RLI Corp.

RLI Corp.

RLIยทNYSE

$50.08

-0.82%
Financial ServicesInsurance - Property & Casualty

RLI Corp., an insurance holding company, underwrites property and casualty insurance in the United States and internationally. Its Casualty segment provides commercial and personal coverage products; and general liability products, such as coverage for third-party liability of commercial insureds, including manufacturers, contractors, apartments, and mercantile. It also offers coverages for security guards and in the areas of onshore energy-related businesses and environmental liability for underground storage tanks, contractors and asbestos, and environmental remediation specialists; and professional liability coverages focuses on providing errors and omission coverage to small to medium-sized design, technical, computer, and miscellaneous professionals. This segment provides commercial automobile liability and physical damage insurance to local, intermediate and long haul truckers, public transportation entities, and other types of specialty commercial automobile risks; incidental and related insurance coverages; inland marine coverages; management liability coverages, such as directors and officers liability insurance, fiduciary liability and coverages, employment practice liability, and for various classes of risks, including public and private businesses; and healthcare liability and home business insurance products. The company's Property segment offers commercial property, cargo, hull, protection and indemnity, marine liability, inland marine, homeowners' and dwelling fire, and other property insurance products. Its Surety segment offers commercial surety bonds for medium to large-sized businesses; small bonds for businesses and individuals; and bonds for small to medium-sized contractors. The company also underwrites various reinsurance coverages. It markets its products through branch offices, brokers, carrier partners, and underwriting and independent agents. RLI Corp. was founded in 1965 and is headquartered in Peoria, Illinois.

At a Glance

Live Snapshot
Market Cap$4.60B
EPS4.3800
P/E Ratio11.43
Earnings Date07/20/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is compressed (P/E 11.4).

Valuation inputs: P/E 11.4, earnings yield +8.7%, momentum -0.8%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is acceptable (ROE +22.7%, ROIC +1.7%).

Profitability stack: net margin +21.4%, ROE +22.7%, ROIC +1.7%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +71.1%, momentum -0.8%, net margin +21.4%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

rli

RLI Corp. Market vs Earnings Trajectory

RLI ยท NYSE

Loading price and EPS data...

RLI Corp.

RLI Corp. Fair Value Envelope

RLI ยท NYSE

Our analysis suggests that RLI has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $50.08, this represents a potential HIDDEN relative to our calculated worth for RLI Corp..

Intrinsic Value
Current Price: $50.08
3Y-32.0%
5Y+150.0%
10Y+234.0%
3Y+11.0%
5Y+91.0%
10Y+130.0%
3Y-31.0%
5Y+157.0%
10Y+251.0%
3Y+145.0%
5Y+133.0%
10Y+252.0%
3Y+149.0%
5Y+136.0%
10Y+285.0%
3Y+29.0%
5Y+56.0%
10Y+122.0%
RLI Corp.

RLI Corp. Profit Bridge

RLI ยท NYSE
Revenue1.88B
Cost of Goods Sold (1.32B)
Gross Profit561.42M
Operating Expenses (43.15M)
Operating Income518.27M
Interest Expense (5.36M)
Other Income/Expense-12.29M
Pretax Income505.98M
Income Tax (102.64M)
Net Income403.34M
Net Income
403.34M

Profitability Analysis

Gross Margin

29.8%

Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.

Operating Margin

27.5%

Outstanding operational efficiency. The company generates substantial profit from core operations.

Net Profit Margin

21.4%

Exceptional profitability. The company converts a significant portion of revenue to bottom-line earnings.

Effective Tax Rate

20.3%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.

29.82%
Gross Profit Margin
16%
3Y-31.0%
5Y-4.0%
10Y-70.0%
27.53%
Operating Profit Margin
14%
3Y-35.0%
5Y+43.0%
10Y+37.0%
21.43%
Net Profit Margin
10%
3Y-38.0%
5Y+35.0%
10Y+52.0%
22.68%
Return on Equity
3Y-54.0%
5Y+64.0%
10Y+63.0%
6.55%
Return on Assets
7%
3Y-47.0%
5Y+64.0%
10Y+58.0%
174.54%
Return on Invested Capital
-16%
3Y-40.0%
5Y-
10Y+1310.0%
RLI

RLI Corp. Cash Conversion Engine

RLI ยท NYSE
Net Income403.34M
Depreciation & Amortization8.13M
Stock-Based Compensation0.00
Change in Working Capital250.04M
Others-47.29M
Capital Expenditures-5.52M
Free Cash Flow608.70M

Cash Flow Quality Analysis

FCF Conversion Rate

150.9%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

0.9%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+9.6%

Steady FCF growth indicates consistent cash generation improvement. On a positive trajectory.

Working Capital Impact

+$250.04M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.

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RLI Corp. Funding & Solvency Profile

RLI ยท NYSE
Cash & Cash Equivalents49.12M
Net Receivables0.00
Inventory0.00
Other Current Assets0.00
Total Current Assets435 M
Property, Plant & Equipment39.81M
Goodwill & Intangible Assets53.56M
Long-Term Investments0.00
Other Non-Current Assets0.00
Total Non-Current Assets40 M
Total Assets
6.40B

Financial Health Analysis

Current Ratio

5.67x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

2.56x

High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.

Working Capital

359 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

7% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

Financial Health Insight

Mixed signals: Strong short-term liquidity provides comfort, but high overall leverage requires careful monitoring of debt servicing capabilities and refinancing risk.

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RLI Corp. Street Expectations Map

RLI ยท NYSE

Wall Street analysts project that RLI stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 56.33, with estimates ranging from a low of 52.00 to a high of 59.00.

Lowest Target
52.00
3.83%
Consensus Target
56.33
12.48%
Highest Target
59.00
17.81%

The consensus 1-year price target stands at 56.33, with estimates ranging from a low of 52.00 to a high of 59.00.

Analyst Consensus Analysis

Upside Potential

+12.5%

Moderate upside. Analysts expect positive returns but with limited margin of safety. Consider entry timing.

Analyst Agreement

12.4% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

High

Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.

Market Sentiment Insight

Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.

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RLI Corp. Insider Positioning

RLI ยท NYSE

During the last 12 months, insiders have purchased $1.47M worth of RLI shares, with no selling activity reported.

3 Months

Bought

16.5K

858.96K

Sold

0

0.00

Net Activity

+859K

+$859K

3-6 Months

Bought

7.0K

403.23K

Sold

0

0.00

Net Activity

+403K

+$403K

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

3.0K

207.45K

Sold

0

0.00

Net Activity

+207K

+$207K

Top Buyers

1
KCW

Kliethermes Craig W

Officer: Chief Executive Officer

12.0K sharesโ€ข3 transactions

$651K

2
KJL

Klobnak Jennifer L

Officer: Chief Operating Officer

9.0K sharesโ€ข4 transactions

$536K

3
KCC

Kellogg Clark C

Director

3.0K sharesโ€ข1 transactions

$153K

4
DDB

Duclos David B.

Director

2.5K sharesโ€ข1 transactions

$130K

Top Sellers

No selling activity

Insider Activity Analysis

Net Insider Sentiment

Bullish

Strong bullish signal with $1.47M net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.

Buy/Sell Ratio

โˆž:1

Perfect buy/sell ratio. Only buying activity with zero sellingโ€”the most bullish possible insider signal.

Recent Trend (3 Months)

$859K

Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.

Insider Participation

High Buying

4 insider buyers vs. 0 sellers. Broad-based buying across management team suggests widespread confidence.

Insider Activity Insight

Strong confluence of bullish signals: High buy/sell ratio, multiple insiders participating, and recent buying momentum all point to significant insider confidence. This level of coordinated buying often precedes positive developments.

0.28%
Dividend Yield
-92%
3Y+43.0%
5Y+31.0%
10Y-3.0%
ย 

rli Dividend History

RLI
10Y CAGR +36%
Latest $2.18
Annual $4.82
5 year growth trend
Last Period: +1262%