RLI Corp. reported fourth quarter 2025 net earnings of $91.2 million, or $0.99 per share, more than doubling from $40.9 million, or $0.44 per share, in the same period a year earlier. On an operating basis, which excludes unrealized investment gains and losses, the company generated $86.4 million, or $0.94 per share, compared to $48.3 million, or $0.52 per share, in Q4 2024. These results exceeded consensus expectations by 24% on operating EPS and reflect stronger premium retention and disciplined expense management across RLI’s specialty insurance lines.

Underwriting income for the quarter reached $70.9 million on a combined ratio of 82.6, a marked improvement from $22.2 million and a 94.4 combined ratio in Q4 2024. A $22.0 million favorable development in prior years’ loss reserves boosted underwriting profit, more than offsetting a $4.0 million net incurred loss from 2025 catastrophe events. Gross premiums written declined modestly by 2%, while net premiums earned remained stable, underscoring RLI’s focus on underwriting discipline over volume growth in a competitive market.

Net investment income increased 9% to $42.3 million in the quarter, driven by higher yields on fixed income holdings and a diversified portfolio strategy. The investment portfolio delivered a 1.5% total return for Q4 and 9.0% for the full year. Comprehensive earnings, which include after-tax unrealized gains from declining interest rates, were $100.4 million, or $1.09 per share, compared with a comprehensive loss of $26.3 million, or negative $0.28 per share, in Q4 2024, highlighting the positive impact of market-to-market adjustments on equity capital.

In December 2025, RLI declared a special cash dividend of $2.00 per share and a regular quarterly dividend of $0.16 per share, returning $198.4 million to shareholders. The company has paid dividends for 198 consecutive quarters and increased regular dividends for 50 straight years. Book value per share rose to $19.35 by year-end 2025, a 33% increase inclusive of dividends, reflecting strong retained earnings growth and a robust capital position supported by an A+ (Superior) rating from AM Best across all operating subsidiaries.