RLI Corp.'s 10-Q Report Reveals 29 Years of Underwriting Profitability

By Tamara Parker • Friday, April 25 15:18 • Permanent Link

RLI Corp. has recently released its 10-Q report, detailing its operations as an insurance holding company that underwrites property, casualty, and surety insurance products. The company's focus is on niche markets and developing unique products tailored to customers' needs. RLI Corp. has achieved 29 consecutive years of underwriting profitability, with an average 88.1 combined ratio over the period. The company measures the results of its insurance operations by monitoring growth and profitability across three distinct business segments: property, casualty, and surety.

In the 10-Q report, RLI Corp. discussed its key performance measures, including underwriting income and combined ratio. For the three months ended March 31, 2025, the company reported a 10% increase in net premiums earned, driven primarily by products in the casualty segment. Investment income also saw a 12% increase due to an increased average asset base and higher reinvestment rates. However, adverse market performance resulted in $42 million of unrealized losses on equity securities in the first three months of 2025, compared to $45 million of unrealized gains in 2024.

The report also highlighted the company's underwriting income, which was $71 million on an 82.3 combined ratio for the first three months of 2025, compared to $78 million on a 78.5 combined ratio in the same period of 2024. Underwriting results for 2025 and 2024 were impacted by $12 million of pretax losses from catastrophe events. The loss ratio increased to 44.5 from 39.9, while the expense ratio decreased to 37.8 from 38.6.

Furthermore, the report discussed the company's net earnings, which totaled $63 million for the first three months of 2025, compared to $128 million for the same period in 2024. RLI Corp. also provided insights into its premiums, stating that gross premiums written increased by $22 million for the first three months of 2025, with all segments contributing to the increase.

Following these announcements, the company's shares moved -2.7%, and are now trading at a price of $73.16. For more information, read the company's full 10-Q submission here.

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