RLI Corp. (NYSE:RLI) reported third quarter 2026 net earnings of $81.0 million ($0.88 per share), compared to $124.6 million ($1.35 per share) for the third quarter of 2025. Operating earnings⁽¹⁾ for the third quarter of 2026 were $79.3 million ($0.86 per share), compared to $75.8 million ($0.82 per share) for the same period in 2025.


	Third Quarter				Year to Date
Earnings Per Diluted Share	2026		2025		2026		2025
Net earnings	$	0.88	$	1.35	$	3.29	$	3.38
Operating earnings ⁽¹⁾⁽²⁾	$	0.86	$	0.82	$	2.52	$	2.53

(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 $58.8 million on a combined ratio⁽¹⁾ of 86.2.
Gross premiums written increased 2% and net investment income increased 13%.
Favorable development in prior years’ loss reserves resulted in a $20.1 million net increase in underwriting income.
Book value increased 10% from year-end 2025, inclusive of dividends and share repurchases.

"Our third-quarter results reflect consistent, disciplined execution across the business," said RLI Corp. President & CEO Craig Kliethermes. "We delivered an 86 combined ratio, with strong underwriting performance in our property and surety segments. Gross premiums written increased 2%, led by our casualty segment. Investment income grew 13%, further contributing to earnings. As market conditions evolve across our portfolio, we remain focused on risk selection and profitable growth. We will continue to pursue opportunities where our underwriting expertise can deliver attractive long-term returns."

Underwriting Income

RLI achieved $58.8 million of underwriting income in the third quarter of 2026 on an 86.2 combined ratio, compared to $60.5 million on an 85.1 combined ratio in 2025.

Results for both years include favorable development in prior years’ loss reserves, which resulted in a $20.1 million and $13.7 million net increase to underwriting income in 2026 and 2025, respectively.

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

Underwriting Income⁽¹⁾					Combined Ratio⁽¹⁾
(in millions)	2026		2025			2026	2025
Casualty	$	1.0	$	4.5	Casualty	99.6	98.2
Property		50.5		50.4	Property	60.1	60.2
Surety		7.3		5.6	Surety	79.8	85.0
Total	$	58.8	$	60.5	Total	86.2	85.1

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

Other Income

Net investment income for the quarter increased 13% to $46.7 million, compared to the same period in 2025. The investment portfolio’s total return was -2.0% for the quarter and 0.9% for the nine months ended September 30, 2026.

RLI’s comprehensive loss was $36.8 million for the quarter (-$0.40 per share), compared to $152.3 million of comprehensive earnings ($1.65 per share) for the same quarter in 2025. In addition to net earnings, comprehensive loss for 2026 included after-tax unrealized losses from the fixed income portfolio, due to rising interest rates.

Dividends and Share Repurchase Program

On September 15, 2026, the company paid a regular quarterly dividend of $0.18 per share, the same amount as the prior quarter.

During the third quarter, RLI repurchased 103,573 shares at an average price of $60.51 per share for a total cost of $6.3 million. As of September 30, 2026, $231.7 million of capacity remained 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

At 10 a.m. central daylight time (CDT) on October 20, 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/320165068.

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						Nine Months Ended
	September 30,						September 30,
(Dollars in millions, except per share amounts)	2026			2025			2026			2025
Favorable development in prior accident years' casualty reserves	$	8.2		$	8.1		$	35.8		$	28.4
Favorable development in prior accident years' property reserves	$	10.4		$	4.7		$	54.2		$	32.4
Favorable development in prior accident years' surety reserves	$	4.3		$	2.7		$	8.2		$	13.3

Net incurred losses from current accident year catastrophe events⁽²⁾:
Casualty	$	(0.1	)	$	(0.2	)	$	(2.6	)	$	(2.0	)
Property	$	(3.9	)	$	0.2		$	(27.4	)	$	(24.0	)

	Operating Earnings Per Share
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2026			2025			2026			2025
Operating Earnings Per Share⁽³⁾⁽⁴⁾	$	0.86		$	0.82		$	2.52		$	2.53

Specific items included in operating earnings per share:⁽¹⁾⁽⁵⁾
Net favorable development in prior accident years' casualty reserves	$	0.06		$	0.05		$	0.23		$	0.19
Net favorable development in prior accident years' property reserves	$	0.08		$	0.04		$	0.43		$	0.25
Net favorable development in prior accident years' surety reserves	$	0.03		$	0.02		$	0.06		$	0.10

Net incurred losses from current accident year catastrophe events⁽²⁾:
Casualty	$	—		$	—		$	(0.02	)	$	(0.01	)
Property	$	(0.03	)	$	—		$	(0.20	)	$	(0.18	)

(1)	Reserve development reflects changes in estimated losses for prior accident years, including development related to catastrophe events occurring in prior accident years.
(2)	Current accident year catastrophe losses reflect net incurred losses from catastrophe events occurring during the current accident year. Development on prior accident year catastrophe events is included in reserve development by segment above.
(3)	See discussion above: Non-GAAP and Performance Measures.
(4)	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.
(5)	Items included in operating earnings per share are after tax and incorporate 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 September 30,									Nine Months Ended September 30,
SUMMARIZED INCOME STATEMENT DATA:	2026			2025			% Change			2026				2025				% Change
Net premiums earned	$	424,914		$	407,695		4.2		%	$	1,253,396			$	1,207,944			3.8		%
Net investment income		46,694			41,270		13.1		%		135,057				117,414			15.0		%
Net realized gains		8,637			18,318		(52.8	)	%		27,603				48,234			(42.8	)	%
Net unrealized gains (losses) on equity securities		(3,282	)		41,981		NM				60,346				43,163			39.8		%
Consolidated revenue	$	476,963		$	509,264		(6.3	)	%	$	1,476,402			$	1,416,755			4.2		%
Loss and settlement expenses		201,341			187,998		7.1		%		584,480				549,814			6.3		%
Policy acquisition costs		134,147			128,937		4.0		%		400,897				378,126			6.0		%
Insurance operating expenses		30,657			30,215		1.5		%		91,554				86,683			5.6		%
Interest expense on debt		4,200			1,364		NM				10,994				4,049			171.5		%
General corporate expenses		3,388			5,045		(32.8	)	%		12,335				12,747			(3.2	)	%
Total expenses	$	373,733		$	353,559		5.7		%	$	1,100,260			$	1,031,419			6.7		%
Equity in earnings of unconsolidated investees		(3,137	)		1,540		NM				1,980				7,055			(71.9	)	%
Earnings before income taxes	$	100,093		$	157,245		(36.3	)	%	$	378,122			$	392,391			(3.6	)	%
Income tax expense		19,084			32,635		(41.5	)	%		74,200				80,231			(7.5	)	%
Net earnings	$	81,009		$	124,610		(35.0	)	%	$	303,922			$	312,160			(2.6	)	%

Other comprehensive earnings (loss), net of tax		(117,809	)		27,674		NM				(145,489	)			76,405			NM
Comprehensive earnings (loss)	$	(36,800	)	$	152,284		NM			$	158,433			$	388,565			(59.2	)	%

Operating earnings⁽¹⁾:
Net earnings	$	81,009		$	124,610		(35.0	)	%	$	303,922			$	312,160			(2.6	)	%
Less:
Net realized gains		(8,637	)		(18,318	)	(52.8	)	%		(27,603	)			(48,234	)		(42.8	)	%
Income tax on realized gains		1,814			3,848		(52.9	)	%		5,797				10,130			(42.8	)	%
Net unrealized (gains) losses on equity securities		3,282			(41,981	)	NM				(60,346	)			(43,163	)		39.8		%
Income tax on unrealized gains (losses) on equity securities		(689	)		8,816		NM				12,672				9,064			39.8		%
Equity in earnings of unconsolidated investees		3,137			(1,540	)	NM				(1,980	)			(7,055	)		(71.9	)	%
Income tax on equity in earnings of unconsolidated investees		(659	)		323		NM				416				1,481			(71.9	)	%
Operating earnings⁽²⁾	$	79,257		$	75,758		4.6		%	$	232,878			$	234,383			(0.6	)	%

Return on Equity:
Net earnings (trailing four quarters)											22.2		%		20.8		%
Comprehensive earnings (trailing four quarters)											14.5		%		21.3		%

Per Share Data:
Diluted:
Weighted average shares outstanding (in 000's)		92,251			92,310						92,259				92,460

Net earnings per share	$	0.88		$	1.35		(34.8	)	%	$	3.29			$	3.38			(2.7	)	%
Less:
Net realized gains		(0.09	)		(0.20	)	(55.0	)	%		(0.30	)			(0.52	)		(42.3	)	%
Income tax on realized gains		0.02			0.04		(50.0	)	%		0.06				0.11			(45.5	)	%
Net unrealized (gains) losses on equity securities		0.04			(0.45	)	NM				(0.65	)			(0.47	)		38.3		%
Income tax on unrealized gains (losses) on equity securities		(0.01	)		0.09		NM				0.14				0.10			40.0		%
Equity in earnings of unconsolidated investees		0.03			(0.01	)	NM				(0.02	)			(0.08	)		(75.0	)	%
Income tax on equity in earnings of unconsolidated investees		(0.01	)		—		NM				—				0.01			(100.0	)	%
Operating earnings per share⁽¹⁾⁽²⁾	$	0.86		$	0.82		4.9		%	$	2.52			$	2.53			(0.4	)	%

Comprehensive earnings (loss) per share	$	(0.40	)	$	1.65		NM			$	1.72			$	4.20			(59.0	)	%

Cash dividends per share - ordinary	$	0.18		$	0.16		12.5		%	$	0.52			$	0.47			10.6		%
Cash dividends per share - special	$	—		$	—		NM			$	2.00			$	—			NM

Net cash flow provided by operations	$	194,659		$	179,220		8.6		%	$	382,708			$	457,453			(16.3	)	%

(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)

	September 30,		December 31,
	2026		2025		% Change
SUMMARIZED BALANCE SHEET DATA:
Fixed income, at fair value	$	3,600,969	$	3,533,336	1.9		%
(amortized cost - $3,892,806 at 9/30/26)
(amortized cost - $3,642,362 at 12/31/25)
Equity securities, at fair value		948,319		898,876	5.5		%
(cost - $523,206 at 9/30/26)
(cost - $534,311 at 12/31/25)
Short-term investments		254,273		120,562	110.9		%
Other invested assets		57,608		59,281	(2.8	)	%
Cash and cash equivalents		46,212		51,565	(10.4	)	%
Total investments and cash	$	4,907,381	$	4,663,620	5.2		%

Accrued investment income		32,205		30,026	7.3		%
Premiums and reinsurance balances receivable		231,730		212,226	9.2		%
Ceded unearned premiums		124,169		124,669	(0.4	)	%
Reinsurance balances recoverable on unpaid losses		727,036		746,798	(2.6	)	%
Deferred policy acquisition costs		191,393		172,648	10.9		%
Property and equipment		41,032		40,733	0.7		%
Investment in unconsolidated investees		54,455		53,521	1.7		%
Goodwill and intangibles		53,562		53,562	0.0		%
Income taxes - deferred		9,508		—	NM
Other assets		73,088		63,683	14.8		%
Total assets	$	6,445,559	$	6,161,486	4.6		%

Unpaid losses and settlement expenses	$	2,997,555	$	2,886,819	3.8		%
Unearned premiums		1,069,378		991,636	7.8		%
Reinsurance balances payable		30,535		40,580	(24.8	)	%
Funds held		140,441		127,242	10.4		%
Income taxes - current		1,842		29,724	(93.8	)	%
Income taxes - deferred		—		21,769	(100.0	)	%
Short-term debt		—		100,000	(100.0	)	%
Long-term debt		297,044		—	NM
Accrued expenses		110,054		128,597	(14.4	)	%
Other liabilities		102,537		56,923	80.1		%
Total liabilities	$	4,749,386	$	4,383,290	8.4		%
Shareholders' equity		1,696,173		1,778,196	(4.6	)	%
Total liabilities & shareholders' equity	$	6,445,559	$	6,161,486	4.6		%

OTHER DATA:
Common shares outstanding (in 000's)		91,732		91,879

Book value per share	$	18.49	$	19.35	(4.4	)	%
Closing stock price per share	$	55.31	$	63.98	(13.6	)	%

Statutory surplus	$	1,964,770	$	1,846,615	6.4		%

NM = Not Meaningful

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

Three Months Ended September 30,
			GAAP				GAAP				GAAP				GAAP
	Casualty		Ratios		Property		Ratios		Surety		Ratios		Total		Ratios
2026

Gross premiums written	$	330,937			$	152,373			$	38,937			$	522,247
Net premiums written		275,573				118,302				35,408				429,283
Net premiums earned		262,177				126,520				36,217				424,914
Net loss & settlement expenses		168,087	64.1	%		31,103	24.6	%		2,151	5.9	%		201,341	47.4	%
Net operating expenses		93,050	35.5	%		44,991	35.5	%		26,763	73.9	%		164,804	38.8	%
Underwriting income ⁽¹⁾	$	1,040	99.6	%	$	50,426	60.1	%	$	7,303	79.8	%	$	58,769	86.2	%

2025

Gross premiums written	$	317,063			$	154,631			$	38,527			$	510,221
Net premiums written		263,395				109,007				34,924				407,326
Net premiums earned		243,508				126,689				37,498				407,695
Net loss & settlement expenses		150,912	62.0	%		32,815	25.9	%		4,271	11.4	%		187,998	46.1	%
Net operating expenses		88,110	36.2	%		43,450	34.3	%		27,592	73.6	%		159,152	39.0	%
Underwriting income ⁽¹⁾	$	4,486	98.2	%	$	50,424	60.2	%	$	5,635	85.0	%	$	60,545	85.1	%


Nine Months Ended September 30,
			GAAP				GAAP				GAAP				GAAP
	Casualty		Ratios		Property		Ratios		Surety		Ratios		Total		Ratios
2026

Gross premiums written	$	976,950			$	506,412			$	122,421			$	1,605,783
Net premiums written		821,080				398,369				112,188				1,331,637
Net premiums earned		767,665				376,684				109,047				1,253,396
Net loss & settlement expenses		480,605	62.6	%		91,682	24.3	%		12,193	11.2	%		584,480	46.6	%
Net operating expenses		276,985	36.1	%		132,892	35.3	%		82,574	75.7	%		492,451	39.3	%
Underwriting income ⁽¹⁾	$	10,075	98.7	%	$	152,110	59.6	%	$	14,280	86.9	%	$	176,465	85.9	%

2025

Gross premiums written	$	902,127			$	536,500			$	124,981			$	1,563,608
Net premiums written		755,247				391,662				114,567				1,261,476
Net premiums earned		707,194				389,897				110,853				1,207,944
Net loss & settlement expenses		438,007	61.9	%		103,999	26.7	%		7,808	7.0	%		549,814	45.5	%
Net operating expenses		254,341	36.0	%		129,048	33.1	%		81,420	73.5	%		464,809	38.5	%
Underwriting income ⁽¹⁾	$	14,846	97.9	%	$	156,850	59.8	%	$	21,625	80.5	%	$	193,321	84.0	%

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

Category: Earnings Release

View source version on businesswire.com: https://www.businesswire.com/news/home/20261019118592/en/

Media Contact

Aaron Diefenthaler

Chief Financial Officer

309-693-5846

Investors@rlicorp.com