RLI Reports Third Quarter 2025 Results

Core Insights - RLI Corp. reported third quarter 2025 net earnings of $124.6 million ($1.35 per share), a 31.1% increase from $95.0 million ($1.03 per share) in the same quarter of 2024 [1][17] - Operating earnings for the third quarter of 2025 were $77.0 million ($0.83 per share), up 27.4% from $60.4 million ($0.65 per share) in 2024 [1][17] - The company achieved an 85.1 combined ratio, indicating disciplined underwriting and effective strategy execution in a competitive market [3][21] Financial Performance - Comprehensive earnings for the quarter were $152.3 million ($1.65 per share), down from $175.3 million ($1.90 per share) in 2024 [6][17] - Net investment income increased by 12% to $41.3 million compared to the same period in 2024 [5][11] - Book value per share rose by 26% since year-end 2024, reaching $20.41 [11][18] Underwriting Results - Underwriting income for the third quarter was $60.5 million on an 85.1 combined ratio, compared to $40.7 million on an 89.6 combined ratio in 2024 [4][11] - Favorable development in prior years' loss reserves contributed $13.7 million to underwriting income in 2025 [4][11] - The breakdown of underwriting income by segment showed significant improvement in property and casualty segments [5][11] Dividends and Shareholder Returns - RLI paid a regular quarterly dividend of $0.16 per share, consistent with the previous quarter [7][17] - Cumulative dividends paid over the last five years exceeded $975 million [7] Investment Portfolio - The investment portfolio's total return was 3.0% for the quarter and 7.4% for the nine months ended September 30, 2025 [5][11] - Fixed income investments at fair value increased by 11.4% to $3.54 billion compared to year-end 2024 [18][19]