Specialty insurer RLI Corp. has reported an underwriting income of $70.9 million for the fourth quarter of 2025 (Q4’25) with a combined ratio (CoR) of 82.6%, compared to $22.2 million and 94.4%, respectively, in Q4 2024.
RLI has posted a solid set of results for the final quarter of 2025, as well as a strong performance for full year, with underwriting income of $264.2 million and a CoR of 83.6%, compared to $210.7 million and 86.2%, respectively, in 2024.
The insurer explained that results for both years include favourable development in prior years’ loss reserves, which resulted in an $87.4 million and $84.1 million net increase to underwriting income in 2025 and 2024, respectively.
For 2025, storm losses resulted in a $26.5 million net reduction to underwriting income, compared to $93.6 million for losses from Hurricanes Beryl, Helene and Milton, and other storm losses, in 2024.
The overall 2025 underwriting income was driven by the insurer’s property segment, which contributed $219.1 million, followed by surety, adding $29.2 million, and casualty, adding $15.9 million.
In terms of top-line growth, for Q4’25, total gross premiums written (GPW) dipped to $463 million from $473 million in Q4’24. For 2025, GPW was $2.03 billion compared to $2.02 billion in 2024.
Meanwhile, the quarter’s net premiums written (NPW) were $360.6 million compared to $366.4 million a year earlier. For the full year 2025, NPW was $1.62 billion compared to $1.61 billion in 2024.
Net premiums earned for the quarter grew by 2.3% to $406.4 milli0n compared to $397.1 million in Q4’24. For 2025, the same grew by 5.8% to $1.6 billion compared to $1.5 billion in 2024.
RLI reported Q4’25 net earnings of $91.2 million, compared to $40.9 million and operating earnings of $86.4 million, compared to $48.3 million in Q4’24.
Additionally, the insurer’s net investment income for Q4’25 increased by 9% year over year to $42.3 million compared to $38.8 million in Q2’24. For the full year 2025, the same was $159.7 million, compared to $142.3 million in 2024.
The investment portfolio’s total return was 1.5% for the quarter and 9% for the year. RLI’s comprehensive earnings were $100.4 million for Q4’25 compared to an extensive loss of $26.3 million for Q4’24.
Craig Kliethermes, President and Chief Executive Officer, RLI Corp., commented, “Our fourth-quarter results reflect the strength of our diversified specialty product portfolio and underwriting discipline. We achieved an 83 combined ratio, underscoring our ability to produce positive underwriting results in a highly competitive market while remaining focused on profitability.”
He continued, “For the full year, premium growth was modest at 1%, but our strong underwriting performance drove an 84 combined ratio, marking our 30th consecutive year of underwriting profitability. Favourable underwriting and investment outcomes contributed to a 33% increase in book value from year-end 2024 and supported meaningful returns to shareholders. These results highlight the discipline, expertise and ownership mindset of our associate-owners, which continue to make RLI different.”
