(Note: All dollar amounts in this news release are expressed in U.S. dollars except as otherwise noted. The financial results are derived from unaudited interim consolidated financial statements for the three and nine months ended September 30, 2025 prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") applicable to the preparation of interim financial statements, including International Accounting Stan ...

Financial Performance Highlights - Net earnings for the third quarter of 2025 were $215 million, compared to $181 million for the same period in 2024[3, 5] - Core net operating earnings for the third quarter of 2025 were $224 million, versus $194 million in 2024[3, 5] - Property and Casualty net written premiums for the third quarter of 2025 reached $2,252 million, slightly lower than the $2,353 million in 2024[3, 8] - Diluted earnings per share were $2.58 for the third quarter of 2025, compared to $2.16 in 2024[3, 6] - Book value per share, excluding AOCI, was $57.59 as of September 30, 2025, a slight decrease from $57.71 on September 30, 2024[3, 12] Property and Casualty Insurance Segment - Underwriting profit for Property and Casualty Insurance in Q3 2025 was $138 million, compared to $115 million in Q3 2024[5, 7] - Net investment income for Property and Casualty Insurance was $205 million in Q3 2025, equal to Q3 2024[5, 17] - The combined ratio for Specialty Property and Casualty was 930% for the third quarter of 2025, compared to 943% for the same period in 2024[3, 7, 8] Investment Portfolio - Total cash and investments amounted to $16,761 million as of September 30, 2025, compared to $15,741 million as of September 30, 2024[3, 16] - Fixed maturities constituted 64% of the total investment portfolio, with a fair value of $10,598 million as of September 30, 2025[20] - Average yield on the overall investment portfolio, net, was 497% for the three months ended September 30, 2025[17]

Financial Data and Key Metrics Changes - The accident year combined ratio improved to 90.4%, resulting in an underwriting profit of $10.2 million, compared to 93.5% last year [7] - Net income for Q3 2025 was $12.5 million, consistent with last year's results, while underlying operating income increased by 19% [8][13] - Book value per share rose from $48.35 to $48.88, with a return to shareholders of 1.8% for the quarter [13] Business Line Data and Key Metrics Changes - Gross written premiums increased by 9% to $108.4 million, with a 13% growth excluding terminated products [15] - The wholesale commercial business grew by 10% to $67.9 million, driven by a 4% average rate increase [15] - Assumed reinsurance gross premiums grew 58% to $15.6 million due to new treaties added [17] Market Data and Key Metrics Changes - The investment income for Q3 2025 was $17.9 million, a 9% increase from the previous year [13] - The total investment return was $14.5 million for Q3 2025, with an annualized return of 4% [17] Company Strategy and Development Direction - The company is focusing on achieving substantial scale in its agency and insurance services segment through organic growth, new product launches, and strategic acquisitions [11] - A new legal and organizational structure was launched, and the company plans to have all existing products on a new system architecture by 2026 [10][11] - The company has rebranded its group to Catalyx and acquired IATA, an AI-enabled digital distribution marketplace [11] Management's Comments on Operating Environment and Future Outlook - Management noted that while the market remains favorable, competition is increasing, particularly as new products are introduced [10][26] - The outlook for 2025 is positive, with expectations of at least double-digit premium growth [18][30] - Corporate expenses are expected to remain higher due to investments in new business opportunities [14] Other Important Information - The board has decided to move the stock listing to NASDAQ, which is seen as more appropriate for the company's new chapter [12] - Discretionary capital was reported at $273 million, up from $260 million [31] Q&A Session Summary Question: Explanation of investment losses - The $4 million loss was a fair value decline on equities, not realized through sale, and is considered short-term [21] Question: Restructuring of investment portfolio - The company has deployed $200 million into corporates and mortgage-backed securities, with only 4% of the portfolio currently in short-term investments [23] Question: Increase in competition - Competition is increasing in small commercial and collectibles sectors, but the company is still achieving expected pricing levels [26] Question: Future premium growth expectations - Management remains optimistic about achieving at least double-digit premium growth [30] Question: Discretionary capital update - Discretionary capital is currently $273 million, an increase from the previous figure [31] Question: Thoughts on implementing a buyback program - The board has decided to focus on growth opportunities rather than stock buybacks in the short term [33]

Financial Data and Key Metrics Changes - Net income for Q3 2025 was $1.1 billion, including $675 million after-tax from the increase in fair value of equity securities [5] - Non-GAAP operating income for Q3 2025 was $449 million, more than doubling from the previous year [5] - The property casualty combined ratio improved to 88.2%, a 9.2 percentage point improvement year-over-year [5][6] - The accident year 2025 combined ratio before catastrophe losses improved by 2.1 percentage points compared to accident year 2024 [6] Business Line Data and Key Metrics Changes - Consolidated property casualty net written premiums grew by 9% in Q3 2025 [7] - Commercial lines net written premiums increased by 5% with a combined ratio of 91.1%, improving by 1.9 percentage points [8] - Personal lines net written premiums grew by 14%, with a combined ratio of 88.2%, improving by 22.1 percentage points [8] - Excess and surplus lines saw an 11% increase in net written premiums with a combined ratio of 89.8%, improving by 5.5 percentage points [8] Market Data and Key Metrics Changes - Cincinnati RE's net written premiums decreased by 2% due to changing conditions in the property market, with a combined ratio of 80.8% [9] - Cincinnati Global's combined ratio was 61.2%, with premium growth of 6% [9] - Life insurance subsidiary reported a 40% net income growth, with term life insurance earned premiums growing by 5% [9] Company Strategy and Development Direction - The company remains confident in its long-term strategy and has seen strong investment income growth due to portfolio rebalancing [5] - The insurer's financial strength ratings were upgraded to AA- by Fitch Ratings, reflecting a decade of profitability and growth [16] - The company aims to continue building strong relationships with agents and policyholders while adapting to evolving market needs [16] Management's Comments on Operating Environment and Future Outlook - Management noted that while growth has slowed, the company is still performing well and remains profitable in commercial auto [20][21] - The company is focused on maintaining a rational and stable competitive environment despite pressures from legal system abuse and social inflation [59] - Management expressed confidence in the underwriting and pricing strategies, emphasizing a long-term view on profitability [60] Other Important Information - The company paid $134 million in dividends during Q3 2025 and repurchased approximately 404,000 shares [14] - The book value reached a record high of $98.76 per share, with $15.4 billion of GAAP consolidated shareholders' equity [15] Q&A Session Summary Question: Insights on commercial auto performance and prior year development - Management discussed favorable development across all lines, with commercial auto showing profitability despite some prior year development concerns [20][21][24] Question: General liability performance in light of industry issues - Management acknowledged pressures from legal system abuse but maintained confidence in their consistent underwriting processes [31][32] Question: New business trends and competitive pricing - Management reported strong new business numbers across all segments, emphasizing a focus on pricing and underwriting strategies [38][42] Question: Catastrophe reinsurance strategy for 2026 - Management confirmed a consistent approach to purchasing property CAT cover for balance sheet protection, with no changes anticipated [77][78]

Financial Data and Key Metrics Changes - Net income for Q3 2025 was $1.1 billion, including $675 million after-tax from the increase in fair value of equity securities still held [5] - Non-GAAP operating income for Q3 2025 was $449 million, more than double compared to the same quarter last year [5] - The property casualty combined ratio improved to 88.2%, a 9.2 percentage point improvement year-over-year, with catastrophe losses decreasing by 9.3 points [5][6] - The accident year 2025 combined ratio before catastrophe losses improved by 2.1 percentage points compared to accident year 2024 [6] Business Line Data and Key Metrics Changes - Consolidated property casualty net written premiums grew by 9% for the quarter [7] - Commercial lines net written premiums increased by 5% with a combined ratio of 91.1%, improving by 1.9 percentage points [8] - Personal lines net written premiums grew by 14%, with a combined ratio of 88.2%, improving by 22.1 percentage points [8] - Excess and surplus lines saw a net written premium growth of 11% and a combined ratio of 89.8%, improving by 5.5 percentage points [8] - Cincinnati RE's net written premiums decreased by 2%, with a combined ratio of 80.8% [9] - Cincinnati Global's combined ratio was 61.2%, with premium growth of 6% [9] - Life insurance subsidiary reported a 40% net income growth, with term life insurance earned premiums growing by 5% [9] Market Data and Key Metrics Changes - Average renewal price increases for most lines of business were lower than Q2 2025 but remained healthy, with commercial lines averaging mid-single-digit increases and E&S lines in the high single-digit range [7] - Personal lines included homeowner in the low double-digit range and personal auto in the high single-digit range [7] Company Strategy and Development Direction - The company remains confident in the long-term direction and strategy of its insurance business, focusing on pricing and risk segmentation [5][16] - The company aims to continue building strong relationships with independent insurance agents and enhancing underwriting decisions [5][16] - The insurer financial strength ratings were upgraded to AA- by Fitch Ratings, reflecting a decade of profitability and growth [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operating performance and long-term strategy, highlighting strong investment income growth and effective risk management [5][16] - The company is focused on maintaining a stable and consistent market presence, particularly in California, while adapting to updated risk models following significant fire losses [43][44] Other Important Information - The company paid $134 million in dividends during Q3 2025 and repurchased approximately 404,000 shares at an average price of $149.75 [14] - The quarter-end book value reached a record high of $98.76 per share, with $15.4 billion of GAAP consolidated shareholders' equity [15] Q&A Session Summary Question: Insights on commercial auto performance and prior year development - Management noted favorable development across all lines, with commercial auto showing profitability despite some prior year development concerns [20][21] Question: Concerns regarding large claims in commercial lines - Management indicated that while large losses increased, there was no unexpected concentration of large losses, and the overall trend remains manageable [25][26] Question: General liability performance compared to commercial auto - Management reiterated confidence in casualty lines, citing a consistent process and favorable development across accident years [31][32] Question: Changes in credit quality of the investment portfolio - Management confirmed a focus on high-quality bonds, maintaining a conservative approach to credit quality [34] Question: New business trends and competitive pricing environment - Management expressed optimism about new business growth across segments, emphasizing a disciplined approach to pricing and underwriting [38][39] Question: Catastrophe reinsurance strategy for 2026 - Management stated that the strategy for purchasing property CAT cover will remain consistent, focusing on balance sheet protection [77][78]

Financial Performance Highlights - Net earnings for the three months ended June 30, 2025 were $174 million, while core net operating earnings were $179 million[3] - Diluted earnings per share for the three months ended June 30, 2025 were $207, and core net operating earnings per share were $214[3] - Property and Casualty net written premiums for the three months ended June 30, 2025 were $1803 million[3] - The annualized return on equity was 150%, and the annualized core operating return on equity was 155% for the three months ended June 30, 2025[3] Property and Casualty Insurance Segment - Underwriting profit for Property and Casualty Insurance was $113 million for the three months ended June 30, 2025[5] - Net investment income for Property and Casualty Insurance was $179 million for the three months ended June 30, 2025[5] - The combined ratio for Specialty Property and Casualty was 931% for the three months ended June 30, 2025[3] Balance Sheet and Capitalization - Total assets as of June 30, 2025 were $30669 million[3] - Shareholders' equity, excluding AOCI, was $4648 million as of June 30, 2025[3] - The book value per share, excluding AOCI, was $5574 as of June 30, 2025[3] - Total principal amount of long-term debt was $1498 million as of June 30, 2025[14] Investment Portfolio - Total cash and investments were $16049 million as of June 30, 2025, with fixed maturities representing 66% of the investment portfolio[16, 20] - Average yield on the overall portfolio, net, was 450% for the three months ended June 30, 2025[17]

Financial Data and Key Metrics Changes - The underlying return on equity for Q2 2025 was 17%, exceeding the target range of 12% to 15% [5] - The core combined ratio improved by 3.8 points year-over-year to 89.5%, marking the eleventh consecutive quarter of underwriting profit [6][9] - Gross written premiums increased by 10% in Q2 and 14% in the first half of the year, with net premium growth of 8% in Q2 [6][20] - Book value per diluted share increased by 4% in Q2 and 10% year-to-date [13] Business Line Data and Key Metrics Changes - The insurance and services segment saw net premium growth of 15% in Q2, driven by strong performance in accident and health, property, and other specialty lines [6][24] - The combined ratio for the insurance and services segment improved to 89.3%, a 6.7 point improvement from the prior year [24] - The reinsurance segment experienced a 5% increase in gross premiums written, but net premiums written decreased by 1% in Q2 [32] Market Data and Key Metrics Changes - The accident and health business provided stable underwriting profit, with premiums up 14% in the first half of the year [26] - Casualty premiums decreased by 10% in the first half of the year as the company allocated capital to more attractive opportunities [27] - The pricing environment in aviation reinsurance remains stable, with major airline renewals seeing 5% to 10% increases [29] Company Strategy and Development Direction - The company aims to grow its insurance business more than its reinsurance business, focusing on selective capital allocation [7] - The strategy includes deepening long-term relationships with MGAs and rejecting over 80% of opportunities presented [8] - The company is committed to maintaining a lower volatility approach to its portfolio while seeking profitable growth [55] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance despite challenges in the aviation and casualty markets [5][6] - The company anticipates continued strong performance in the second half of 2025, supported by disciplined underwriting and targeted growth [14] - Management highlighted the importance of employee engagement and culture in driving business success [11] Other Important Information - The company won the program insurer of the year award at the program manager awards in New York [8] - The net promoter score increased by 16 points year-over-year, indicating improved employee engagement [11] - The company maintains a strong capital position with a BSCR ratio of 223% [10][41] Q&A Session Summary Question: Impact of new programs on top line growth - Management indicated that the impact of new programs is assessed on a case-by-case basis, with a focus on net premiums as relationships mature [47][49] Question: Growth in the insurance segment despite external market conditions - Management confirmed that accident and health is a key growth area, providing stability and allowing for risk-taking in other segments [52][54] Question: Differences between MGAs in London and the US - Management noted that the London market has seen a strategic investment to leverage expertise and grow business, contrasting with previous declines [61][63] Question: Net investment income guidance - Management stated that the guidance remains conservative, considering potential interest rate cuts in the latter half of the year [68][70] Question: Reserve development in accident and health - Management explained that the A&H business has a shorter tail, allowing for more immediate recognition of reserve development compared to casualty lines [74][76]

Financial Data and Key Metrics Changes - The company achieved net income of $58 million and a return on equity of 12.9%, with year-over-year increases in core gross and net premiums written [19][20] - The combined ratio for the core business was 95.4%, impacted by $59 million in losses from California wildfires, which was below the previous estimate [8][20] - The company reported a 12% year-over-year growth in gross written premiums and a 20% increase in net written premiums [10][19] Business Line Data and Key Metrics Changes - The Insurance and Services segment saw gross written premiums increase by $111 million or 21%, driven by growth in accident and health, property, and other specialty lines [27] - The Reinsurance segment experienced a slight decrease in gross premiums written by $2 million, with casualty premiums decreasing in double digits [35] - The accident and health business provided stable underwriting profit, with premiums up 19% in the first quarter [28] Market Data and Key Metrics Changes - The company noted double-digit rate hardening in U.S. Medical while U.S. Non-medical pricing remained largely flat [29] - Casualty rates remained elevated due to current loss trends, with positive rate changes exceeding loss costs [30] - The pricing environment within accident and health continues to meet the company's risk and return profile, with growth opportunities identified [30] Company Strategy and Development Direction - The company aims to become a high-performing specialty underwriter, focusing on stable and consistent returns for shareholders [17] - A deliberate strategy to retain a greater proportion of profitable underwriting books is in place, with a focus on underwriting margin [11] - The company is investing in data capabilities in the MGA space to enhance its competitive edge [12] Management's Comments on Operating Environment and Future Outlook - Management highlighted the increased uncertainty due to tariff changes but remains proactive in monitoring impacts and adjusting strategies as needed [15][16] - Inflation is a primary focus, with readiness to react quickly if necessary [15] - The company expects continued strong premium growth and aims for double-digit net premium growth for fiscal year 2025 [21] Other Important Information - The company completed a $753 million shareholder repurchase agreement and participated in a secondary offering, both of which were accretive for shareholders [7] - The company received positive outlook revisions from Fitch and AM Best, affirming its ratings [14][49] - The investment portfolio remains strong, with net investment income of $71 million for the quarter [43] Q&A Session Summary Question: What is the outlook for premium growth in 2025? - The company expects double-digit net premium growth for fiscal year 2025, driven by strong performance across various lines of business [21] Question: How is the company managing the impact of inflation? - Management stated that inflation remains a top focus, and the company is prepared to react quickly to any changes in the operating environment [15] Question: What are the expectations for the underwriting margin? - The company aims to maintain a strong underwriting margin, with a focus on retaining profitable books and disciplined underwriting practices [11]

Financial Data and Key Metrics Changes - The company achieved a net income of $58 million and a return on equity of 12.9% for Q1 2025, marking a year-over-year increase in core gross and net premiums written [19][20] - The combined ratio for the core business was reported at 95.4%, impacted by $59 million in losses from California wildfires, which was below the previous estimate of $60 million to $70 million [8][20] - The company reported a 12% year-over-year growth in gross written premiums and a 20% increase in net written premiums [9][10] Business Line Data and Key Metrics Changes - The accident and health segment saw a 19% increase in premiums, contributing significantly to overall growth, while casualty premiums decreased slightly as the company prioritized underwriting discipline [26][29] - The insurance and services segment achieved a combined ratio of 94%, reflecting a 4.4 point improvement from the prior year [27] - The reinsurance segment experienced a decrease in gross premiums written by $2 million, with casualty premiums decreasing in double digits [34] Market Data and Key Metrics Changes - The company noted double-digit rate hardening in U.S. Medical, while U.S. Non-medical pricing remained largely flat [28] - The pricing environment within accident and health continues to meet the company's risk and return profile, with growth opportunities identified [29] - The reinsurance segment's combined ratio was 97.1%, remaining profitable despite catastrophe losses [35] Company Strategy and Development Direction - The company aims to become a high-performing specialty underwriter, focusing on stable and consistent returns for shareholders [17] - A deliberate strategy to retain a greater proportion of profitable underwriting books is in place, with an emphasis on underwriting margin [11] - The company is investing in data capabilities within the MGA space to enhance its competitive edge [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased global uncertainty due to tariff changes but emphasized proactive monitoring and readiness to adjust pricing and risk appetite [15][16] - Inflation remains a primary focus, with the company prepared to react quickly if necessary [15] - The company expressed confidence in maintaining double-digit net premium growth for fiscal year 2025 [21] Other Important Information - The company completed a $753 million shareholder repurchase agreement and participated in a secondary offering, both of which were accretive for shareholders [6][7] - The company received positive outlook revisions from Fitch and AM Best, affirming its ratings [14][46] - The investment portfolio remains strong, with net investment income of $71 million for the quarter [42] Q&A Session Summary Question: What is the outlook for premium growth in 2025? - The company expects to maintain double-digit net premium growth for fiscal year 2025, driven by strong performance across various lines of business [21] Question: How is the company addressing the impact of inflation? - Management stated that inflation is a primary focus and the company is prepared to react quickly to any changes in the environment [15] Question: What are the expectations for the underwriting margin? - The company emphasized that underwriting margin remains the number one priority, with a disciplined approach yielding positive results [11]

Financial Data and Key Metrics Changes - RLI achieved a 12% growth in net written premium and a 22% growth in underwriting profits for the year, marking the 29th consecutive year of underwriting profit [6][19] - Operating earnings for Q4 were reported at $0.41 per share, with net earnings per share on a GAAP basis at $0.44 for the quarter and $3.74 for the year, a 13% increase from the previous year [8][10] - The combined ratio for Q4 was 94.4%, while the full year combined ratio was 86.2%, slightly improved from 86.6% in 2023 [9][10] Business Line Data and Key Metrics Changes - The casualty segment saw an 18% increase in premiums for Q4, with a 10% rate change driven by auto coverages [11][20] - The surety segment was flat in Q4 but up 9% year-to-date, maintaining a combined ratio in the low 80s [14][26] - The property segment experienced a 3% decline in gross premiums in Q4, primarily due to E&S Property, while marine and Hawaii homeowners grew significantly [15][32] Market Data and Key Metrics Changes - The company noted ongoing challenges in the motor vehicle exposures market, requiring measurable ongoing rate increases to address loss cost inflation [7] - The competitive landscape in the property segment has intensified, with rates softening, particularly in the wind business [15][28] - Submissions in the global business increased by 13% in Q4, marking three consecutive years of double-digit submission growth [29] Company Strategy and Development Direction - RLI remains focused on opportunities where it can differentiate itself and where the market allows for adequate returns, particularly in the casualty and transportation segments [6][7] - The company is committed to maintaining underwriting discipline and is willing to walk away from underpriced accounts [7][13] - RLI's capital management strategy includes returning nearly $1.5 billion to shareholders over the last decade, with a special dividend of $2 per share announced [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current operating environment, emphasizing proactive measures in response to loss severity trends [11][22] - The management team highlighted the importance of maintaining a strong feedback loop between underwriting and claims to ensure profitable growth [23][90] - Future growth opportunities are anticipated in the casualty segment, particularly in liability coverages and auto-related products [89] Other Important Information - The company recorded a total return of negative 1.1% for the quarter, impacted by bond price declines, but investment in Prime remains positive on an inception-to-date basis [18] - RLI's investment in Prime resulted in a loss of $12.5 million for the quarter due to reserve strengthening on prior accident years [18][49] Q&A Session Summary Question: Can you provide a relative split between the casualty reserves for the current accident year addition? - The split was approximately half for personal umbrella and half for transportation [40] Question: What severity trends are being observed in transportation and personal umbrella? - The overall loss trend for auto-related exposures is assumed to be in the 10 to 11 points range [41] Question: What is the long-term outlook for the investment in Prime? - The company currently owns about 25% of Prime and views it as a positive investment, with dividends received exceeding the original investment [48][49] Question: How does the company approach growth in the casualty segment given the severity trends? - The company trusts its product leaders to identify opportunities and supports them with data from claims and actuarial teams [88] Question: What is the competitive environment expected to be like for the surety business in 2025? - The surety business is highly competitive, but the company has a strong track record and is focused on building relationships with producers [106]