RLI Reports Second Quarter 2026 Results

RLI Corp. (NYSE: RLI) reported second quarter 2026 net earnings of $168.0 million ($1.82 per share), compared to $124.3 million ($1.34 per share) for the second quarter of 2025. Operating earnings⁽¹⁾ for the second quarter of 2026 were $76.9 million ($0.83 per share), compared to $76.2 million ($0.82 per share) for the same period in 2025.

		Second Quarter						Year to Date
Earnings Per Diluted Share		2026			2025			2026			2025
Net earnings		$	1.82		$	1.34		$	2.42		$	2.03
Operating earnings (1)(2)		$	0.83		$	0.82		$	1.67		$	1.71

		(1)		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 beginning in the fourth quarter of 2025, 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⁽¹⁾ of $59.9 million on a combined ratio⁽¹⁾ of 85.6.

• Net investment income increased 17%, and gross premiums written increased 3%.

• Favorable development in prior years’ loss reserves resulted in a $35.1 million net increase in underwriting income.

• Book value per share of $19.09, an increase of 11% (inclusive of dividends and share repurchases) from year-end 2025.

• Authorized a $250.0 million share repurchase program and repurchased $12.0 million of common stock.

• Paid a special dividend of $2.00 per share, returning $184.0 million to shareholders.

“We are pleased to report another quarter of premium growth and profitability,” said RLI Corp. President & CEO Craig Kliethermes. “Gross premiums written increased 3%, driven by our casualty segment, while strong margins in our property and surety segments contributed to an 86 combined ratio. Net investment income increased 17%, complementing our underwriting results and contributing to an 11% increase in book value per share since year-end 2025, including dividends returned to shareholders. These results reflect our disciplined execution and continued focus on delivering specialized expertise and exceptional service to our customers.”

Underwriting Income

RLI achieved $59.9 million of underwriting income in the second quarter of 2026 on an 85.6 combined ratio, compared to $62.2 million on an 84.5 combined ratio in 2025.

Results for both years include favorable development in prior years’ loss reserves, which resulted in a $35.1 million and $24.4 million net increase to underwriting income in 2026 and 2025, respectively.

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

Underwriting Income(1)								Combined Ratio(1)
(in millions)		2026			2025					2026		2025
Casualty		$	1.7		$	8.3		Casualty		99.3		96.5
Property			53.5			49.5		Property		56.8		62.1
Surety			4.7			4.4		Surety		87.2		87.9
Total		$	59.9		$	62.2		Total		85.6		84.5

(1)

See discussion below: Non-GAAP and Performance Measures.

Other Income

Net investment income for the quarter increased 17% to $46.0 million, compared to the same period in 2025. The investment portfolio’s total return was 3.4% for the quarter and 3.0% for the six months ended June 30, 2026.

RLI’s comprehensive earnings were $165.7 million for the quarter ($1.80 per share), compared to $143.0 million ($1.55 per share) for the same quarter in 2025. In addition to net earnings, comprehensive earnings for 2026 included after-tax unrealized losses from the fixed income portfolio, due to rising interest rates.

Dividends and Share Repurchase Program

On June 12, 2026, the company paid a special cash dividend of $2.00 per share and a regular quarterly dividend of $0.18 per share, a 12.5% increase over the prior quarter.

On May 14, 2026, the company’s Board of Directors authorized a share repurchase program of up to $250.0 million of the company’s outstanding common stock. During the second quarter, RLI repurchased 234,973 shares at an average price of $51.25 per share for a total cost of $12.0 million. As of June 30, 2026, $238.0 million of remaining capacity was available under the share repurchase program. Over the past five years, RLI has returned more than $1.3 billion to its shareholders through dividends and share repurchases.

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. Equity in earnings of unconsolidated investees and the related taxes were excluded from operating earnings and operating EPS beginning in the fourth quarter of 2025. The change was made to present a consistent approach in excluding all unrealized changes in equity investments. 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 2026 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

On July 9, 2026, RLI was named one of the insurance industry’s top-performing companies for the 36th consecutive year by Ward Benchmarking, a business unit of Aon. RLI is the only property & casualty insurance company to be recognized as a Ward’s 50® P&C Top Performer every year since the list’s inception in 1991.

At 10 a.m. central daylight time (CDT) on July 23, 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/465043342.

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, 2025.

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 51 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								Six Months Ended
		June 30,								June 30,
(Dollars in millions, except per share amounts)		2026				2025				2026				2025
Favorable development in casualty prior years’ reserves		$	13.7			$	15.4			$	28.2			$	20.5
Favorable development in property prior years’ reserves		$	9.0			$	4.9			$	29.6			$	22.5
Favorable development in surety prior years’ reserves		$	3.4			$	2.3			$	3.8			$	10.6
Net incurred losses related to:
2026 catastrophe events		$	(10.0	)		$	—			$	(26.0	)		$	—
2025 and prior catastrophe events		$	13.7			$	(9.0	)		$	13.7			$	(21.0	)
		Operating Earnings Per Share
		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2026				2025				2026				2025
Operating Earnings Per Share(2)(3)		$	0.83			$	0.82			$	1.67			$	1.71
Specific items included in operating earnings per share:(1)(4)
Net favorable development in casualty prior years’ reserves		$	0.09			$	0.11			$	0.20			$	0.14
Net favorable development in property prior years’ reserves		$	0.08			$	0.04			$	0.24			$	0.17
Net favorable development in surety prior years’ reserves		$	0.02			$	0.02			$	0.02			$	0.08
Net incurred losses related to:
2026 catastrophe events		$	(0.07	)		$	—			$	(0.19	)		$	—
2025 and prior catastrophe events		$	0.10			$	(0.07	)		$	0.10			$	(0.15	)

(1)		Reserve development reflects changes from previously estimated losses.
(2)		See discussion above: Non-GAAP and Performance Measures.
(3)		Equity in earnings of unconsolidated investees and the related taxes were removed from operating earnings and operating earnings per share beginning in the fourth quarter of 2025, 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 2026 FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands, except per share amounts)
		Three Months Ended June 30,												Six Months Ended June 30,
SUMMARIZED INCOME STATEMENT DATA:		2026				2025				% Change				2026				2025					% Change
Net premiums earned		$	417,096			$	401,904			3.8		%		$	828,482			$	800,249				3.5		%
Net investment income			46,042				39,418			16.8		%			88,363				76,144				16.0		%
Net realized gains			9,407				15,004			(37.3	)	%			18,966				29,916				(36.6	)	%
Net unrealized gains on equity securities			103,024				43,500			136.8		%			63,628				1,182				NM
Consolidated revenue		$	575,569			$	499,826			15.2		%		$	999,439			$	907,491				10.1		%
Loss and settlement expenses			189,895				184,578			2.9		%			383,139				361,816				5.9		%
Policy acquisition costs			134,675				125,502			7.3		%			266,750				249,189				7.0		%
Insurance operating expenses			32,617				29,594			10.2		%			60,897				56,468				7.8		%
Interest expense on debt			4,441				1,350			NM					6,794				2,685				153.0		%
General corporate expenses			6,223				4,754			30.9		%			8,947				7,702				16.2		%
Total expenses		$	367,851			$	345,778			6.4		%		$	726,527			$	677,860				7.2		%
Equity in earnings of unconsolidated investees			2,970				2,467			20.4		%			5,117				5,515				(7.2	)	%
Earnings before income taxes		$	210,688			$	156,515			34.6		%		$	278,029			$	235,146				18.2		%
Income tax expense			42,660				32,179			32.6		%			55,116				47,596				15.8		%
Net earnings		$	168,028			$	124,336			35.1		%		$	222,913			$	187,550				18.9		%
Other comprehensive earnings (loss), net of tax			(2,314	)			18,701			NM					(27,680	)			48,731				NM
Comprehensive earnings		$	165,714			$	143,037			15.9		%		$	195,233			$	236,281				(17.4	)	%
Operating earnings(1):
Net earnings		$	168,028			$	124,336			35.1		%		$	222,913			$	187,550				18.9		%
Less:
Net realized gains			(9,407	)			(15,004	)		(37.3	)	%			(18,966	)			(29,916	)			(36.6	)	%
Income tax on realized gains			1,976				3,150			(37.3	)	%			3,983				6,282				(36.6	)	%
Net unrealized gains on equity securities			(103,024	)			(43,500	)		136.8		%			(63,628	)			(1,182	)			NM
Income tax on unrealized gains on equity securities			21,634				9,136			136.8		%			13,361				248				NM
Equity in earnings of unconsolidated investees			(2,970	)			(2,467	)		20.4		%			(5,117	)			(5,515	)			(7.2	)	%
Income tax on equity in earnings of unconsolidated investees			624				517			20.7		%			1,075				1,158				(7.2	)	%
Operating earnings(2)		$	76,861			$	76,168			0.9		%		$	153,621			$	158,625				(3.2	)	%
Return on Equity:
Net earnings (trailing four quarters)															24.5		%		19.7		%
Comprehensive earnings (trailing four quarters)															25.1		%		23.5		%
Per Share Data:
Diluted:
Weighted average shares outstanding (in 000’s)			92,160				92,518								92,257				92,512
Net earnings per share		$	1.82			$	1.34			35.8		%		$	2.42			$	2.03				19.2		%
Less:
Net realized gains			(0.10	)			(0.16	)		(37.5	)	%			(0.21	)			(0.32	)			(34.4	)	%
Income tax on realized gains			0.02				0.03			(33.3	)	%			0.05				0.06				(16.7	)	%
Net unrealized gains on equity securities			(1.12	)			(0.47	)		138.3		%			(0.69	)			(0.01	)			NM
Income tax on unrealized gains on equity securities			0.24				0.10			140.0		%			0.14				—				NM
Equity in earnings of unconsolidated investees			(0.03	)			(0.03	)		—		%			(0.06	)			(0.06	)			—		%
Income tax on equity in earnings of unconsolidated investees			—				0.01			(100.0	)	%			0.02				0.01				100.0		%
Operating earnings per share(1)(2)		$	0.83			$	0.82			1.2		%		$	1.67			$	1.71				(2.3	)	%
Comprehensive earnings per share		$	1.80			$	1.55			16.1		%		$	2.12			$	2.55				(16.9	)	%
Cash dividends per share – ordinary		$	0.18			$	0.16			12.5		%		$	0.34			$	0.31				9.7		%
Cash dividends per share – special		$	2.00			$	—			NM				$	2.00			$	—				NM
Net cash flow provided by operations		$	145,220			$	174,719			(16.9	)	%		$	188,049			$	278,233				(32.4	)	%

(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 beginning in the fourth quarter of 2025, 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 2026 FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands, except per share amounts)
		June 30,			December 31,
		2026			2025			% Change
SUMMARIZED BALANCE SHEET DATA:
Fixed income, at fair value		$	3,617,942		$	3,533,336		2.4		%
(amortized cost – $3,760,876 at 6/30/26)
(amortized cost – $3,642,362 at 12/31/25)
Equity securities, at fair value			959,377			898,876		6.7		%
(cost – $530,730 at 6/30/26)
(cost – $534,311 at 12/31/25)
Short-term investments			206,119			120,562		NM
Other invested assets			58,661			59,281		(1.0	)	%
Cash and cash equivalents			32,101			51,565		(37.7	)	%
Total investments and cash		$	4,874,200		$	4,663,620		4.5		%
Accrued investment income			32,117			30,026		7.0		%
Premiums and reinsurance balances receivable			267,018			212,226		25.8		%
Ceded unearned premiums			122,327			124,669		(1.9	)	%
Reinsurance balances recoverable on unpaid losses			718,487			746,798		(3.8	)	%
Deferred policy acquisition costs			188,857			172,648		9.4		%
Property and equipment			40,712			40,733		(0.1	)	%
Investment in unconsolidated investees			57,872			53,521		8.1		%
Goodwill and intangibles			53,562			53,562		0.0		%
Other assets			57,853			63,683		(9.2	)	%
Total assets		$	6,413,005		$	6,161,486		4.1		%
Unpaid losses and settlement expenses		$	2,937,211		$	2,886,819		1.7		%
Unearned premiums			1,063,167			991,636		7.2		%
Reinsurance balances payable			25,013			40,580		(38.4	)	%
Funds held			131,881			127,242		3.6		%
Income taxes – current			1,648			29,724		(94.5	)	%
Income taxes – deferred			25,795			21,769		18.5		%
Short-term debt			—			100,000		(100.0	)	%
Long-term debt			296,968			—		NM
Accrued expenses			92,466			128,597		(28.1	)	%
Other liabilities			86,741			56,923		52.4		%
Total liabilities		$	4,660,890		$	4,383,290		6.3		%
Shareholders’ equity			1,752,115			1,778,196		(1.5	)	%
Total liabilities & shareholders’ equity		$	6,413,005		$	6,161,486		4.1		%
OTHER DATA:
Common shares outstanding (in 000’s)			91,773			91,879
Book value per share		$	19.09		$	19.35		(1.3	)	%
Closing stock price per share		$	59.07		$	63.98		(7.7	)	%
Statutory surplus		$	1,942,411		$	1,846,615		5.2		%
NM = Not Meaningful

RLI CORP 2026 FINANCIAL HIGHLIGHTS UNDERWRITING SEGMENT DATA (Unaudited) (Dollars in thousands, except per share amounts)
Three Months Ended June 30,
					GAAP					GAAP					GAAP					GAAP
		Casualty			Ratios		Property			Ratios		Surety			Ratios		Total			Ratios
2026
Gross premiums written		$	338,999				$	199,276				$	41,375				$	579,650
Net premiums written			285,135					161,674					37,885					484,694
Net premiums earned			256,922					123,786					36,388					417,096
Net loss & settlement expenses			159,686		62.2	%		26,725		21.6	%		3,484		9.6	%		189,895		45.5	%
Net operating expenses			95,494		37.1	%		43,562		35.2	%		28,236		77.6	%		167,292		40.1	%
Underwriting income (1)		$	1,742		99.3	%	$	53,499		56.8	%	$	4,668		87.2	%	$	59,909		85.6	%
2025
Gross premiums written		$	306,610				$	211,817				$	43,854				$	562,281
Net premiums written			256,245					160,919					39,895					457,059
Net premiums earned			234,638					130,664					36,602					401,904
Net loss & settlement expenses			141,260		60.2	%		38,459		29.4	%		4,859		13.3	%		184,578		45.9	%
Net operating expenses			85,089		36.3	%		42,694		32.7	%		27,313		74.6	%		155,096		38.6	%
Underwriting income (1)		$	8,289		96.5	%	$	49,511		62.1	%	$	4,430		87.9	%	$	62,230		84.5	%

Six Months Ended June 30,
					GAAP					GAAP					GAAP					GAAP
		Casualty			Ratios		Property			Ratios		Surety			Ratios		Total			Ratios
2026
Gross premiums written		$	646,013				$	354,039				$	83,484				$	1,083,536
Net premiums written			545,507					280,067					76,780					902,354
Net premiums earned			505,488					250,164					72,830					828,482
Net loss & settlement expenses			312,518		61.8	%		60,579		24.2	%		10,042		13.8	%		383,139		46.2	%
Net operating expenses			183,935		36.4	%		87,901		35.2	%		55,811		76.6	%		327,647		39.6	%
Underwriting income (1)		$	9,035		98.2	%	$	101,684		59.4	%	$	6,977		90.4	%	$	117,696		85.8	%
2025
Gross premiums written		$	585,064				$	381,869				$	86,454				$	1,053,387
Net premiums written			491,852					282,655					79,643					854,150
Net premiums earned			463,686					263,208					73,355					800,249
Net loss & settlement expenses			287,095		61.9	%		71,184		27.0	%		3,537		4.8	%		361,816		45.2	%
Net operating expenses			166,231		35.9	%		85,598		32.6	%		53,828		73.4	%		305,657		38.2	%
Underwriting income (1)		$	10,360		97.8	%	$	106,426		59.6	%	$	15,990		78.2	%	$	132,776		83.4	%

(1)

See discussion above: Non-GAAP and Performance Measures.

 

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