RLI Corp Reports Q3 Earnings

NEW YORK – RLI Corp (NYSE:RLI) reported better-than-expected third quarter earnings on Monday, though revenue fell short of analyst estimates. The specialty insurer's shares edged up 0.65% in after-hours trading following the release.

RLI posted adjusted earnings per share of $1.31 for the third quarter, surpassing the analyst consensus of $0.97 by $0.34. However, revenue came in at $470 million, below the $491.28 million analysts had projected.

The company's underwriting income rose significantly to $40.7 million, compared to just $4.2 million in the same quarter last year. This improvement came despite $32.7 million in losses from Hurricanes Beryl and Helene during the period.

> "Despite the storm activity in the third quarter, we continued to find opportunities for balanced top line growth across our portfolio," said RLI Corp. President & CEO Craig Kliethermes. "Our diversified business model, sound risk selection and disciplined underwriting resulted in a solid 90 combined ratio."

Gross premiums written increased 13% year-over-year to $507.8 million. Net investment income also saw healthy growth, rising 15% to $36.7 million.

The company reported a combined ratio of 89.6% for the quarter, a substantial improvement from 98.7% in Q3 2023. A combined ratio below 100% indicates an underwriting profit.

RLI's book value per share rose to $38.17 as of September 30, up 26% year-to-date including dividends.

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