RLI stock holds Market Perform rating at JMP after Q2 earnings beat

Published 22/07/2025, 10:00
RLI stock holds Market Perform rating at JMP after Q2 earnings beat

Investing.com - RLI Corp . (NYSE:RLI), with a market capitalization of $6.4 billion, maintained its Market Perform rating from JMP Securities analyst Matthew Carletti following the insurer’s second-quarter results that exceeded expectations. According to InvestingPro data, the company is currently trading near its 52-week low, with analysts projecting continued profitability this year.

The company reported operating earnings per share of $0.84, surpassing both JMP’s estimate of $0.80 and the consensus forecast of $0.79. The earnings beat was primarily attributed to better-than-projected loss ratios across multiple business segments. With a P/E ratio of 22.7 and revenue growth of 8.9% over the last twelve months, RLI continues to demonstrate solid financial performance.

RLI’s Property segment posted a 29% loss ratio versus the 36% estimate, reflecting lower catastrophe losses and stronger favorable prior-period development. The Surety segment’s loss ratio came in at 13% compared to the 15% estimate, while the Casualty segment reported a 60% loss ratio against a 61% projection.

Gross written premiums remained flat for the quarter, below JMP’s 5% growth projection. The company saw solid growth in both Surety (7%) and Casualty (7%) segments, but these gains were offset by a 10% decline in the Property segment.

Book value per share reached $18.89 as of June 30, slightly above the analyst’s $18.67 expectation and representing an 8% sequential increase.

In other recent news, RLI Corp. reported its second-quarter 2025 financial results, revealing net earnings of $124.3 million, or $1.34 per share, which marked an increase from $82.0 million, or $0.89 per share, in the same period last year. However, the company’s operating earnings decreased to $78.1 million, or $0.84 per share, falling short of analyst expectations. The company posted a combined ratio of 84.5 for the quarter, slightly higher than the 81.5 reported in the second quarter of 2024, indicating a dip in underwriting profitability. Gross premiums written remained flat, reflecting challenging market conditions. On a positive note, RLI saw a 16% rise in net investment income, reaching $39.4 million, and an increase in book value per share to $18.89, up 16% from year-end 2024. The company maintained its commitment to returning capital to shareholders by paying a quarterly dividend of $0.16 per share, a $0.01 increase from the previous quarter. Additionally, favorable development of prior years’ loss reserves resulted in a $24.4 million net increase to underwriting income.

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