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]

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock. In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end. However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Sco ...

RLI Corp. (RLI) is well-poised to gain from a strong product portfolio, rate increases, improved retention, higher premium receipts and sufficient liquidity. Optimistic Growth Projections The Zacks Consensus Estimate for RLI's 2024 earnings per share indicates an increase of 22.5% from the yearago reported number. The consensus estimate for revenues is pegged at $1.67 billion, implying a year-over-year improvement of 18%. The consensus estimate for 2025 earnings per share and revenues indicates an increase ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) RLI Corp. (Exact name of registrant as specified in its charter) Delaware 37-0889946 (I.R.S. Employer Identification Number) (State or other jurisdiction of incorporation or organization) 9025 North Lindbergh Drive, Peoria, IL 61615 (Address of principal executive offices) (Zip Code) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period e ...

RLI Corp. (NYSE:RLI) Q2 2024 Earnings Conference Call July 23, 2024 11:00 AM ET Company Participants Aaron Diefenthaler - Chief Investment Officer and Treasurer Craig Kliethermes - President and Chief Executive Officer Todd Bryant - Chief Financial Officer Jen Klobnak - Chief Operating Officer Conference Call Participants Sid Parameswar - Raymond James Andrew Anderson - Jefferies Scott Heleniak - RBC Meyer Shields - KBW Operator Good morning, and welcome to the RLI Corp Second Quarter Earnings Teleconferenc ...

RLI Corp. (RLI) reported second-quarter 2024 operating earnings of $1.72 per share, beating the Zacks Consensus Estimate by 27.4%. The bottom line improved 48.3% year over year. The quarterly results reflect the continued underwriting-focused business model and the strength of its diversified portfolio. Shares gained 4.8% in the after-market trading session to reflect the outperformance. RLI Corp. Price, Consensus and EPS Surprise Operational Performance Operating revenues for the reported quarter were $413 ...