RLI CORP recently released its 10-Q report. RLI Corp. is an insurance holding company that writes property, casualty, and surety products through three major subsidiaries. Its business is concentrated in niche markets, with casualty lines such as commercial excess, umbrella, general liability, transportation, management liability, and professional liability; property coverages including commercial property, marine, homeowners, and dwelling fire; and surety bonds for businesses, individuals, and contractors.
In Item 2, management said net premiums earned rose 4% in the first six months of 2026 to $828.5 million from $800.2 million a year earlier, while total consolidated revenue increased to $999.4 million from $907.5 million. Net investment income climbed 16% to $88.4 million, helped by higher reinvestment rates and a larger average asset base, and unrealized gains on equity securities jumped to $63.6 million from $1.2 million. Net realized gains fell to $19.0 million from $29.9 million.
Underwriting income for the first half was $117.7 million, down from $132.8 million, and the combined ratio worsened to 85.8 from 83.4. Pretax catastrophe losses were $26 million in both periods, while favorable development on prior-year loss reserves contributed $75 million in 2026 versus $59 million in 2025. The loss ratio increased to 46.2 from 45.2, and the expense ratio rose to 39.6 from 38.2.
Net earnings for the six months ended June 30, 2026 were $222.9 million, up from $187.6 million. Comprehensive earnings were $194.7 million, compared with $236.1 million a year earlier, as other comprehensive loss of $28 million reflected rising interest rates and lower fair values in the fixed income portfolio. Equity in earnings from Prime Holdings Insurance Services was $5.1 million, essentially flat year over year.
Gross premiums written increased 3% to $1.084 billion. Casualty drove the increase, with gross premiums written up 10% to $646.0 million and net premiums earned up 9% to $505.5 million. Within casualty, commercial excess and personal umbrella rose to $326.9 million from $276.7 million, and commercial transportation increased to $80.6 million from $65.7 million. Property gross premiums written fell 7% to $354.0 million, led by a drop in commercial property to $223.9 million from $259.4 million, while marine rose to $96.3 million from $90.9 million. Surety gross premiums written declined 3% to $83.5 million. As a result of these announcements, the company's shares have moved 0.99% on the market, and are now trading at a price of $61.765. For more information, read the company's full 10-Q submission here.
