RLI Corp. reported fourth-quarter earnings per share of $0.94, surpassing the Zacks Consensus Estimate of $0.76 and more than doubling the $0.41 posted in the year-ago quarter. The outperformance was driven by stronger premium revenue and favorable reserve development, marking RLI’s eighth consecutive quarterly earnings beat and reinforcing management’s ability to balance growth with disciplined underwriting.

Net investment income climbed 12% year-over-year, reaching $65 million in Q4 2025, as higher yields on fixed-income holdings and opportunistic reinvestments offset modest unrealized losses in the equity portfolio. The increase reflects RLI’s strategy to shorten portfolio duration while maintaining credit quality, resulting in an average yield of 4.3% compared to 3.8% in Q4 2024.

Underwriting income expanded to $48 million, up from $39 million a year earlier, driven by a 9% increase in direct written premiums to $310 million. Growth was broad-based across specialty commercial and professional lines, with the cyber insurance unit recording 15% premium growth as clients sought enhanced coverage for digital liabilities. Combined ratio improved to 92.5% from 94.1%, reflecting favorable loss experience and proactive rate adjustments.

Operating expenses declined by 4% from the prior year period, as RLI leveraged technology investments to automate claims processing and underwriting workflows. The expense ratio contracted to 26.8% from 28.5%, boosting margin expansion. Management reiterated full-year 2026 guidance of 8% to 12% earnings growth, underpinned by disciplined underwriting, further investment income gains, and continued expense discipline.