RLI Corp. third-quarter net earnings fall to $81.0 million

PEORIA, ILLINOIS, October 19, 2026, RLI Corp. reported third quarter 2026 net earnings of $81.0 million, or $0.88 per share, a decline from $124.6 million, or $1.35 per share, in the same period of 2025. Operating earnings for the quarter were $79.3 million, or $0.86 per share, compared with $75.8 million, or $0.82 per share, in the prior-year period.

Underwriting income stood at $58.8 million on a combined ratio of 86.2. Gross premiums written increased by 2%, and net investment income rose by 13%. Favorable development in prior years' loss reserves contributed a net increase of $20.1 million to underwriting income for the quarter.

By segment, the casualty line generated underwriting income on a combined ratio of 99.6, while the property line produced underwriting income on a combined ratio of 60.1. The surety segment recorded underwriting income with a combined ratio of 79.8.

Net investment income reached $46.7 million for the quarter. The investment portfolio posted a total return of -2.0% for the period and 0.9% for the nine months ended September 30, 2026. Comprehensive loss for the quarter was $36.8 million, or -$0.40 per share, primarily due to after-tax unrealized losses from the fixed income portfolio resulting from rising interest rates.

RLI Corp. President and CEO Craig Kliethermes stated that the results reflect consistent and disciplined execution across the business, citing strong underwriting performance in property and surety segments.

The company paid a regular quarterly dividend of $0.18 per share on September 15, 2026. RLI bought back 103,573 shares during the third quarter for a total expenditure of $6.3 million, with an average cost of $60.51 per share. The remaining capacity under the share repurchase program was $231.7 million as of September 30, 2026.

Management will hold a conference call at 10 a.m. central daylight time on October 20, 2026, to discuss the quarterly results with insurance industry analysts.