RLI Corp. Reports Q1 2025 Financial Results with Decrease in Net Earnings

RLI Corp. reported its financial results for the first quarter of 2025, revealing a net earnings figure of $63.2 million, a decrease from $127.9 million in the same period of 2024. The company's diluted earnings per share fell to $0.68 from $1.39 year-over-year. Total consolidated revenue for the quarter was $407.7 million, down from $444.8 million in the prior year, primarily due to a significant shift in unrealized gains and losses on equity securities, which saw a loss of $42.3 million compared to a gain of $45.3 million in 2024.

The company experienced a 10% increase in net premiums earned, totaling $398.3 million, driven largely by growth in its casualty segment. This growth was partially offset by a rise in losses and settlement expenses, which increased to $177.2 million from $143.8 million in the previous year. The underwriting income for the quarter was $70.5 million, with a combined ratio of 82.3, compared to $77.7 million and a combined ratio of 78.5 in the first quarter of 2024. The increase in the loss ratio to 44.5 from 39.9 was attributed to lower favorable development on prior years' loss reserves and a shift in the business mix towards higher loss ratio lines.

RLI Corp. has made strategic moves to enhance its market position, including a focus on expanding its casualty segment, which saw gross premiums written increase by $33 million. The company also reported a 12% rise in net investment income, reaching $36.7 million, attributed to a larger average asset base and higher reinvestment rates. However, the company faced challenges in its property segment, where gross premiums written decreased by $10 million due to increased competition and declining rates in certain areas.

Operationally, RLI Corp. maintained a strong balance sheet with total assets of $5.7 billion as of March 31, 2025, up from $5.6 billion at the end of 2024. The company’s investments and cash totaled $4.2 billion, reflecting a diversified portfolio primarily in fixed income securities. The company also reported a cash flow from operating activities of $103.5 million, significantly higher than the $70.9 million reported in the same quarter of the previous year. Looking ahead, RLI Corp. remains focused on underwriting profitability while navigating the competitive landscape of the insurance market, with expectations of continued premium growth and strategic investments to enhance its operational capabilities.