RLI Corp.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 20 October 2025: press release. The quarter’s numbers.

Key takeaways

Net earnings and operating earnings rose: Net earnings were $124.6 million ($1.35 per share), up from $95.0 million ($1.03). Operating earnings were $77.0 million ($0.83), up from $60.4 million ($0.65). Source
Underwriting income rose on lower combined ratio: Underwriting income was $60.5 million on an 85.1 combined ratio, against $40.7 million on an 89.6 combined ratio in the third quarter of 2024. Source
Property income rose and its ratio improved: Property underwriting income was $50.4 million on a 60.2 combined ratio, against $30.4 million on 77.2. Property net premiums written were $109.0 million, against $122.4 million. Source
Gross premiums flat, net premiums higher: Gross premiums written were $510.2 million, flat against $507.8 million. Net premiums written rose to $407.3 million from $401.5 million. Source
Favorable prior-year reserve development added income: Favorable development in prior years' loss reserves added $13.7 million to underwriting income, against $18.1 million a year earlier. By line: casualty $8.1 million, property $4.7 million, surety $2.7 million. Source
Investment income rose 12%: Net investment income was $41.3 million, up 12%. Nine-month net investment income was $117.4 million, up 13.4%. Source
Book value per share up 26%: Book value per share was $20.41, up 26% including dividends from year-end 2024. The highlights table shows $16.59 at year-end 2024, a 23.0% change; shareholders' equity rose 23.1% to $1.87 billion. Source

“We are pleased to report another quarter of profitable results”
RLI Corp. President & CEO Craig Kliethermes

Results and underwriting income

Net earnings and operating earnings rose: Net earnings were $124.6 million ($1.35 per share), up from $95.0 million ($1.03). Operating earnings were $77.0 million ($0.83), up from $60.4 million ($0.65). Source
Underwriting income rose on lower combined ratio: Underwriting income was $60.5 million on an 85.1 combined ratio, against $40.7 million on an 89.6 combined ratio in the third quarter of 2024. Source
Nine-month earnings per share were higher: Nine-month net EPS was $3.38 against $3.30. Nine-month operating EPS was $2.60 against $2.46 in the prior-year period. Source
Operating earnings exclude equity and realized gains: Operating earnings remove net realized gains and unrealized gains on equity securities, with related taxes. Realized gains were $18.3 million against $5.4 million; equity unrealized gains were $42.0 million against $38.4 million. Source

Segment underwriting results

Property income rose and its ratio improved: Property underwriting income was $50.4 million on a 60.2 combined ratio, against $30.4 million on 77.2. Property net premiums written were $109.0 million, against $122.4 million. Source
Casualty income and ratio little changed: Casualty underwriting income was $4.5 million on a 98.2 combined ratio, against $2.6 million on 98.8. Casualty net premiums written were $263.4 million, against $242.7 million. Source
Surety income fell and its ratio rose: Surety underwriting income was $5.6 million on an 85.0 combined ratio, against $7.7 million on 78.8. Surety net premiums written were $34.9 million, against $36.5 million. Source

“Our 85 combined ratio reflects disciplined underwriting and consistent execution of our strategy in a competitive market.”
RLI Corp. President & CEO Craig Kliethermes

Premium volume and mix

Gross premiums flat, net premiums higher: Gross premiums written were $510.2 million, flat against $507.8 million. Net premiums written rose to $407.3 million from $401.5 million. Source
Casualty premiums up, property premiums down: Casualty gross premiums written were $317.1 million, up from $294.3 million. Property fell to $154.6 million from $173.8 million; surety was $38.5 million against $39.7 million. Source
Net premiums earned grew in both periods: Net premiums earned rose 4.7% to $407.7 million in the quarter. Nine-month net premiums earned rose 7.0% to $1,207.9 million. Source

Losses, reserves and catastrophes

Favorable prior-year reserve development added income: Favorable development in prior years' loss reserves added $13.7 million to underwriting income, against $18.1 million a year earlier. By line: casualty $8.1 million, property $4.7 million, surety $2.7 million. Source
Quarter had minimal catastrophe losses: No net catastrophe losses from 2025 events were recorded in the third quarter. Nine-month 2025 events were $26.0 million net incurred; third quarter 2024 included $35.0 million from 2024 and prior events. Source
Loss ratio fell across lines: Loss and settlement expenses fell 7.0% to $188.0 million. Total loss ratio was 46.1% against 51.9%; property was 25.9% against 45.8%, and casualty 62.0% against 62.8%. Source

“Favorable reserve development and minimal catastrophe activity during the quarter supported strong underwriting results.”
RLI Corp. President & CEO Craig Kliethermes

Expenses and expense ratios

Policy acquisition costs rose faster than premiums: Policy acquisition costs rose 9.4% to $128.9 million in the quarter. Nine-month policy acquisition costs rose 10.5% to $378.1 million. Source
Net operating expense ratio rose overall: Total net operating expense ratio was 39.0% against 37.7%. Surety was 73.6% against 70.1%, property 34.3% against 31.4%, and casualty 36.2% against 36.0%. Source
General corporate expenses increased: General corporate expenses rose 26.3% to $5.0 million in the quarter. Nine-month general corporate expenses fell 3.0% to $12.7 million. Source

Investment income and returns

Investment income rose 12%: Net investment income was $41.3 million, up 12%. Nine-month net investment income was $117.4 million, up 13.4%. Source
Portfolio returns for quarter and nine months: Total return on the investment portfolio was 3.0% in the quarter and 7.4% for the nine months to September 30, 2025. Source
Unrealized fixed income gains lifted comprehensive earnings: Comprehensive earnings were $152.3 million ($1.65 per share), against $175.3 million ($1.90). Included after-tax unrealized fixed income gains from declining interest rates. Source

Book value, surplus and dividends

Book value per share up 26%: Book value per share was $20.41, up 26% including dividends from year-end 2024. The highlights table shows $16.59 at year-end 2024, a 23.0% change; shareholders' equity rose 23.1% to $1.87 billion. Source
Statutory surplus rose 5.6%: Statutory surplus was $1.89 billion at September 30, 2025, up 5.6% from $1.79 billion at December 31, 2024. Source
Regular dividend held at $0.16: Regular quarterly dividend of $0.16 per share was paid on September 19, 2025. Nine-month ordinary dividends were $0.47 per share, against $0.43. Cumulative dividends exceed $975 million over five years. Source
Operating cash flow fell in quarter, rose for nine months: Net cash flow from operations was $179.2 million in the quarter, down 18.3% from $219.4 million. Nine-month net cash flow from operations was $457.5 million, up 5.9%. Source

Management comments and disclosures

Management credits team and portfolio: Management said results reflect the strength of the team and the resilience of the diversified product portfolio. Source
Discipline cited in competitive market: Management attributed the 85 combined ratio to disciplined underwriting and consistent execution of strategy in a competitive market. Source
Analyst call set for October 21: Management will hold an analyst conference call on October 21, 2025 at 10 a.m. CDT to discuss quarterly results. Source
Dividend and underwriting track record cited: The company said it has paid and increased regular dividends for 50 consecutive years and delivered underwriting profits for 29 consecutive years. Source

Figures management reported

Figure	Reported
Combined ratio Source	85.1 in third quarter 2025 (89.6 a year earlier)
Net premiums written Source	$407.3 million in third quarter 2025
Prior-year reserve development Source	$13.7 million net increase to underwriting income
Catastrophe losses Source	Minimal in third quarter; $26.0 million net incurred in nine months 2025
Investment income Source	$41.3 million, up 12%
Book value per share Source	$20.41

Risks management discussed

Demand: Management described the market as competitive while reporting the 85.1 combined ratio. Source
Operational: The quarter had minimal catastrophe losses, but nine-month 2025 catastrophe events produced $26.0 million of net incurred losses. Source

Earlier plans management reported on

Not stated: Management attributed the 85.1 combined ratio to disciplined underwriting and consistent execution of strategy. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

RLI REPORTS THIRD QUARTER 2025 RESULTS

PEORIA, ILLINOIS, October 20, 2025 - RLI Corp. (NYSE: RLI) - RLI Corp. reported third quarter 2025 net earnings of $124.6 million ($1.35 per share), compared to $95.0 million ($1.03 per share) for the third quarter of 2024. Operating earnings for the third quarter of 2025 were $77.0 million ($0.83 per share), compared to $60.4 million ($0.65 per share) for the same period in 2024.

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

	Third Quarter		Year to Date
Earnings Per Diluted Share	2025	2024	2025	2024
Net earnings	$1.35	$1.03	$3.38	$3.30
Operating earnings	$0.83	$0.65	$2.60	$2.46

See discussion below: Non-GAAP and Performance Measures.

Highlights for the quarter included:

Underwriting income of $60.5 million on a combined ratio 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.

Underwriting Income			Combined Ratio
(in millions)	2025	2024		2025	2024
Casualty	$4.5	$2.6	Casualty	98.2	98.8
Property	50.4	30.4	Property	60.2	77.2
Surety	5.6	7.7	Surety	85.0	78.8
Total	$60.5	$40.7	Total	85.1	89.6

See discussion below: Non-GAAP and Performance Measures.

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.

	Reserve Development and Catastrophe Losses,
	Net of Reinsurance
	Three Months Ended		Nine Months Ended
	September 30,		September 30,
(Dollars in millions, except per share amounts)	2025	2024	2025	2024
Favorable development in casualty prior years' reserves	$8.1	$9.0	$28.6	$40.0
Favorable development in property prior years' reserves	$4.7	$4.4	$27.2	$28.5
Favorable development in surety prior years' reserves	$2.7	$3.1	$13.3	$10.9
Net incurred losses related to:
2025 catastrophe events	$ -	$ -	$(26.0)	$ -
2024 and prior catastrophe events	$ -	$(35.0)	$5.0	$(61.0)
	Operating Earnings Per Share
	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2025	2024	2025	2024
Operating Earnings Per Share	$0.83	$0.65	$2.60	$2.46
Specific items included in operating earnings per share:(1) (3)
Net favorable development in casualty prior years' reserves	$0.06	$0.06	$0.19	$0.29
Net favorable development in property prior years' reserves	$0.04	$0.03	$0.21	$0.22
Net favorable development in surety prior years' reserves	$0.02	$0.02	$0.10	$0.08
Net incurred losses related to:
2025 catastrophe events	$ -	$ -	$(0.19)	$ -
2024 and prior catastrophe events	$ -	$(0.25)	$0.04	$(0.45)

Reserve development reflects changes from previously estimated losses.
See discussion above: Non-GAAP and Performance Measures.
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

	Three Months Ended September 30,			Nine Months Ended September 30,
SUMMARIZED INCOME STATEMENT DATA:	2025	2024	% Change	2025	2024	% Change
Net premiums earned	$407,695	$389,489	4.7%	$1,207,944	$1,129,230	7.0%
Net investment income	41,270	36,694	12.5%	117,414	103,502	13.4%
Net realized gains	18,318	5,420	NM	48,234	11,222	NM
Net unrealized gains on equity securities	41,981	38,392	9.3%	43,163	87,314	(50.6)%
Consolidated revenue	$509,264	$469,995	8.4%	$1,416,755	$1,331,268	6.4%
Loss and settlement expenses	187,998	202,118	(7.0)%	549,814	513,741	7.0%
Policy acquisition costs	128,937	117,811	9.4%	378,126	342,186	10.5%
Insurance operating expenses	30,215	28,868	4.7%	86,683	84,892	2.1%
Interest expense on debt	1,364	1,617	(15.6)%	4,049	4,839	(16.3)%
General corporate expenses	5,045	3,994	26.3%	12,747	13,144	(3.0)%
Total expenses	$353,559	$354,408	(0.2)%	$1,031,419	$958,802	7.6%
Equity in earnings of unconsolidated investees	1,540	1,238	24.4%	7,055	7,653	(7.8)%
Earnings before income taxes	$157,245	$116,825	34.6%	$392,391	$380,119	3.2%
Income tax expense	32,635	21,798	49.7%	80,231	75,200	6.7%
Net earnings	$124,610	$95,027	31.1%	$312,160	$304,919	2.4%
Other comprehensive earnings, net of tax	27,674	80,293	(65.5)%	76,405	59,779	27.8%
Comprehensive earnings	$152,284	$175,320	(13.1)%	$388,565	$364,698	6.5%
Operating earnings:
Net earnings	$124,610	$95,027	31.1%	$312,160	$304,919	2.4%
Less:
Net realized gains	(18,318)	(5,420)	NM	(48,234)	(11,222)	NM
Income tax on realized gains	3,848	1,139	NM	10,130	2,357	NM
Net unrealized gains on equity securities	(41,981)	(38,392)	9.3%	(43,163)	(87,314)	(50.6)%
Income tax on unrealized gains on equity securities	8,816	8,062	9.4%	9,064	18,335	(50.6)%
Operating earnings	$76,975	$60,416	27.4%	$239,957	$227,075	5.7%
Return on Equity:
Net earnings (trailing four quarters)				20.8%	27.7%
Comprehensive earnings (trailing four quarters)				21.3%	38.4%
Per Share Data:
Diluted:
Weighted average shares outstanding (in 000's)	92,310	92,441		92,460	92,370
Net earnings per share	$1.35	$1.03	31.1%	$3.38	$3.30	2.4%
Less:
Net realized gains	(0.20)	(0.06)	NM	(0.52)	(0.12)	NM
Income tax on realized gains	0.04	0.01	NM	0.11	0.03	NM
Net unrealized gains on equity securities	(0.45)	(0.42)	7.1%	(0.47)	(0.95)	(50.5)%
Income tax on unrealized gains on equity securities	0.09	0.09	0.0%	0.10	0.20	(50.0)%
Operating earnings per share	$0.83	$0.65	27.7%	$2.60	$2.46	5.7%
Comprehensive earnings per share	$1.65	$1.90	(13.2)%	$4.20	$3.95	6.3%
Cash dividends per share - ordinary	$0.16	$0.15	10.3%	$0.47	$0.43	10.6%
Net cash flow provided by operations	$179,220	$219,368	(18.3)%	$457,453	$432,139	5.9%

See discussion above: Non-GAAP and Performance Measures.

NM = Not Meaningful

RLI CORP

2025 FINANCIAL HIGHLIGHTS

	September 30,	December 31,
	2025	2024	% Change
SUMMARIZED BALANCE SHEET DATA:
Fixed income, at fair value	$3,536,484	$3,175,796	11.4%
(amortized cost - $3,655,954 at 9/30/25)
(amortized cost - $3,391,159 at 12/31/24)
Equity securities, at fair value	878,872	736,191	19.4%
(cost - $513,255 at 9/30/25)
(cost - $417,897 at 12/31/24)
Short-term investments	165,706	74,915	121.2%
Other invested assets	56,494	57,939	(2.5)%
Cash and cash equivalents	52,621	39,790	32.2%
Total investments and cash	$4,690,177	$4,084,631	14.8%
Accrued investment income	29,584	28,319	4.5%
Premiums and reinsurance balances receivable	231,530	230,534	0.4%
Ceded unearned premiums	123,039	124,955	(1.5)%
Reinsurance balances recoverable on unpaid losses	769,611	755,425	1.9%
Deferred policy acquisition costs	181,488	166,214	9.2%
Property and equipment	41,094	43,172	(4.8)%
Investment in unconsolidated investees	63,652	56,477	12.7%
Goodwill and intangibles	53,562	53,562	0.0%
Income taxes - deferred	-	7,793	(100.0)%
Other assets	63,263	77,720	(18.6)%
Total assets	$6,247,000	$5,628,802	11.0%
Unpaid losses and settlement expenses	$2,873,054	$2,693,470	6.7%
Unearned premiums	1,035,756	984,140	5.2%
Reinsurance balances payable	35,951	44,681	(19.5)%
Funds held	113,753	97,380	16.8%
Income taxes - current	9,792	749	NM
Income taxes - deferred	23,157	-	NM
Short-term debt	100,000	100,000	- %
Accrued expenses	110,660	124,242	(10.9)%
Other liabilities	70,701	62,173	13.7%
Total liabilities	$4,372,824	$4,106,835	6.5%
Shareholders' equity	1,874,176	1,521,967	23.1%
Total liabilities & shareholders' equity	$6,247,000	$5,628,802	11.0%
OTHER DATA:
Common shares outstanding (in 000's)	91,838	91,738
Book value per share	$20.41	$16.59	23.0%
Closing stock price per share	$65.22	$82.42	(20.9)%
Statutory surplus	$1,887,627	$1,787,312	5.6%

NM = Not Meaningful

RLI CORP

2025 FINANCIAL HIGHLIGHTS

UNDERWRITING SEGMENT DATA

		GAAP		GAAP		GAAP		GAAP
	Casualty	Ratios	Property	Ratios	Surety	Ratios	Total	Ratios
Three Months Ended September 30,
2025
Gross premiums written	$317,063		$154,631		$38,527		$510,221
Net premiums written	263,395		109,007		34,924		407,326
Net premiums earned	243,508		126,689		37,498		407,695
Net loss & settlement expenses	150,912	62.0%	32,815	25.9%	4,271	11.4%	187,998	46.1%
Net operating expenses	88,110	36.2%	43,450	34.3%	27,592	73.6%	159,152	39.0%
Underwriting income	$4,486	98.2%	$50,424	60.2%	$5,635	85.0%	$60,545	85.1%
2024
Gross premiums written	$294,267		$173,813		$39,710		$507,790
Net premiums written	242,650		122,428		36,466		401,544
Net premiums earned	219,638		133,266		36,585		389,489
Net loss & settlement expenses	137,951	62.8%	60,991	45.8%	3,176	8.7%	202,118	51.9%
Net operating expenses	79,138	36.0%	41,873	31.4%	25,668	70.1%	146,679	37.7%
Underwriting income	$2,549	98.8%	$30,402	77.2%	$7,741	78.8%	$40,692	89.6%

		GAAP		GAAP		GAAP		GAAP
	Casualty	Ratios	Property	Ratios	Surety	Ratios	Total	Ratios
Nine Months Ended September 30,
2025
Gross premiums written	$902,127		$536,500		$124,981		$1,563,608
Net premiums written	755,247		391,662		114,567		1,261,476
Net premiums earned	707,194		389,897		110,853		1,207,944
Net loss & settlement expenses	438,007	61.9%	103,999	26.7%	7,808	7.0%	549,814	45.5%
Net operating expenses	254,341	36.0%	129,048	33.1%	81,420	73.5%	464,809	38.5%
Underwriting income (loss)	$14,846	97.9%	$156,850	59.8%	$21,625	80.5%	$193,321	84.0%
2024
Gross premiums written	$826,152		$590,191		$123,495		$1,539,838
Net premiums written	687,170		439,052		112,854		1,239,076
Net premiums earned	627,014		396,774		105,442		1,129,230
Net loss & settlement expenses	369,273	58.9%	134,950	34.0%	9,518	9.0%	513,741	45.5%
Net operating expenses	231,203	36.9%	120,526	30.4%	75,349	71.5%	427,078	37.8%
Underwriting income (loss)	$26,538	95.8%	$141,298	64.4%	$20,575	80.5%	$188,411	83.3%

See discussion above: Non-GAAP and Performance Measures.

Contacts
Aaron Diefenthaler
Chief Investment Officer & Treasurer
309-693-5846
Aaron.Diefenthaler@rlicorp.com
Supplemental disclosure regarding the earnings impact of specific items: