A Business at a Glance
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Item 1. Business RLI Corp. was founded in 1965. References to “the Company,” “we,” “our,” “us” or like terms refer to the business of RLI Corp. and its subsidiaries. We underwrite select property, casualty and surety products through major subsidiaries collectively known as RLI Insurance Group. We conduct operations through three insurance companies. RLI Insurance Company (RLI Ins.), a subsidiary of RLI Corp. and our principal insurance subsidiary, writes multiple lines of insurance on an admitted basis in all 50 states, the District of Columbia, Puerto Rico, the Virgin Islands and Guam. Mt. Hawley Insurance Company (Mt. Hawley), a subsidiary of RLI Ins., writes excess and surplus lines insurance on a non-admitted basis in all 50 states, the District of Columbia, Puerto Rico, the Virgin Islands and Guam. Contractors Bonding and Insurance Company (CBIC), a subsidiary of RLI Ins., writes multiple lines of insurance on an admitted basis in all 50 states and the District of Columbia.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.9B | 1.9B | 1.8B | 1.5B | 1.7B | 1.2B |
| Net Income | 403M | 403M | 346M | 305M | 583M | 279M |
| EPS | $4.37 | $4.37 | $1.87 | $1.66 | $3.19 | $3.06 |
| Free Cash Flow | 609M | 609M | 556M | 458M | 245M | 377M |
| ROIC | 22.1% | 24.4% | 22.8% | 21.1% | 41.6% | 20.6% |
| Gross Margin | 27.1% | 27.1% | 24.4% | 24.3% | 41.9% | 26.1% |
| Debt/Equity | 0.06 | 0.06 | 0.07 | 0.14 | 0.34 | 0.16 |
| Dividends/Share | $2.62 | $2.63 | $1.29 | $0.77 | $2.01 | $1.50 |
| Operating Income | 506M | 506M | 428M | 377M | 721M | 344M |
| Operating Margin | 26.9% | 26.9% | 24.2% | 25.0% | 42.4% | 29.2% |
| ROE | 22.7% | 24.4% | 23.6% | 23.5% | 48.5% | 23.6% |
| Shares Outstanding | 92M | 92M | 185M | 184M | 91M | 91M |
RLI CORP passes 8 of 9 quality checks, indicating strong fundamentals.
RLI CORP trades at 13.2x trailing earnings, compared to its 15-year median P/E of 18.3x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 8.7x vs a median of 12.6x. The company's 5-year average ROIC is 26.1% with a gross margin of 28.7%. Total shareholder yield (dividends) is 4.5%. At current prices, the estimated annualized return to fair value is +14.4%.
RLI CORP (RLI) has a current P/E ratio of 13.2, compared to its historical median P/E of 18.3. The stock is currently considered Fair based on its historical valuation range.
RLI CORP (RLI) has a 5-year average return on invested capital (ROIC) of 26.1%. This indicates strong capital allocation and a potential competitive advantage.
RLI CORP (RLI) has a market capitalization of $5.3B. It is classified as a mid-cap stock.
Yes, RLI CORP (RLI) pays a dividend with a trailing twelve-month yield of 4.53%.
Based on historical P/E analysis, RLI CORP (RLI) appears fair. The current P/E of 13.2 is 28% below its historical median of 18.3. The estimated fair value CAGR (P/E method) is 23.0%.
RLI CORP (RLI) operates in the Fire, Marine & Casualty Insurance industry, within the Financials sector.
RLI CORP (RLI) reported annual revenue of $1.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
RLI CORP (RLI) has a net profit margin of 21.4%. This is a strong margin indicating high profitability.
RLI CORP (RLI) generated $609 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
RLI CORP (RLI) has a debt-to-equity ratio of 0.06. This indicates a conservatively financed balance sheet.
RLI CORP (RLI) reported earnings per share (EPS) of $4.37 in its most recent fiscal year.
RLI CORP (RLI) has a return on equity (ROE) of 24.4%. This indicates the company generates strong returns for shareholders.
RLI CORP (RLI) has a 5-year average gross margin of 28.7%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 16 years of financial data for RLI CORP (RLI), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
RLI CORP (RLI) has a book value per share of $19.27, based on its most recent annual SEC filing.