We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
RLI's Q3 Earnings, Revenues Beat Estimates on Solid Underwriting
Read MoreHide Full Article
Key Takeaways
RLI's Q3 operating earnings rose 27.7% year over year, topping estimates by 33.9%.
Higher net premiums and 12.5% investment income growth drove a 5.3% revenue increase.
Underwriting income jumped 48.6% as the combined ratio improved 450 basis points to 85.1.
RLI Corp. (RLI - Free Report) reported third-quarter 2025 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate by 33.9%. The bottom line increased 27.7% from the prior-year quarter.
The quarterly results reflect higher net premiums earned and higher net investment income, as well as lower loss and settlement expenses.
Operational Performance
Operating revenues in the reported quarter were $449 million, up 5.3% year over year, driven by 4.7% higher net premiums earned and 12.5% higher net investment income. The top line beat the Zacks Consensus Estimate by 0.5%.
Gross premiums written of $562.3 million increased 0.5% year over year. The improvement in the performance of the Casualty segment was offset by a decline in Property and the Surety segment. Our estimate gross premiums written was $584.7 million.
Net investment income increased 12% year over year to $41.3 million. Our estimate was $42.4 million. The Zacks Consensus Estimate was pegged at $42.5 million. The investment portfolio’s total return was 3% in the quarter.
Total expenses declined 0.2% year over year to $353.6 million, primarily due to lower loss and settlement expenses. Our estimate was $399 million.
Underwriting income of $60.5 million increased 48.6% year over year. The combined ratio improved 450 basis points (bps) year over year to 85.1. Our estimate was 97.8.
Financial Update
RLI exited the quarter with total investments and cash of $4.7 billion, up 14.8% from 2024-end.
Book value was $20.41 per share, up 26% from the figure as of Dec. 31, 2024.
Net cash flow from operations was $179.2 million, down 18.3% year over year.
The statutory surplus increased 5.6% from the end of 2024 to $1.9 billion as of Sept. 30, 2025.
Return on equity was 20.8%, down 690 bps from the year-ago period.
Dividend Update
On Sept. 19, 2025, RLI paid a dividend of 16 cents, an increase of 1 cent from the last payout. RLI’s cumulative dividends total more than $975 million in the last five years.
The Progressive Corporation’s (PGR - Free Report) third-quarter 2025 earnings per share of $4.05 missed the Zacks Consensus Estimate by 20.3%. Operating revenues of $22.2 billion missed the Zacks Consensus Estimate by 0.6%. However, the bottom line increased 13.1% year over year while the top line increased 12.7%.
Net premiums written were $21.3 billion in the quarter, up 10% from $19.5 billion a year ago. Net premiums earned grew 14% to $20.8 billion, missing the Zacks Consensus Estimate of $21.1 billion.
The Travelers Companies (TRV - Free Report) reported third-quarter 2025 core income of $8.14 per share, which beat the Zacks Consensus Estimate by 35.4%. The bottom line increased 55% year over year. Travelers’ total revenues increased 5% from the year-ago quarter to $12.44 billion, primarily driven by higher premiums, net investment income, fee income and other revenues. The top-line figure beat the Zacks Consensus Estimate by 0.7%.
Net written premiums increased 1% year over year to a record $11.47 billion. The underwriting gain doubled year over year to $1.4 billion. The consolidated underlying combined ratio of 83.9 improved 170 bps year over year. The combined ratio improved 590 bps year over year to 87.3 due to lower catastrophe losses and an improvement in the underlying combined ratio, partially offset by lower net favorable prior year reserve development.
W.R. Berkley Corporation's (WRB - Free Report) third-quarter 2025 operating income of $1.10 per share beat the Zacks Consensus Estimate of $1.03 per share by 2.8%. The bottom line increased 18.3% year over year. Operating revenues came in at $3.6 billion, up 8.2% year over year, on the back of higher net premiums earned as well as improved net investment income and higher insurance service fees. The top line beat the consensus estimate by 0.4%.
W.R. Berkley’s net premiums written were $3.4 billion, up 5.5% year over year. Our estimate was $3.3 billion. The consolidated combined ratio (a measure of underwriting profitability) remained flat year over year at 90.9. The Zacks Consensus Estimate was pegged at 89.6.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
RLI's Q3 Earnings, Revenues Beat Estimates on Solid Underwriting
Key Takeaways
RLI Corp. (RLI - Free Report) reported third-quarter 2025 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate by 33.9%. The bottom line increased 27.7% from the prior-year quarter.
The quarterly results reflect higher net premiums earned and higher net investment income, as well as lower loss and settlement expenses.
Operational Performance
Operating revenues in the reported quarter were $449 million, up 5.3% year over year, driven by 4.7% higher net premiums earned and 12.5% higher net investment income. The top line beat the Zacks Consensus Estimate by 0.5%.
RLI Corp. Price, Consensus and EPS Surprise
RLI Corp. price-consensus-eps-surprise-chart | RLI Corp. Quote
Gross premiums written of $562.3 million increased 0.5% year over year. The improvement in the performance of the Casualty segment was offset by a decline in Property and the Surety segment. Our estimate gross premiums written was $584.7 million.
Net investment income increased 12% year over year to $41.3 million. Our estimate was $42.4 million. The Zacks Consensus Estimate was pegged at $42.5 million. The investment portfolio’s total return was 3% in the quarter.
Total expenses declined 0.2% year over year to $353.6 million, primarily due to lower loss and settlement expenses. Our estimate was $399 million.
Underwriting income of $60.5 million increased 48.6% year over year. The combined ratio improved 450 basis points (bps) year over year to 85.1. Our estimate was 97.8.
Financial Update
RLI exited the quarter with total investments and cash of $4.7 billion, up 14.8% from 2024-end.
Book value was $20.41 per share, up 26% from the figure as of Dec. 31, 2024.
Net cash flow from operations was $179.2 million, down 18.3% year over year.
The statutory surplus increased 5.6% from the end of 2024 to $1.9 billion as of Sept. 30, 2025.
Return on equity was 20.8%, down 690 bps from the year-ago period.
Dividend Update
On Sept. 19, 2025, RLI paid a dividend of 16 cents, an increase of 1 cent from the last payout. RLI’s cumulative dividends total more than $975 million in the last five years.
Zacks Rank
RLI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Progressive Corporation’s (PGR - Free Report) third-quarter 2025 earnings per share of $4.05 missed the Zacks Consensus Estimate by 20.3%. Operating revenues of $22.2 billion missed the Zacks Consensus Estimate by 0.6%. However, the bottom line increased 13.1% year over year while the top line increased 12.7%.
Net premiums written were $21.3 billion in the quarter, up 10% from $19.5 billion a year ago. Net premiums earned grew 14% to $20.8 billion, missing the Zacks Consensus Estimate of $21.1 billion.
The Travelers Companies (TRV - Free Report) reported third-quarter 2025 core income of $8.14 per share, which beat the Zacks Consensus Estimate by 35.4%. The bottom line increased 55% year over year. Travelers’ total revenues increased 5% from the year-ago quarter to $12.44 billion, primarily driven by higher premiums, net investment income, fee income and other revenues. The top-line figure beat the Zacks Consensus Estimate by 0.7%.
Net written premiums increased 1% year over year to a record $11.47 billion. The underwriting gain doubled year over year to $1.4 billion. The consolidated underlying combined ratio of 83.9 improved 170 bps year over year. The combined ratio improved 590 bps year over year to 87.3 due to lower catastrophe losses and an improvement in the underlying combined ratio, partially offset by lower net favorable prior year reserve development.
W.R. Berkley Corporation's (WRB - Free Report) third-quarter 2025 operating income of $1.10 per share beat the Zacks Consensus Estimate of $1.03 per share by 2.8%. The bottom line increased 18.3% year over year. Operating revenues came in at $3.6 billion, up 8.2% year over year, on the back of higher net premiums earned as well as improved net investment income and higher insurance service fees. The top line beat the consensus estimate by 0.4%.
W.R. Berkley’s net premiums written were $3.4 billion, up 5.5% year over year. Our estimate was $3.3 billion. The consolidated combined ratio (a measure of underwriting profitability) remained flat year over year at 90.9. The Zacks Consensus Estimate was pegged at 89.6.