Recent News
July 8, 2025 — RLI earned placement on Ward’s 50 Top-Performing Insurance Companies list for the 35th consecutive year. August 14, 2025 — the Board declared a third-quarter regular cash dividend of $0.16 per share, payable September 19, 2025. August 28, 2025 — RLI promoted Gayathri Mariappan to Vice President, Information Technology to lead enterprise IT strategy. September 6, 2025 — analyst consensus aggregated to a “Hold” rating, with one reporting note also citing an insider purchase in late July.
Technical Analysis
ADX registers 30.07, indicating a strong trend environment; direction derives from the directional indicators rather than ADX itself.
DI+ shows a decreasing trend while DI- displays a peak & reversal; that configuration signals directional selling pressure has eased but bullish directional strength has not reasserted, producing a near-term neutral-to-slightly-bearish bias when combined with ADX strength.
MACD rests at -0.77 with a dip & reversal trend and the signal line at -0.65; momentum shows early recovery from a short-term trough but no confirmed bullish crossover yet, keeping momentum conditional until MACD crosses above its signal line.
MRO stands at -22.69 with an increasing trend; negative MRO indicates price currently below modeled fair target and rising MRO implies mean-reversion potential into the near term.
RSI sits at 41.9 with a dip & reversal trend; the oscillator moved off lower readings and now supports a constructive, range-bound rhythm rather than aggressive momentum expansion.
Price trades below the 12-day and 26-day EMAs (priceClose $64.41 vs. price12dayEMA $65.20 and price26dayEMA $66.01) and remains under the 50- and 200-day averages ($66.76 and $73.35). Shorter-term moving averages declining signals near-term resistance clustered around the 20–50 day averages and the super-trend upper band at $66.83.
Bollinger bands compress (upper 1σ $66.34 / lower 1σ $64.39), indicating low volatility and a likely period of consolidation until a directional momentum trigger appears; volume currently under recent 10- and 50-day averages, reducing conviction for large directional moves.
Fundamental Analysis
RLI reported solid second-quarter operating and comprehensive results with net earnings of $124.3M and operating EPS of $0.84; underwriting income and favorable prior-year reserve development contributed to results. Book value per share rose to $18.89, up 16% since year-end 2024, reflecting capital accumulation and retained earnings growth.
Profitability metrics show strength: EBIT at $157,865,000 and an EBIT margin of 31.584%, above the industry peer mean of 19.604% and the industry peer median of 18.418%. EBIT margin improved QoQ by 61.01% and YoY by 25.38%, signaling meaningful expansion in operating leverage.
Return metrics register positively: return on equity 7.168% and return on assets 2.122%, with both showing strong QoQ gains (ROE QoQ +81.883%, ROA QoQ +90.656%), placing returns above the industry peer mean on ROA and slightly above the industry peer mean on ROE.
Liquidity and capital structure present low financial leverage: debt-to-assets at 1.669% and debt-to-equity at 5.765%, both down QoQ and YoY, while interest coverage reads 116.94x, indicating negligible interest burden relative to operating income.
Market multiples and cash returns reflect a premium: trailing P/E at 87.21 and P/B at 3.68 (above the industry peer mean P/B of 3.018), while free cash flow yield stands at 2.72%, slightly below the industry peer mean of 2.96%. Forward P/E equals 46.78, implying elevated future expectations relative to current operating earnings.
Operational signals display prudent underwriting: combined ratio for the quarter registered an underwriting-friendly figure (reported combined ratio ~84.5% in the quarter narrative), while gross premiums written held roughly flat and net investment income rose ~16%, supporting near-term earnings quality.
WMDST values the stock as over-valued; the valuation view reflects elevated trailing and forward multiples alongside a modest free cash flow yield, despite above-average EBIT margin and strong capital metrics.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-21 |
| NEXT REPORT DATE: | 2025-10-22 |
| CASH FLOW | Begin Period Cash Flow | $ 27.1 M |
| Operating Cash Flow | $ 174.7 M | |
| Capital Expenditures | $ -1.30 M | |
| Change In Working Capital | $ 50.4 M | |
| Dividends Paid | $ -14.69 M | |
| Cash Flow Delta | $ -5.64 M | |
| End Period Cash Flow | $ 21.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 499.8 M | |
| Forward Revenue | $ 147.2 M | |
| COSTS | ||
| Cost Of Revenue | — | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | — | |
| Total Operating Expenses | $ 343.3 M | |
| PROFITABILITY | ||
| Gross Profit | — | |
| EBITDA | — | |
| EBIT | $ 157.9 M | |
| Operating Income | — | |
| Interest Income | — | |
| Interest Expense | $ 1.4 M | |
| Net Interest Income | $ -1.35 M | |
| Income Before Tax | $ 156.5 M | |
| Tax Provision | $ 32.2 M | |
| Tax Rate | 20.6 % | |
| Net Income | $ 124.3 M | |
| Net Income From Continuing Operations | $ 124.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.78 | |
| EPS Actual | $ 0.84 | |
| EPS Difference | $ 0.06 | |
| EPS Surprise | 7.692 % | |
| Forward EPS | $ 1.59 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 6.0 B | |
| Intangible Assets | $ 53.6 M | |
| Net Tangible Assets | $ 1.7 B | |
| Total Current Assets | — | |
| Cash and Short-Term Investments | $ 1.2 B | |
| Cash | $ 21.4 M | |
| Net Receivables | $ 1.0 B | |
| Inventory | — | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | $ 32.8 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | — | |
| Net Debt | $ 78.6 M | |
| Total Debt | $ 100.0 M | |
| Total Liabilities | $ 4.3 B | |
| EQUITY | ||
| Total Equity | $ 1.7 B | |
| Retained Earnings | $ 1.9 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 18.89 | |
| Shares Outstanding | 91.829 M | |
| Revenue Per-Share | $ 5.44 | |
| VALUATION | Market Capitalization | $ 6.4 B |
| Enterprise Value | $ 5.3 B | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | 10.563 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.454 | |
| Asset To Liability | 1.408 | |
| Debt To Capital | 0.055 | |
| Debt To Assets | 0.017 | |
| Debt To Assets QoQ | -4.355 % | |
| Debt To Assets YoY | -9.833 % | |
| Debt To Assets IPRWA | high: 0.141 median: 0.06 mean: 0.055 RLI: 0.017 low: 0.001 |
|
| Debt To Equity | 0.058 | |
| Debt To Equity QoQ | -7.523 % | |
| Debt To Equity YoY | -10.426 % | |
| Debt To Equity IPRWA | high: 0.818 mean: 0.235 median: 0.223 RLI: 0.058 low: 0.003 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.677 | |
| Price To Book QoQ | -16.575 % | |
| Price To Book YoY | -7.344 % | |
| Price To Book IPRWA | high: 8.591 RLI: 3.677 mean: 3.018 median: 2.405 low: 0.349 |
|
| Price To Earnings (P/E) | 87.208 | |
| Price To Earnings QoQ | 4.136 % | |
| Price To Earnings YoY | 118.224 % | |
| Price To Earnings IPRWA | high: 107.296 RLI: 87.208 median: 54.538 mean: 51.165 low: -63.287 |
|
| PE/G Ratio | -10.029 | |
| Price To Sales (P/S) | 12.761 | |
| Price To Sales QoQ | -26.424 % | |
| Price To Sales YoY | -15.496 % | |
| Price To Sales IPRWA | high: 17.832 RLI: 12.761 median: 6.744 mean: 6.157 low: 0.913 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 46.777 | |
| Forward PE/G | -5.379 | |
| Forward P/S | 43.331 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 4.309 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.085 | |
| Asset Turnover Ratio QoQ | 18.821 % | |
| Asset Turnover Ratio YoY | 11.113 % | |
| Asset Turnover Ratio IPRWA | high: 0.263 mean: 0.119 median: 0.088 RLI: 0.085 low: 0.007 |
|
| Receivables Turnover | 0.497 | |
| Receivables Turnover Ratio QoQ | 20.859 % | |
| Receivables Turnover Ratio YoY | 26.719 % | |
| Receivables Turnover Ratio IPRWA | high: 1.664 median: 0.762 mean: 0.697 RLI: 0.497 low: 0.075 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 183.489 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | — | |
| CapEx To Revenue | -0.003 | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.8 B | |
| Net Invested Capital | $ 1.8 B | |
| Invested Capital | $ 1.8 B | |
| Net Tangible Assets | $ 1.7 B | |
| Net Working Capital | — | |
| LIQUIDITY | ||
| Cash Ratio | — | |
| Current Ratio | — | |
| Current Ratio QoQ | — | |
| Current Ratio YoY | — | |
| Current Ratio IPRWA | — | |
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | — | |
| Cost Of Debt | 1.072 % | |
| Interest Coverage Ratio | 116.937 | |
| Interest Coverage Ratio QoQ | 95.222 % | |
| Interest Coverage Ratio YoY | 78.794 % | |
| Interest Coverage Ratio IPRWA | RLI: 116.937 high: 84.319 mean: 36.286 median: 28.03 low: -3.125 |
|
| Operating Cash Flow Ratio | — | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 8.463 | |
| Dividend Payout Ratio | 0.118 | |
| Dividend Rate | $ 0.16 | |
| Dividend Yield | 0.002 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 4.567 % | |
| Revenue Growth | 22.607 % | |
| Revenue Growth QoQ | -415.652 % | |
| Revenue Growth YoY | -454.231 % | |
| Revenue Growth IPRWA | high: 26.578 % RLI: 22.607 % mean: 6.153 % median: 6.053 % low: -14.462 % |
|
| Earnings Growth | -8.696 % | |
| Earnings Growth QoQ | -106.991 % | |
| Earnings Growth YoY | -3.324 % | |
| Earnings Growth IPRWA | high: 69.231 % mean: 24.027 % median: 4.946 % RLI: -8.696 % low: -133.505 % |
|
| MARGINS | ||
| Gross Margin | — | |
| Gross Margin QoQ | — | |
| Gross Margin YoY | — | |
| Gross Margin IPRWA | — | |
| EBIT Margin | 31.584 % | |
| EBIT Margin QoQ | 61.011 % | |
| EBIT Margin YoY | 25.378 % | |
| EBIT Margin IPRWA | high: 56.115 % RLI: 31.584 % mean: 19.604 % median: 18.418 % low: -6.456 % |
|
| Return On Sales (ROS) | — | |
| Return On Sales QoQ | — | |
| Return On Sales YoY | — | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 173.4 M | |
| Free Cash Flow Yield | 2.719 % | |
| Free Cash Flow Yield QoQ | 87.647 % | |
| Free Cash Flow Yield YoY | 22.976 % | |
| Free Cash Flow Yield IPRWA | high: 9.624 % median: 3.059 % mean: 2.958 % RLI: 2.719 % low: -2.404 % |
|
| Free Cash Growth | 69.249 % | |
| Free Cash Growth QoQ | -451.982 % | |
| Free Cash Growth YoY | -30.111 % | |
| Free Cash Growth IPRWA | high: 452.291 % RLI: 69.249 % mean: 6.492 % median: -22.541 % low: -536.334 % |
|
| Free Cash To Net Income | 1.395 | |
| Cash Flow Margin | 22.058 % | |
| Cash Flow To Earnings | 0.887 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 2.122 % | |
| Return On Assets QoQ | 90.656 % | |
| Return On Assets YoY | 40.437 % | |
| Return On Assets IPRWA | high: 3.613 % RLI: 2.122 % mean: 1.706 % median: 1.607 % low: -1.659 % |
|
| Return On Capital Employed (ROCE) | — | |
| Return On Equity (ROE) | 0.072 | |
| Return On Equity QoQ | 81.883 % | |
| Return On Equity YoY | 38.539 % | |
| Return On Equity IPRWA | high: 0.129 RLI: 0.072 mean: 0.066 median: 0.056 low: -0.085 |
|
| DuPont ROE | 7.447 % | |
| Return On Invested Capital (ROIC) | 6.836 % | |
| Return On Invested Capital QoQ | 81.182 % | |
| Return On Invested Capital YoY | -185.998 % | |
| Return On Invested Capital IPRWA | high: 11.32 % RLI: 6.836 % mean: 5.534 % median: 4.929 % low: -2.574 % |
|