A month has gone by since the last earnings report for RLI Corp. (RLI) . Shares have added about 6.2% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is RLI Corp. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.RLI's Q4 Earnings Beat ...

Core Insights - BMO Capital's Michael Zaremski raised his price target for Chubb Limited to $326 from $286, maintaining a Market Perform rating, indicating potential for incremental EPS upside despite expectations of margin expansion leveling off [1] Financial Performance - Chubb reported core operating income of nearly $3 billion, or $7.52 per share, reflecting gains of approximately 22% and 25% year-over-year [3] - The company achieved a combined ratio of 81.2%, the lowest in its history, showcasing disciplined underwriting and solid profitability [3] - For the full year, Chubb generated operating income of just under $10 billion, or $24.79 per share, representing increases of about 9% and 11% respectively [4] Growth Metrics - Property and casualty premiums increased by more than 7.5% in the fourth quarter, with consumer lines growing close to 12% and commercial lines advancing more than 6% [5] - International P&C operations saw nearly 11% growth, while the U.S. agriculture business surged over 45%, marking it as a significant contributor to overall performance [5] Investment Portfolio - Chubb's invested assets rose to $169 billion from $151 billion a year earlier, enhancing the company's earnings power through investment income [4]

Summary of HK Exchanges & Clearing 4Q25 Preview Company Overview - **Company**: HK Exchanges & Clearing (0388.HK) - **Industry**: Financials, specifically focused on stock exchange operations in Hong Kong Key Points Revenue and Profit Outlook - Revenue and profit are expected to moderate in 4Q25 after a record high in 3Q25, with a projected revenue increase of 4% year-over-year (yoy) and a profit decline of 2% yoy due to sticky costs and a higher tax rate [1][9][12] - Trading and clearing fees are anticipated to increase approximately 12% yoy in 4Q25, while listing fees are expected to rise by 15% yoy, supported by new listings of Derivative Warrants (DW) and Callable Bull/Bear Contracts (CBBC) [3][9] Average Daily Turnover (ADT) Trends - The headline ADT for 4Q25 was HK$230 billion, reflecting a 23% increase yoy but a 20% decrease quarter-over-quarter (qoq) [3][15] - Cash Average Daily Volume (ADV) fell 20% qoq to HK$186 billion in December 2025, attributed to seasonal slowdown, but increased 23% yoy [3][9] - Southbound ADV dropped 29% qoq but rose 25% yoy, indicating its importance as a future growth driver [3][9] Derivatives Market Performance - Futures ADV declined 16% yoy and 1% qoq, while options ADV rose 8% yoy but fell 3% qoq [3][9] - Commodities ADV remained strong, increasing 23% yoy and 20% qoq [3] Net Investment Income - Net investment income is projected to decline to HK$800 million in 4Q25, down 33% yoy and 21% qoq, due to a smaller margin fund size and lower six-month HIBOR rates [4][9] Market Conditions and Future Outlook - Year-to-date (YTD) momentum remains strong, with YTD ADV rebounding to HK$274 billion as of February 11, 2026 [5] - The outlook for 2H26 appears supportive, with expectations of clearer signs of moderating Producer Price Index (PPI) pressure, which could enhance market sentiment and trading volume [5] Financial Metrics - Current market capitalization is HK$528.648 billion, with a price target of HK$508.00, indicating a potential upside of 22% from the current price of HK$418.00 [7] - Earnings per share (EPS) estimates for 2026 are projected at HK$13.54, with a price-to-earnings (P/E) ratio of 30.9 [7] Risks and Considerations - Potential risks include geopolitical uncertainties, regulatory changes affecting ADV, and the performance of the IPO pipeline [30] - Upside risks involve a sharp increase in market fundraising activity and improved liquidity conditions [30] Conclusion - HK Exchanges & Clearing is navigating a mixed performance landscape with a supportive outlook for 2026, driven by strong trading activity and new listings, despite challenges in net investment income and market volatility.

Core Insights - United Fire Group (UFG) reported a record-setting performance in 2025, highlighting significant improvements in underwriting profitability, investment income, and premium growth following a multi-year operational transformation [5][8]. Financial Performance - For the full year, net written premium increased by 9% to over $1.3 billion, driven by record new business production and strong retention in core commercial lines [2][8]. - Underwriting profit surged to $67 million in 2025 from $9 million in 2024, marking the best annual underwriting profit in over a decade [3][8]. - Return on equity reached 13.7%, the highest in nearly two decades [1][8]. - Net investment income rose by nearly 20% year over year, contributing to improved overall financial performance [3][8]. Operational Improvements - The company emphasized deeper underwriting expertise, enhanced actuarial insights, and improved alignment with distribution partners as key factors in its operational transformation [4][5]. - UFG achieved record new business of $247 million in 2025, nearly double the level produced at the start of its transformation [10]. Underwriting and Loss Ratios - The annual combined ratio improved to 94.8%, with management citing enhancements in the underlying loss ratio and expense ratio [2][8]. - The underlying loss ratio was reported at 55.4% for the fourth quarter and 56.3% for the full year, reflecting a year-over-year improvement of 1.6 points [19]. Catastrophe Losses and Reinsurance - Catastrophe losses were favorable, with a full-year catastrophe loss ratio of 3.2%, outperforming expectations [13][15]. - UFG's reinsurance renewals on January 1 resulted in lower ceded margins and expanded coverage, with exposure-adjusted rate decreases across major programs [15]. Dividend and Capital Management - The board approved a 25% increase in the quarterly cash dividend to $0.20 per share, reflecting the company's strengthened profitability and capital position [7][9]. - UFG maintains authorization to repurchase up to 1 million shares, focusing on funding profitable growth and returning excess capital to shareholders [9].

Financial Data and Key Metrics Changes - Underwriting profit increased from $9 million in 2024 to $67 million in 2025, marking a significant improvement [6] - Net investment income grew by nearly 20%, contributing to the overall financial performance [6] - Full-year operating earnings per share improved by 80%, reaching $4.60, while book value per share increased by more than $6 [6][10] - Full-year net written premium rose by 9% to over $1.3 billion, driven by record new business production and strong retention [7] - The annual combined ratio improved to 94.8%, reflecting ongoing enhancements in the underlying loss ratio and expense ratio [7] Business Line Data and Key Metrics Changes - Growth in net written premium was strongest in the core commercial business, which includes small business, middle market, and construction [12] - Specialty E&S net written premium experienced double-digit growth in both the fourth quarter and full year [15] - The surety business also delivered double-digit net written premium growth for the quarter and full year [15] Market Data and Key Metrics Changes - Rate increases moderated to 4.8% for the quarter, indicating a more competitive environment, particularly in property lines [13] - Casualty lines experienced modest impacts, with umbrella lines returning to double-digit increases [13] Company Strategy and Development Direction - The company has focused on deepening underwriting expertise and enhancing actuarial insights to attract a broader customer base [5] - Strategic investments in technology are aimed at improving operational efficiency and expanding underwriting capabilities [8] - The company is positioned to deliver continued profitable growth as a disciplined, solution-oriented underwriting company [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of improved profitability and the ability to navigate competitive market dynamics [26] - The company anticipates continued attractive business opportunities despite increased competition [35] - Management highlighted the importance of disciplined underwriting and maintaining a conservative reserve posture to protect the balance sheet [17] Other Important Information - The board of directors declared a 25% increase in the quarterly cash dividend from $0.16 to $0.20 per share [11] - The company reported a strong capital position, allowing for flexibility in capital management and shareholder returns [22] Q&A Session Summary Question: Current pricing expectations in a competitive market - Management noted that while the market is more competitive, they are still achieving positive rates and will maintain disciplined risk selection to navigate the environment [26] Question: Long-term target for underwriting expense ratio - The target run rate for the expense ratio is around 35%, with expectations for gradual reduction over time as growth continues [30][31] Question: Margin compression in the assumed insurance business - Management acknowledged increased competition affecting rates and terms but emphasized their commitment to disciplined underwriting and long-term relationships [34] Question: Profitability dynamics in the other liability line - Management indicated pressure on profitability in the umbrella line due to large losses but is taking a conservative approach to pricing and reserves [36][39]

Core Insights - The article emphasizes the importance of a hybrid investment strategy that combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The company advocates for a balanced approach to investing, suggesting that a solid base of dividend growth stocks can be effectively supplemented with other asset types to maximize income potential [1]. - The strategy aims to achieve a total return that aligns with the performance of the S&P index, indicating a focus on both growth and income [1].

Core Insights - The current earnings season is leading to high volatility in market indices, raising concerns about potential downturns due to stretched valuations of large-cap stocks [1] Group 1: Market Conditions - High levels of volatility are observed in market indices during the earnings season [1] - Concerns are growing regarding the possibility of a major downturn in the market [1] Group 2: Investment Strategy - The company emphasizes the importance of a solid base of classic dividend growth stocks, complemented by Business Development Companies, REITs, and Closed End Funds to enhance investment income [1] - A hybrid investment strategy that balances growth and income can yield total returns comparable to traditional index funds like the S&P [1]

Core Insights - The Allstate Corporation is positioned for sustained growth through disciplined pricing, premium expansion, an expanding Protection Services business, and improving investment income [1] - Strong cash generation enhances financial flexibility, although elevated leverage and catastrophe exposure are concerns for the stock [1] Premium Expansion - Allstate has achieved consistent premium growth across its diversified insurance portfolio, with net premiums earned increasing by 10.4% in 2023, 11.3% in 2024, and 7.6% in the first nine months of 2025 [2] - The company employs targeted rate hikes, portfolio optimization, and disciplined underwriting to counter rising claims costs while maintaining customer retention [2] Investment Income - Net investment income has increased significantly, rising by 3.1% in 2023, 24.8% in 2024, and 13% in the first nine months of 2025, benefiting from higher yields and portfolio growth [3] - This improvement provides a buffer during periods of underwriting volatility [3] Protection Services Growth - The Protection Services platform has expanded through strategic acquisitions and new offerings, with segment revenues growing by 11.5% in 2023, 16.2% in 2024, and 12% in the first nine months of 2025 [4] - This segment adds diversification and recurring revenue potential as consumers seek broader protection solutions [4] Cash Flow Strength - Operating cash flow more than doubled to $8.9 billion in 2024 and totaled $7.1 billion in the first nine months of 2025 [5] - Over the past five years, Allstate has returned $11.5 billion to shareholders through dividends and buybacks, with $695 million remaining under its share repurchase authorization as of September 30, 2025 [5] Earnings Surprise History - Allstate has a solid earnings surprise record, outperforming the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 47.3% [6] Risks - As of September 30, 2025, Allstate's debt stood at $8.1 billion, with a total debt-to-total capital ratio of 22.7%, exceeding the industry average of 15.6% [7] - Catastrophe losses reached $5 billion in 2024 and increased by 4.3% year over year in the first nine months of 2025, impacting underwriting results despite reinsurance protection [8]

Core Insights - Investors are seeking supplemental income sources due to rising living costs, inflation, high interest rates, and market uncertainty [1] Investment Strategy - A hybrid investment strategy combining classic dividend growth stocks, Business Development Companies, REITs, and Closed End Funds can effectively boost investment income while achieving total returns comparable to traditional index funds like the S&P [1]

Core Viewpoint - The article emphasizes the importance of a hybrid investment strategy that combines classic dividend growth stocks with other asset classes like Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The company advocates for a diversified investment approach that includes high-quality dividend stocks, which can provide significant long-term growth and income potential [1]. - By integrating various asset types, the company aims to create a balanced portfolio that maximizes income while maintaining a total return aligned with the S&P 500 index [1].