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RLI Boosts Shareholder Value With Dividends, Approves Buyback Program
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Key Takeaways
RLI approved a $2 special dividend and raised its quarterly payout by 12.5%.
RLI authorized a new $250M share repurchase program to boost shareholder returns.
RLI marked its 17th straight special dividend and 51st annual regular dividend hike.
RLI Corp.’s (RLI - Free Report) board of directors approved a special cash dividend of $2.00 per share, which is expected to amount to approximately $184 million. This specialty property-casualty insurer has been paying special dividends since 2011. The latest approval marks the 17th straight special dividend.
The board also approved a hike in the company’s quarterly dividend to enhance shareholder value. RLI will now pay out a dividend of 18 cents per share, reflecting an increase of 12.5% from the prior quarter.
RLI's board of directors authorized a new share repurchase program to return more value to investors. With the latest authorization, the board approved the issuance of up to $250 million of the company’s outstanding common stock.
This share repurchase program, special dividend and the 51st consecutive annual increase in the regular dividend reflect the strength of the business and the insurer’s confidence in the long-term strategy.
The special and the increased dividends will be paid out on June 12, 2026, to its shareholders of record as of May 29.
RLI’s Impressive Dividend History
RLI has been paying dividends for 198 consecutive quarters and has increased regular dividends for 51 straight years. Based on the stock’s May 14 closing price of $49.88, the new dividend will yield 1.28%, which is better than the industry average of 0.2%.
Financial Strength and Capital Management
This insurer is one of the industry’s most profitable P&C writers, with an impressive track record of delivering its 30th consecutive year of underwriting profitability. It remains focused on maintaining long-term industry-leading combined ratios and book value growth. RLI’s diversified product portfolio, focus on growth in specialty insurance lines via organic opportunities and acquisitions, and financial strength should continue to help boost shareholders’ returns.
The company has a strong balance sheet, with sufficient liquidity and strong cash flow, helping it meet the interests of the policyholders, enhance operations in the insurance sector and support long-term book-value growth. In February 2026, A M Best raised its financial strength rating to A+ (Excellent), while the outlook was revised to stable from positive. Ratings for its operating subsidiaries were upgraded to A++ (Superior) with a stable outlook. Its statutory surplus was $1.81 billion as of March 31, 2026. Net cash flow from operations was $42.8 million for the first three months of 2026.
RLI maintains a conservative underwriting and reserving policy and continues to achieve favorable reserve releases from the prior years. Return on equity, a profitability measure of how efficiently a company utilizes its shareholders' money, was 17.7% in the trailing 12 months, which compares favorably with the industry average of 7.3%.
Zacks Rank and Price Performance
Shares of this Zacks Rank #4 (Sell) property and casualty insurer have lost 34.1% in the past year compared with the industry’s decline of 6.8%.
Image Source: Zacks Investment Research
Other Insurers on the Same Path
In April 2026, board of directors of The Travelers Companies, Inc. (TRV - Free Report) declared a 14% increase in quarterly cash dividend to $1.25 per share, marking 22 consecutive years of dividend rise at a compound annual growth rate of 8% over that period. The dividend will be paid out on June 30, 2026, to shareholders of record as of June 10. This policy reflects management’s confidence in underlying earnings power and the durability of cash generation across cycles.
Backed by a solid capital position and operational excellence, Sun Life Financial Inc. (SLF - Free Report) announced a 4.3% increase in its dividend in May 2026 to reinforce the commitment to providing strong returns to shareholders. The amount will be paid out on June 30, 2026, to shareholders of record at the close of business on May 27. Its dividend payout ratio is targeted within the 40-50% range. The company repurchases shares, reflecting its strong cash and capital generation in its businesses. SLF remains focused on improving ROE while retaining flexibility for growth opportunities.
First American Financial's earnings have a solid track record of beating estimates in each of the last four quarters, with an average being 22.01%. In the past year, shares of FAF have climbed 11.4%. The Zacks Consensus Estimate for FAF’s 2026 and 2027 earnings implies year-over-year growth of 11% and 6.1%, respectively.
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RLI Boosts Shareholder Value With Dividends, Approves Buyback Program
Key Takeaways
RLI Corp.’s (RLI - Free Report) board of directors approved a special cash dividend of $2.00 per share, which is expected to amount to approximately $184 million. This specialty property-casualty insurer has been paying special dividends since 2011. The latest approval marks the 17th straight special dividend.
The board also approved a hike in the company’s quarterly dividend to enhance shareholder value. RLI will now pay out a dividend of 18 cents per share, reflecting an increase of 12.5% from the prior quarter.
RLI's board of directors authorized a new share repurchase program to return more value to investors. With the latest authorization, the board approved the issuance of up to $250 million of the company’s outstanding common stock.
This share repurchase program, special dividend and the 51st consecutive annual increase in the regular dividend reflect the strength of the business and the insurer’s confidence in the long-term strategy.
The special and the increased dividends will be paid out on June 12, 2026, to its shareholders of record as of May 29.
RLI’s Impressive Dividend History
RLI has been paying dividends for 198 consecutive quarters and has increased regular dividends for 51 straight years. Based on the stock’s May 14 closing price of $49.88, the new dividend will yield 1.28%, which is better than the industry average of 0.2%.
Financial Strength and Capital Management
This insurer is one of the industry’s most profitable P&C writers, with an impressive track record of delivering its 30th consecutive year of underwriting profitability. It remains focused on maintaining long-term industry-leading combined ratios and book value growth. RLI’s diversified product portfolio, focus on growth in specialty insurance lines via organic opportunities and acquisitions, and financial strength should continue to help boost shareholders’ returns.
The company has a strong balance sheet, with sufficient liquidity and strong cash flow, helping it meet the interests of the policyholders, enhance operations in the insurance sector and support long-term book-value growth. In February 2026, A M Best raised its financial strength rating to A+ (Excellent), while the outlook was revised to stable from positive. Ratings for its operating subsidiaries were upgraded to A++ (Superior) with a stable outlook. Its statutory surplus was $1.81 billion as of March 31, 2026. Net cash flow from operations was $42.8 million for the first three months of 2026.
RLI maintains a conservative underwriting and reserving policy and continues to achieve favorable reserve releases from the prior years. Return on equity, a profitability measure of how efficiently a company utilizes its shareholders' money, was 17.7% in the trailing 12 months, which compares favorably with the industry average of 7.3%.
Zacks Rank and Price Performance
Shares of this Zacks Rank #4 (Sell) property and casualty insurer have lost 34.1% in the past year compared with the industry’s decline of 6.8%.
Image Source: Zacks Investment Research
Other Insurers on the Same Path
In April 2026, board of directors of The Travelers Companies, Inc. (TRV - Free Report) declared a 14% increase in quarterly cash dividend to $1.25 per share, marking 22 consecutive years of dividend rise at a compound annual growth rate of 8% over that period. The dividend will be paid out on June 30, 2026, to shareholders of record as of June 10. This policy reflects management’s confidence in underlying earnings power and the durability of cash generation across cycles.
Backed by a solid capital position and operational excellence, Sun Life Financial Inc. (SLF - Free Report) announced a 4.3% increase in its dividend in May 2026 to reinforce the commitment to providing strong returns to shareholders. The amount will be paid out on June 30, 2026, to shareholders of record at the close of business on May 27. Its dividend payout ratio is targeted within the 40-50% range. The company repurchases shares, reflecting its strong cash and capital generation in its businesses. SLF remains focused on improving ROE while retaining flexibility for growth opportunities.
Stock to Consider
A better-ranked stock from the property and casualty insurance industry is First American Financial Corporation (FAF - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
First American Financial's earnings have a solid track record of beating estimates in each of the last four quarters, with an average being 22.01%. In the past year, shares of FAF have climbed 11.4%. The Zacks Consensus Estimate for FAF’s 2026 and 2027 earnings implies year-over-year growth of 11% and 6.1%, respectively.