RLI reports underwriting income of $62.2m with CoR of 84.5% for Q2’25

Specialty insurer RLI Corp. has reported underwriting income of $62.2 million, with a combined ratio of 84.5% for the second quarter of 2025, driven by the Property segment, which posted underwriting income of $49.5 million, compared with $53.2 million a year earlier.

Supporting the property performance, RLI’s Casualty business recorded underwriting income of $8.3 million and the Surety segment income of $4.4 million, compared with $10.3 million and $6.5 million, respectively, in the second quarter of 2024.

All in all, underwriting income dipped slightly from the $70 million reported for Q2 2024, as the combined ratio increased to 84.5% from last year’s 81.5%.

Results for both years include favourable development in prior years’ loss reserves, which resulted in a $24.4 million and $19.8 million net increase to underwriting income in 2025 and 2024, respectively, explained the insurer.

For Q2’25, gross premiums written were flat at $562 million. Meanwhile, net premiums earned grew by 6% to $402 million, and net premiums written totalled $457 million, down slightly on the prior year’s $460 million.

The insurer’s net catastrophe losses for the quarter were $14 million, and $26 million for the first half of 2025.

Net investment income for the quarter increased 16% to $39.4 million when compared to Q2’24. The investment portfolio’s total return was 2.9% for the quarter and 4.2% for half year 2025.

The insurer has reported Q2’25 net earnings of $124.3 million or $1.34 per share, compared to $82 million or $0.89 per share for Q2’24.

Lastly, the insurer recorded operating earnings for Q2’25 of $78.1 million or $0.84 per share, compared to $79.3 million or $0.86 per share for Q2’24.

Craig Kliethermes, President and Chief Executive Officer, RLI Corp., commented, “RLI delivered solid earnings and continued book value growth in the second quarter. We posted an 85 combined ratio, underscoring our underwriting discipline in a highly competitive market.

“Investment income increased as we put operating cash flow to work in a favourable interest rate environment. Collectively, these results contributed to a 16% increase in book value since year-end 2024. These achievements reflect the strength of our team and their commitment to driving sustained value and long-term profitable growth.”

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