RLI
RLI Corp (NYSE: RLI) reported strong underwriting performance with a combined ratio of 85.
Article Summary
HOLD- RLI Corp (NYSE: RLI) reported strong underwriting performance with a combined ratio of 85.6, up from 84.5 last year, driven by a 17% increase in net investment income and a 25% return on equity.
- RLI returned significant capital to shareholders through a $250 million share repurchase program and a $2 special dividend, with 235,000 shares repurchased at an average price of $51.25.
- Gross premiums written grew 3% with casualty premiums up 11%, driven by personal umbrella and transportation, while property premiums decreased 6% due to heightened competition and rate decreases in hurricane and earthquake risks.
- The expense ratio increased 1.5% with personnel-related costs, acquisition expenses, and technology investments, while the surety loss ratio increased slightly driven by mix of business and cautious reserving for longer-term trends.
- RLI also faces increased competition in the market with brokers sending submissions to over 45 markets, impacting pricing and retention.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 10.3% | 25% | 50.0 ptsMeets Minimum (10.3%) - Passes screener |
| EPS Growth Next 5Y ? | -8.6% | 25% | 0.0 ptsNegative (-8.6%) - Declining expectations |
| Target Price Upside ? | 2.7% | 20% | 10.0 ptsNear/At Target (2.7%) - Target: $59.50 vs Current: $61.16 |
| Gross Margin % ? | — | 15% | 40.0 ptsNo Gross Margin Data |
| Drawdown from 52-Wk High ? | -6.3% | 15% | 20.0 ptsBarely a Dip (-6.3%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About RLI
- RLI Corp., an insurance holding company, provides property, casualty, and surety insurance products.
- Its Casualty segment provides commercial excess, personal umbrella, general liability, transportation, and management liability coverages; professional liability and workers' compensation for office-based professional coverages; commercial automobile liability and physical damage insurance to local, intermediate and long haul truckers, public transportation entities, and other specialty commercial automobile risks; incidental related insurance coverages; inland marine coverages; directors and officers liability insurance, fiduciary liability and coverages, employment practice liability, public and private businesses risk, and home business insurance products.
- This segment also offers coverages for security guards and environmental liability for underground storage tanks, contractors and asbestos, and environmental remediation specialists; and professional liability coverages for errors and omission coverage for small to medium-sized design, technical, computer, and miscellaneous professionals.
- The company's Property segment offers commercial property insurance, such as fire, wind, difference in conditions, earthquake, flood, and collapse coverages; insurance for office buildings, apartments, condominiums, and industrial and mercantile structures; and cargo, hull, protection and indemnity, marine liability, inland marine, homeowners' and dwelling fire, and other property insurance products.
- Its Surety segment provides commercial surety bonds for medium and large-sized businesses; small bonds for businesses and individuals; and bonds for small to medium-sized contractors.
- The company offers reinsurance coverages. It markets its products through branch offices, wholesale and retail brokers, carrier partners, and underwriting and independent agents.
- RLI Corp. was incorporated in 1965 and is headquartered in Peoria, Illinois.