Here's What Key Metrics Tell Us About RLI Corp. (RLI) Q4 Earnings

Core Insights - RLI Corp. reported revenue of $448.73 million for the quarter ended December 2025, reflecting a 2.9% increase year-over-year, while EPS rose to $0.94 from $0.41 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $451.17 million, resulting in a surprise of -0.54%, whereas the EPS exceeded expectations with a surprise of +24.01% against a consensus estimate of $0.76 [1] Financial Performance Metrics - Net operating expenses were reported at 39.3%, higher than the average estimate of 38.4% from five analysts [4] - Net loss and settlement expenses totaled 43.3%, which was lower than the average estimate of 49.8% [4] - Underwriting income (loss) was reported at 82.6%, compared to the average estimate of 87.6% [4] - Net premiums earned reached $406.4 million, slightly above the average estimate of $406.2 million, marking a 2.3% increase year-over-year [4] - Net investment income was $42.33 million, below the average estimate of $42.97 million, but represented a 9.2% increase compared to the previous year [4] Segment Performance - Net premiums earned in the Property segment were $122.51 million, slightly above the average estimate of $120.27 million, but showed a decline of 9% year-over-year [4] - Net premiums earned in the Surety segment were $37.11 million, marginally below the average estimate of $37.19 million, with a year-over-year increase of 1% [4] - Net premiums earned in the Casualty segment were reported at $246.79 million, exceeding the average estimate of $246.65 million, reflecting a year-over-year increase of 9.3% [4] Stock Performance - RLI Corp.'s shares have returned -8.2% over the past month, contrasting with the Zacks S&P 500 composite's -0.4% change, indicating potential underperformance in the near term [3]