RLI(US:RLI) ZACKSยท2025-10-21 18:40Core Insights - RLI Corp. reported third-quarter 2025 operating earnings of 83 cents per share, exceeding the Zacks Consensus Estimate by 33.9% and reflecting a 27.7% increase from the prior-year quarter [1][8] - The quarterly results were driven by higher net premiums earned and net investment income, alongside lower loss and settlement expenses [1] Operational Performance - Operating revenues for the quarter reached $449 million, marking a 5.3% year-over-year increase, supported by a 4.7% rise in net premiums earned and a 12.5% increase in net investment income [2] - Gross premiums written totaled $562.3 million, a 0.5% year-over-year increase, although performance improvements in the Casualty segment were offset by declines in the Property and Surety segments [2] Investment Income - Net investment income rose by 12% year over year to $41.3 million, slightly below estimates [3] - The investment portfolio's total return was reported at 3% for the quarter [3] Expense Management - Total expenses decreased by 0.2% year over year to $353.6 million, primarily due to lower loss and settlement expenses [3] Underwriting Performance - Underwriting income increased significantly by 48.6% year over year to $60.5 million, with the combined ratio improving by 450 basis points to 85.1 [4][8] Financial Update - RLI's total investments and cash at the end of the quarter were $4.7 billion, a 14.8% increase from the end of 2024 [5] - Book value per share rose to $20.41, reflecting a 26% increase from December 31, 2024 [5] - Net cash flow from operations was reported at $179.2 million, down 18.3% year over year [5] - The statutory surplus increased by 5.6% to $1.9 billion as of September 30, 2025 [5] - Return on equity was recorded at 20.8%, a decrease of 690 basis points from the previous year [5] Dividend Update - On September 19, 2025, RLI declared a dividend of 16 cents, an increase of 1 cent from the previous payout, with cumulative dividends exceeding $975 million over the last five years [6]