- RLI Corp. (RLI, Financial) reported first quarter 2025 net earnings of $63.2 million ($0.68 per share), a significant decrease from $127.9 million ($1.39 per share) in the same period of 2024.
- Gross premiums written grew by 5% and net investment income increased by 12% in the first quarter of 2025.
- The company's book value per share rose 6% to $17.48 from year-end 2024.
RLI Corp. (RLI) announced its financial results for the first quarter of 2025, highlighting a net earnings of $63.2 million, or $0.68 per share, which marks a decline from $127.9 million, or $1.39 per share, recorded for the same quarter the previous year. The decrease in net earnings can be attributed to various factors, including increased loss and settlement expenses.
Despite the drop in net earnings, RLI reported an operating earnings of $84.9 million, or $0.92 per share, which is slightly down from $87.4 million, or $0.95 per share, in the first quarter of 2024. The company executed a two-for-one stock split on January 15, 2025, which is reflected in all share and per share data.
Key highlights of the quarter include a 5% increase in gross premiums written, mainly driven by the casualty segment, and a 12% rise in net investment income. The firm's underwriting income was reported at $70.5 million on a combined ratio of 82.3, benefitting from a $27.4 million net increase due to favorable prior years’ loss reserve development.
RLI's President & CEO, Craig Kliethermes, expressed satisfaction with the continued premium growth and profitability, emphasizing the strength of their diversified, niche specialty portfolio. He mentioned that strong margins in the property and surety segments contributed significantly to the quarter's performance.
Additionally, the company reported a 6% increase in book value per share, reaching $17.48, inclusive of dividends since the end of 2024. The board declared a regular quarterly dividend of $0.15 per share, representing a 3.4% increase over the prior quarter.
The financial strength of RLI's insurance subsidiaries, including RLI Insurance Company, Mt. Hawley Insurance Company, and Contractors Bonding and Insurance Company, continues to be affirmed with an A+ (Superior) rating by AM Best Company.
