RLI Corp. (NYSE:RLI) reported first quarter 2026 net earnings of $54.9 million ($0.60 per share), compared to $63.2 million ($0.68 per share) for the first quarter of 2025. Operating earnings⁽¹⁾ for the first quarter of 2026 were $76.8 million ($0.83 per share), compared to $82.5 million ($0.89 per share) for the same period in 2025.


	First Quarter
Earnings Per Diluted Share	2026		2025
Net earnings	$	0.60	$	0.68
Operating earnings ⁽¹⁾⁽²⁾	$	0.83	$	0.89

(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 $57.8 million on a combined ratio⁽¹⁾ of 86.0.
Net investment income increased 15%, while gross premiums written increased 3%.
Favorable development in prior years' loss reserves resulted in a $31.3 million net increase in underwriting income.
Book value per share of $19.54, an increase of 2% (inclusive of dividends) from year-end 2025.

"We entered 2026 with positive underwriting results, delivering an 86 combined ratio across our diversified specialty portfolio," said RLI Corp. President & CEO Craig Kliethermes. "Our core performance remained solid to start the year. Gross premiums written grew 3%, led by our casualty segment, and net investment income increased 15%, contributing meaningfully to quarterly results and reflecting the continued strength of our investment portfolio."

"In a dynamic market, we remain focused on disciplined underwriting, rate adequacy and strategically deploying capital to take advantage of opportunities and reward our shareholders."

Underwriting Income

RLI achieved $57.8 million of underwriting income in the first quarter of 2026 on an 86.0 combined ratio, compared to $70.5 million on an 82.3 combined ratio in 2025.

Results for both years include favorable development in prior years' loss reserves, which resulted in a $31.3 million and $27.4 million net increase to underwriting income in 2026 and 2025, respectively.

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

Underwriting Income⁽¹⁾

Combined Ratio⁽¹⁾

(in millions)

2026

2025

2026

2025

Casualty

7.3

2.1

Casualty

97.1

99.1

Property

48.2

56.9

Property

61.9

57.1

Surety

2.3

11.5

Surety

93.7

68.5

Total

57.8

70.5

Total

86.0

82.3

(1) See discussion below: Non-GAAP and Performance Measures.

Other Income

Net investment income for the quarter increased 15% to $42.3 million, compared to the same period in 2025. The investment portfolio's total return was -0.4% for the quarter.

RLI's comprehensive earnings were $29.5 million for the quarter ($0.32 per share), compared to $93.2 million ($1.01 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 Paid in First Quarter of 2026

On March 16, 2026, 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 $1.1 billion 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. 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

During the first quarter, the company's AM Best financial strength rating was upgraded to A++ (Superior) for the company's insurance subsidiaries – RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company. AM Best also upgraded the Long-Term Issuer Credit Ratings (ICR) for each RLI company to "aa+" (Superior) and upgraded the ICR of RLI's publicly traded parent holding company, RLI Corp., to "a+" (Excellent).

At 12 p.m. central daylight time (CDT) on April 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/570395995.

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 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
	March 31,
(Dollars in millions, except per share amounts)	2026		2025
Favorable development in casualty prior years' reserves	$	14.5	$	5.1
Favorable development in property prior years' reserves	$	20.6	$	17.6
Favorable development in surety prior years' reserves	$	0.4	$	8.3

Net incurred losses related to:
2026 catastrophe events	$	(16.0)	$	—
2025 and prior catastrophe events	$	—	$	(12.0)

	Operating Earnings Per Share
	Three Months Ended
	March 31,
	2026		2025
Operating Earnings Per Share⁽²⁾⁽³⁾	$	0.83	$	0.89

Specific items included in operating earnings per share:⁽¹⁾⁽⁴⁾
Net favorable development in casualty prior years' reserves	$	0.10	$	0.02
Net favorable development in property prior years' reserves	$	0.16	$	0.14
Net favorable development in surety prior years' reserves	$	—	$	0.07

Net incurred losses related to:
2026 catastrophe events	$	(0.12)	$	—
2025 and prior catastrophe events	$	—	$	(0.09)

(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 March 31,
SUMMARIZED INCOME STATEMENT DATA:	2026			2025			% Change
Net premiums earned	$	411,386		$	398,345		3.3	%
Net investment income		42,321			36,726		15.2	%
Net realized gains		9,559			14,912		(35.9)	%
Net unrealized gains (losses) on equity securities		(39,396)			(42,318)		(6.9)	%
Consolidated revenue	$	423,870		$	407,665		4.0	%
Loss and settlement expenses		193,244			177,238		9.0	%
Policy acquisition costs		132,075			123,687		6.8	%
Insurance operating expenses		28,280			26,874		5.2	%
Interest expense on debt		2,353			1,335		76.3	%
General corporate expenses		2,724			2,948		(7.6)	%
Total expenses	$	358,676		$	332,082		8.0	%
Equity in earnings of unconsolidated investees		2,147			3,048		(29.6)	%
Earnings before income taxes	$	67,341		$	78,631		(14.4)	%
Income tax expense		12,456			15,417		(19.2)	%
Net earnings	$	54,885		$	63,214		(13.2)	%

Other comprehensive earnings (loss), net of tax		(25,366)			30,030		NM
Comprehensive earnings	$	29,519		$	93,244		(68.3)	%

Operating earnings⁽¹⁾:
Net earnings	$	54,885		$	63,214		(13.2)	%
Less:
Net realized gains		(9,559)			(14,912)		(35.9)	%
Income tax on realized gains		2,007			3,132		(35.9)	%
Net unrealized (gains) losses on equity securities		39,396			42,318		(6.9)	%
Income tax on unrealized gains (losses) on equity securities		(8,273)			(8,888)		(6.9)	%
Equity in earnings of unconsolidated investees		(2,147)			(3,048)		(29.6)	%
Income tax on equity in earnings of unconsolidated investees		451			641		(29.6)	%
Operating earnings⁽²⁾	$	76,760		$	82,457		(6.9)	%

Return on Equity:
Net earnings		22.5	%		17.6	%
Comprehensive earnings		24.2	%		19.8	%

Per Share Data:
Diluted:
Weighted average shares outstanding (in 000's)		92,187			92,528

Net earnings per share	$	0.60		$	0.68		(11.8)	%
Less:
Net realized gains		(0.10)			(0.16)		(37.5)	%
Income tax on realized gains		0.01			0.03		(66.7)	%
Net unrealized (gains) losses on equity securities		0.43			0.46		(6.5)	%
Income tax on unrealized gains (losses) on equity securities		(0.09)			(0.09)		(0.0)	%
Equity in earnings of unconsolidated investees		(0.02)			(0.03)		(33.3)	%
Income tax on equity in earnings of unconsolidated investees		—			—		—	%
Operating earnings per share⁽¹⁾⁽²⁾	$	0.83		$	0.89		(6.7)	%

Comprehensive earnings per share	$	0.32		$	1.01		(68.3)	%

Cash dividends per share - ordinary	$	0.16		$	0.15		6.7	%

Net cash flow provided by operations	$	42,829		$	103,514		(58.6)	%

(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)

	March 31,		December 31,
	2026		2025		% Change
SUMMARIZED BALANCE SHEET DATA:
Fixed income, at fair value	$	3,528,692	$	3,533,336	(0.1)	%
(amortized cost - $3,669,921 at 3/31/26)
(amortized cost - $3,642,362 at 12/31/25)
Equity securities, at fair value		864,912		898,876	(3.8)	%
(cost - $539,859 at 3/31/26)
(cost - $534,311 at 12/31/25)
Short-term investments		386,219		120,562	NM
Other invested assets		60,509		59,281	2.1	%
Cash and cash equivalents		49,121		51,565	(4.7)	%
Total investments and cash	$	4,889,453	$	4,663,620	4.8	%

Accrued investment income		30,456		30,026	1.4	%
Premiums and reinsurance balances receivable		243,451		212,226	14.7	%
Ceded unearned premiums		118,476		124,669	(5.0)	%
Reinsurance balances recoverable on unpaid losses		740,503		746,798	(0.8)	%
Deferred policy acquisition costs		176,187		172,648	2.0	%
Property and equipment		39,809		40,733	(2.3)	%
Investment in unconsolidated investees		56,053		53,521	4.7	%
Goodwill and intangibles		53,562		53,562	0.0	%
Other assets		53,873		63,683	(15.4)	%
Total assets	$	6,401,823	$	6,161,486	3.9	%

Unpaid losses and settlement expenses	$	2,927,929	$	2,886,819	1.4	%
Unearned premiums		991,717		991,636	0.0	%
Reinsurance balances payable		23,455		40,580	(42.2)	%
Funds held		134,215		127,242	5.5	%
Income taxes - current		26,797		29,724	(9.8)	%
Income taxes - deferred		5,566		21,769	(74.4)	%
Short-term debt		50,000		100,000	(50.0)	%
Long-term debt		297,247		—	NM
Accrued expenses		68,016		128,597	(47.1)	%
Other liabilities		80,491		56,923	41.4	%
Total liabilities	$	4,605,433	$	4,383,290	5.1	%
Shareholders' equity		1,796,390		1,778,196	1.0	%
Total liabilities & shareholders' equity	$	6,401,823	$	6,161,486	3.9	%

OTHER DATA:
Common shares outstanding (in 000's)		91,934		91,879

Book value per share	$	19.54	$	19.35	1.0	%
Closing stock price per share	$	57.04	$	63.98	(10.8)	%

Statutory surplus	$	1,814,648	$	1,846,615	(1.7)	%

NM = Not Meaningful


RLI CORP
2026 FINANCIAL HIGHLIGHTS
UNDERWRITING SEGMENT DATA
(Unaudited)
(Dollars in thousands, except per share amounts)

Three Months Ended March 31,
			GAAP				GAAP				GAAP				GAAP
	Casualty		Ratios		Property		Ratios		Surety		Ratios		Total		Ratios
2026

Gross premiums written	$	307,014			$	154,763			$	42,109			$	503,886
Net premiums written		260,372				118,393				38,895				417,660
Net premiums earned		248,566				126,378				36,442				411,386
Net loss & settlement expenses		152,832	61.5	%		33,854	26.8	%		6,558	18.0	%		193,244	47.0	%
Net operating expenses		88,441	35.6	%		44,339	35.1	%		27,575	75.7	%		160,355	39.0	%
Underwriting income ⁽¹⁾	$	7,293	97.1	%	$	48,185	61.9	%	$	2,309	93.7	%	$	57,787	86.0	%

2025

Gross premiums written	$	278,454			$	170,052			$	42,600			$	491,106
Net premiums written		235,607				121,736				39,748				397,091
Net premiums earned		229,048				132,544				36,753				398,345
Net loss & settlement expenses		145,835	63.7	%		32,725	24.7	%		(1,322)	(3.6)	%		177,238	44.5	%
Net operating expenses		81,142	35.4	%		42,904	32.4	%		26,515	72.1	%		150,561	37.8	%
Underwriting income ⁽¹⁾	$	2,071	99.1	%	$	56,915	57.1	%	$	11,560	68.5	%	$	70,546	82.3	%

(1) See discussion above: Non-GAAP and Performance Measures.

Category: Earnings Release

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Media Contact

Aaron Diefenthaler

Chief Financial Officer

309-693-5846

Investors@rlicorp.com

RLI Reports First Quarter 2026 Results