RLI Corp. reported a solid financial performance for the third quarter and the first nine months of 2025, with net premiums earned reaching $407.7 million for the quarter, a 5% increase from $389.5 million in the same period last year. For the nine months ended September 30, 2025, net premiums earned totaled $1.2 billion, up 7% from $1.1 billion in 2024. The company also saw a rise in net investment income, which increased to $41.3 million in the third quarter and $117.4 million for the nine-month period, reflecting a 12% and 13% increase, respectively, driven by a larger asset base and higher reinvestment rates.
The company's profitability metrics showed improvement, with net earnings for the third quarter of 2025 at $124.6 million, compared to $95 million in the prior year, and net earnings for the nine months totaling $312.2 million, slightly up from $304.9 million in 2024. The underwriting income for the first nine months was $193.3 million, with a combined ratio of 84.0, indicating effective cost management and favorable loss development. This was a slight increase from the $188.4 million underwriting income and a combined ratio of 83.3 in the same period last 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 significantly to premium growth. The company reported a 25% increase in gross premiums written for commercial excess and personal umbrella lines, reflecting successful marketing efforts and a favorable competitive landscape. However, the property segment experienced a decline in gross premiums written, attributed to increased competition and rate reductions in commercial property exposures.
Operationally, RLI Corp. maintained a strong balance sheet, with total assets increasing to $6.25 billion as of September 30, 2025, up from $5.63 billion at the end of 2024. The company’s investment portfolio also grew, with fixed income securities valued at $3.54 billion, representing a significant portion of its total investments. The company reported a slight increase in employee headcount, reflecting ongoing investments in talent and technology to support its growth strategy.
Looking ahead, RLI Corp. remains optimistic about its growth trajectory, emphasizing its commitment to underwriting profitability while navigating the competitive landscape of the insurance market. The company anticipates continued premium growth, particularly in its casualty segment, and expects to leverage its investment portfolio to support operational needs and shareholder returns. The effective tax rate for the first nine months of 2025 was 20.4%, slightly higher than the previous year, influenced by changes in tax-favored adjustments and higher pretax income levels.
About RLI CORP
RLI Corp. is a specialty insurance provider offering property, casualty, and surety products through three subsidiaries. It serves diverse markets across the U.S., focusing on niche, hard-to-place risks with tailored coverage. The company emphasizes strong financial strength, extensive reinsurance, and a disciplined underwriting approach, competing on service and coverage quality. Its business model centers on niche markets, broker and agent distribution, and maintaining high capital and rating standards.
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