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Here's Why You Should Retain RLI Stock in Your Portfolio
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RLI Corp. (RLI - Free Report) remains well-poised for growth, driven by a rate increase, geographic expansion, higher net premiums earned and sufficient liquidity.
Earnings Surprise History
The bottom line of RLI surpassed earnings estimates in each of the last four quarters, the average being 45.08%.
Zacks Rank & Price Performance
RLI currently carries a Zacks Rank #3 (Hold). In the past year, the stock has gained 4.1% against the industry’s decrease of 6.7%. Solid segmental results and capital position are likely to help the stock retain the momentum.
Image Source: Zacks Investment Research
Style Score
RLI has a VGM Score of A. This helps identify stocks with the most attractive value, growth and momentum. The insurer has a Growth Score of B. This style score analyzes the growth prospects of a company.
Business Tailwinds
Product diversification across the Casualty, Property, and Surety segments of RLI has fueled the insurer’s growth and financial success. The Casualty segment, which contributed the lion’s share of overall premium income in the first quarter of 2022, continues to gain from rate increases, expanded distribution base in personal umbrella, new production sources and geographic expansion.
The commercial property business has been gaining from higher rates on wind and earthquake exposure. Rate increases, improved retention and new opportunities in the inland marine space should benefit marine products.
The Surety segment continues to benefit from its compelling product portfolio, growth within existing accounts and writing of bonds with new customers.
Underwriting income should gain from benign weather-related losses in the Property segment, a modestly improved underlying loss ratio in the Casualty segment as well as continued favorable benefits from the prior year's loss reserves in all three segments.
RLI boasts solid operating results and its financial position remained strong. Operating cash flows should gain from higher premium receipts.
RLI maintains an impressive track of paying dividends for 183 consecutive quarters, increasing regular dividends in the last 47 straight years and paying special dividends for 12 straight years, with a dividend yield of 0.9%, better than the industry average of 0.4%. This has made the stock an attractive pick for yield-seeking investors. It also has $87.5 million of remaining capacity from the repurchase program.
The Zacks Consensus Estimate for RLI’s 2022 earnings is pegged at $4.85, indicating an increase of 25.3% on 17.2% higher revenues of $1.2 billion.
W.R. Berkley’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 29.95%. In the past year, W.R. Berkley stock has increased 30.2%.
The Zacks Consensus Estimate for WRB’s 2022 and 2023 earnings per share indicates year-over-year increases of 50.6% and 10.4%, respectively.
American Financial’s earnings surpassed estimates in each of the last four quarters, the average beat being 37.09%. In the past year, American Financial has lost 4.3%.
The Zacks Consensus Estimate for AFG’s 2022 and 2023 earnings has moved 2.2% and 3.3% north, respectively, in the past seven days.
The bottom line of Arch Capital surpassed earnings estimates in three of the last four quarters and missed in one, the average being 33.64%. In the past year, the insurer has rallied 8.6%.
The Zacks Consensus Estimate for Arch Capital’s 2022 and 2023 earnings has moved 5.7% and 4.9% north, respectively, in the past 30 days.
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Here's Why You Should Retain RLI Stock in Your Portfolio
RLI Corp. (RLI - Free Report) remains well-poised for growth, driven by a rate increase, geographic expansion, higher net premiums earned and sufficient liquidity.
Earnings Surprise History
The bottom line of RLI surpassed earnings estimates in each of the last four quarters, the average being 45.08%.
Zacks Rank & Price Performance
RLI currently carries a Zacks Rank #3 (Hold). In the past year, the stock has gained 4.1% against the industry’s decrease of 6.7%. Solid segmental results and capital position are likely to help the stock retain the momentum.
Image Source: Zacks Investment Research
Style Score
RLI has a VGM Score of A. This helps identify stocks with the most attractive value, growth and momentum. The insurer has a Growth Score of B. This style score analyzes the growth prospects of a company.
Business Tailwinds
Product diversification across the Casualty, Property, and Surety segments of RLI has fueled the insurer’s growth and financial success. The Casualty segment, which contributed the lion’s share of overall premium income in the first quarter of 2022, continues to gain from rate increases, expanded distribution base in personal umbrella, new production sources and geographic expansion.
The commercial property business has been gaining from higher rates on wind and earthquake exposure. Rate increases, improved retention and new opportunities in the inland marine space should benefit marine products.
The Surety segment continues to benefit from its compelling product portfolio, growth within existing accounts and writing of bonds with new customers.
Underwriting income should gain from benign weather-related losses in the Property segment, a modestly improved underlying loss ratio in the Casualty segment as well as continued favorable benefits from the prior year's loss reserves in all three segments.
RLI boasts solid operating results and its financial position remained strong. Operating cash flows should gain from higher premium receipts.
RLI maintains an impressive track of paying dividends for 183 consecutive quarters, increasing regular dividends in the last 47 straight years and paying special dividends for 12 straight years, with a dividend yield of 0.9%, better than the industry average of 0.4%. This has made the stock an attractive pick for yield-seeking investors. It also has $87.5 million of remaining capacity from the repurchase program.
The Zacks Consensus Estimate for RLI’s 2022 earnings is pegged at $4.85, indicating an increase of 25.3% on 17.2% higher revenues of $1.2 billion.
Stocks to Consider
Some better-ranked stocks from the property and casualty insurance industry are W.R. Berkley Corporation (WRB - Free Report) , American Financial Group, Inc. (AFG - Free Report) and Arch Capital Group Ltd. (ACGL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
W.R. Berkley’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 29.95%. In the past year, W.R. Berkley stock has increased 30.2%.
The Zacks Consensus Estimate for WRB’s 2022 and 2023 earnings per share indicates year-over-year increases of 50.6% and 10.4%, respectively.
American Financial’s earnings surpassed estimates in each of the last four
quarters, the average beat being 37.09%. In the past year, American Financial has lost 4.3%.
The Zacks Consensus Estimate for AFG’s 2022 and 2023 earnings has moved 2.2% and 3.3% north, respectively, in the past seven days.
The bottom line of Arch Capital surpassed earnings estimates in three of the last four quarters and missed in one, the average being 33.64%. In the past year, the insurer has rallied 8.6%.
The Zacks Consensus Estimate for Arch Capital’s 2022 and 2023 earnings has moved 5.7% and 4.9% north, respectively, in the past 30 days.