RLI Corp. (RLI) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

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]