RLI : Investor presentation 1st quarter, 2026
RLI
Published on 05/01/2026 at 10:47 am EDT
OUR PURPOSE, VISION, MISSION & STRATEGY
Our purpose, vision, mission and strategy serve as the foundation of our balanced growth plan.
Purpose Vision Mission Strategy
Protect people and organizations from life's uncertainties to help them explore, create, build and thrive.
Be the recognized performance leader of the
U.S. specialty insurance industry.
Provide industry-leading specialty risk management solutions that are convenient, tailored and fill unmet customer needs.
Create sustainable value and differentiate RLI in the marketplace through industry-leading products, unmatched expertise and exceptional customer service.
3
RLI OVERVIEW
RLI is a domestic, specialty insurance company that handles its own underwriting and claims.
Underwriting Company
Growth through Discipline
Ownership Culture & Compensation
Diversified Insurance Product Portfolio
Capital Management
Hire talented, entrepreneurial underwriters with narrow & deep knowledge
Focus on difficult
Emphasize profitable, organic product growth
Explore talent acquisition & start-ups
Selectively consider
Underwriting leadership compensation is tied to product specific underwriting profit
139 ESOP accounts
Products are run like stand-alone, largely-autonomous, businesses
Maintain a highly
Retain enough capital to meet policyholder needs
Lean into profitable underwriting opportunities when they arise
markets that require
unique expertise
Encourage a strong feedback loop between underwriting and claims
Underwriting discipline and results are paramount
balance sheet
acquisitions that preserve RLI's unique culture
exceeded $500,000 as
of 12/31/25, highlighting the breadth of our shared rewards and shareholder alignment
diverse product portfolio
to reduce corporate risk
Many products are tailored to fill a void in the market
•
•
•
Return excess capital to
shareholders
Maintain our ability to raise traditional third-party capital as needed
•
⏹93% Institutions & other
public investors
⏹ 7% Insiders & Employee Stock Ownership Plan ("ESOP")
4
OUR STRATEGY
Customer Focus
Customer Experience
Growth Adjacencies
How We Create Value
By sharing our expertise and offering exceptional service to our customers, our highly engaged employees create lasting relationships and can see the impact they make on our business.
Trusted Partnerships
Community
People
Cultural Adaptability
Value Creation
Stability
Ease of Use
Continuous Improvement
Tech Investment
Innovation
We incorporate our customers' feedback to ensure our products meet their needs and that we remain a stable, trusted partner that is easy to work with and fulfills our promise to pay claims owed.
Our shareholders benefit from our diversified, resilient business model, which produces consistent financial performance.
5
COMPETITIVE ADVANTAGES
RLI will capitalize on our competitive advantages to drive profitable growth.
WE CARE
Relationship oriented
Community minded
Responsible
Sustainable
Continuously improve
EMPOWERED
Responsive
Accountable
Curious
Distributed decision making
Flat structure
SERVICE ORIENTED
Innovative problem solvers
Dedicated
Transparent
Authentic
Humble
UNDERWRITE FOR PROFIT
Specialists with deep expertise
Collaborative
Tailored risk selection in niche markets
Aligned compensation
Shared rewards
DELIBERATE
Rational
Diversified
Resilient
Downside risk management
Long-term outlook
SAFEGUARD
OUR REPUTATION
People focused
Disciplined
Strive for excellence
Consistent
Stable
6 Interwoven, complementary and fortified by a common DNA.
FINANCIAL STRENGTH AND STABILITY
Our financial track record has been stellar for decades - a testament to our ownership culture and reputation as an excellent underwriting company.
SUPERIOR1
(1)Upgraded from A+ to A++ in February 2026
4.8/5
STARS ON
STRONG
TOP P&C PERFORMER FOR 35 YEARS2
(2)Only insurer to be recognized every year since inception
7
SELECT MARKET INFORMATION
RLI has a rich history as a publicly traded company and has consistently created value for its shareholders.
Ticker / Exchange
RLI / NYSE
Share Price (as of 3/31/2026)
$57.04
Annual Dividend / Yield (as of 3/31/2026)
$0.64 / 1.12%
Market Cap
$5.24 billion
Annual Gross Premium (Trailing 4 qtr.)
$2,040 million
Employees
1,183
Leadership Average Industry Experience / RLI Tenure
28 Years / 18 Years
20 Year Annual Shareholder Return
12.1%
8
Q1 2026 FINANCIAL UPDATE
2026
First Quarter
2025
% Change
Earnings Per Diluted Share
Net earnings
$ 0.60
$ 0.68
(11.8)%
Operating earnings
$ 0.83
$ 0.89
(6.7)%
Net Premiums Earned (in millions)
Casualty
$ 248.6
$ 229.0
8.6%
Property
$ 126.4
$ 132.5
(4.6)%
Surety
$ 36.4
$ 36.8
(1.1)%
Total
$ 411.4
$ 398.3
3.3%
Underwriting Income (Loss) (in millions)
Casualty
$ 7.3
$ 2.1
247.6%
Property
$ 48.2
$ 56.9
(15.3)%
Surety
$ 2.3
$ 11.5
(80.0)%
Total
$ 57.8
$ 70.5
(18.0)%
Combined Ratio
Casualty
97.1
99.1
Property
61.9
57.1
Surety
93.7
68.5
Total
86.0
82.3
Other 1Q26 Highlights
3% increase in gross premiums written
Favorable development in prior years' loss reserves, resulting in a $31.3 million net increase in underwriting income
Book value per share of $19.54, an increase of 2% (inclusive of dividends) from year-end 2025
9
DIVERSIFIED PRODUCT PORTFOLIO: NET PREMIUM1
Product diversification has fueled our growth & financial success.
E&S: 34% of NWP1
Specialty Admitted: 66% of NWP1
E&S Property2
General Liability2
Excess Liability2
Other
Executive Products
Transportation
Earthquake2
Marine
Property (29%)
Surety (9%)
Casualty (62%)
Professional Services
Commercial Package
Hawaii Homeowners/Other
Contract
Commercial
Transactional
Personal Umbrella
10 (1) Trailing 4 Quarters Net Written Premium.
(2) E&S line.
PRODUCT DISTRIBUTION
Our strong customer relationships extend across a diverse distribution network.
Casualty
Retail Agent / Broker
Wholesale Broker
General Agency /
Carrier Partner
General liability
Property
E&S property & Earthquake
Marine
Personal lines
Surety
Contract
Commercial
Excess liability Personal umbrella Transportation Executive products Professional services Commercial package
11
MARKET CYCLE MANAGEMENT
RLI's strong people, products & processes allow us to effectively manage through different market cycles, which vary by product.
$2,000
$1,500
Gross Premium (in millions)
$600
INVEST in people, products & processes in all markets
EMPOWER
underwriters to capitalize during hard markets and pull back, when necessary, during soft markets
ENFORCE strict underwriting discipline throughout the cycle
MAXIMIZE financial strength & flexibility
$500
$400
$1,000
$300
$500
$200
$100
RLI Total (LHS) Transportation (RHS) E&S Property (RHS)
$- $-
12
RESERVE DEVELOPMENT
RLI has a history of disciplined and prudent reserving.
$140M
14.0%
$120M 12.0%
$100M 10.0%
$80M 8.0%
$60M 6.0%
Favorable
$40M 4.0%
$20M 2.0%
$0M
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
0.0%
(Unfavorable)
$(20)M -2.0%
13
UNDERWRITING PROFIT
RLI has achieved 30 straight years of a combined ratio below 100 and has beaten the industry ratio by an average of 11 points1 over the last 10 years.
120
RLI
IIndustry2
110
100
90
RLI
Industry2,3
3-year average
84.9%
97.0%
5-year average
84.6%
98.7%
10-year average
88.5%
99.5%
80
70
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
60
(1) Statutory basis as of year-end 2025.
(2) AM Best (2025). Aggregates & Averages - Property/Casualty, United States & Canada. 1996-2024.
14 (3) Conning (2025). Property-Casualty Forecast & Analysis: By Line of Insurance, Fourth Quarter 2025.
Estimated for the year ended December 31, 2025.
INVESTMENT PORTFOLIO
Investing for the long term: A diversified, highly-rated bond portfolio complemented by active and passive equities.
Target Asset Allocation:
80% Bonds / 20% Equities
Bonds: AA- quality; 4.7 duration
Equities: ETFs and active large-cap; dividend yield of 1.4%
Emphasis on consistency of income and low turnover
Portfolio Allocation
(as of 3/31/2026)
Other Invested Assets 1.2%
$45
$40
$35
$30
$25
$20
Net Investment Income ($M)
$180
Quarterly (LHS)
Trailing 12 Months (RHS)
$160
$140
$120
$100
$80
Equities 17.7%
Cash 8.9%
Municipal 7.4%
ABS/CMBS 14.5%
$4.89 Billion Investment Portfolio
Corporate 30.8%
Govt/Agency 7.2%
$15
$10
$5
$-
15
2021 2022 2023 2024 2025 2026
$60
$40
$20
$-
Mortgage Backed 12.3%
MEASUREMENTS OF OUR SUCCESS
Combined Ratio
Book Value Growth3
30
consecutive years under 100 combined ratio1
39/42
years under 100 combined ratio2
11
margin (points) by which we beat the industry3
average annual growth in book value per share (including dividends)
Operating
Capital
Reserve
Return on
Equity3
Management
Consistency
13.3%
50
$461
average OROE
consecutive years of increased dividends (as of February 2025)
amount returned to shareholders since 12/31/2021
reserve releases since 12/31/2021
(1) As of year-end 2025.
(2) 1984 through year-end 2025.
16 (3) Over the last 10 years as of 12/31/25.
OPERATING RETURN ON EQUITY1
Over the previous 10 calendar years, RLI has averaged a 13.3% operating return on equity.
18.8%
17.9%
17.3%
17.3%
16.8%
12.3%
10.6%
10.7%
9.8%
9.8%
9.4%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q1 20262
(1) Operating return on equity (operating ROE) is operating earnings divided by average shareholders' equity. Operating earnings is a non-GAAP financial measure and consists of our GAAP net earnings adjusted by net realized gains/(losses), net unrealized gains/(losses) on equity securities that are recognized through net earnings in 2018 and forward and taxes related thereto. Beginning in the fourth quarter of 2025, equity in earnings of unconsolidated investees and the related taxes were excluded from operating earnings. The change was made to present a consistent approach in excluding all unrealized changes in equity investments. Prior periods have been recast to conform to the current definition. Net earnings is the most directly comparable GAAP financial measure to operating earnings. See the appendix to this presentation ("Non-GAAP Reconciliation") or our quarterly earnings releases for a reconciliation of net earnings to operating earnings.
17 (2) Trailing 12 months
DIVIDEND GROWTH1
$3.50
Regular Dividend
Special Dividend
$2.00 $2.00
$1.75
$1.50
$1.25 $1.25
$1.00
$1.00 $1.00
$1.00
$0.88
$0.75
$0.50 $0.50 $0.50
$0.29 $0.30 $0.32 $0.34 $0.36 $0.38 $0.40 $0.42 $0.44 $0.46 $0.48 $0.50 $0.52 $0.54
$0.57 $0.63 $0.64
RLI has a distinguished track record of sharing our success: 50 straight years of dividend increases2, a 5% annualized growth rate over the last 10 calendar years, and 16 years of special dividends.
$2.50
$2.00
$1.50
$1.00
$0.50
Run Rate
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
$-
18 (1) All share information adjusted for January 2025 2-for-1 stock split.
(2) As of February 2025.
TOTAL SHAREHOLDER RETURN1
Shareholder returns validate the RLI story.
$2,000
$1,500
$1,000
RLI
S&P 500
S&P P&C Index
1 year
-26.0%
17.8%
-5.6%
5 year
4.2%
12.0%
16.1%
10 year
9.1%
14.1%
14.2%
20 year
12.1%
10.5%
10.5%
through 3/31/26
$500
Q1 2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
$-
19 (1) Assumes $100 invested on December 31, 2006 in RLI and S&P 500, with reinvestment of dividends.
VALUE CREATION OPPORTUNITIES
RLI is pursuing multiple initiatives designed to create value.
Cycle Management
Platform Enhancements
Talent Acquisition
Disciplined pursuit of opportunities in adjacent products
Maximize margins throughout the cycle, organic growth enriched by market conditions
Invest in technology to leverage distribution and increase efficiency
Growth supported by hiring the best underwriters & claim professionals into the RLI model
Capitalize on opportunities in niche spaces through organic means and via acquisitions, when they make sense
20
Disclaimer
RLI Corporation published this content on May 01, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 01, 2026 at 14:46 UTC.