Open the filing on EDGARRLI REPORTS FOURTH QUARTER AND YEAR-END 2025 RESULTS
PEORIA, ILLINOIS, January 21, 2026 - RLI Corp. (NYSE: RLI) - RLI Corp. 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 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.
| 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.
- 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:
- Underwriting income of $70.9 million on a combined ratio of 82.6.
- Net investment income increased 9%, while gross premiums written declined 2%.
- Favorable development in prior years’ loss reserves resulted in a $22.0 million net increase in underwriting income.
- Special dividend of $2.00 per share, representing $183.7 million returned to shareholders.
Highlights for the year included:
- Underwriting income of $264.2 million on a combined ratio of 83.6.
- 2025 delivered our 30th consecutive year of underwriting income.
- 12% increase in net investment income and 1% increase in gross premiums written.
- Favorable development in prior years’ loss reserves resulted in an $87.4 million net increase in underwriting income.
- Book value per share of $19.35, an increase of 33% (inclusive of dividends) from year-end 2024.
“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 | | | Combined Ratio | | |
| (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.
| Reserve Development 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) |
- Reserve development reflects changes from previously estimated losses.
- See discussion above: Non-GAAP and Performance Measures.
- 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.
- 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 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: | | | | | | |
| 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 | $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% |
- See discussion above: Non-GAAP and Performance Measures.
- 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
| 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
| | GAAP | | GAAP | | GAAP | | GAAP |
|---|
| Casualty | Ratios | Property | Ratios | Surety | Ratios | Total | Ratios |
|---|
| Three Months Ended December 31, | | | | | | | | |
| 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) | $1,021 | 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) | $(8,750) | 103.9% | $26,238 | 80.5% | $4,754 | 87.1% | $22,242 | 94.4% |
| | GAAP | | GAAP | | GAAP | | GAAP |
|---|
| Casualty | Ratios | Property | Ratios | Surety | Ratios | Total | Ratios |
|---|
| Twelve Months Ended December 31, | | | | | | | | |
| 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) | $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) | $17,788 | 97.9% | $167,536 | 68.5% | $25,329 | 82.2% | $210,653 | 86.2% |
- See discussion above: Non-GAAP and Performance Measures.
Contacts
Aaron Diefenthaler
Chief Financial Officer
309-693-5846
Investors@rlicorp.com
Supplemental disclosure regarding the earnings impact of specific items: