RLI (RLI) Q4 2025 earnings summary

Executive summary

• Achieved 30th consecutive year of underwriting profitability, with $264.2 million in underwriting income and an 84 combined ratio for 2025.

• Net earnings for Q4 2025 rose to $91.2M ($0.99/share), with operating earnings at $86.4M ($0.94/share); full-year net earnings were $403.3M ($4.37/share), up 16.8% year-over-year.

• Book value per share increased 33% including dividends, reaching $19.35.

• Maintained disciplined growth and a diversified specialty insurance portfolio, focusing on long-term profitability and value creation through cycle management, technology investment, and talent acquisition.

• Paid a special dividend of $2 per share in addition to regular dividends.

Financial highlights

• Q4 2025 operating earnings were $0.94 per share, up from $0.52 year-over-year, and net earnings per share rose 125% to $0.99.

• Full-year net earnings per share increased to $4.37, with operating earnings per share at $3.47.

• Underwriting income for Q4 2025 was $70.9M (combined ratio 82.6), up from $22.2M (94.4) in Q4 2024; full-year underwriting income was $264.2M (combined ratio 83.6).

• Net investment income grew 9% in Q4 2025 and 12% for the year; portfolio total return was 1.5% for Q4 and 9% for the year.

• Comprehensive earnings for 2025 were $489.0M ($5.29/share).

Outlook and guidance

• Optimistic about 2026, with capital discipline and operational investments positioning for continued success.

• Pursuing organic growth and margin maximization through disciplined cycle management and platform enhancements.

• Expect continued double-digit rate increases in auto/transportation until loss cost trends subside; additional rate increases in personal umbrella, including a 20% increase in California effective December 1.

• Management focuses on modest premium growth and strong returns to shareholders.