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Mar 31

Rli Q1 2025 Earnings Report

RLI Corp. reported solid profitability and premium growth in Q1 2025 despite lower net earnings year-over-year.

Key Takeaways

RLI Corp. delivered profitable results in Q1 2025, with strong underwriting performance and investment income gains. Net earnings fell year-over-year due to lower unrealized equity gains, but operational metrics remained resilient.

Net income dropped to $63.2M due to lower unrealized equity gains.

Operating earnings remained stable at $84.9M.

Gross premiums written increased 5%, led by growth in the casualty segment.

Strong property and surety margins contributed to a low combined ratio of 82.3.

Total Revenue
$408M
Previous year: $378M
+8.0%
EPS
$0.92
Previous year: $1.89
-51.3%
Combined Ratio
82.3%
Previous year: 78.5%
+4.8%
Book Value/Share
$17.5
Net Investment Income
$36.7M
Cash and Equivalents
$27.1M
Previous year: $44.6M
-39.3%
Total Assets
$5.73B
Previous year: $5.34B
+7.3%

Rli

Rli

Rli Revenue by Segment

Forward Guidance

Management emphasized continued premium growth and strong margins, highlighting their diversified specialty portfolio as a key strength.

Positive Outlook

  • Continued momentum in casualty premiums.
  • Strong underwriting margins in property and surety.
  • Book value per share rose 6% since year-end 2024.
  • Net investment income increased by 12%.
  • A+ (Superior) rating affirmed by AM Best for all insurance subsidiaries.

Challenges Ahead

  • Net earnings fell 50.6% YoY.
  • Lower underwriting income compared to Q1 2024.
  • Decline in equity portfolio value due to market fluctuations.
  • Casualty combined ratio increased to 99.1 from 93.1.
  • Comprehensive earnings declined 19.1% YoY.