RLI Insurance Company reduced its catastrophe reinsurance limit by $150 million for 2026 at the January renewals, citing lower exposure and continued soft conditions, which it described as a “buyer’s market” for property.
Jen Klobnak, Chief Operating Officer of RLI Corp., said the firm renewed roughly two-thirds of its annual reinsurance spend at January 1, achieving 15%–20% rate reductions on its catastrophe program and more modest pricing relief on its property working layers.
Klobnak observed, “With our reduced exposure and continuing soft market conditions, we purchased $150 million less catastrophe limit for 2026.
“We remain ready to approach the market midterm should an opportunity present itself, as we have done in previous years. On the casualty side, rates were down around 5%. We achieved similar terms and conditions with some broadening of coverage in the property treaties.”
Craig Kliethermes, President and Chief Executive Officer of RLI Corp, suggested that the environment remains competitive, and that the firm’s premium growth was modest.
“That’s exactly when our model tends to show its strength. We don’t measure success by how fast we grow. We measure it by how well we grow and whether today’s decisions stand the test of time,” Kliethermes said.
He continued, “Gerald Stephens, our founder, used to remind us that you don’t win the long game by swinging at every pitch. You win it by knowing which ones to let go of. That mindset is deeply ingrained at RLI.
“We’re comfortable pulling back when the risk-reward equation doesn’t work, and we’re confident leaning in where we have the expertise and when the market supports it.
“Our diversified specialty portfolio, strong balance sheet, and ownership culture give us a lot of flexibility and a lot of confidence as we look ahead.”
RLI reported underwriting income of $70.9 million for the fourth quarter of 2025, generating a combined ratio (CoR) of 82.6%, compared with $22.2 million and 94.4%, respectively, in Q4 2024.
The insurer also delivered a strong performance for the full year, posting underwriting income of $264.2 million and a CoR of 83.6%, versus $210.7 million and 86.2% in 2024.
