RLI (RLI) investor relations material

Executive summary

• Net earnings for Q2 2026 were $168 million ($1.82 per share), up 35.8% from $124.3 million ($1.34 per share) in Q2 2025, with operating earnings per share at $0.83, nearly flat year-over-year.

• Gross premiums written increased 3% year-over-year, driven by growth in the casualty segment.

• Book value per share rose 11% from year-end 2025, including dividends and share repurchases.

• Returned over $200 million to shareholders via a $2.00 per share special dividend and share repurchases, with $250 million authorized and $12 million repurchased in Q2.

• Maintained disciplined underwriting and strong relationships, supporting optimism for future opportunities.

Financial highlights

• Net premiums earned for Q2 2026 were $417.1 million, up 3.8% year-over-year; consolidated revenue for the quarter was $576 million.

• Net investment income increased 17% year-over-year to $46 million in Q2 2026.

• Underwriting income for Q2 2026 was $59.9 million (85.6 combined ratio), slightly lower than prior year due to higher expenses.

• Recognized $103 million in unrealized gains on equity securities for the quarter.

• Return on equity (trailing four quarters) was 24.5% for net earnings and 25.1% for comprehensive earnings.

Outlook and guidance

• Management remains confident in continued profitable growth, leveraging strong relationships and disciplined underwriting.

• Focus on underwriting profitability over premium growth, with continued investment in technology and talent.

• Investment income expected to remain strong if rate environment holds; sufficient liquidity expected for the next 12–24 months.

• No material changes to market risk exposure or critical accounting policies were reported.