RLI Corp. reported second quarter 2026 net earnings of $168.0 million ($1.82 per share), a 35.1% increase compared to $124.3 million ($1.34 per share) in the second quarter of 2025. Operating earnings for the second quarter of 2026 were $76.9 million ($0.83 per share), compared to $76.2 million ($0.82 per share) for the same period in 2025. The specialty insurer's consolidated revenue for the quarter reached $575.569 million, up 15.2% from $499.826 million in the prior-year period.

Earnings Per Share Summary

The following table summarizes RLI's earnings per diluted share for the second quarter and year-to-date periods:

Key Quarterly Highlights

Highlights for the second quarter included:

• Underwriting income of $59.9 million on a combined ratio of 85.6
• Net investment income increased 17%, and gross premiums written increased 3%
• Favorable development in prior years' loss reserves resulted in a $35.1 million net increase in underwriting income
• Book value per share of $19.09, an increase of 11% (inclusive of dividends and share repurchases) from year-end 2025
• Share repurchase program of $250.0 million authorized; $12.0 million of common stock repurchased
• Special dividend of $2.00 per share paid, returning $184.0 million to shareholders

"We are pleased to report another quarter of premium growth and profitability," said RLI Corp. President & CEO Craig Kliethermes. "Gross premiums written increased 3%, driven by our casualty segment, while strong margins in our property and surety segments contributed to an 86 combined ratio. Net investment income increased 17%, complementing our underwriting results and contributing to an 11% increase in book value per share since year-end 2025, including dividends returned to shareholders."

Underwriting Performance by Segment

RLI achieved $59.9 million of underwriting income in the second quarter of 2026 on an 85.6 combined ratio, compared to $62.2 million on an 84.5 combined ratio in 2025. Results for both years include favorable development in prior years' loss reserves, which resulted in a $35.1 million and $24.4 million net increase to underwriting income in 2026 and 2025, respectively.

The following table highlights underwriting income and combined ratios by segment for the second quarter:

Summarized Income Statement Data

The following table presents key income statement metrics for the second quarter and year-to-date periods:

Other Income and Comprehensive Earnings

Net investment income for the quarter increased 17% to $46.0 million, compared to the same period in 2025. The investment portfolio's total return was 3.4% for the quarter and 3.0% for the six months ended June 30, 2026. RLI's comprehensive earnings were $165.7 million for the quarter ($1.80 per share), compared to $143.0 million ($1.55 per share) for the same quarter in 2025. Comprehensive earnings for 2026 included after-tax unrealized losses from the fixed income portfolio, due to rising interest rates.

Dividends and Share Repurchase Program

On June 12, 2026, the company paid a special cash dividend of $2.00 per share and a regular quarterly dividend of $0.18 per share, a 12.5% increase over the prior quarter. On May 14, 2026, the company's Board of Directors authorized a share repurchase program of up to $250.0 million of the company's outstanding common stock. During the second quarter, RLI repurchased 234,973 shares at an average price of $51.25 per share for a total cost of $12.0 million. As of June 30, 2026, $238.0 million of remaining capacity was available under the share repurchase program. Over the past five years, RLI has returned more than $1.3 billion to its shareholders through dividends and share repurchases.

Balance Sheet Highlights

The following table summarizes key balance sheet data as of June 30, 2026 compared to December 31, 2025:

Industry Recognition

On July 9, 2026, RLI was named one of the insurance industry's top-performing companies for the 36th consecutive year by Ward Benchmarking, a business unit of Aon. RLI is the only property & casualty insurance company to be recognized as a Ward's 50® P&C Top Performer every year since the list's inception in 1991. RLI Corp. is a specialty insurer serving niche property, casualty and surety markets. All of RLI's insurance subsidiaries are rated A++ (Superior) by AM Best Company. RLI has paid and increased regular dividends for 51 consecutive years and delivered underwriting profits for 30 consecutive years.

RLI Corp. appointed James H. Bradshaw to its Board of Directors effective July 15, 2026, bringing over four decades of insurance industry leadership to the specialty insurer. The appointment expires at the company’s next shareholders’ meeting in May 2027, where Bradshaw will stand for re-election. This strategic addition aims to bolster the board's expertise as RLI continues to target profitable growth in niche property, casualty, and surety markets.

Bradshaw currently serves as Chairman of Gallagher Re North America, a position he assumed in 2024 after more than a decade as Chief Executive Officer of the same entity and its predecessor, Willis Re North America. His career also includes leadership and underwriting roles at Guy Carpenter and Chubb. RLI Corp. Board Chairman Dave Duclos highlighted that Bradshaw's extensive experience and strategic perspective will provide valuable insights into the company's business model.

Background and Experience

Bradshaw's professional history spans more than 40 years, focusing on insurance industry leadership, strategy, and market development. His tenure at Willis Re North America and Gallagher Re North America positions him as a seasoned executive in the reinsurance sector.

About RLI Corp.

RLI Corp. operates as a specialty insurer serving niche property, casualty, and surety markets. The company offers products through its subsidiaries, including RLI Insurance Company, Mt. Hawley Insurance Company, and Contractors Bonding and Insurance Company. All subsidiaries hold an A++ "Superior" rating from AM Best Company.