RLI Declares $3-Per-Share Special Dividend, Totaling Nearly $275 Million
Key Facts
RLI Corp's board of directors declared a special cash dividend of $3 per common share on November 11, 2026, with an expected total of nearly $275 million, according to a company statement distributed via Business Wire. The company also declared its regular quarterly cash dividend of $0.18 per share. Both dividends are payable on December 7, 2026, to shareholders of record on November 30. Eligible shareholders will therefore receive both payments at the announced per-share amounts. The decision follows a previous special dividend announced in May and comes amid the company's extended record of increasing its regular dividend.
Chief Executive Craig Kliethermes said the company's ability to return capital to shareholders reflects "the strength of RLI's financial position and its disciplined approach to managing the business." He added that the company is focused on profitable growth and building long-term shareholder value. The statement did not identify the distribution of excess capital as the direct reason for the special payment. Management framed the decision in terms of its assessment of financial strength and operating discipline. It also linked returning money to shareholders with the company's stated focus on growth and long-term value.
In its May 2026 announcement, RLI declared a special dividend of $2 per share, with an expected total of nearly $184 million, alongside its regular quarterly dividend of $0.18 per share. The special dividend announced in November is $1 per share higher than the May payment. According to its third-quarter report, the company returned $184 million to shareholders during the first nine months of 2026 through the earlier special dividend, and repurchased $18 million in shares under an approved buyback program capped at $250 million. The company said in May that the special dividend and its 51st consecutive annual increase in the regular dividend reflected the strength of its business and confidence in its long-term strategy. These figures show that November's announcement follows an earlier special payment and share repurchases during the same year.
Third-quarter results published on October 19 showed operating earnings of $79.3 million, or $0.86 per share, compared with $75.8 million, or $0.82 per share, in the third quarter of 2025. Net investment income rose 13% to $46.7 million during the quarter. In insurance operations, the combined ratio was 86.2, compared with 85.1 in the same period of 2025. These figures provide the latest reported picture of operating earnings, investment income, and the ratio of losses and expenses to earned premiums ahead of the dividend decision. In the second quarter of 2026, the company reported net income of $168 million, versus $124.3 million in the second quarter of 2025; net investment income increased 17% to $46 million, while gross premiums written rose 3%.
RLI says it has increased its regular dividend annually for 51 consecutive years and recorded underwriting profits for 30 consecutive years. Its dividend record includes payments for 198 consecutive quarters, according to its 2025 annual report, which also cited annual increases in the quarterly dividend over the preceding 50 years. In February 2026, AM Best raised the financial strength rating of RLI's insurance subsidiaries to A++, with the outlook revised to stable. These indicators provide context for the company's dividend record, underwriting performance and financial rating. They do not change the company's stated condition that any future dividends remain subject to the board's discretion.
According to the annual report, future dividend payments remain dependent on the company's operating results and financial condition, regulatory restrictions on its insurance subsidiaries, and other factors the board considers relevant. The company said dividend decisions are at the board's discretion. In trading, RLI shares closed at $68.87 on November 10, 2026, according to EL7 data. That price predates the dividend announcement published on November 11. The available evidence did not include a verified share price after the announcement.