RLI Corp. (RLI) reported $426.18 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 21.6%. EPS of $1.31 for the same period compares to $0.61 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $420.15 million, representing a surprise of +1.44%. The company delivered an EPS surprise of +33.67%, with the consensus EPS estimate being $0.98.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- ...

Investors are always looking for stocks that are poised to beat at earnings season and RLI Corp. (RLI) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report. That is because RLI is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-todate information possible — is a pretty good indicator of som ...

Wall Street analysts expect RLI Corp. (RLI) to post quarterly earnings of $0.94 per share in its upcoming report, which indicates a year-over-year increase of 54.1%. Revenues are expected to be $420.71 million, up 20.1% from the year-ago quarter. The consensus EPS estimate for the quarter has undergone a downward revision of 1.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe. Prior t ...

RLI Corporation (RLI) shares are trading at a premium to the Zacks Property and Property Insurance industry. Its price-to-book of 4.39X is higher than the industry average of 1.59X. This company has a market capitalization of $7 billion. The average volume of shares traded in the last three months was 0.1 million. Image Source: Zacks Investment Research The stock is expensive compared with other players like The Travelers Companies Inc (TRV) , Cincinnati Financial (CINF) and W. R. Berkley Corporation (WRB) ...

The Zacks Property and Casualty (P&C) Insurance industry has been benefiting from increased exposure driving business growth, higher retention, streamlined operations, global presence, better pricing, solid underwriting and a strong capital position. With the ongoing economic expansion, insurers remain well-poised for growth. However, catastrophe events, both natural and man-made, might have weighed on underwriting profit. The industry has returned 26.1% year to date, outperforming the Zacks S&P 500 composi ...

Core Viewpoint - RLI Corp. demonstrates strong investor confidence with its stock trading near a 52-week high, supported by positive technical indicators and solid earnings growth compared to industry averages [1][2]. Financial Performance - RLI's earnings grew by 18.7% over the last five years, outperforming the industry average of 10.5% [2]. - The company has consistently surpassed earnings estimates, achieving an average of 140.08% over the last four quarters [2]. - Year-to-date, RLI shares have increased by 13.7%, while the industry has seen a growth of 28.2% [2]. Analyst Sentiment - Positive analyst sentiment is reflected in the upward revision of earnings estimates for 2024 and 2025, with increases of 4.9% and 3.6%, respectively [3]. - The consensus estimates indicate earnings improvements of 24.2% for 2024 and 2.6% for 2025 [3]. Return on Capital - RLI's return on equity (ROE) stands at 18.3%, significantly higher than the industry average of 7.9% [4]. - The return on invested capital (ROIC) has shown consistent annual growth, currently at 7.6%, exceeding the industry average of 6% [4]. Business Segments - RLI's product diversification across Casualty, Property, and Surety segments has driven growth, with the Casualty segment benefiting from an expanded distribution base and rate increases [5]. - The commercial property business is gaining from higher exposure rates, while the Surety segment benefits from a strong product portfolio and growth in existing accounts [6]. Dividend History - RLI has a strong dividend history, having paid dividends for 187 consecutive quarters and increased regular dividends for 48 years, with an 8-year CAGR of 3.9% [7]. - The company has returned $819 million to shareholders over the past five years and has $87.5 million remaining in its repurchase program [7]. Valuation - RLI's stock is currently considered overvalued, trading at a price-to-book ratio of 4.37, compared to the industry average of 1.61 [8]. Conclusion - RLI's strong product portfolio, rate increases, improved retention, and effective capital deployment position it favorably for long-term growth, making it an attractive option for potential investors [9].

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task. That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss. However, it's pretty easy to find cutting-edge growth s ...

For Immediate Release Chicago, IL – August 26, 2024 – Today, Zacks Equity Research discusses, Arch Capital Group Ltd. (ACGL) , W.R. Berkley Corp. (WRB) , RLI Corp. (RLI) , Axis Capital Holdings Ltd. (AXS) and Palomar Holdings (PLMR) . Industry: P&C Insurance Link: https://www.zacks.com/commentary/2326370/5-stocks-to-buy-from-the-prospering-pc-insurance-industry The Zacks Property and Casualty Insurance (P&C) industry is likely to benefit from better pricing, prudent underwriting and exposure growth. Industr ...

A month has gone by since the last earnings report for RLI Corp. (RLI) . Shares have added about 3.7% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is RLI Corp. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. RLI's Q2 Earnings, Revenues Top Estimates on Strong Und ...

Core Insights - RLI Corp. is recognized as a "Dividend Insurance Champion" with a strong history of consistent dividend increases over 49 years, despite a low dividend yield below 1% [2][15] - The company has outperformed the S&P 500 in total return over the last two decades, showcasing its strong market position [2] - RLI's focus on underwriting margin over premium growth, along with a well-managed investment portfolio, supports its steady dividend increases [4] Financial Performance - Year-to-date income for RLI increased by approximately $33 million compared to the previous year, driven by higher investment income and steady underwriting income [5] - The company recorded an underwriting income of $147.7 million in the first six months of the year, achieving a combined ratio of 80%, which is an improvement of 2.7 points year-over-year [9] - The property segment was the largest contributor to underwriting income, with a combined ratio of 57.9% year-to-date, generating $110.9 million [11] Underwriting Segments - The property segment's gross written premium grew by 6% in Q2, with marine insurance leading at a 20% increase [13] - The casualty insurance segment experienced a 12% year-to-date net premium increase but saw a reduction in underwriting income to approximately $24 million, down around $14.8 million from the previous year [14] - The surety insurance segment's combined ratio increased to 81.4% for the first half of 2024, compared to 75.8% in 2023, indicating reduced underwriting income [14] Dividend Policy - RLI is recognized as a dividend aristocrat, with a consistent track record of dividend increases and annual special dividends [15][16] - In 2022, RLI distributed a special dividend of $7.0 per share, while in 2023, the special dividend returned to $2 per share [15] Valuation - RLI's shareholder equity stands at $1.58 billion, with a market capitalization of approximately $6.85 billion, resulting in a price-to-book (P/B) ratio of around 4.3 [17] - The current valuation is considered fair compared to its 5-year average, but peers typically trade at lower multiples of 1.5 to 2.5 [18] - Despite strong financial performance, the high valuation suggests a lack of safety margin for new investors [19]