RLI CORP (NYSE:RLI) Tops Q3 2025 Earnings and Revenue Estimates

RLI CORP (NYSE:RLI) reported financial results for the third quarter of 2025 that surpassed analyst expectations, leading to a positive response in after-hours trading. The specialty insurer demonstrated strength in both its underwriting operations and investment portfolio, contributing to a significant year-over-year increase in profitability.

Earnings and Revenue Performance

The company's performance for the quarter exceeded the forecasts set by Wall Street analysts. The key figures highlight a robust operational quarter.

• Earnings Per Share (EPS): RLI reported operating earnings of $0.83 per share. This comfortably beat the analyst consensus estimate of $0.67 per share.
• Revenue: The company posted revenue of $449.0 million for the quarter. This also came in above the estimated $428.3 million.

This double beat on the top and bottom lines indicates stronger-than-anticipated operational performance during the quarter. Following the earnings release, the stock saw an uptick of approximately 2.25% in after-market trading, suggesting investor approval of the results.

Quarterly Operational Highlights

RLI's press release detailed several areas of strong performance that drove the earnings beat. The company achieved substantial growth in profitability across its core insurance operations.

• Net Earnings: Reported net earnings were $124.6 million ($1.35 per share), a significant increase from $95.0 million ($1.03 per share) in the third quarter of 2024.
• Underwriting Income: A standout metric was the underwriting income of $60.5 million, generated on a strong combined ratio of 85.1. This compares favorably to $40.7 million and an 89.6 combined ratio in the prior year period.
• Investment Income: Net investment income saw a 12% increase to $41.3 million, providing an additional boost to overall earnings.
• Book Value: The company's book value per share rose to $20.41, representing a 26% increase from the end of 2024, inclusive of dividends.

The quarter benefited from favorable development in prior years’ loss reserves, which added $13.7 million to underwriting income. Furthermore, the property segment was a key driver, with underwriting income surging to $50.4 million from $30.4 million a year ago, aided by minimal catastrophe losses.

Outlook and Forward Estimates

While the earnings press release did not provide specific quantitative financial guidance for the coming periods, the company's positive momentum is reflected in analyst projections for the full year and the next quarter. Analysts are estimating full-year 2025 revenue of $1.73 billion and EPS of $3.17. For the fourth quarter of 2025, the consensus estimates are revenue of $410.5 million and EPS of $0.80. The company's current performance trajectory positions it to meet or exceed these expectations.

Conclusion

RLI Corp.'s third quarter results painted a picture of a company executing effectively in its niche markets. The decisive beats on both revenue and earnings per share, coupled with a sharp improvement in underwriting profitability, were met positively by the market. The lack of major catastrophe events and continued disciplined underwriting contributed to one of the strongest quarters in recent periods. The after-hours stock price movement indicates that investors are rewarding this performance.

For a more detailed look at historical earnings and future analyst estimates for RLI Corp., you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any securities. Investors should conduct their own research before making any investment decisions.