RLI Reports Third Quarter 2026 Results
PEORIA, Ill., October 19, 2026--RLI Corp. (NYSE: RLI) reported third quarter 2026 net earnings of $81.0 million ($0.88 per share), compared to $124.6 million ($1.35 per share) for the third quarter of 2025. Operating earnings(1) for the third quarter of 2026 were $79.3 million ($0.86 per share), compared to $75.8 million ($0.82 per share) for the same period in 2025.
| Third Quarter | Year to Date | |||||||||||
| Earnings Per Diluted Share | 2026 | 2025 | 2026 | 2025 | ||||||||
| Net earnings | $ | 0.88 | $ | 1.35 | $ | 3.29 | $ | 3.38 | ||||
| Operating earnings (1)(2) | $ | 0.86 | $ | 0.82 | $ | 2.52 | $ | 2.53 |
| (1) | See discussion below: Non-GAAP and Performance Measures. |
| (2) | Equity in earnings of unconsolidated investees and the related taxes were removed from operating earnings and operating earnings per share beginning in the fourth quarter of 2025, resulting in consistent exclusion of unrealized changes in equity investments from operating results. Prior period amounts have been recast to conform to the current definition. |
Highlights for the quarter included:
Underwriting income(1) of $58.8 million on a combined ratio(1) of 86.2.
Gross premiums written increased 2% and net investment income increased 13%.
Favorable development in prior years' loss reserves resulted in a $20.1 million net increase in underwriting income.
Book value increased 10% from year-end 2025, inclusive of dividends and share repurchases.
"Our third-quarter results reflect consistent, disciplined execution across the business," said RLI Corp. President & CEO Craig Kliethermes. "We delivered an 86 combined ratio, with strong underwriting performance in our property and surety segments. Gross premiums written increased 2%, led by our casualty segment. Investment income grew 13%, further contributing to earnings. As market conditions evolve across our portfolio, we remain focused on risk selection and profitable growth. We will continue to pursue opportunities where our underwriting expertise can deliver attractive long-term returns."
Underwriting Income
RLI achieved $58.8 million of underwriting income in the third quarter of 2026 on an 86.2 combined ratio, compared to $60.5 million on an 85.1 combined ratio in 2025.
Results for both years include favorable development in prior years' loss reserves, which resulted in a $20.1 million and $13.7 million net increase to underwriting income in 2026 and 2025, respectively.
The following table highlights underwriting income and combined ratios by segment for the third quarter.
| Underwriting Income(1) | Combined Ratio(1) | |||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Casualty | $ | 1.0 | $ | 4.5 | Casualty | 99.6 | 98.2 | |||||
| Property | 50.5 | 50.4 | Property | 60.1 | 60.2 | |||||||
| Surety | 7.3 | 5.6 | Surety | 79.8 | 85.0 | |||||||
| Total | $ | 58.8 | $ | 60.5 | Total | 86.2 | 85.1 |