RLI · RLI Corp.

RLI Corp.'s first quarter 2026 results reflect a mixed performance with lower earnings but some positive underlying trends. Net earnings declined 13.2% year-over-year to $54.9 million, primarily driven by reduced underwriting income, which fell to $57.8 million from $70.5 million in the prior year. The combined ratio deteriorated to 86.0 from 82.3, indicating less favorable underwriting profitability despite remaining profitable. This decline was partially offset by a 15% increase in net investment income to $42.3 million, demonstrating the strength of RLI's investment portfolio. Gross premiums written grew 3%, led by the casualty segment, suggesting modest top-line expansion in a dynamic market environment. President & CEO Craig Kliethermes noted the company delivered 'positive underwriting results' with an '86 combined ratio across our diversified specialty portfolio' and emphasized 'disciplined underwriting, rate adequacy and strategically deploying capital.' The quarter included favorable development in prior years' loss reserves totaling $31.3 million, which boosted underwriting income, while catastrophe events resulted in $16.0 million of net incurred losses. Comprehensive earnings were significantly lower at $29.5 million compared to $93.2 million in the prior year, primarily due to after-tax unrealized losses from the fixed income portfolio amid rising interest rates. Book value per share increased 2% to $19.54 from year-end 2025, reflecting shareholder value accretion inclusive of dividends. The company maintained its regular quarterly dividend of $0.16 per share, consistent with the prior quarter, and received upgraded AM Best financial strength ratings to A++ (Superior) for its insurance subsidiaries during the quarter.