating earnings per share, resulting in consistent exclusion of unrealized changes in equity investments from operating results. Prior period amounts have been recast to conform to the current definition.
Highlights for the quarter included:
Highlights for the year included:
“Our fourth-quarter results reflect the strength of our diversified specialty product portfolio and underwriting discipline,” said RLI Corp. President & CEO Craig Kliethermes. “We achieved an 83 combined ratio, underscoring our ability to produce positive underwriting results in a highly competitive market while remaining focused on profitability.”
“For the full year, premium growth was modest at 1%, but our strong underwriting performance drove an 84 combined ratio, marking our 30th consecutive year of underwriting profitability. Favorable underwriting and investment outcomes contributed to a 33% increase in book value from year-end 2024 and supported meaningful returns to shareholders. These results highlight the discipline, expertise and ownership mindset of our associate-owners, which continue to make RLI different.”
Underwriting Income
RLI achieved $70.9 million of underwriting income in the fourth quarter of 2025 on an 82.6 combined ratio, compared to $22.2 million on a 94.4 combined ratio in 2024.
For the year, RLI achieved $264.2 million of underwriting income on an 83.6 combined ratio, compared to $210.7 million on an 86.2 combined ratio in 2024. Results for both years include favorable development in prior years’ loss reserves, which resulted in an $87.4 million and $84.1 million net increase to underwriting income in 2025 and 2024, respectively. The favorable development was offset by a $26.5 million net reduction to underwriting income for storm losses in 2025. This compares to $93.6 million for losses from Hurricanes Beryl, Helene and Milton, as well as other storm losses, in 2024.
The following table highlights underwriting income and combined ratios by segment for the year.
Underwriting Income (1)
Combined Ratio (1)
(in millions)
2025
2024
2025
2024
Casualty
$
15.9
$
17.8
Casualty
98.3
97.9
Property
219.1
167.6
Property
57.2
68.5
Surety
29.2
25.3
Surety
80.3
82.2
Total
$
264.2
$
210.7
Total
83.6
86.2
See discussion below: Non-GAAP and Performance Measures.
Other Income
Net investment income for the quarter increased 9% to $42.3 million, compared to the same period in 2024. For the year ended December 31, 2025, net investment income was $159.7 million, compared to $142.3 million for the same period in 2024. The investment portfolio’s total return was 1.5% for the quarter and 9.0% for the year.
RLI’s comprehensive earnings were $100.4 million for the quarter ($1.09 per share), compared to a comprehensive loss of $26.3 million (-$0.28 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. Full-year comprehensive earnings were $489.0 million ($5.29 per share), compared to $338.4 million ($3.66 per share) in 2024.
Special and Regular Dividends
On December 19, 2025, the company paid a special cash dividend of $2.00 per share and a regular quarterly dividend of $0.16 per share for a combined total of $198.4 million. RLI has paid dividends for 198 consecutive quarters and increased regular dividends in each of the last 50 years. Over the last 10 years, the company has returned more than $1.6 billion to shareholders and the regular divided has grown an average of 5.4% per year.
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. Beginning in the fourth quarter of 2025, equity in earnings of unconsolidated investees and the related taxes were excluded from operating earnings and operating EPS. The change was made to present a consistent approach in excluding all unrealized changes in equity investments. We view these minority investments as outside of RLI’s operating control. Operating earnings and operating EPS for prior periods have been recast to conform to the current definition. 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 standard time (CST) on January 22, 2026, 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/710150907.
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 30 consecutive years. To learn more about RLI, visit www.rlicorp.com.
Supplemental disclosure regarding the earnings impact of specific items:
Reserve Development (1) and Catastrophe Losses,
Net of Reinsurance
Three Months Ended
Twelve Months Ended
December 31,
December 31,
(Dollars in millions, except per share amounts)
2025
2024
2025
2024
Favorable development in casualty prior years' reserves
$
2.5
$
11.5
$
31.2
$
51.4
Favorable development in property prior years' reserves
$
0.7
$
0.1
$
27.9
$
28.6
Favorable (unfavorable) development in surety prior years' reserves
$
2.7
$
(1.7
)
$
15.9
$
9.3
Net incurred losses related to:
2025 catastrophe events
$
(4.0
)
$
—
$
(30.0
)
$
—
2024 and prior catastrophe events
$
19.0
$
(39.0
)
$
24.0
$
(100.0
)
Operating Earnings Per Share
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2025
2024
2025
2024
Operating Earnings Per Share (2)(3)
$
0.94
$
0.52
$
3.47
$
2.91
Specific items included in operating earnings per share: (1)(4)
Net favorable development in casualty prior years' reserves
$
0.01
$
0.09
$
0.19
$
0.37
Net favorable development in property prior years' reserves
$
0.02
$
—
$
0.23
$
0.22
Net favorable (unfavorable) development in surety prior years' reserves
$
0.02
$
(0.02
)
$
0.12
$
0.07
Net incurred losses related to:
2025 catastrophe events
$
(0.03
)
$
—
$
(0.22
)
$
—
2024 and prior catastrophe events
$
0.14
$
(0.29
)
$
0.18
$
(0.74
)
(1)
Reserve development reflects changes from previously estimated losses.
(2)
Equity in earnings of unconsolidated investees and the related taxes were removed from operating earnings and operating earnings per share, resulting in consistent exclusion of unrealized changes in equity investments from operating results. Prior period amounts have been recast to conform to the current definition.
(3)
Equity in earnings of unconsolidated investees and the related taxes were removed from operating earnings and operating earnings per share, resulting in consistent exclusion of unrealized changes in equity investments from operating results. Prior period amounts have been recast to conform to the current definition.
(4)
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.
RLI CORP
2025 FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended December 31,
Twelve Months Ended December 31,
SUMMARIZED INCOME STATEMENT DATA:
2025
2024
% Change
2025
2024
% Change
Net premiums earned
$
406,402
$
397,176
2.3
%
$
1,614,346
$
1,526,406
5.8
%
Net investment income
42,325
38,776
9.2
%
159,739
142,278
12.3
%
Net realized gains
16,882
8,744
93.1
%
65,116
19,966
NM
Net unrealized gains (losses) on equity securities
84
(5,580
)
NM
43,247
81,734
(47.1
)
%
Consolidated revenue
$
465,693
$
439,116
6.1
%
$
1,882,448
$
1,770,384
6.3
%
Loss and settlement expenses
176,141
225,512
(21.9
)
%
725,955
739,253
(1.8
)
%
Policy acquisition costs
130,261
121,854
6.9
%
508,387
464,040
9.6
%
Insurance operating expenses
29,132
27,568
5.7
%
115,815
112,460
3.0
%
Interest expense on debt
1,309
1,492
(12.3
)
%
5,358
6,331
(15.4
)
%
General corporate expenses
4,281
2,736
56.5
%
17,028
15,880
7.2
%
Total expenses
$
341,124
$
379,162
(10.0
)
%
$
1,372,543
$
1,337,964
2.6
%
Equity in earnings of unconsolidated investees
(10,979
)
(12,522
)
(12.3
)
%
(3,924
)
(4,869
)
(19.4
)
%
Earnings before income taxes
$
113,590
$
47,432
139.5
%
$
505,981
$
427,551
18.3
%
Income tax expense
22,413
6,572
NM
102,644
81,772
25.5
%
Net earnings
$
91,177
$
40,860
123.1
%
$
403,337
$
345,779
16.6
%
Other comprehensive earnings (loss), net of tax
9,244
(67,199
)
NM
85,649
(7,420
)
NM
Comprehensive earnings (loss)
$
100,421
$
(26,339
)
NM
$
488,986
$
338,359
44.5
%
Operating earnings (1):
Net earnings
$
91,177
$
40,860
123.1
%
$
403,337
$
345,779
16.6
%
Less:
Net realized gains
(16,882
)
(8,744
)
93.1
%
(65,116
)
(19,966
)
NM
Income tax on realized gains
3,545
1,836
93.1
%
13,675
4,193
NM
Net unrealized (gains) losses on equity securities
(84
)
5,580
(101.5
)
%
(43,247
)
(81,734
)
(47.1
)
%
Income tax on unrealized gains (losses) on equity securities
18
(1,171
)
(101.5
)
%
9,082
17,164
(47.1
)
%
Equity in earnings of unconsolidated investees
10,979
12,522
(12.3
)
%
3,924
4,869
(19.4
)
%
Income tax on equity in earnings of unconsolidated investees
(2,305
)
(2,629
)
(12.3
)
%
(824
)
(1,022
)
(19.4
)
%
Operating earnings (2)
$
86,448
$
48,254
79.2
%
$
320,831
$
269,283
19.1
%
Return on Equity:
Net earnings
23.7
%
22.2
%
Comprehensive earnings
28.7
%
21.7
%
Per Share Data:
Diluted:
Weighted average shares outstanding (in 000's)
92,223
92,725
92,391
92,451
Net earnings per share
$
0.99
$
0.44
125.0
%
$
4.37
$
3.74
16.8
%
Less:
Net realized gains
(0.18
)
(0.09
)
100.0
%
(0.70
)
(0.22
)
NM
Income tax on realized gains
0.03
0.02
50.0
%
0.14
0.05
NM
Net unrealized (gains) losses on equity securities
—
0.06
(100.0
)
%
(0.47
)
(0.88
)
(46.6
)
%
Income tax on unrealized gains (losses) on equity securities
—
(0.02
)
(100.0
)
%
0.10
0.18
(44.4
)
%
Equity in earnings of unconsolidated investees
0.12
0.14
(14.3
)
%
0.04
0.05
(20.0
)
%
Income tax on equity in earnings of unconsolidated investees
(0.02
)
(0.03
)
(33.3
)
%
(0.01
)
(0.01
)
—
%
Operating earnings per share (1)(2)
$
0.94
$
0.52
80.8
%
$
3.47
$
2.91
19.2
%
Comprehensive earnings per share
$
1.09
$
(0.28
)
NM
$
5.29
$
3.66
44.5
%
Cash dividends per share - ordinary
$
0.16
$
0.15
10.3
%
$
0.63
$
0.57
10.5
%
Cash dividends per share - special
$
2.00
$
2.00
—
%
$
2.00
$
2.00
—
%
Net cash flow provided by operations
$
158,659
$
128,080
23.9
%
$
616,112
$
560,219
10.0
%
(1)
See discussion above: Non-GAAP and Performance Measures.
(2)
Equity in earnings of unconsolidated investees and the related taxes were removed from operating earnings and operating earnings per share, resulting in consistent exclusion of unrealized changes in equity investments from operating results. Prior period amounts have been recast to conform to the current definition.
NM = Not Meaningful
RLI CORP
2025 FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)
December 31,
December 31,
2025
2024
% Change
SUMMARIZED BALANCE SHEET DATA:
Fixed income, at fair value
$
3,533,336
$
3,175,796
11.3
%
(amortized cost - $3,642,362 at 12/31/25)
(amortized cost - $3,391,159 at 12/31/24)
Equity securities, at fair value
898,876
736,191
22.1
%
(cost - $534,311 at 12/31/25)
(cost - $417,897 at 12/31/24)
Short-term investments
120,562
74,915
60.9
%
Other invested assets
59,281
57,939
2.3
%
Cash and cash equivalents
51,565
39,790
29.6
%
Total investments and cash
$
4,663,620
$
4,084,631
14.2
%
Accrued investment income
30,026
28,319
6.0
%
Premiums and reinsurance balances receivable
212,226
230,534
(7.9
)
%
Ceded unearned premiums
124,669
124,955
(0.2
)
%
Reinsurance balances recoverable on unpaid losses
746,798
755,425
(1.1
)
%
Deferred policy acquisition costs
172,648
166,214
3.9
%
Property and equipment
40,733
43,172
(5.6
)
%
Investment in unconsolidated investees
53,521
56,477
(5.2
)
%
Goodwill and intangibles
53,562
53,562
0.0
%
Income taxes - deferred
—
7,793
(100.0
)
%
Other assets
63,683
77,720
(18.1
)
%
Total assets
$
6,161,486
$
5,628,802
9.5
%
Unpaid losses and settlement expenses
$
2,886,819
$
2,693,470
7.2
%
Unearned premiums
991,636
984,140
0.8
%
Reinsurance balances payable
40,580
44,681
(9.2
)
%
Funds held
127,242
97,380
30.7
%
Income taxes - current
29,724
749
NM
Income taxes - deferred
21,769
—
NM
Short-term debt
100,000
100,000
—
%
Accrued expenses
128,597
124,242
3.5
%
Other liabilities
56,923
62,173
(8.4
)
%
Total liabilities
$
4,383,290
$
4,106,835
6.7
%
Shareholders' equity
1,778,196
1,521,967
16.8
%
Total liabilities & shareholders' equity
$
6,161,486
$
5,628,802
9.5
%
OTHER DATA:
Common shares outstanding (in 000's)
91,879
91,738
Book value per share
$
19.35
$
16.59
16.6
%
Closing stock price per share
$
63.98
$
82.42
(22.4
)
%
Statutory surplus
$
1,846,615
$
1,787,312
3.3
%
NM = Not Meaningful
RLI CORP
2025 FINANCIAL HIGHLIGHTS
UNDERWRITING SEGMENT DATA
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended December 31,
GAAP
GAAP
GAAP
GAAP
Casualty
Ratios
Property
Ratios
Surety
Ratios
Total
Ratios
2025
Gross premiums written
$
289,127
$
136,407
$
37,704
$
463,238
Net premiums written
235,374
90,973
34,306
360,653
Net premiums earned
246,787
122,507
37,108
406,402
Net loss & settlement expenses
157,171
63.7
%
16,147
13.2
%
2,823
7.6
%
176,141
43.3
%
Net operating expenses
88,595
35.9
%
44,085
36.0
%
26,713
72.0
%
159,393
39.3
%
Underwriting income (loss) (1)
$
1,021
99.6
%
$
62,275
49.2
%
$
7,572
79.6
%
$
70,868
82.6
%
2024
Gross premiums written
$
282,204
$
153,295
$
37,711
$
473,210
Net premiums written
228,455
103,945
34,045
366,445
Net premiums earned
225,823
134,610
36,743
397,176
Net loss & settlement expenses
155,217
68.7
%
63,856
47.4
%
6,439
17.5
%
225,512
56.8
%
Net operating expenses
79,356
35.2
%
44,516
33.1
%
25,550
69.6
%
149,422
37.6
%
Underwriting income (loss) (1)
$
(8,750
)
103.9
%
$
26,238
80.5
%
$
4,754
87.1
%
$
22,242
94.4
%
Twelve Months Ended December 31,
GAAP
GAAP
GAAP
GAAP
Casualty
Ratios
Property
Ratios
Surety
Ratios
Total
Ratios
2025
Gross premiums written
$
1,191,254
$
672,907
$
162,685
$
2,026,846
Net premiums written
990,621
482,635
148,873
1,622,129
Net premiums earned
953,981
512,404
147,961
1,614,346
Net loss & settlement expenses
595,178
62.4
%
120,146
23.4
%
10,631
7.2
%
725,955
45.0
%
Net operating expenses
342,936
35.9
%
173,133
33.8
%
108,133
73.1
%
624,202
38.6
%
Underwriting income (loss) (1)
$
15,867
98.3
%
$
219,125
57.2
%
$
29,197
80.3
%
$
264,189
83.6
%
2024
Gross premiums written
$
1,108,356
$
743,486
$
161,206
$
2,013,048
Net premiums written
915,625
542,997
146,899
1,605,521
Net premiums earned
852,837
531,384
142,185
1,526,406
Net loss & settlement expenses
524,490
61.5
%
198,806
37.4
%
15,957
11.2
%
739,253
48.4
%
Net operating expenses
310,559
36.4
%
165,042
31.1
%
100,899
71.0
%
576,500
37.8
%
Underwriting income (loss) (1)
$
17,788
97.9
%
$
167,536
68.5
%
$
25,329
82.2
%
$
210,653
86.2
%
(1)
See discussion above: Non-GAAP and Performance Measures.
Category: Earnings Release