RLI Corp. reported a strong financial performance for the second quarter and first half of 2025, with net premiums earned reaching $401.9 million for the quarter, a 6% increase from $379.1 million in the same period of 2024. For the first six months, net premiums earned rose to $800.2 million, up 8% from $739.7 million year-over-year. The company also saw a significant increase in net investment income, which totaled $39.4 million for the second quarter and $76.1 million for the first half, reflecting a 16% and 14% increase, respectively, driven by a larger asset base and higher reinvestment rates. Overall, consolidated revenue for the second quarter was $499.8 million, compared to $416.4 million in 2024, while total revenue for the first half reached $907.5 million, up from $861.3 million.
Despite the revenue growth, RLI Corp. experienced a decline in net earnings, which totaled $124.3 million for the second quarter, compared to $82 million in the prior year, and $187.6 million for the first half, down from $209.9 million. The decrease in earnings was attributed to a decline in underwriting income, which was impacted by $14 million in pretax losses from catastrophe events and a shift in the mix of business towards casualty lines, which typically have higher loss ratios. The combined ratio for the second quarter was 84.5, up from 81.5 in 2024, while the first half combined ratio was 83.4, compared to 80.0 in the previous year.
RLI Corp. has also made strategic moves to enhance its market position, including a focus on expanding its casualty and surety segments, which contributed to the increase in gross premiums written. The company reported a 10% increase in gross premiums written for the casualty segment, driven by positive rate movements and new business growth. However, the property segment saw a decrease in gross premiums written, reflecting increased competition and declining rates. The surety segment also experienced growth, with a 3% increase in gross premiums written.
Operationally, RLI Corp. maintained a strong balance sheet, with total assets increasing to $5.99 billion as of June 30, 2025, up from $5.63 billion at the end of 2024. The company’s investments and cash totaled $4.43 billion, reflecting a diversified portfolio primarily composed of fixed income and equity securities. The company’s effective tax rate remained stable at 20.2% for the first half of 2025, compared to 20.3% in the same period of 2024. Looking ahead, RLI Corp. anticipates continued growth in its casualty and surety segments, while remaining vigilant in managing its underwriting profitability and investment portfolio amidst changing market conditions.
About RLI CORP
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