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RLI posts higher Q2 profit as underwriting discipline lifts margins
RLI reported a 3.0% rise in gross premiums written, an 86.0% combined ratio, and announced a $250.0 million share repurchase program.
RLI Corp reported second-quarter 2026 net earnings of $168.0 million, or $1.82 per diluted share, up from $124.3 million, or $1.34 per share, a year earlier, according to Insurance Business. Operating earnings were $76.9 million, or $0.83 per share, roughly flat versus $76.2 million, or $0.82 per share, in the second quarter of 2025.
Underwriting income rose to $59.9 million with a combined ratio of 85.6, compared with $62.2 million and an 84.5 combined ratio in the prior-year period. Favorable development on prior years' loss reserves added $35.1 million to underwriting income in 2026, versus $24.4 million in 2025.
Gross premiums written increased 3% for the quarter, driven primarily by the casualty segment, Insurance Business reported. Casualty underwriting income fell to $1.7 million from $8.3 million, while the casualty combined ratio rose to 99.3 from 96.5; property was the strongest performer, with underwriting income of $53.5 million and a combined ratio of 56.8.
RLI said an increase in net investment income complemented underwriting results and helped drive a rise in book value per share, and it cited strong margins in property and surety for an 86.0% combined ratio. The company also authorized a new $250.0 million share repurchase program on May 14 and said it repurchased 234,973 shares in the quarter at an average price of $51.25, spending $12.0 million, and paid a $2.00 special cash dividend on June 12 along with a regular quarterly dividend of $0.18 per share.