Insurer RLI beats Q2 adjusted EPS estimates

Overview

• RLI Q2 net earnings rise to $124.3 mln, up from $82 mln in 2024

• Adjusted EPS of $0.84 beats analyst expectations, per LSEG data

• Property and casualty insurer's Q2 net investment income increased 16%

Outlook

• RLI sees continued book value growth driven by underwriting discipline

Result Drivers

• UNDERWRITING DISCIPLINE - RLI achieved $62.2 mln in underwriting income with an 84.5 combined ratio, reflecting favorable development in prior years' loss reserves

• INVESTMENT INCOME - Net investment income rose 16%, driven by favorable interest rates

• FLAT PREMIUMS - Gross premiums written were flat

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy."

• Wall Street's median 12-month price target for RLI Corp is $76.00, about 7.6% above its July 18 closing price of $70.25

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nBw5fTQGCa