Group 1 - RLI Corp. has experienced a downtrend with a stock decline of 12.6% over the past four weeks, indicating significant selling pressure [1] - The stock is currently in oversold territory, with an RSI reading of 26.68, suggesting that the heavy selling may be exhausting itself and a potential bounce back could occur [5][6] - Wall Street analysts have raised earnings estimates for RLI, with a 0.4% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [6] Group 2 - RLI holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [7]

Financial Data and Key Metrics Changes - RLI Corp. reported fourth quarter operating earnings of $0.41 per share, with a 19% rise in investment income contributing to this performance [12] - The combined ratio for the quarter was 94.4%, influenced by hurricane losses and reserve additions [12] - Full-year results showed a combined ratio of 86.2%, slightly improved from 86.6% in 2023, marking the 29th consecutive year of underwriting profitability [13][54] - Net earnings per share on a GAAP basis were $0.44 for the quarter and $3.74 for the year, a 13% increase from the previous year [14] Business Line Data and Key Metrics Changes - The casualty segment's premiums grew by 18% in the fourth quarter, with a 10% rate change driven by auto coverages [29] - The surety segment remained flat in the quarter but grew by 9% year-to-date, with a combined ratio in the low 80s [20][38] - The property segment saw a 3% decline in gross premiums for the quarter, primarily due to E&S property, while marine and Hawaii homeowners segments experienced growth [22][49] Market Data and Key Metrics Changes - The company achieved a 12% growth in net written premium and a 22% growth in underwriting profits for the year [9] - The casualty group saw a top-line growth of 18% in the quarter, with significant contributions from transportation and personal umbrella products [16][29] - The property segment's gross premiums were down 3% in the quarter, driven by increased competition and rate softening in certain areas [22][41] Company Strategy and Development Direction - RLI Corp. remains focused on underwriting discipline and long-term decision-making to benefit stakeholders, with a proactive approach to managing legal system abuse in wheels-based businesses [10] - The company is committed to monitoring loss severity and adjusting reserves accordingly, particularly in the auto and transportation sectors [20][33] - RLI is leveraging its expertise in various segments to identify and capitalize on profitable growth opportunities while maintaining a conservative capital management strategy [27][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges in the current operating environment, particularly regarding auto severity and competitive pressures [11][120] - The management team highlighted the importance of maintaining underwriting profitability while being cautious about growth in light of increasing loss trends [118][123] - Future growth opportunities are anticipated in the casualty segment, particularly in liability coverages and transportation, as the market continues to harden [120][121] Other Important Information - The company declared a special dividend of $2 per share, reflecting its consistent financial performance and capital stewardship [27] - RLI has returned nearly $1.5 billion to shareholders over the past decade, showcasing its commitment to shareholder value [27] Q&A Session Summary Question: Can you provide a relative split between the casualty reserves for the current accident year addition? - The split was approximately half for umbrella-related and half for transportation-related reserves [58] Question: What severity trends are being observed between transportation and personal umbrella? - The overall loss trend for auto-related exposures is assumed to be between 10 to 11 points [60] Question: What is the long-term outlook for the investment in Prime? - RLI currently owns about 25% of Prime and has reduced its participation in the quota share due to changing terms and conditions [71] Question: How does the company view the competitive environment in the surety business for 2025? - The surety business is highly competitive, but RLI expects to see growth opportunities driven by increased construction costs and strong relationships with producers [138][144]

Financial Data and Key Metrics Changes - RLI achieved a 12% growth in net written premium and a 22% growth in underwriting profits for the year, marking the 29th consecutive year of underwriting profit [6][19] - Operating earnings for Q4 were reported at $0.41 per share, with net earnings per share on a GAAP basis at $0.44 for the quarter and $3.74 for the year, a 13% increase from the previous year [8][10] - The combined ratio for Q4 was 94.4%, while the full year combined ratio was 86.2%, slightly improved from 86.6% in 2023 [9][10] Business Line Data and Key Metrics Changes - The casualty segment saw an 18% increase in premiums for Q4, with a 10% rate change driven by auto coverages [11][20] - The surety segment was flat in Q4 but up 9% year-to-date, maintaining a combined ratio in the low 80s [14][26] - The property segment experienced a 3% decline in gross premiums in Q4, primarily due to E&S Property, while marine and Hawaii homeowners grew significantly [15][32] Market Data and Key Metrics Changes - The company noted ongoing challenges in the motor vehicle exposures market, requiring measurable ongoing rate increases to address loss cost inflation [7] - The competitive landscape in the property segment has intensified, with rates softening, particularly in the wind business [15][28] - Submissions in the global business increased by 13% in Q4, marking three consecutive years of double-digit submission growth [29] Company Strategy and Development Direction - RLI remains focused on opportunities where it can differentiate itself and where the market allows for adequate returns, particularly in the casualty and transportation segments [6][7] - The company is committed to maintaining underwriting discipline and is willing to walk away from underpriced accounts [7][13] - RLI's capital management strategy includes returning nearly $1.5 billion to shareholders over the last decade, with a special dividend of $2 per share announced [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current operating environment, emphasizing proactive measures in response to loss severity trends [11][22] - The management team highlighted the importance of maintaining a strong feedback loop between underwriting and claims to ensure profitable growth [23][90] - Future growth opportunities are anticipated in the casualty segment, particularly in liability coverages and auto-related products [89] Other Important Information - The company recorded a total return of negative 1.1% for the quarter, impacted by bond price declines, but investment in Prime remains positive on an inception-to-date basis [18] - RLI's investment in Prime resulted in a loss of $12.5 million for the quarter due to reserve strengthening on prior accident years [18][49] Q&A Session Summary Question: Can you provide a relative split between the casualty reserves for the current accident year addition? - The split was approximately half for personal umbrella and half for transportation [40] Question: What severity trends are being observed in transportation and personal umbrella? - The overall loss trend for auto-related exposures is assumed to be in the 10 to 11 points range [41] Question: What is the long-term outlook for the investment in Prime? - The company currently owns about 25% of Prime and views it as a positive investment, with dividends received exceeding the original investment [48][49] Question: How does the company approach growth in the casualty segment given the severity trends? - The company trusts its product leaders to identify opportunities and supports them with data from claims and actuarial teams [88] Question: What is the competitive environment expected to be like for the surety business in 2025? - The surety business is highly competitive, but the company has a strong track record and is focused on building relationships with producers [106]

Core Insights - RLI Corp. reported fourth-quarter 2024 operating earnings of 41 cents per share, missing the Zacks Consensus Estimate by 14.5% and reflecting a 46.8% decrease from the prior-year quarter [1] - The quarterly results were influenced by higher premiums and improved investment income, but were partially offset by increased expenses and poor underwriting income [1] Operational Performance - Operating revenues for the quarter were $436 million, up 15.3% year over year, driven by higher net premiums earned and net investment income, matching the Zacks Consensus Estimate [2] - Gross premiums written increased 9% year over year to $473.2 million, attributed to strong performance in the Casualty segment, which rose 18.3% [2] Investment Income and Expenses - Net investment income rose 19% year over year to $38.8 million, exceeding both the Zacks Consensus Estimate and the company's estimate of $38.1 million [3] - Total expenses increased 29.6% year over year to $379.2 million, primarily due to higher loss and settlement expenses, policy acquisition costs, and interest expense on debt [3] Underwriting Performance - Underwriting income decreased 62.8% year over year to $22.2 million, with the combined ratio deteriorating by 1,170 basis points to 94.4 [4] Full-Year Highlights - For the full year, operating earnings were $2.87 per share, up 16.2% from the prior year [5] - Operating revenues totaled $1.7 billion, an 18% increase year over year, with net premiums earned rising 17.9% to $1.53 billion [5] - Underwriting income increased 21.6% to $210.7 million, with the combined ratio improving by 40 basis points to 86.2 [5] Financial Update - RLI ended the quarter with total investments and cash of $4.1 billion, an 11.1% increase from the end of 2023 [6] - Book value per share was $16.59 as of December 31, 2024, up 7.1% from the previous year [6] - Net cash flow from operations was $560.2 million, a 21% year-over-year increase [6] - The statutory surplus rose 17.6% to $1.8 billion as of December 31, 2024 [6] - Return on equity was 21.7%, down 640 basis points from the year-ago period [6] Dividend Update - RLI paid a special dividend of $2.00 per share for the fourth quarter, with total shareholder returns amounting to $183.5 million [7] - The company has consistently paid dividends for 194 consecutive quarters and has increased regular dividends for the last 49 years [7][8] Industry Comparison - The Travelers Companies reported fourth-quarter 2024 core income of $9.15 per share, beating the Zacks Consensus Estimate by 39.3% and improving 30.5% year over year [10] - Travelers' total revenues increased 10.4% year over year to $11.9 billion, surpassing the Zacks Consensus Estimate by 1% [10]

Core Insights - RLI Corp. reported revenue of $435.95 million for the quarter ended December 2024, reflecting a year-over-year increase of 15.2% [1] - The company's EPS was $0.41, down from $0.77 in the same quarter last year, indicating a decline in profitability [1] - Revenue slightly missed the Zacks Consensus Estimate of $436.37 million, resulting in a surprise of -0.10% [1] - The EPS also fell short of the consensus estimate of $0.48, leading to an EPS surprise of -14.58% [1] Financial Performance Metrics - Net operating expenses were reported at 37.6%, better than the five-analyst average estimate of 38.6% [4] - Net loss and settlement expenses totaled 56.8%, compared to the five-analyst average estimate of 57.9% [4] - Underwriting income (loss) was at 94.4%, slightly below the average estimate of 96.5% [4] - Net premiums earned reached $397.18 million, which is a year-over-year increase of 14.8% but below the five-analyst average estimate of $398.26 million [4] - Net investment income was $38.78 million, exceeding the average estimate of $38.11 million, representing a year-over-year change of 19.1% [4] Segment Performance - Net premiums earned in the Property segment were $134.61 million, slightly below the estimated $136.52 million but showing a year-over-year increase of 16.1% [4] - Net premiums earned in the Surety segment were $36.74 million, below the estimate of $38.22 million, with a year-over-year increase of 8.1% [4] - Net premiums earned in the Casualty segment were $225.82 million, surpassing the average estimate of $223.17 million, reflecting a year-over-year increase of 15.2% [4] Stock Performance - RLI Corp.'s shares have returned -6.7% over the past month, contrasting with the Zacks S&P 500 composite's increase of +2.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

RLI Corp. (RLI) came out with quarterly earnings of $0.41 per share, missing the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.77 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -14.58%. A quarter ago, it was expected that this specialty insurance company would post earnings of $0.49 per share when it actually produced earnings of $0.66, delivering a surprise of 34.69%.Over the last four quarters ...

EXHIBIT 99.1 RLI REPORTS FOURTH QUARTER AND YEAR-END 2024 RESULTS PEORIA, ILLINOIS, January 22, 2025 – RLI Corp. (NYSE: RLI) – RLI Corp. reported fourth quarter 2024 net earnings of $40.9 million ($0.44 per share), compared to $114.6 million ($1.24 per share) for the fourth quarter of 2023. Operating earnings(1) for the fourth quarter of 2024 were $38.4 million ($0.41 per share), compared to $71.1 million ($0.77 per share) for the same period in 2023. On January 15, 2025, RLI executed a two-for-one stock sp ...

RLI Corp. (RLI) has been trading above its 50-day simple moving average (SMA), signaling a short-term bullish trend. Its share price, as of Jan. 16, 2025, was $77.83, down 14.6% from its 52-week high of $91.14.The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend.With a market capitalization of $7.13 billion, RLI is set to gain from business expansion, rate increase, ...

In its upcoming report, RLI Corp. (RLI) is predicted by Wall Street analysts to post quarterly earnings of $0.95 per share, reflecting a decline of 38.3% compared to the same period last year. Revenues are forecasted to be $436.37 million, representing a year-over-year increase of 15.3%.The current level reflects a downward revision of 0.2% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial pr ...

Wall Street expects a year-over-year decline in earnings on higher revenues when RLI Corp. (RLI) reports results for the quarter ended December 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on January 22. On ...