RLI NYSE Russell 1000 Earnings call
RLI Corp. (RLI) · Q2 2026 results and valuation
Share price: $68.70 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 23 Jul 2026 and 23 Apr 2026
Net income up 206.1% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+206.1%
Net income vs Q1 2026
Net income 168.0M vs 54.9M
Revenue +35.8%
Against the same quarter last year (Q2 2025) it is +35.1% — part of the move on last quarter is seasonal.
2 · How management spoke
Typical
Less upbeat than 59% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Figure
Total investments and cash reached approximately $4.9 billion at quarter end, representing the company's total liquidity position.
Valuation
Is RLI Corp. undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 3.5% growth a year (3-year revenue growth), the model's fair value is $64.58 a share — the stock trades 6% above it. Today's price assumes 4.3% growth a year.
Current price
$68.70
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+4.3% for 10 yrs
Fair value / share
$64.58
Buy below
$48.43
Price vs fair value
Overvalued 6%
Price vs buy-below price
Overvalued 42%
Read between the lines
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Key theme
RLI saw submissions increase by 9% in the quarter as the company focused on risk selection and loss control services in response to market severity trends.
Source quote
“Given the loss severity trends in this market, we are emphasizing risk selection and focusing on insurers who value our in-house... This is partially offset by some standard markets using the auto to get to the GL or package business. We are getting plenty of opportunities with submissions up 9% in the quarter.”
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Fading
Transportation premium grew by 27% and auto liability renewal rates rose 15%, while submissions increased 15% as competitors pulled back from several classes.
Source quote
“In addition to rate, the growth was driven by several new business opportunities with insureds who invest in superior risk... Transportation premium grew by 27%, with auto liability rate increases on renewals up 15%. Submissions were up 15% as competitors in some classes within the book are pulling back.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Given the loss severity trends in this market, we are emphasizing risk selection and focusing on insurers who value our in-house loss control services, which are designed to reduce our...”
“As a reminder, we saw our first rate decreases on hurricane-exposed risks in the third quarter of 2024 and for earthquake risks in the first quarter of 2025, which means...”
“Market conditions continue to evolve with increased competition, creating opportunities for carriers to differentiate through underwriting expertise, financial strength and most importantly, service.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 575.6M | 423.9M | +35.8% | 499.8M | +15.2% |
| Operating income | 210.7M | 67.3M | +212.9% | 156.5M | +34.6% |
| Net income | 168.0M | 54.9M | +206.1% | 124.3M | +35.1% |
| EPS | 1.82 | 0.60 | +203.3% | 1.34 | +35.8% |
| P/E today 11.8 | 12.4 | 13.3 | −0.9 | 20.6 | −8.2 |
Topics
Most discussed now
- RLI helps customers better understand risk, tailor coverage to their needs and deliver better claim outcomes, lowering their cost of...
- RLI generated an 86% combined ratio, grew gross premiums written by 3%, increased net investment income by 17%, produced a...
- The difference between net earnings and operating earnings was primarily influenced by the strong performance of RLI's equity portfolio.
- Yesterday, RLI reported second quarter operating earnings of $0.83 per share versus $0.82 last year.
- The loss ratio improved 0.4% to 45.5%, while the expense ratio increased 1.5% to 40.1% due to personnel-related costs, acquisition...
Faded since Q1 2026
- Dropped Its ownership culture makes it different, and RLI is willing to do the hard work.
- Fading Its underwriting and claims expertise positions us to select the right accounts, achieve the rate RLI need, and drive better...
- Fading RLI is seeing rate acceleration and market disruption in wheels-based products.
- Fading At the segment level, casualty growth totaled 10% for the quarter, with significant contributions from personal umbrella and commercial…
Latest announcements
Official filings, newest first.
- Other events · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Director or officer change · SEC 8-K
- Shareholder vote results · SEC 8-K
- Other events · SEC 8-K
- Regulation FD disclosure · SEC 8-K