Core Insights - RLI Corp. reported third-quarter 2024 operating earnings of $1.31 per share, exceeding the Zacks Consensus Estimate by 33.7% and more than doubling year-over-year [1] - The company's stock rose 1.2% in after-market trading, reflecting its strong performance [1] RLI's Operational Performance - Operating revenues for the quarter were $426 million, a 1.4% increase year-over-year, driven by a 22.3% rise in net premiums earned and a 14.8% increase in net investment income, surpassing the Zacks Consensus Estimate of $420 million [2] - Gross premiums written rose 13% year-over-year to $563.4 million, with notable growth in the Casualty (up 15.7%), Property (up 9.6%), and Surety segments (up 9%) [2] - Net investment income increased 15% year-over-year to $36.7 million, although it fell short of the estimate of $39.1 million [2] - Total expenses rose 11.3% year-over-year to $354.4 million, attributed to higher loss and settlement expenses, policy acquisition costs, and general corporate expenses [2] Underwriting Performance - Underwriting income surged to $40.7 million from $4.2 million in the prior year [3] - The combined ratio improved by 910 basis points year-over-year to 89.6, significantly better than the Zacks Consensus Estimate of 96 [3] Financial Update - RLI's total investments and cash reached $4.2 billion, a 14.9% increase from the end of 2023 [4] - Book value per share was $38.17 as of September 30, 2024, reflecting a 26% increase from December 31, 2023 [4] - Net cash flow from operations was $219.4 million, up 122.5% year-over-year [4] - The statutory surplus increased by 18.8% to $1.8 billion as of September 30, 2024 [4] - Return on equity was 38.4%, up 1810 basis points from the previous year [4] Dividend Update - RLI paid a dividend of 29 cents on September 20, 2024, with cumulative dividends exceeding $822 million over the last five years [5] Industry Performance - The Travelers Companies reported third-quarter 2024 core income of $5.24 per share, beating the Zacks Consensus Estimate by 38.2% [6] - Travelers' total revenues increased 10.7% year-over-year to $11.84 billion, driven by higher premiums and net investment income [6] - Progressive Corporation's third-quarter 2024 earnings per share of $3.97 exceeded the Zacks Consensus Estimate of $3.40, with operating revenues improving 24.9% year-over-year to $19.5 billion [7] - W.R. Berkley Corporation reported third-quarter 2024 operating income of 93 cents per share, beating the Zacks Consensus Estimate by 1.1% [8]

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 ...