RLI Reports Second Quarter 2026 Results

RLI Reports Second Quarter 2026 Results July 22, 2026 RLI Corp. (NYSE: RLI) reported second quarter 2026 net earnings of $168.0 million ($1.82 per share), compared to $124.3 million ($1.34 per share) for the second quarter of 2025. Operating earnings(1) for the second quarter of 2026 were $76.9 million ($0.83 per share), compared to $76.2 million ($0.82 per share) for the same period in 2025. Second Quarter Year to Date Earnings Per Diluted Share 2026 2025 2026 2025 Net earnings $ 1.82 $ 1.34 $ 2.42 $ 2.03 Operating earnings(1)(2) $ 0.83 $ 0.82 $ 1.67 $ 1.71 (1) See discussion below: Non-GAAP and Performance Measures. (2) Equity in earnings of unconsolidated investees and the related taxes were removed from operating earnings and operating earnings per share beginning in the fourth quarter of 2025, resulting in consistent exclusion of unrealized changes in equity investments from operating results. Prior period amounts have been recast to conform to the current definition. Highlights for the quarter included: Underwriting income (1) of $59.9 million on a combined ratio (1) of 85.6.Net investment income increased 17%, and gross premiums written increased 3%.Favorable development in prior years’ loss reserves resulted in a $35.1 million net increase in underwriting income.Book value per share of $19.09, an increase of 11% (inclusive of dividends and share repurchases) from year-end 2025.Authorized a $250.0 million share repurchase program and repurchased $12.0 million of common stock.Paid a special dividend of $2.00 per share, returning $184.0 million to shareholders. “We are pleased to report another quarter of premium growth and profitability,” said RLI Corp. President & CEO Craig Kliethermes. “Gross premiums written increased 3%, driven by our casualty segment, while strong margins in our property and surety segments contributed to an 86 combined ratio. Net investment income increased 17%, complementing our underwriting results and contributing to an 11% increase in book value per share since year-end 2025, including dividends returned to shareholders. These results reflect our disciplined execution and continued focus on delivering specialized expertise and exceptional service to our customers.” Underwriting Income RLI achieved $59.9 million of underwriting income in the second quarter of 2026 on an 85.6 combined ratio, compared to $62.2 million on an 84.5 combined ratio in 2025. Results for both years include favorable development in prior years’ loss reserves, which resulted in a $35.1 million and $24.4 million net increase to underwriting income in 2026 and 2025, respectively. The following table highlights underwriting income and combined ratios by segment for the second quarter. Underwriting Income(1) Combined Ratio(1) (in millions) 2026 2025 2026 2025 Casualty $ 1.7 $ 8.3 Casualty 99.3 96.5 Property 53.5 49.5 Property 56.8 62.1 Surety 4.7 4.4 Surety 87.2 87.9 Total $ 59.9 $ 62.2 Total 85.6 84.5 (1) See discussion below: Non-GAAP and Performance Measures. Other Income Net investment income for the quarter increased 17% to $46.0 million, compared to the same period in 2025. The investment portfolio’s total return was 3.4% for the quarter and 3.0% for the six months ended June 30, 2026. RLI’s comprehensive earnings were $165.7 million for the quarter ($1.80 per share), compared to $143.0 million ($1.55 per share) for the same quarter in 2025. In addition to net earnings, comprehensive earnings for 2026 included after-tax unrealized losses from the fixed income portfolio, due to rising interest rates. Dividends and Share Repurchase Program On June 12, 2026, the company paid a special cash dividend of $2.00 per share and a regular quarterly dividend of $0.18 per share, a 12.5% increase over the prior quarter. On May 14, 2026, the company’s Board of Directors authorized a share repurchase program of up to $250.0 million of the company’s outstanding common stock. During the second quarter, RLI repurchased 234,973 shares at an average price of $51.25 per share for a total cost of $12.0 million. As of June 30, 2026, $238.0 million of remaining capacity was available under the share repurchase program. Over the past five years, RLI has returned more than $1.3 billion to its shareholders through dividends and share repurchases. Non-GAAP and Performance Measures Management has included certain non-generally accepted accounting principles (non-GAAP) financial measures in presenting the company’s results. Management believes that these non-GAAP measures further explain the company’s results of operations and allow for a more complete understanding of the underlying trends in the company’s business. These measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles (GAAP). In addition, our definitions of these items may not be comparable to the definitions used by other companies. Operating earnings and operating earnings per share (EPS) consist of our GAAP net earnings adjusted by net realized gains/(losses), net unrealized gains/(losses) on equity securities and taxes related thereto. Equity in earnings of unconsolidated investees and the related taxes were excluded from operating earnings and operating EPS beginning in the fourth quarter of 2025. The change was made to present a consistent approach in excluding all unrealized changes in equity investments. Operating earnings and operating EPS for prior periods have been recast to conform to the current definition. Net earnings and net earnings per share are the GAAP financial measures that are most directly comparable to operating earnings and operating EPS. A reconciliation of the operating earnings and operating EPS to the comparable GAAP financial measures is included in the 2026 financial highlights below. Underwriting income or profit represents the pretax profitability of our insurance operations and is derived by subtracting loss and settlement expenses, policy acquisition costs and insurance operating expenses from net premium earned, which are all GAAP financial measures. The combined ratio, which is derived from components of underwriting income, is a performance measure commonly used by property and casualty insurance companies and is calculated as the sum of loss and settlement expenses, policy acquisition costs and insurance operating expenses, divided by net premiums earned, which are all GAAP measures. Other News On July 9, 2026, RLI was named one of the insurance industry’s top-performing companies for the 36th consecutive year by Ward Benchmarking, a business unit of Aon. RLI is the only property & casualty insurance company to be recognized as a Ward’s 50® P&C Top Performer every year since the list’s inception in 1991. At 10 a.m. central daylight time (CDT) on July 23, 2026, RLI management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion at https://events.q4inc.com/attendee/465043342. Except for historical information, this news release may include forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) including, without limitation, statements reflecting our current expectations about the future performance of our company or our business segments or about future market conditions. These statements are subject to certain risk factors that could cause actual results to differ materially. Various risk factors that could affect future results are listed in the company's filings with the Securities and Exchange Commission, including the Form 10-K Annual Report for the year ended December 31, 2025. About RLI RLI Corp. (NYSE: RLI) is a specialty insurer serving niche property, casualty and surety markets. The company provides deep underwriting expertise and superior service to commercial and personal lines customers nationwide. RLI’s products are offered through its insurance subsidiaries – RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company. All of RLI’s insurance subsidiaries are rated A++ (Superior) by AM Best Company. RLI has paid and increased regular dividends for 51 consecutive years and delivered underwriting profits for 30 consecutive years. To learn more about RLI, visit www.rlicorp.com. Supplemental disclosure regarding the earnings impact of specific items: Reserve Development(1) and Catastrophe Losses, Net of Reinsurance Three Months Ended Six Months Ended June 30, June 30, (Dollars in millions, except per share amounts) 2026 2025 2026 2025 Favorable development in casualty prior years' reserves $ 13.7 $ 15.4 $ 28.2 $ 20.5 Favorable development in property prior years' reserves $ 9.0 $ 4.9 $ 29.6 $ 22.5 Favorable development in surety prior years' reserves $ 3.4 $ 2.3 $ 3.8 $ 10.6 Net incurred losses related to: 2026 catastrophe events $ (10.0 ) $ — $ (26.0 ) $ — 2025 and prior catastrophe events $ 13.7 $ (9.0 ) $ 13.7 $ (21.0 ) Operating Earnings Per Share Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Operating Earnings Per Share(2)(3) $ 0.83 $ 0.82 $ 1.67 $ 1.71 Specific items included in operating earnings per share:(1)(4) Net favorable development in casualty prior years' reserves $ 0.09 $ 0.11 $ 0.20 $ 0.14 Net favorable development in property prior years' reserves $ 0.08 $ 0.04 $ 0.24 $ 0.17 Net favorable development in surety prior years' reserves $ 0.02 $ 0.02 $ 0.02 $ 0.08 Net incurred losses related to: 2026 catastrophe events $ (0.07 ) $ — $ (0.19 ) $ — 2025 and prior catastrophe events $ 0.10 $ (0.07 ) $ 0.10 $ (0.15 ) (1) Reserve development reflects changes from previously estimated losses. (2) See discussion above: Non-GAAP and Performance Measures. (3) Equity in earnings of unconsolidated investees and the related taxes were removed from operating earnings and operating earnings per share beginning in the fourth quarter of 2025, resulting in consistent exclusion of unrealized changes in equity investments from operating results. Prior period amounts have been recast to conform to the current definition. (4) Items included in operating earnings per share are after tax and incorporates incentive and profit sharing-related impacts which affected policy acquisition, insurance operating and general corporate expenses. RLI CORP 2026 FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, SUMMARIZED INCOME STATEMENT DATA: 2026 2025 % Change 2026 2025 % Change Net premiums earned $ 417,096 $ 401,904 3.8 % $ 828,482 $ 800,249 3.5 % Net investment income 46,042 39,418 16.8 % 88,363 76,144 16.0 % Net realized gains 9,407 15,004 (37.3 ) % 18,966 29,916 (36.6 ) % Net unrealized gains on equity securities 103,024 43,500 136.8 % 63,628 1,182 NM Consolidated revenue $ 575,569 $ 499,826 15.2 % $ 999,439 $ 907,491 10.1 % Loss and settlement expenses 189,895 184,578 2.9 % 383,139 361,816 5.9 % Policy acquisition costs 134,675 125,502 7.3 % 266,750 249,189 7.0 % Insurance operating expenses 32,617 29,594 10.2 % 60,897 56,468 7.8 % Interest expense on debt 4,441 1,350 NM 6,794 2,685 153.0 % General corporate expenses 6,223 4,754 30.9 % 8,947 7,702 16.2 % Total expenses $ 367,851 $ 345,778 6.4 % $ 726,527 $ 677,860 7.2 % Equity in earnings of unconsolidated investees 2,970 2,467 20.4 % 5,117 5,515 (7.2 ) % Earnings before income taxes $ 210,688 $ 156,515 34.6 % $ 278,029 $ 235,146 18.2 % Income tax expense 42,660 32,179 32.6 % 55,116 47,596 15.8 % Net earnings $ 168,028 $ 124,336 35.1 % $ 222,913 $ 187,550 18.9 % Other comprehensive earnings (loss), net of tax (2,314 ) 18,701 NM (27,680 ) 48,731 NM Comprehensive earnings $ 165,714 $ 143,037 15.9 % $ 195,233 $ 236,281 (17.4 ) % Operating earnings(1): Net earnings $ 168,028 $ 124,336 35.1 % $ 222,913 $ 187,550 18.9 % Less: Net realized gains (9,407 ) (15,004 ) (37.3 ) % (18,966 ) (29,916 ) (36.6 ) % Income tax on realized gains 1,976 3,150 (37.3 ) % 3,983 6,282 (36.6 ) % Net unrealized gains on equity securities (103,024 ) (43,500 ) 136.8 % (63,628 ) (1,182 ) NM Income tax on unrealized gains on equity securities 21,634 9,136 136.8 % 13,361 248 NM Equity in earnings of unconsolidated investees (2,970 ) (2,467 ) 20.4 % (5,117 ) (5,515 ) (7.2 ) % Income tax on equity in earnings of unconsolidated investees 624 517 20.7 % 1,075 1,158 (7.2 ) % Operating earnings(2) $ 76,861 $ 76,168 0.9 % $ 153,621 $ 158,625 (3.2 ) % Return on Equity: Net earnings (trailing four quarters) 24.5 % 19.7 % Comprehensive earnings (trailing four quarters) 25.1 % 23.5 % Per Share Data: Diluted: Weighted average shares outstanding (in 000's) 92,160 92,518 92,257 92,512 Net earnings per share $ 1.82 $ 1.34 35.8 % $ 2.42 $ 2.03 19.2 % Less: Net realized gains (0.10 ) (0.16 ) (37.5 ) % (0.21 ) (0.32 ) (34.4 ) % Income tax on realized gains 0.02 0.03 (33.3 ) % 0.05 0.06 (16.7 ) % Net unrealized gains on equity securities (1.12 ) (0.47 ) 138.3 % (0.69 ) (0.01 ) NM Income tax on unrealized gains on equity securities 0.24 0.10 140.0 % 0.14 — NM Equity in earnings of unconsolidated investees (0.03 ) (0.03 ) — % (0.06 ) (0.06 ) — % Income tax on equity in earnings of unconsolidated investees — 0.01 (100.0 ) % 0.02 0.01 100.0 % Operating earnings per share(1)(2) $ 0.83 $ 0.82 1.2 % $ 1.67 $ 1.71 (2.3 ) % Comprehensive earnings per share $ 1.80 $ 1.55 16.1 % $ 2.12 $ 2.55 (16.9 ) % Cash dividends per share - ordinary $ 0.18 $ 0.16 12.5 % $ 0.34 $ 0.31 9.7 % Cash dividends per share - special $ 2.00 $ — NM $ 2.00 $ — NM Net cash flow provided by operations $ 145,220 $ 174,719 (16.9 ) % $ 188,049 $ 278,233 (32.4 ) % (1) See discussion above: Non-GAAP and Performance Measures. (2) Equity in earnings of unconsolidated investees and the related taxes were removed from operating earnings and operating earnings per share beginning in the fourth quarter of 2025, resulting in consistent exclusion of unrealized changes in equity investments from operating results. Prior period amounts have been recast to conform to the current definition. NM = Not Meaningful RLI CORP 2026 FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands, except per share amounts) June 30, December 31, 2026 2025 % Change SUMMARIZED BALANCE SHEET DATA: Fixed income, at fair value $ 3,617,942 $ 3,533,336 2.4 % (amortized cost - $3,760,876 at 6/30/26) (amortized cost - $3,642,362 at 12/31/25) Equity securities, at fair value 959,377 898,876 6.7 % (cost - $530,730 at 6/30/26) (cost - $534,311 at 12/31/25) Short-term investments 206,119 120,562 NM Other invested assets 58,661 59,281 (1.0 ) % Cash and cash equivalents 32,101 51,565 (37.7 ) % Total investments and cash $ 4,874,200 $ 4,663,620 4.5 % Accrued investment income 32,117 30,026 7.0 % Premiums and reinsurance balances receivable 267,018 212,226 25.8 % Ceded unearned premiums 122,327 124,669 (1.9 ) % Reinsurance balances recoverable on unpaid losses 718,487 746,798 (3.8 ) % Deferred policy acquisition costs 188,857 172,648 9.4 % Property and equipment 40,712 40,733 (0.1 ) % Investment in unconsolidated investees 57,872 53,521 8.1 % Goodwill and intangibles 53,562 53,562 0.0 % Other assets 57,853 63,683 (9.2 ) % Total assets $ 6,413,005 $ 6,161,486 4.1 % Unpaid losses and settlement expenses $ 2,937,211 $ 2,886,819 1.7 % Unearned premiums 1,063,167 991,636 7.2 % Reinsurance balances payable 25,013 40,580 (38.4 ) % Funds held 131,881 127,242 3.6 % Income taxes - current 1,648 29,724 (94.5 ) % Income taxes - deferred 25,795 21,769 18.5 % Short-term debt — 100,000 (100.0 ) % Long-term debt 296,968 — NM Accrued expenses 92,466 128,597 (28.1 ) % Other liabilities 86,741 56,923 52.4 % Total liabilities $ 4,660,890 $ 4,383,290 6.3 % Shareholders' equity 1,752,115 1,778,196 (1.5 ) % Total liabilities & shareholders' equity $ 6,413,005 $ 6,161,486 4.1 % OTHER DATA: Common shares outstanding (in 000's) 91,773 91,879 Book value per share $ 19.09 $ 19.35 (1.3 ) % Closing stock price per share $ 59.07 $ 63.98 (7.7 ) % Statutory surplus $ 1,942,411 $ 1,846,615 5.2 % NM = Not Meaningful RLI CORP 2026 FINANCIAL HIGHLIGHTS UNDERWRITING SEGMENT DATA (Unaudited) (Dollars in thousands, except per share amounts) Three Months Ended June 30, GAAP GAAP GAAP GAAP Casualty Ratios Property Ratios Surety Ratios Total Ratios 2026 Gross premiums written $ 338,999 $ 199,276 $ 41,375 $ 579,650 Net premiums written 285,135 161,674 37,885 484,694 Net premiums earned 256,922 123,786 36,388 417,096 Net loss & settlement expenses 159,686 62.2 % 26,725 21.6 % 3,484 9.6 % 189,895 45.5 % Net operating expenses 95,494 37.1 % 43,562 35.2 % 28,236 77.6 % 167,292 40.1 % Underwriting income (1) $ 1,742 99.3 % $ 53,499 56.8 % $ 4,668 87.2 % $ 59,909 85.6 % 2025 Gross premiums written $ 306,610 $ 211,817 $ 43,854 $ 562,281 Net premiums written 256,245 160,919 39,895 457,059 Net premiums earned 234,638 130,664 36,602 401,904 Net loss & settlement expenses 141,260 60.2 % 38,459 29.4 % 4,859 13.3 % 184,578 45.9 % Net operating expenses 85,089 36.3 % 42,694 32.7 % 27,313 74.6 % 155,096 38.6 % Underwriting income (1) $ 8,289 96.5 % $ 49,511 62.1 % $ 4,430 87.9 % $ 62,230 84.5 % Six Months Ended June 30, GAAP GAAP GAAP GAAP Casualty Ratios Property Ratios Surety Ratios Total Ratios 2026 Gross premiums written $ 646,013 $ 354,039 $ 83,484 $ 1,083,536 Net premiums written 545,507 280,067 76,780 902,354 Net premiums earned 505,488 250,164 72,830 828,482 Net loss & settlement expenses 312,518 61.8 % 60,579 24.2 % 10,042 13.8 % 383,139 46.2 % Net operating expenses 183,935 36.4 % 87,901 35.2 % 55,811 76.6 % 327,647 39.6 % Underwriting income (1) $ 9,035 98.2 % $ 101,684 59.4 % $ 6,977 90.4 % $ 117,696 85.8 % 2025 Gross premiums written $ 585,064 $ 381,869 $ 86,454 $ 1,053,387 Net premiums written 491,852 282,655 79,643 854,150 Net premiums earned 463,686 263,208 73,355 800,249 Net loss & settlement expenses 287,095 61.9 % 71,184 27.0 % 3,537 4.8 % 361,816 45.2 % Net operating expenses 166,231 35.9 % 85,598 32.6 % 53,828 73.4 % 305,657 38.2 % Underwriting income (1) $ 10,360 97.8 % $ 106,426 59.6 % $ 15,990 78.2 % $ 132,776 83.4 % (1) See discussion above: Non-GAAP and Performance Measures. Media Contact Aaron Diefenthaler Chief Financial Officer 309-693-5846 [email protected] Source: RLI Corp.