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PEORIA, Ill. - RLI Corp . (NYSE:RLI) reported second quarter 2025 net earnings of $124.3 million ($1.34 per share), compared to $82.0 million ($0.89 per share) for the same period in 2024. Revenue for the quarter came in at $499.83 million versus the consensus estimate of $579.72 million.
The insurance specialty company’s stock fell 2% following the earnings release.
Operating earnings decreased to $78.1 million ($0.84 per share) from $79.3 million ($0.86 per share) a year ago, falling short of analyst expectations.
RLI posted an 84.5 combined ratio for the quarter, indicating solid underwriting profitability but slightly worse than the 81.5 combined ratio reported in the second quarter of 2024. Gross premiums written were flat compared to the prior year, reflecting challenging market conditions.
"We posted an 85 combined ratio, underscoring our underwriting discipline in a highly competitive market," said RLI Corp. President & CEO Craig Kliethermes. "Investment income increased as we put operating cash flow to work in a favorable interest rate environment."
Net investment income rose 16% to $39.4 million compared to the same period in 2024, providing a bright spot in the results. The investment portfolio’s total return was 2.9% for the quarter.
The company’s book value per share increased to $18.89, representing a 16% increase (inclusive of dividends) from year-end 2024. RLI also maintained its track record of returning capital to shareholders, paying a regular quarterly dividend of $0.16 per share during the quarter, a $0.01 increase over the prior quarter.
Prior years’ loss reserves developed favorably, resulting in a $24.4 million net increase to underwriting income, compared to $19.8 million in the second quarter of 2024.
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