| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 49 | 12.7x | 17.8x | Around median | |
Growth | 56 | 8.7% | 7.1% | Around median | |
Quality | 96 | — | — | Top tier | |
Safety | 34 | — | — | Bottom tier | |
Capital Return | 78 | 7.70% | 2.12% | Top tier | |
Momentum | 52 | -7.5% | 2.9% | Around median | |
Sentiment | 53 | 6 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
RLI Corp. operates in specialty property and casualty insurance through three main segments: Casualty, Property, and Surety. The company generates income from insurance policy premiums and underwriting profits, in addition to returns from its investment portfolio; in Q2 fiscal 2026, net investment income totaled $46 million, while investments and cash reached approximately $4.9 billion as of June 30, 2026. Casualty includes personal umbrella, transportation, and professional liability insurance, while Property includes excess and specialty property, Hawaii Homeowners, and Marine businesses.
In Q2 fiscal 2026, RLI reported revenue of $575.6 million and net income of $168.0 million, equivalent to $1.82 per share, compared with earnings per share of $1.34 in the comparable quarter. Operating earnings were $0.83 per share versus $0.82, and underwriting income totaled $59.9 million, with a combined ratio of 85.6%, a loss ratio of 45.5%, and an expense ratio of 40.1%. Casualty led premium growth with an 11% increase, while premiums in both Property and Surety declined by 6%.
Gross written premiums grew 3% in Q2 fiscal 2026, and the company achieved a 25% return on equity. Net investment income increased 17%, while the investment portfolio generated a total return of 3.4% during the quarter. In terms of capital allocation, RLI paid special dividends of $2 per share and repurchased approximately 235 thousand shares at an average price of $51.25, with approximately $238 million remaining under the repurchase authorization as of June 30, 2026.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $61.33, with a wide range between $53 and $74 and a neutral consensus, reflecting meaningful differences in assessments of RLI's value. The average target lies within the 52-week range of $47.26–$68.29 and approximately 10% below its high, while the highest target is approximately 8% above that high. The valuation view remains divided between the strong combined ratio and growth in investment income on one hand, and competitive pressures, the higher expense ratio, and net income's partial reliance on unrealized investment gains on the other.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
RLI reported revenue of $575.6 million and net income of $168.0 million, or $1.82 per share, in Q2 fiscal 2026. Operating earnings were $0.83 per share, while underwriting income reached $59.9 million. Results also benefited from a 17% increase in net investment income to $46 million and $103 million of unrealized gains in the equity portfolio.
Casualty premiums increased 11% in Q2 fiscal 2026, led by 26% growth in personal umbrella and 19% growth in transportation insurance. The rate increase in personal umbrella was 17%, while transportation reached 8%. Transportation submissions also increased 9% as some competitors reduced their appetite, and RLI benefits from its in-house loss-control services and its ability to offer coverage limits of up to $5 million in selected cases.
Underwriting profitability remained strong in Q2 fiscal 2026, with a combined ratio of 85.6% and underwriting income of $59.9 million. However, the combined ratio increased from 84.5% in the comparable quarter because the expense ratio rose 1.5 points to 40.1%. Favorable prior-year reserve development of $39.8 million helped support the result, while 2026 catastrophe losses totaled approximately $10 million.
Property premiums declined 6% in Q2 fiscal 2026 as competition intensified in the excess and specialty property market. Management reported that a single submission may reach more than 45 markets and that some competitors offer broader terms for lower premiums. Renewal retention declined to just below 70%, but the segment recorded a combined ratio of 56.8%, supported by $23 million of favorable reserve development and lighter catastrophe losses.
In Q2 fiscal 2026, RLI paid a special dividend of $2 per share, in addition to the regular quarterly dividend of $0.18 per share. Total capital returned through the special dividend exceeded $200 million. The company also repurchased approximately 235 thousand shares at an average price of $51.25, and approximately $238 million remained available under the repurchase authorization as of June 30, 2026.
The analyst consensus rates RLI stock as neutral, with an average target of $61.33. Targets range from $53 to $74, a spread of $21 that indicates clear differences in analyst estimates. The average target lies within the 52-week range of $47.26–$68.29, while the highest target exceeds the top of that range and the average target does not reach it.
