RLI Reports Fourth Quarter and Year-End 2025 Results

Key Terms

operating earnings financial

Operating earnings are the profit a company generates from its core business activities after subtracting everyday costs like wages, rent, and materials but before interest, taxes and one‑time gains or losses. Think of it as the result of running the business day to day—like a household’s monthly budget outcome before mortgage interest or a sudden unexpected bill—and investors use it to judge how healthy and repeatable a company’s core profit is.

non-gaap financial

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

combined ratio financial

The combined ratio is a way insurance companies measure how well they are doing by adding up all their costs and claims and comparing them to the money they earn from premiums. If the ratio is below 100%, it means the company is making a profit; if it's above 100%, they are losing money. It helps see if an insurance company is financially healthy or not.

net investment income financial

Net investment income is the money an investor or fund actually keeps from its investments after subtracting the costs of running those investments (like management fees, interest, and losses). Think of it as your paycheck from owning assets: gross returns minus the bills needed to earn them. Investors watch it because it shows how profitable the investment activities are, influences dividend payouts and cash available for growth, and helps compare true performance across funds or companies.

gaap financial

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

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.

		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

(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, 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 $70.9 million on a combined ratio⁽¹⁾ 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⁽¹⁾ of $264.2 million on a combined ratio⁽¹⁾ 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(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

(1)	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

View source version on businesswire.com: https://www.businesswire.com/news/home/20260121235768/en/

Media Contact

Aaron Diefenthaler

Chief Financial Officer

309-693-5846

Investors@rlicorp.com

Source: RLI Corp.