RLI Corp. (RLI) Up 4.2% Since Last Earnings Report: Can It Continue?

Core Viewpoint - RLI Corp. has shown a positive performance in its stock price, increasing by approximately 4.2% since the last earnings report, outperforming the S&P 500 [1][2]. Financial Performance - RLI Corp. reported Q3 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 [3]. - Operating revenues for the quarter reached $449 million, a 5.3% year-over-year increase, driven by a 4.7% rise in net premiums earned and a 12.5% increase in net investment income [4]. - Gross premiums written totaled $562.3 million, up 0.5% year over year, although the Casualty segment's performance improvement was offset by declines in the Property and Surety segments [5]. - Total expenses decreased by 0.2% year over year to $353.6 million, primarily due to lower loss and settlement expenses, while underwriting income surged by 48.6% year over year to $60.5 million [6]. Financial Update - RLI exited the quarter with total investments and cash of $4.7 billion, a 14.8% increase from the end of 2024, and a book value of $20.41 per share, up 26% from December 31, 2024 [7]. - Net cash flow from operations was $179.2 million, down 18.3% year over year, while the statutory surplus increased by 5.6% to $1.9 billion as of September 30, 2025 [7]. Dividend Update - On September 19, 2025, RLI paid 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 [8]. Market Outlook - There has been an upward trend in estimates revisions for RLI Corp., indicating a promising outlook [9][11]. - RLI Corp. holds a Zacks Rank 3 (Hold), suggesting an expectation of an in-line return from the stock in the upcoming months [11]. Industry Comparison - RLI Corp. is part of the Zacks Insurance - Property and Casualty industry, where another player, Progressive, has gained 1.5% over the past month, reporting revenues of $22.22 billion, a year-over-year increase of 14.3% [12].