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RLI REPORTS THIRD QUARTER 2025 RESULTS

PEORIA, ILLINOIS, October 20, 2025 – RLI Corp. (NYSE: RLI) – RLI Corp. reported third quarter 2025 net earnings of $124.6 million ($1.35 per share), compared to $95.0 million ($1.03 per share) for the third quarter of 2024. Operating earnings⁽¹⁾ for the third quarter of 2025 were $77.0 million ($0.83 per share), compared to $60.4 million ($0.65 per share) for the same period in 2024.

All share and per share data in this release reflect the two-for-one stock split that RLI executed on January 15, 2025.


	Third Quarter				Year to Date
Earnings Per Diluted Share	2025		2024		2025		2024
Net earnings	$	1.35	$	1.03	$	3.38	$	3.30
Operating earnings ⁽¹⁾	$	0.83	$	0.65	$	2.60	$	2.46

(1)

See discussion below: Non-GAAP and Performance Measures.

Highlights for the quarter included:

●

Underwriting income⁽¹⁾ of $60.5 million on a combined ratio⁽¹⁾ of 85.1.

●

Gross premiums written were flat and net investment income increased 12%.

●

Favorable development in prior years’ loss reserves resulted in a $13.7 million net increase in underwriting income.

●

Book value per share of $20.41, an increase of 26% (inclusive of dividends) from year-end 2024.

“We are pleased to report another quarter of profitable results,” said RLI Corp. President & CEO Craig Kliethermes. “Our 85 combined ratio reflects disciplined underwriting and consistent execution of our strategy in a competitive market. Favorable reserve development and minimal catastrophe activity during the quarter supported strong underwriting results. In addition, investment income growth and solid portfolio returns contributed to a 26% increase in book value per share since year-end 2024. These results reflect the strength of our talented team and the resilience of our diversified product portfolio.”

Underwriting Income

RLI achieved $60.5 million of underwriting income in the third quarter of 2025 on an 85.1 combined ratio, compared to $40.7 million on an 89.6 combined ratio in 2024.

Results for both years include favorable development in prior years’ loss reserves, which resulted in a $13.7 million and $18.1 million net increase to underwriting income in 2025 and 2024, respectively.

The following table highlights underwriting income and combined ratios by segment for the third quarter.


Underwriting Income⁽¹⁾					Combined Ratio⁽¹⁾
(in millions)	2025		2024			2025	2024
Casualty	$	4.5	$	2.6	Casualty	98.2	98.8
Property		50.4		30.4	Property	60.2	77.2
Surety		5.6		7.7	Surety	85.0	78.8
Total	$	60.5	$	40.7	Total	85.1	89.6

(1)

See discussion below: Non-GAAP and Performance Measures.

Other Income

Net investment income for the quarter increased 12% to $41.3 million, compared to the same period in 2024. The investment portfolio’s total return was 3.0% for the quarter and 7.4% for the nine months ended September 30, 2025.

RLI’s comprehensive earnings were $152.3 million for the quarter ($1.65 per share), compared to $175.3 million ($1.90 per share) for the same quarter in 2024. In addition to net earnings, comprehensive earnings for 2025 included after-tax unrealized gains from the fixed income portfolio, due to declining interest rates.

Dividends Paid in Third Quarter of 2025

On September 19, 2025, the company paid a regular quarterly dividend of $0.16 per share, the same amount as the prior quarter. RLI’s cumulative dividends total more than $975 million paid over the last five years.

Non-GAAP and Performance Measures

Management has included certain non-generally accepted accounting principles (non-GAAP) financial measures in presenting the company’s results. Management believes that these non-GAAP measures further explain the company’s results of operations and allow for a more complete understanding of the underlying trends in the company’s business. These measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles (GAAP). In addition, our definitions of these items may not be comparable to the definitions used by other companies.

Operating earnings and operating earnings per share (EPS) consist of our GAAP net earnings adjusted by net realized gains/(losses), net unrealized gains/(losses) on equity securities and taxes related thereto. Net earnings and net earnings per share are the GAAP financial measures that are most directly comparable to operating earnings and operating EPS. A reconciliation of the operating earnings and operating EPS to the comparable GAAP financial measures is included in the 2025 financial highlights below.

Underwriting income or profit represents the pretax profitability of our insurance operations and is derived by subtracting loss and settlement expenses, policy acquisition costs and insurance operating expenses from net premium earned, which are all GAAP financial measures. The combined ratio, which is derived from components of underwriting income, is a performance measure commonly used by property and casualty insurance companies and is calculated as the sum of loss and settlement expenses, policy acquisition costs and insurance operating expenses, divided by net premiums earned, which are all GAAP measures.

Other News

At 10 a.m. central daylight time (CDT) on October 21, 2025, RLI management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion at https://events.q4inc.com/attendee/441675041.

Except for historical information, this news release may include forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) including, without limitation, statements reflecting our current expectations about the future performance of our company or our business segments or about future market conditions. These statements are subject to certain risk factors that could cause actual results to differ materially. Various risk factors that could affect future results are listed in the company's filings with the Securities and Exchange Commission, including the Form 10-K Annual Report for the year ended December 31, 2024.

About RLI

RLI Corp. (NYSE: RLI) is a specialty insurer serving niche property, casualty and surety markets. The company provides deep underwriting expertise and superior service to commercial and personal lines customers nationwide. RLI’s products are offered through its insurance subsidiaries – RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company. All of RLI’s insurance subsidiaries are rated A+ (Superior) by AM Best Company. RLI has paid and increased regular dividends for 50 consecutive years and delivered underwriting profits for 29 consecutive years. To learn more about RLI, visit www.rlicorp.com.

Media Contact

Aaron Diefenthaler

Chief Investment Officer & Treasurer

309-693-5846

Aaron.Diefenthaler@rlicorp.com

Supplemental disclosure regarding the earnings impact of specific items:


	Reserve Development⁽¹⁾ and Catastrophe Losses,
	Net of Reinsurance
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(Dollars in millions, except per share amounts)	2025		2024		2025		2024
Favorable development in casualty prior years' reserves	$	8.1	$	9.0	$	28.6	$	40.0
Favorable development in property prior years' reserves	$	4.7	$	4.4	$	27.2	$	28.5
Favorable development in surety prior years' reserves	$	2.7	$	3.1	$	13.3	$	10.9

Net incurred losses related to:
2025 catastrophe events	$	—	$	—	$	(26.0)	$	—
2024 and prior catastrophe events	$	—	$	(35.0)	$	5.0	$	(61.0)

	Operating Earnings Per Share
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
Operating Earnings Per Share⁽²⁾	$	0.83	$	0.65	$	2.60	$	2.46

Specific items included in operating earnings per share:^{(1) (3)}
Net favorable development in casualty prior years' reserves	$	0.06	$	0.06	$	0.19	$	0.29
Net favorable development in property prior years' reserves	$	0.04	$	0.03	$	0.21	$	0.22
Net favorable development in surety prior years' reserves	$	0.02	$	0.02	$	0.10	$	0.08

Net incurred losses related to:
2025 catastrophe events	$	—	$	—	$	(0.19)	$	—
2024 and prior catastrophe events	$	—	$	(0.25)	$	0.04	$	(0.45)

(1)	Reserve development reflects changes from previously estimated losses.

(2)	See discussion above: Non-GAAP and Performance Measures.

(3)	Items included in operating earnings per share are after tax and incorporates incentive and profit sharing-related impacts which affected policy acquisition, insurance operating and general corporate expenses.

RLI CORP

2025 FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)


	Three Months Ended September 30,						Nine Months Ended September 30,
SUMMARIZED INCOME STATEMENT DATA:	2025		2024		% Change		2025			2024			% Change
Net premiums earned	$	407,695	$	389,489	4.7	%	$	1,207,944		$	1,129,230		7.0	%
Net investment income		41,270		36,694	12.5	%		117,414			103,502		13.4	%
Net realized gains		18,318		5,420	NM			48,234			11,222		NM
Net unrealized gains on equity securities		41,981		38,392	9.3	%		43,163			87,314		(50.6)	%
Consolidated revenue	$	509,264	$	469,995	8.4	%	$	1,416,755		$	1,331,268		6.4	%
Loss and settlement expenses		187,998		202,118	(7.0)	%		549,814			513,741		7.0	%
Policy acquisition costs		128,937		117,811	9.4	%		378,126			342,186		10.5	%
Insurance operating expenses		30,215		28,868	4.7	%		86,683			84,892		2.1	%
Interest expense on debt		1,364		1,617	(15.6)	%		4,049			4,839		(16.3)	%
General corporate expenses		5,045		3,994	26.3	%		12,747			13,144		(3.0)	%
Total expenses	$	353,559	$	354,408	(0.2)	%	$	1,031,419		$	958,802		7.6	%
Equity in earnings of unconsolidated investees		1,540		1,238	24.4	%		7,055			7,653		(7.8)	%
Earnings before income taxes	$	157,245	$	116,825	34.6	%	$	392,391		$	380,119		3.2	%
Income tax expense		32,635		21,798	49.7	%		80,231			75,200		6.7	%
Net earnings	$	124,610	$	95,027	31.1	%	$	312,160		$	304,919		2.4	%

Other comprehensive earnings, net of tax		27,674		80,293	(65.5)	%		76,405			59,779		27.8	%
Comprehensive earnings	$	152,284	$	175,320	(13.1)	%	$	388,565		$	364,698		6.5	%

Operating earnings⁽¹⁾:
Net earnings	$	124,610	$	95,027	31.1	%	$	312,160		$	304,919		2.4	%
Less:
Net realized gains		(18,318)		(5,420)	NM			(48,234)			(11,222)		NM
Income tax on realized gains		3,848		1,139	NM			10,130			2,357		NM
Net unrealized gains on equity securities		(41,981)		(38,392)	9.3	%		(43,163)			(87,314)		(50.6)	%
Income tax on unrealized gains on equity securities		8,816		8,062	9.4	%		9,064			18,335		(50.6)	%
Operating earnings	$	76,975	$	60,416	27.4	%	$	239,957		$	227,075		5.7	%

Return on Equity:
Net earnings (trailing four quarters)								20.8	%		27.7	%
Comprehensive earnings (trailing four quarters)								21.3	%		38.4	%

Per Share Data:
Diluted:
Weighted average shares outstanding (in 000's)		92,310		92,441				92,460			92,370

Net earnings per share	$	1.35	$	1.03	31.1	%	$	3.38		$	3.30		2.4	%
Less:
Net realized gains		(0.20)		(0.06)	NM			(0.52)			(0.12)		NM
Income tax on realized gains		0.04		0.01	NM			0.11			0.03		NM
Net unrealized gains on equity securities		(0.45)		(0.42)	7.1	%		(0.47)			(0.95)		(50.5)	%
Income tax on unrealized gains on equity securities		0.09		0.09	0.0	%		0.10			0.20		(50.0)	%
Operating earnings per share⁽¹⁾	$	0.83	$	0.65	27.7	%	$	2.60		$	2.46		5.7	%

Comprehensive earnings per share	$	1.65	$	1.90	(13.2)	%	$	4.20		$	3.95		6.3	%

Cash dividends per share - ordinary	$	0.16	$	0.15	10.3	%	$	0.47		$	0.43		10.6	%

Net cash flow provided by operations	$	179,220	$	219,368	(18.3)	%	$	457,453		$	432,139		5.9	%

(1)	See discussion above: Non-GAAP and Performance Measures.

NM = Not Meaningful

RLI CORP

2025 FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)


	September 30,		December 31,
	2025		2024		% Change
SUMMARIZED BALANCE SHEET DATA:
Fixed income, at fair value	$	3,536,484	$	3,175,796	11.4	%
(amortized cost - $3,655,954 at 9/30/25)
(amortized cost - $3,391,159 at 12/31/24)
Equity securities, at fair value		878,872		736,191	19.4	%
(cost - $513,255 at 9/30/25)
(cost - $417,897 at 12/31/24)
Short-term investments		165,706		74,915	121.2	%
Other invested assets		56,494		57,939	(2.5)	%
Cash and cash equivalents		52,621		39,790	32.2	%
Total investments and cash	$	4,690,177	$	4,084,631	14.8	%

Accrued investment income		29,584		28,319	4.5	%
Premiums and reinsurance balances receivable		231,530		230,534	0.4	%
Ceded unearned premiums		123,039		124,955	(1.5)	%
Reinsurance balances recoverable on unpaid losses		769,611		755,425	1.9	%
Deferred policy acquisition costs		181,488		166,214	9.2	%
Property and equipment		41,094		43,172	(4.8)	%
Investment in unconsolidated investees		63,652		56,477	12.7	%
Goodwill and intangibles		53,562		53,562	0.0	%
Income taxes - deferred		—		7,793	(100.0)	%
Other assets		63,263		77,720	(18.6)	%
Total assets	$	6,247,000	$	5,628,802	11.0	%

Unpaid losses and settlement expenses	$	2,873,054	$	2,693,470	6.7	%
Unearned premiums		1,035,756		984,140	5.2	%
Reinsurance balances payable		35,951		44,681	(19.5)	%
Funds held		113,753		97,380	16.8	%
Income taxes - current		9,792		749	NM
Income taxes - deferred		23,157		—	NM
Short-term debt		100,000		100,000	—	%
Accrued expenses		110,660		124,242	(10.9)	%
Other liabilities		70,701		62,173	13.7	%
Total liabilities	$	4,372,824	$	4,106,835	6.5	%
Shareholders' equity		1,874,176		1,521,967	23.1	%
Total liabilities & shareholders' equity	$	6,247,000	$	5,628,802	11.0	%

OTHER DATA:
Common shares outstanding (in 000's)		91,838		91,738

Book value per share	$	20.41	$	16.59	23.0	%
Closing stock price per share	$	65.22	$	82.42	(20.9)	%

Statutory surplus	$	1,887,627	$	1,787,312	5.6	%

NM = Not Meaningful

RLI CORP

2025 FINANCIAL HIGHLIGHTS

UNDERWRITING SEGMENT DATA

(Unaudited)

(Dollars in thousands, except per share amounts)


Three Months Ended September 30,
			GAAP				GAAP				GAAP				GAAP
	Casualty		Ratios		Property		Ratios		Surety		Ratios		Total		Ratios
2025

Gross premiums written	$	317,063			$	154,631			$	38,527			$	510,221
Net premiums written		263,395				109,007				34,924				407,326
Net premiums earned		243,508				126,689				37,498				407,695
Net loss & settlement expenses		150,912	62.0	%		32,815	25.9	%		4,271	11.4	%		187,998	46.1	%
Net operating expenses		88,110	36.2	%		43,450	34.3	%		27,592	73.6	%		159,152	39.0	%
Underwriting income ⁽¹⁾	$	4,486	98.2	%	$	50,424	60.2	%	$	5,635	85.0	%	$	60,545	85.1	%

2024

Gross premiums written	$	294,267			$	173,813			$	39,710			$	507,790
Net premiums written		242,650				122,428				36,466				401,544
Net premiums earned		219,638				133,266				36,585				389,489
Net loss & settlement expenses		137,951	62.8	%		60,991	45.8	%		3,176	8.7	%		202,118	51.9	%
Net operating expenses		79,138	36.0	%		41,873	31.4	%		25,668	70.1	%		146,679	37.7	%
Underwriting income ⁽¹⁾	$	2,549	98.8	%	$	30,402	77.2	%	$	7,741	78.8	%	$	40,692	89.6	%


Nine Months Ended September 30,
			GAAP				GAAP				GAAP				GAAP
	Casualty		Ratios		Property		Ratios		Surety		Ratios		Total		Ratios
2025

Gross premiums written	$	902,127			$	536,500			$	124,981			$	1,563,608
Net premiums written		755,247				391,662				114,567				1,261,476
Net premiums earned		707,194				389,897				110,853				1,207,944
Net loss & settlement expenses		438,007	61.9	%		103,999	26.7	%		7,808	7.0	%		549,814	45.5	%
Net operating expenses		254,341	36.0	%		129,048	33.1	%		81,420	73.5	%		464,809	38.5	%
Underwriting income (loss)⁽¹⁾	$	14,846	97.9	%	$	156,850	59.8	%	$	21,625	80.5	%	$	193,321	84.0	%

2024

Gross premiums written	$	826,152			$	590,191			$	123,495			$	1,539,838
Net premiums written		687,170				439,052				112,854				1,239,076
Net premiums earned		627,014				396,774				105,442				1,129,230
Net loss & settlement expenses		369,273	58.9	%		134,950	34.0	%		9,518	9.0	%		513,741	45.5	%
Net operating expenses		231,203	36.9	%		120,526	30.4	%		75,349	71.5	%		427,078	37.8	%
Underwriting income (loss)⁽¹⁾	$	26,538	95.8	%	$	141,298	64.4	%	$	20,575	80.5	%	$	188,411	83.3	%

(1)	See discussion above: Non-GAAP and Performance Measures.