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RLI Corp. (RLI) Reports Q2 Earnings: What Key Metrics Have to Say

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For the quarter ended June 2024, RLI Corp. (RLI - Free Report) reported revenue of $413.03 million, up 17.7% over the same period last year. EPS came in at $1.72, compared to $1.16 in the year-ago quarter.

The reported revenue represents a surprise of +2.55% over the Zacks Consensus Estimate of $402.75 million. With the consensus EPS estimate being $1.35, the EPS surprise was +27.41%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how RLI Corp. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Expense Ratio- Total: 37.2% compared to the 39% average estimate based on four analysts.
  • Loss Ratio- Total: 44.3% versus 49.1% estimated by four analysts on average.
  • Combined Ratio (Underwriting income ratio) - Total: 81.5% versus 88.1% estimated by four analysts on average.
  • Combined Ratio - Property: 60.3% compared to the 72.7% average estimate based on two analysts.
  • Combined Ratio - Casualty: 95.1% compared to the 99.1% average estimate based on two analysts.
  • Combined Ratio - Surety: 81.8% versus the two-analyst average estimate of 78.7%.
  • Net premiums earned: $379.07 million versus the four-analyst average estimate of $366.71 million. The reported number represents a year-over-year change of +17.6%.
  • Net investment income: $33.96 million versus the four-analyst average estimate of $36.05 million. The reported number represents a year-over-year change of +18%.
  • Net premiums earned- Property segment: $134.10 million versus $120.10 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +31.7% change.
  • Net premiums earned- Surety segment: $35.87 million versus $35.15 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +7.4% change.
  • Net premiums earned- Casualty segment: $209.10 million versus $208.73 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +11.8% change.
View all Key Company Metrics for RLI Corp. here>>>

Shares of RLI Corp. have returned -1.4% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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