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RLI Q1 Earnings Miss Estimates, Investment Income Increases Y/Y
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Key Takeaways
RLI Q1 earnings missed estimates, with net income down 13.2% due to catastrophe losses
RLI revenue rose 4.4% on higher premiums and investment income and surpassed consensus estimates.
RLI casualty premiums grew 10%, while property and surety underwriting income declined.
RLI Corp. (RLI - Free Report) reported first-quarter 2026 operating earnings of 83 cents per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 13.2% from the prior-year quarter.
The quarterly results reflect underwriting strain from catastrophe losses, though investment income and casualty growth offer resilience.
Operational Performance
Operating revenues for the reported quarter were $454 million, up 4.4% year over year, driven by higher net premiums earned and net investment income. The top line beat the Zacks Consensus Estimate by 1%.
Gross premiums written (GPW) increased 3% year over year to $503.9 million, driven by strong growth in the casualty segment (up 10%). Our estimate was $523.9 million.
Net investment income increased 15.2% year over year to $42.3 million. The Zacks Consensus Estimate was $40.2 million, while our estimate for the metric was pegged at $38.3 million. The investment portfolio’s total return was -0.4% in the quarter.
Total expenses increased 8% year over year to $385.7 million, primarily due to higher loss and settlement expenses and interest expense on debt. Our estimate was $349.4 million.
Underwriting income fell 18% year over year to $57.8 million. Our estimate was $71.4 million. The combined ratio deteriorated 370 basis points (bps) year over year to 86, reflecting higher catastrophe losses. Our estimate was 82.
Segmental Results
Casualty lines’ GPW rose 10.3% year over year to $307.0 million. The figure was below our estimate of $300.9 million.
The underwriting income increased significantly to $7.3 million from $2.1 million, up 249% year over year, supported by strong premium growth. The combined ratio improved 200 bps year over year to 97.1%. The figure was below our estimate of 99%.
Property lines’ GPW fell 9.0% year over year to $154.8 million. The figure was below our estimate of $180.1 million.
The underwriting income declined to $48.2 million, down 15.3% primarily due to catastrophe losses and lower premium volumes. The combined ratio deteriorated 480 bps year over year to 61.9%. Our estimate was 55%.
Surety lines’ GPW remained largely flat at $42.1 million. The figure was on par with our estimate.
The underwriting income dropped sharply to $2.3 million from $11.6 million, reflecting weaker reserve development and higher expenses. The combined ratio worsened significantly to 93.7% from 68.5%, up 2,520 bps year over year. Our estimate was 74.7%.
Financial Update
RLI exited the quarter with total investments and cash of $4.9 billion, up 4.8% from 2025-end.
Book value was $19.54 per share as of March. 31, 2026, up 1% from the figure as of Dec. 31, 2025.
Net cash flow from operations was $42.8 million, down 58.6% year over year.
The statutory surplus decreased 1.7% from 2025-end to $1.8 billion as of March. 31, 2025.
Return on equity was 22.5%, expanding 490 bps from the year-ago period.
Dividend Update
On March 16, 2026, the insurer paid a regular quarterly dividend of 16 per cent per share for the first quarter. RLI’s cumulative dividends totaled more than $1.1 billion, paid over the last five years.
The Travelers Companies, Inc. (TRV - Free Report) reported first-quarter 2025 core income of $7.71 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line surged fourfold year over year. Travelers’ total revenues remain flat from the year-ago quarter to $11.9 billion. The top-line figure, however, missed the Zacks Consensus Estimate by 3.7%.
Net written premiums increased 2% year over year to a record $10.3 billion, driven by strong growth across Business Insurance and Bond & Specialty Insurance segments. Net investment income increased 8.4% year over year to $1 billion. The figure matched the Zacks Consensus Estimate.
The Progressive Corporation (PGR - Free Report) first-quarter 2026 earnings per share of $4.96 beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year.
Operating revenues grew 8.2% year over year to $22.3 billion driven by 8% higher net premiums earned, a 12.7% increase in net investment income, a 3.5% rise in fees and other revenues, and 13.5% higher service revenues. The top line missed the Zacks Consensus Estimate by 1.2%. Net premiums earned grew 8% to $20.9 billion. The reported figure beat the Zacks Consensus Estimate by 1.5%.
W.R. Berkley Corporation (WRB - Free Report) reported first-quarter 2026 operating income of $1.30 per share, which beat the Zacks Consensus Estimate by 15%. The bottom line increased 28.7% year over year.
Total revenues were $ 3.7 billion, up 5% year over year, driven by higher net premiums earned, improved net investment income, higher revenues from non-insurance businesses and increased other income. The top line missed the consensus estimate by 0.28%. W.R. Berkley’s net premiums written were about $3.2 billion, up 1.3% year over year. The figure missed our estimate as well as the Zacks Consensus Estimate of $3.18 billion.
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RLI Q1 Earnings Miss Estimates, Investment Income Increases Y/Y
Key Takeaways
RLI Corp. (RLI - Free Report) reported first-quarter 2026 operating earnings of 83 cents per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 13.2% from the prior-year quarter.
The quarterly results reflect underwriting strain from catastrophe losses, though investment income and casualty growth offer resilience.
Operational Performance
Operating revenues for the reported quarter were $454 million, up 4.4% year over year, driven by higher net premiums earned and net investment income. The top line beat the Zacks Consensus Estimate by 1%.
RLI Corp. Price, Consensus and EPS Surprise
RLI Corp. price-consensus-eps-surprise-chart | RLI Corp. Quote
Gross premiums written (GPW) increased 3% year over year to $503.9 million, driven by strong growth in the casualty segment (up 10%). Our estimate was $523.9 million.
Net investment income increased 15.2% year over year to $42.3 million. The Zacks Consensus Estimate was $40.2 million, while our estimate for the metric was pegged at $38.3 million. The investment portfolio’s total return was -0.4% in the quarter.
Total expenses increased 8% year over year to $385.7 million, primarily due to higher loss and settlement expenses and interest expense on debt. Our estimate was $349.4 million.
Underwriting income fell 18% year over year to $57.8 million. Our estimate was $71.4 million. The combined ratio deteriorated 370 basis points (bps) year over year to 86, reflecting higher catastrophe losses. Our estimate was 82.
Segmental Results
Casualty lines’ GPW rose 10.3% year over year to $307.0 million. The figure was below our estimate of $300.9 million.
The underwriting income increased significantly to $7.3 million from $2.1 million, up 249% year over year, supported by strong premium growth. The combined ratio improved 200 bps year over year to 97.1%. The figure was below our estimate of 99%.
Property lines’ GPW fell 9.0% year over year to $154.8 million. The figure was below our estimate of $180.1 million.
The underwriting income declined to $48.2 million, down 15.3% primarily due to catastrophe losses and lower premium volumes. The combined ratio deteriorated 480 bps year over year to 61.9%. Our estimate was 55%.
Surety lines’ GPW remained largely flat at $42.1 million. The figure was on par with our estimate.
The underwriting income dropped sharply to $2.3 million from $11.6 million, reflecting weaker reserve development and higher expenses. The combined ratio worsened significantly to 93.7% from 68.5%, up 2,520 bps year over year. Our estimate was 74.7%.
Financial Update
RLI exited the quarter with total investments and cash of $4.9 billion, up 4.8% from 2025-end.
Book value was $19.54 per share as of March. 31, 2026, up 1% from the figure as of Dec. 31, 2025.
Net cash flow from operations was $42.8 million, down 58.6% year over year.
The statutory surplus decreased 1.7% from 2025-end to $1.8 billion as of March. 31, 2025.
Return on equity was 22.5%, expanding 490 bps from the year-ago period.
Dividend Update
On March 16, 2026, the insurer paid a regular quarterly dividend of 16 per cent per share for the first quarter. RLI’s cumulative dividends totaled more than $1.1 billion, paid over the last five years.
Zacks Rank
RLI currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Another Insurer
The Travelers Companies, Inc. (TRV - Free Report) reported first-quarter 2025 core income of $7.71 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line surged fourfold year over year. Travelers’ total revenues remain flat from the year-ago quarter to $11.9 billion. The top-line figure, however, missed the Zacks Consensus Estimate by 3.7%.
Net written premiums increased 2% year over year to a record $10.3 billion, driven by strong growth across Business Insurance and Bond & Specialty Insurance segments. Net investment income increased 8.4% year over year to $1 billion. The figure matched the Zacks Consensus Estimate.
The Progressive Corporation (PGR - Free Report) first-quarter 2026 earnings per share of $4.96 beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year.
Operating revenues grew 8.2% year over year to $22.3 billion driven by 8% higher net premiums earned, a 12.7% increase in net investment income, a 3.5% rise in fees and other revenues, and 13.5% higher service revenues. The top line missed the Zacks Consensus Estimate by 1.2%. Net premiums earned grew 8% to $20.9 billion. The reported figure beat the Zacks Consensus Estimate by 1.5%.
W.R. Berkley Corporation (WRB - Free Report) reported first-quarter 2026 operating income of $1.30 per share, which beat the Zacks Consensus Estimate by 15%. The bottom line increased 28.7% year over year.
Total revenues were $ 3.7 billion, up 5% year over year, driven by higher net premiums earned, improved net investment income, higher revenues from non-insurance businesses and increased other income. The top line missed the consensus estimate by 0.28%. W.R. Berkley’s net premiums written were about $3.2 billion, up 1.3% year over year. The figure missed our estimate as well as the Zacks Consensus Estimate of $3.18 billion.