RLI (RLI) Q3 2026 earnings summary

Executive summary

• Q3 operating EPS rose 4.9% YoY to $0.86; GAAP EPS fell to $0.88 from $1.35, largely reflecting investment-related valuation effects.

• Underwriting income was $58.8M on an 86.2% combined ratio; gross premiums written grew 2% and net investment income rose 13% to $46.7M.

• For nine months, underwriting income was $176.5M on an 85.9% combined ratio; net investment income rose 15% to $135M, while net earnings were $303.9M versus $312.2M.

Financial highlights

• Q3 net earnings were $81.0M versus $124.6M; operating earnings were $79.3M versus $75.8M. Net premiums earned rose 4.2% to $424.9M.

• Nine-month revenue increased 4.2% to $1.48B; operating EPS was $2.52 versus $2.53 and GAAP diluted EPS was $3.29 versus $3.38.

• Q3 comprehensive loss was $36.8M, or $0.40 per share, versus comprehensive earnings of $152.3M, or $1.65 per share, mainly due to fixed-income valuation losses.

• Book value increased 10% from year-end 2025, including dividends and repurchases; statutory surplus rose 6.4% to $1.96B.

Outlook and guidance

• Underwriting profitability remains the primary focus; premium growth is pursued where underwriting profit is expected, with disciplined risk selection and cycle management.

• Management expects a strong finish to 2026 and positive 2027 reinsurance renewal terms and conditions; negotiations were ongoing.

• Personal Umbrella rate increases are expected to return to double-digit levels in 2027 after prior rate actions earn through.