RLI

It has been about a month since the last earnings report for Palomar (PLMR). Shares have lost about 1.4% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Palomar due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Palomar Holdings, Inc. before we dive into how investors and analysts have reacted as of late. Palomar Q2 Earnings Top on Higher Premiums, Investment Income Rise Y/YPalomar Holdings reported second-quarter 2026 operating income of $2.36 per share, which beat the Zacks Consensus Estimate by 11.3%. The bottom line increased 34.1% year over year.Total revenues improved 57.9% year over year to $307.7 million, mainly driven by higher net earned premiums and investment income. The top line beat the Zacks Consensus Estimate by 7.4%.Palomar delivered another quarter of strong premium and revenue growth, aided by robust net earned premiums and higher investment income. However, elevated losses and underwriting expenses weighed on underwriting margins, resulting in a higher combined ratio.Behind the HeadlinesGross written premiums increased 27% year over year to $630.5 million, supported by growth across Casualty, Crop and Surety & Credit lines. The figure missed our estimate of $688 million.Net earned premiums rose 59.5% year over year to $287 million, exceeding our estimate of $260 million and the Zacks Consensus Estimate of $266 million.Net investment income climbed 49.2% year over year to $20 million, driven by higher yields on invested assets and a larger average investment balance, supported by strong operating cash flow. The figure surpassed both the Zacks Consensus Estimate of $18.2 million and our estimate of $18.8 million.Palomar reported adjusted underwriting income of $67 million, marking a 38.4% increase from the prior-year level. Reported underwriting income grew 25.5% year over year to $48 million, surpassing our estimate of $17 million.Total expenses rose 70.5% year over year to $244.6 million due to higher losses and loss adjustment expenses, increased acquisition costs, elevated underwriting expenses and higher interest expense. The figure was lower than our estimate of $248.9 million.The loss ratio was 34.5%, deteriorating 880 basis points year over year. It was lower than our estimate of 37.8% and the Zacks Consensus Estimate of 35.5%.The adjusted combined ratio worsened 360 basis points year over year to 76.7%, but was better than the Zacks Consensus Estimate of 78.4%.PLMR’s Financial UpdateCash and cash equivalents declined 41.3% to $62.7 million from the 2025-end level.Shareholders’ equity increased 4.1% to $980.9 million from the 2025-end level.Annualized adjusted return on equity for the second quarter of 2026 was 26.3%, up 260 basis points year over year.PLMR’s Capital DeploymentDuring the second quarter, the company repurchased 0.37 million shares for $41 million.On July 30, 2026, Palomar's board declared its first quarterly cash dividend of 45 cents per share. The dividend is payable on Sept. 2, 2026, to shareholders of record as of Aug. 19, 2026.PLMR’s 2026 GuidanceThe company expects 2026 adjusted net income in the range of $270-$280 million, including estimated catastrophe losses of $8-$12 million. Since the earnings release, investors have witnessed a upward trend in fresh estimates. At this time, Palomar has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. It comes with little surprise Palomar has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Palomar belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, RLI Corp. (RLI), has gained 0.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. RLI Corp. reported revenues of $463.14 million in the last reported quarter, representing a year-over-year change of +4.9%. EPS of $0.83 for the same period compares with $0.84 a year ago. For the current quarter, RLI Corp. is expected to post earnings of $0.54 per share, indicating a change of -34.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.9% over the last 30 days. RLI Corp. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Palomar Holdings, Inc. (PLMR) : Free Stock Analysis Report RLI Corp. (RLI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for CNA Financial (CNA). Shares have lost about 8.1% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is CNA Financial due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. CNA Q2 Earnings Beat on Improved Investment Income, Premium GrowthCNA Financial Corporation reported second-quarter 2026 core earnings of $1.19 per share, which beat the Zacks Consensus Estimate of $1.04 by 14.4%. The bottom line decreased 3.3% year over year. Revenues rose 3% year over year to $3.46 billion and surpassed the consensus estimate of $3.34 billion by 3.6%. Higher investment income and premium growth supported the top line, while the Property & Casualty combined ratio deteriorated. Property & Casualty net written premiums increased 4% year over year to $2.97 billion. Net earned premiums rose 3% to $2.66 billion, aided by 11% new business growth to a record $718 million and a 2% renewal premium change.Retention remained 83%, while the rate change was flat. Management noted that rate increases in casualty lines affected by social inflation and in Specialty offset property declines, workers’ compensation and International. P&C underwriting gain fell 39% year over year to $92 million. The combined ratio worsened 240 basis points to 96.5%, reflecting a 250-basis-point increase in the loss ratio to 66.4%.The underlying combined ratio deteriorated 250 basis points to 94.2%. The underlying loss ratio increased 260 basis points to 64.1%, while the expense ratio improved 10 basis points to 29.7%. Catastrophe losses were $60 million, down from $62 million a year earlier. Specialty net written premiums grew 5% year over year to $937 million, while net earned premiums increased 2% to $878 million. Our estimate for net written premiums was $875.8 million. Its combined ratio deteriorated 290 basis points to 96.5%, as the underlying loss ratio rose across various lines. Commercial net written premiums advanced 5% to $1.64 billion, and net earned premiums rose 3% to $1.44 billion. Our estimate for net written premiums was $1.57 billion. The combined ratio deteriorated 170 basis points to 96.5%. Higher losses in excess casualty and workers’ compensation were partly offset by a 60-basis-point improvement in the expense ratio. International net written premiums declined 2% year over year to $385 million, though net earned premiums increased 4% to $337 million. Excluding currency fluctuations, net written premiums fell 3%. Our estimate for net written premiums was $352.6 million. The segment’s combined ratio deteriorated 410 basis points to 96.9%. The expense ratio increased 200 basis points due to investments in talent and technology and higher acquisition costs, while catastrophe losses rose to $7 million from $5 million. Net investment income increased 6% year over year to $701 million. The increase was driven by higher returns on limited partnerships and common stock, as well as higher income from fixed-income securities, resulting from a larger invested asset base and favorable reinvestment rates. Our estimate for net investment income was $705.2 million. The Zacks Consensus Estimate was pegged at $705 million.Limited partnership and common stock income rose to $131 million from $100 million. Hedge funds and common stocks generated strong returns, while private equity remained a positive contributor. P&C core income nevertheless declined 5% to $426 million as lower underwriting results outweighed stronger investment income. Total claims, benefits and expenses increased 3% year over year to $3.42 billion. Insurance claims and policyholders’ benefits rose to $2.17 billion from $2.09 billion, while amortization of deferred acquisition costs increased to $481 million from $469 million. Our estimate was $3.34 billion. Life & Group posted a core loss of $10 million versus core income of $1 million a year earlier, reflecting lower investment income. Net earned premiums in Life & Group were $103 million, down 2.8% year over year. Our estimate was $102.7 million. Corporate & Other recorded a core loss of $92 million, narrower than $114 million, including a $77 million after-tax legacy mass tort charge. Net income increased 7% year over year to $321 million, or $1.18 per share. Core return on equity declined 50 basis points to 10.5%. Book value per share was $41.34 as of June 30, 2026, declining 3.7% from 2025 end. Book value excluding accumulated other comprehensive income was $45.83, up 4% from year-end after adjusting for $2.96 per share of dividends paid. As of June 30, 2026, statutory capital and surplus stood at $11.2 billion. The board declared a quarterly dividend of 48 cents per share, payable Sept. 3, 2026, to shareholders of record as of Aug. 17. In the past month, investors have witnessed a downward trend in estimates revision. Currently, CNA Financial has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the top 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, CNA Financial has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. CNA Financial belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, RLI Corp. (RLI), has gained 2.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. RLI Corp. reported revenues of $463.14 million in the last reported quarter, representing a year-over-year change of +4.9%. EPS of $0.83 for the same period compares with $0.84 a year ago. For the current quarter, RLI Corp. is expected to post earnings of $0.54 per share, indicating a change of -34.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.9% over the last 30 days. RLI Corp. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CNA Financial Corporation (CNA) : Free Stock Analysis Report RLI Corp. (RLI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Palomar Holdings, Inc. PLMR, a specialty insurance provider, offers coverage across earthquake, inland marine, property, casualty, crop, and surety and credit markets. Its diversified specialty portfolio and disciplined underwriting approach remain key drivers of profitability. Palomar's premium growth has remained a key earnings catalyst. In the second quarter of 2026, gross written premiums increased 27% year over year to $630.5 million, driven by broad-based momentum across casualty, crop, inland marine and property, and surety and credit. New business production and policy count increased year over year, while premium retention exceeded 96%, supporting sustained earned premium growth. The company continues to grow premiums through new products, distribution relationships, program partnerships, geographic expansion and rate increases in selected lines. In the second quarter of 2026, net earned premiums surged 59.5% year over year to $287 million, aided by improved excess-of-loss reinsurance terms, greater premium retention, growth in quota-share businesses, such as crop, as well as the Gray Surety acquisition. Higher premiums are contributing to underwriting income and earnings, although pricing remains critical to profitability. In second-quarter 2026, the adjusted combined ratio increased to 76.7% from 73.1%, while commercial earthquake pricing remains competitive. Still, the larger premium base supported higher underwriting income and earnings. Overall, Palomar's specialty-market expertise, strong premium growth and disciplined underwriting provide a solid foundation for continued earnings growth. Sustaining this momentum will depend on balancing expansion with adequate pricing and underwriting profitability. Axis Capital Holdings Limited AXS, a global specialty underwriter, has a strategic focus on specialty products, such as professional liability, cyber, marine and aviation. AXS has been witnessing an increase in its top line over a considerable period of time on the back of higher net premiums, led by its strong Insurance segment. It continues to boost shareholder value through buybacks and dividend hikes. RLI Corp. RLI, another specialty insurer, benefits from premium growth across its diversified property, casualty and surety businesses. The insurer continues to emphasize disciplined underwriting while pursuing profitable premium growth. It also benefits from investment income generated from its growing invested asset base, providing an additional source of earnings. Shares of PLMR have gained 12.7% in the past three months compared with the industry’s growth of 4.6%. Image Source: Zacks Investment Research The stock is overvalued compared with its industry. It is currently trading at a price-to-book value multiple of 3.48, higher than the industry average of 1.41. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Palmar’s 2026 earnings per share (EPS) indicates a year-over-year increase of 27.5%. The consensus estimate for revenues is pegged at $1.29 billion, implying a year-over-year improvement of 49.3%. The consensus estimate for 2027 EPS and revenues indicates an increase of 11.3% and 19.5%, respectively, from the corresponding 2026 estimates. The Zacks Consensus Estimate for PLMR’s 2026 and 2027 EPS has moved up 2.3% and 2.7%, respectively, in the past 30 days. Image Source: Zacks Investment Research PLMR stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Palomar Holdings, Inc. (PLMR) : Free Stock Analysis Report RLI Corp. (RLI) : Free Stock Analysis Report Axis Capital Holdings Limited (AXS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for RLI Corp. (RLI). Shares have added about 6.4% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is RLI Corp. due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for RLI Corp. before we dive into how investors and analysts have reacted as of late. RLI's Q2 Earnings Beat Estimates on Premium Growth, Investment IncomeRLI Corp. reported second-quarter 2026 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate by 16.9%. The bottom line increased 1.2% from the prior-year quarter.The quarterly results reflect continued premium growth, higher investment income and favorable prior-year reserve development. However, weaker underwriting performance in the casualty segment partly offset these positives. Operating revenues for the reported quarter were $463 million, up 4.9% year over year, driven by higher net premiums earned and net investment income. The top line beat the Zacks Consensus Estimate by 1.6%.Gross premiums written (GPW) increased 3.1% year over year to $579.7 million, driven by strong growth in the casualty segment. Our estimate was $592.9 million.Net investment income increased 16.8% year over year to $46 million. The Zacks Consensus Estimate was $42.7 million, while our estimate for the metric was pegged at $40.7 million. The investment portfolio’s total return was 3.4% in the quarter.Total expenses increased 6.4% year over year to $367.9 million, primarily due to higher policy acquisition costs, insurance operating expenses and interest expense on debt. Our estimate was $376.8 million.Underwriting income fell 3.7% year over year to $59.9 million. Our estimate was $53.1 million. The combined ratio deteriorated 110 basis points year over year to 85.6, reflecting higher catastrophe losses. Our estimate was 87.2. Casualty lines’ GPW rose 10.6% year over year to $339 million. The figure was above our estimate of $338.1 million.The underwriting income decreased significantly to $1.7 million from $8.3 million, down 79% year over year. The combined ratio deteriorated 280 bps year over year to 99.3%. The figure was above our estimate of 98.4%.Property lines’ GPW fell 5.9% year over year to $199.3 million. The figure was below our estimate of $207.7 million.The underwriting income increased to $53.5 million, up 8.1% supported by favorable reserve development. The combined ratio improved 530 bps year over year to 56.8%. Our estimate was 65.2%.Surety lines’ GPW declined 5.7% year over year to $41.4 million. The figure was below our estimate of $47.1 million.The underwriting income improved 5.4% year over year to $4.7 million. The combined ratio improved 70 bps year over year to 87.2%. Our estimate was 84.8%. RLI exited the second quarter with total investments and cash of $4.9 billion, up 4.5% from 2025-end.Book value was $19.09 per share as of June 30, 2026, up 11% from the figure as of Dec. 31, 2025.Net cash flow from operations was $145.2 million, down 16.9% year over year.The statutory surplus increased 5.2% from 2025-end to $1.94 billion as of June 30, 2026.Return on equity was 24.5%, expanding 480 bps from the year-ago period. On June 12, 2026, the insurer paid a regular quarterly dividend of 18 per cent per share for the second quarter. RLI’s cumulative dividends totaled more than $1.3 billion, paid over the last five years.On May 14, 2026, the board of directors approved a $250 million share repurchase program. The company repurchased 0.2 million shares for $12 million during the second quarter. As of June 30, 2026, $238 million remained available under the authorization. It turns out, fresh estimates have trended downward during the past month. Currently, RLI Corp. has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, RLI Corp. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RLI Corp. (RLI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Accelerant Holdings ARX reported second-quarter fiscal 2026 adjusted earnings of 32 cents per share, which more than doubled from 13 cents reported in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of 16 cents. Operating revenues increased 62.9% year over year to $356.9 million, surpassing the Zacks Consensus Estimate by 30.2%. The quarterly performance was driven by strong Exchange Written Premium growth, rising third-party premium, higher fee-based revenues and solid Exchange Services and MGA Operations growth. Weaker underwriting profitability partly offset these positives. Accelerant Holdings price-consensus-eps-surprise-chart | Accelerant Holdings Quote Exchange Written Premium increased 23.3% year over year to $1.3 billion. Third-Party Direct Written Premium accounted for 47% of total Exchange Written Premium, up from 27% in the year-ago quarter, as Accelerant continued expanding its third-party insurer base. The company had 314 members at the end of the reported quarter compared with 248 in the prior-year period. Pretax income rose to $87.4 million from $22.3 million a year ago, while GAAP net income increased to $80 million from $13.1 million. Share-based compensation was $25.2 million in the second quarter compared with $3 million a year earlier. Adjusted EBITDA climbed 46.4% year over year to $93.1 million, while the adjusted EBITDA margin expanded 200 basis points to 31%. Adjusted net income increased 165.2% to $70 million. Exchange Services Operating revenues increased 30.5% year over year to $111.8 million. Adjusted EBITDA rose 32.9% to $74 million, while the adjusted EBITDA margin expanded 120 basis points to 66.2% from 65% in the prior-year quarter. MGA Operations Operating revenues increased 19.8% year over year to $70.1 million. Adjusted EBITDA rose 22.7% to $30.3 million, while the implied adjusted EBITDA margin expanded 100 basis points to 43.2% from 42.2% in the prior-year quarter. Underwriting Operating revenues increased 21.8% year over year to $133.9 million. Adjusted EBITDA declined 88.1% to $1.9 million, while the implied adjusted EBITDA margin contracted 1,310 basis points to 1.4% from 14.5% a year ago. Accelerant exited the second quarter with cash, cash equivalents and restricted cash of $1.7 billion. Debt totaled $120.1 million. Operating cash outflow was $90 million, primarily reflecting the timing of reinsurance payments within the underwriting business. During the second quarter, ARX repurchased 4.73 million Class A common shares for approximately $66 million under its share repurchase program. As of June 30, 2026, the company had approximately $123 million of remaining authorization under the program. The company will be acquired by Thoma Bravo in an all-cash deal valued at more than $4 billion. Shareholders will receive $20.25 per share, representing a 49% premium to ARX’s Aug. 12 closing price. The transaction is expected to close in the first half of 2027, subject to shareholder and regulatory approvals. Following the completion of the deal, Accelerant will become a private company and leave the NYSE. Due to the pending transaction, it will not provide guidance for the third quarter or full-year 2026. Accelerant currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Here are some other stocks from the broader Finance space that have also reported their quarterly results: Kinsale Capital Group, Inc. KNSL, RLI Corp. RLI and Arch Capital Group Ltd. ACGL. Here's how they have performed: Kinsale Capital delivered second-quarter 2026 net operating earnings of $5.54 per share, which outpaced the Zacks Consensus Estimate by 8.6%. The bottom line increased 15.9% year over year. KNSL’s operating revenues increased 16.8% year over year to $548.5 million, which surpassed the Zacks Consensus Estimate by 12.3%. The quarterly results benefited from growth in net earned premiums, increased net investment income, favorable prior-year reserve development and disciplined underwriting. However, these gains were partially offset by lower gross written premiums and higher operating expenses. RLI reported second-quarter 2026 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate by 16.9%. The bottom line increased 1.2% from the prior-year quarter. RLI’s operating revenues for the reported quarter were $463 million, up 4.9% year over year. The top line beat the Zacks Consensus Estimate by 1.6%. The quarterly results reflect continued premium growth and higher investment income. However, weaker underwriting performance in the casualty segment partly offset these positives. Arch Capital reported second-quarter 2026 operating income of $2.56 per share, which beat the Zacks Consensus Estimate by 2.8%. The bottom line decreased 0.8% year over year. ACGL’s revenues of $4.43 billion declined 6.9% year over year and missed the consensus mark by 3.1%. The results reflected lower earned premiums and catastrophe pressure, partly offset by higher net investment income. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Accelerant Holdings (ARX) : Free Stock Analysis Report RLI Corp. (RLI) : Free Stock Analysis Report Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report Kinsale Capital Group, Inc. (KNSL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Skyward Specialty Insurance Group, Inc. SKWD delivered a solid second quarter of 2026, with operating earnings per share of $1.30, which increased 46.1% from the year-ago level and beat the Zacks Consensus Estimate by 13%. Total revenues were $489.53 million, which improved 53% year over year and beat the consensus mark by 6.5%. The second-quarter performance reflected strong premium growth and contributions from the Apollo segment, while underwriting remained profitable despite a slight increase in the combined ratio. Skyward Specialty Insurance Group, Inc. price-consensus-eps-surprise-chart | Skyward Specialty Insurance Group, Inc. Quote Gross written premiums totaled $740.6 million, up 13.3% from the prior-year period’s level. Growth was broad-based, led by a 14.2% increase in the Skyward Specialty segment and a 5.6% rise in the Apollo segment, with Syndicate 1969's gross written premiums increasing 7.7%. Net earned premiums climbed to $444.5 million from $295.5 million a year ago, reflecting higher business volumes and contributions from the Apollo segment. Underwriting fee income of $12.6 million, generated by the Apollo segment, also contributed to the quarter’s top-line mix. Net investment income increased to $30.7 million from $18.7 million a year ago, driven by the addition of the Apollo portfolio, a higher yield environment, and a larger invested asset base. Within Skyward Group’s U.S. specialty operations, several underwriting divisions posted notable momentum. Accident & Health gross written premiums increased 57.8% year over year, Credit & Surety rose 15.6%, Global Agriculture advanced 95.8%, and Specialty Programs jumped 29.7%, helping offset declines in Captives, Energy Solutions and Global Property. The Skyward Specialty segment's loss and LAE ratio increased primarily because of shifts in business mix, driven by growth in Accident & Health and Global Agriculture. At the same time, the segment's expense ratio improved, driven by business mix shifts, enhanced operating efficiencies and scale benefits. Losses and loss adjustment expenses amounted to $276.7 million, up from $181.3 million in the prior-year quarter, consistent with the expansion of the premium base. The consolidated loss ratio deteriorated to 62.3% from 61.3% a year ago, primarily reflecting business-mix shifts within the Skyward Specialty segment. Total Cat loss and LAE increased to 1.9% from 1.4% a year ago. Underwriting, acquisition and insurance expenses rose to $123.3 million from $85.6 million a year ago, reflecting higher activity levels and a larger operating platform. On the ratio side, net policy acquisition costs increased to 16.0% from 15.1% a year ago, while the total expense ratio improved to 27.2% from 28.1%. The combined ratio increased slightly to 89.5% from 89.4% a year ago. On the balance sheet, cash and cash equivalents rose to $219.2 million from $168.5 million as of 2025-end. Total assets reached $6.8 billion as of June 30, 2026, up from $4.8 billion as of 2025-end. Notes payable jumped to $417.6 million from $100.4 million as of 2025-end. Book value per share was approximately $28.55, up 14.6% from the figure as of Dec. 31, 2025. SKWD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Here are some stocks from the broader Finance space that have also reported their quarterly results: Kinsale Capital Group, Inc. KNSL, RLI Corp. RLI and Arch Capital Group Ltd. ACGL. Here's how they have performed: Kinsale Capital delivered second-quarter 2026 net operating earnings of $5.54 per share, which outpaced the Zacks Consensus Estimate by 8.6%. The bottom line increased 15.9% year over year. KNSL’s operating revenues increased 16.8% year over year to $548.5 million, which surpassed the Zacks Consensus Estimate by 12.3%. The quarterly results benefited from growth in net earned premiums, increased net investment income, favorable prior-year reserve development and disciplined underwriting. However, these gains were partially offset by lower gross written premiums and higher operating expenses. RLI reported second-quarter 2026 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate by 16.9%. The bottom line increased 1.2% from the prior-year quarter. RLI’s operating revenues for the reported quarter were $463 million, up 4.9% year over year. The top line beat the Zacks Consensus Estimate by 1.6%. The quarterly results reflect continued premium growth and higher investment income. However, weaker underwriting performance in the casualty segment partly offset these positives. Arch Capital reported second-quarter 2026 operating income of $2.56 per share, which beat the Zacks Consensus Estimate by 2.8%. The bottom line decreased 0.8% year over year. ACGL’s revenues of $4.43 billion declined 6.9% year over year and missed the consensus mark by 3.1%. The results reflected lower earned premiums and catastrophe pressure, partly offset by higher net investment income. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Skyward Specialty Insurance Group, Inc. (SKWD) : Free Stock Analysis Report RLI Corp. (RLI) : Free Stock Analysis Report Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report Kinsale Capital Group, Inc. (KNSL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

American Financial Group, Inc. AFG reported second-quarter 2026 net operating earnings per share of $2.82, which surpassed the Zacks Consensus Estimate by 17%. The bottom line increased 31.8% year over year, driven by underwriting income and stronger returns from its alternative investment portfolio. Total revenues of $2 billion increased 5% year over year.  The top line also beat the Zacks Consensus Estimate by 0.7%. The quarterly results benefited from record pretax Property & Casualty ("P&C") operating income, healthy premium growth, improved underwriting margins and higher investment income from alternative investments. American Financial Group, Inc. price-consensus-eps-surprise-chart | American Financial Group, Inc. Quote Net earned premiums rose 2.9% year over year to approximately $1.7 billion in the second quarter of 2026. The figure was slightly below both the Zacks Consensus Estimate and our estimate of $1.71 billion. Net investment income rose 20.1% year over year to $221 million in the quarter under review. The figure was higher than our estimate of $195.4 million and surpassed the Zacks Consensus Estimate of $197.9 million. Total costs and expenses increased 1.1% year over year to $1.7 billion due to higher underwriting expenses and interest charges, partly offset by lower losses and loss adjustment expenses. Our estimate was $1.72 billion. Specialty P&C Insurance: The segment generated $1.9 billion in net written premiums, which improved 6% year over year, reflecting new business opportunities, favorable renewal pricing and increased exposures while maintaining disciplined underwriting. The Specialty P&C Insurance segment’s underwriting profit increased 26.3% year over year to $144 million in the quarter, driven by higher underwriting profit across all three groups. The figure exceeded our estimate of $143 million. Pre-tax core operating earnings before income taxes of the P&C Insurance segment were $350 million, up 28.2% year over year. Property & Transportation Group: Net written premiums increased 5% year over year to $797 million in the second quarter, driven by crop insurance growth, favorable pricing and higher exposures. The Property & Transportation Group generated underwriting profit of $57 million, more than double the $27 million reported a year ago, driven by stronger transportation and agricultural business performance. The combined ratio improved 490 basis points year over year to 90.3%. Specialty Casualty Group: Net written premiums increased 6% year over year to $812 million. The Specialty Casualty Group generated underwriting profit of $45 million, down from $49 million in the prior-year quarter, due to lower workers' compensation and executive liability profitability, offset by strength in energy, construction and environmental liability businesses. The combined ratio deteriorated 60 basis points year over year to 94.5%. Specialty Financial Group: Net written premiums rose 10% year over year to $306 million. In the Specialty Financial Group, underwriting profit of $42 million, up from $38 million in the prior-year quarter, was primarily driven by stronger performance in its fidelity/crime and financial institutions businesses. Catastrophe losses in Specialty Financial Group totaled $10 million in the reported quarter, narrower than the year-ago loss of $39 million. The current combined ratio of 85.6% improved 50 basis points year over year. American Financial exited the second quarter of 2026 with total cash and investments of $17.1 billion, which decreased 0.7% from the 2025-end level. Long-term debt of $1.82 billion remained unchanged from the 2025-end level. As of June 30, 2026, the company’s book value per share, excluding accumulated other comprehensive income (AOCI), was $59.85 compared with $58.38 at the end of 2025. Annualized return on equity was 20.3% in the second quarter, up 50 basis points year over year. American Financial repurchased $26 million of its common stock in the second quarter of 2026. It paid total cash dividends of 88 cents per share, continuing its disciplined capital management strategy. American Financial currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. RLI Corp. RLI reported second-quarter 2026 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate by 16.9%. The bottom line increased 1.2% from the prior-year quarter’s level. Operating revenues amounted to $463 million, up 4.9% year over year. The top line beat the Zacks Consensus Estimate by 1.6%. Gross premiums written increased 3.1% year over year to $579.7 million, driven by strong growth in the casualty segment. Our estimate was $592.9 million. Net investment income increased 16.8% year over year to $46 million. The Zacks Consensus Estimate was $42.7 million. First American Financial Corporation FAF reported second-quarter 2026 operating earnings of $2.08 per share, which beat the Zacks Consensus Estimate by 15.6% and rose 35.9% year over year. Operating revenues climbed 15% to $2.1 billion, driven by growth in direct premiums, escrow fees, and Information and other revenues. The top line surpassed the consensus estimate by 4.4%. Direct premiums and escrow fees reached $794.1 million, marking a 14.8% increase from the prior-year level. Investment income totaled $183.7 million, up 14.7% year over year. The figure exceeded both our estimate and the Zacks Consensus Estimate of $182.3 million. The Hanover Insurance Group, Inc. THG reported second-quarter 2026 operating earnings of $5.31 per share, up 22.1% year over year. The figure beat the Zacks Consensus Estimate of $3.88 by 36.9%. Total revenues increased 4.6% year over year to $1.72 billion but missed the consensus mark of $1.73 billion by 0.4%. Net investment income increased 13.4% year over year to $119.6 million, driven by operating cash flows and higher earned yields. Catastrophe losses totaled $91.8 million, contributing 5.7 percentage points to the combined ratio, compared with 7.0 percentage points in the prior-year quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RLI Corp. (RLI) : Free Stock Analysis Report First American Financial Corporation (FAF) : Free Stock Analysis Report American Financial Group, Inc. (AFG) : Free Stock Analysis Report The Hanover Insurance Group, Inc. (THG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. RLI (RLI) drew fresh interest on 22 July 2026 after reporting second quarter results that showed higher revenue, net income and diluted EPS compared with a year earlier. See our latest analysis for RLI. RLI’s recent earnings release and completed share buyback have coincided with firm price strength, with a 90 day share price return of 26.81% and a 1 year total shareholder return of 7.92%, suggesting momentum has picked up in recent months relative to its longer term record. If this earnings driven move has you looking beyond RLI, it could be a good time to broaden your search with the 19 top founder-led companies The latest jump in RLI, coming alongside stronger quarterly figures and a completed buyback, raises a key point: Is the stock now tracking the underlying insurance business more closely, or is this mainly a sentiment reset that valuation needs to test? Compared with the latest narrative fair value of $60.75, RLI last closed at $65.65, which sets up a clear valuation gap for investors to weigh. Read the complete narrative. RLI's most followed narrative leans on flat revenue, thinner margins, and a much richer future earnings multiple. Investors may wish to consider which assumptions connect those points and support that higher fair value. Result: Fair Value of $60.75 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, RLI could still surprise this narrative if underwriting stays tight in softer markets and technology spending leads to better expense ratios than expected. Find out about the key risks to this RLI narrative. With sentiment around RLI mixed between concern about risks and optimism about rewards, now is a good time to review the data yourself and decide where you stand. To help frame both sides, take a look at the 2 key rewards and 2 important warning signs If RLI has you thinking about what else might fit your portfolio, this is the moment to widen your search and put fresh ideas on your radar. Start with quality by scanning companies on the solid balance sheet and fundamentals stocks screener (48 results) to see which stocks pair financial strength with more resilient fundamentals. Target potential value by reviewing the 49 high quality undervalued stocks and spot stocks that the market may be pricing more cautiously than their underlying business suggests. Build a steadier income stream by checking the 9 dividend fortresses and see which companies combine higher yields with a focus on sustainability. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RLI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Cincinnati Financial Corporation CINF reported second-quarter 2026 operating income of $1.43 per share, which missed the Zacks Consensus Estimate by 21.4%. The bottom line declined 27.4% from the year-ago quarter. Total operating revenues for the second quarter were $3 billion, reflecting a 6.8% year-over-year increase. The figure, however, missed the Zacks Consensus Estimate by 1.4%. Quarterly results benefited from strong premium growth, improved pricing, and higher net investment income. However, weaker underwriting performance, driven by higher catastrophe losses, weighed on results. Cincinnati Financial Corporation price-consensus-eps-surprise-chart | Cincinnati Financial Corporation Quote Earned premiums climbed 6.3% year over year to $2.6 billion, driven by higher renewal pricing, increased insured exposures and new business growth. The figure marginally missed the Zacks Consensus Estimate by 1.5%. Net investment income, net of expenses, increased 12% year over year to $319 million, primarily due to a 14% rise in interest income from fixed-maturity securities and a 3% jump in equity portfolio dividends. The figure marginally beat the Zacks Consensus Estimate by 1.8% Total benefits and expenses increased 12.8% year over year to $2.7 billion, mainly due to higher insurance losses and underwriting, acquisition and insurance expenses. In its property and casualty insurance business, CINF reported an underwriting loss of $18 million, compared to an underwriting profit of $128 million in the year-ago quarter, reflecting higher catastrophe losses.  The Zacks Consensus Estimates was $62.6 million. The combined ratio, a key measure of underwriting profitability, deteriorated 590 basis points year over year to 100.8%, underperforming the consensus estimate of 97.1. Commercial Lines Insurance: Total revenues of $1.25 billion increased 3% year over year, driven by a 3% increase in earned premiums and higher investment income. Underwriting recorded a loss of $49 million, against a profit of $87 million in the prior-year quarter. The combined ratio deteriorated 1,120 basis points year over year to 104.1%. The Zacks Consensus Estimate was 99.8%. Personal Lines Insurance: Total revenues of $881 million increased 9% year over year, driven by a 9% rise in earned premiums. The Zacks Consensus Estimate was $889 million. Underwriting profit increased significantly year over year to $1 million from a loss of $14 million, missing the Zacks Consensus Estimate of $6 million. The combined ratio deteriorated 210 basis points year over year to 99.9%.  The Zacks Consensus Estimate was 98.1. Excess and Surplus Lines Insurance: Total revenues of $190 million grew 9% year over year, aided by a 9% increase in earned premiums. The Zacks Consensus Estimate was $185 million. Underwriting profit increased 19% year over year to $19 million, significantly surpassing the Zacks Consensus Estimate of $14.5 million. The combined ratio improved 60 basis points year over year to 90.5%. The Zacks Consensus Estimate was 92.4%. Life Insurance: Total revenues were $142 million, up 9% year over year, driven by 5% higher earned premiums and 10% higher investment income, net of expenses. The Zacks Consensus Estimate was $140.3 million. Total benefits and expenses increased 7% year over year to $104 million. As of June 30, 2026, Cincinnati Financial reported total assets of $43.2 billion, up 5.4% from the 2025-end level. Long-term debt was $791 million, remaining nearly flat from the 2025-end level. The company's debt-to-total-capital ratio improved to 4.6% from 4.9% at 2025-end. As of June 30, 2026, CINF’s book value per share increased 6.1% from the 2025-end level to $108.64. Cincinnati Financial currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Selective Insurance Group, Inc. SIGI reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year. Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%. Net premiums written plunged 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines, and a 2% decline in Excess and Surplus Lines. The combined ratio improved 220 basis points to 98. W.R. Berkley Corporation WRB reported second-quarter 2026 operating income of $1.27 per share, which beat the Zacks Consensus Estimate by 16.5%. The bottom line increased 21% year over year. W.R. Berkley’s net premiums written were $3.4 billion, up 2.4% year over year. The figure surpassed our estimate of $3.4 billion. Operating revenues totaled $ 3.8 billion, up 3.6% year over year. The top line surpassed the consensus estimate by 1.87%. Net investment income grew 10.4% to $418.7 million, supported by higher invested assets and higher portfolio yields. The figure topped our estimate of $407 million. The consensus estimate was $395.6 million. RLI Corp. RLI reported second-quarter 2026 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate by 16.9%. The bottom line increased 1.2% from the prior-year quarter. Operating revenues for the reported quarter were $463 million, up 4.9% year over year, driven by higher net premiums earned and net investment income. The top line beat the Zacks Consensus Estimate by 1.6%. Gross premiums written increased 3.1% year over year to $579.7 million, driven by strong growth in the casualty segment. Net investment income increased 16.8% year over year to $46 million. The combined ratio deteriorated 110 basis points year over year to 85.6. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report RLI Corp. (RLI) : Free Stock Analysis Report W.R. Berkley Corporation (WRB) : Free Stock Analysis Report Selective Insurance Group, Inc. (SIGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

RLI Corp. RLI reported second-quarter 2026 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate by 16.9%. The bottom line increased 1.2% from the prior-year quarter. The quarterly results reflect continued premium growth, higher investment income and favorable prior-year reserve development. However, weaker underwriting performance in the casualty segment partly offset these positives. Operating revenues for the reported quarter were $463 million, up 4.9% year over year, driven by higher net premiums earned and net investment income. The top line beat the Zacks Consensus Estimate by 1.6%. RLI Corp. price-consensus-eps-surprise-chart | RLI Corp. Quote Gross premiums written (GPW) increased 3.1% year over year to $579.7 million, driven by strong growth in the casualty segment. Our estimate was $592.9 million. Net investment income increased 16.8% year over year to $46 million. The Zacks Consensus Estimate was $42.7 million, while our estimate for the metric was pegged at $40.7 million. The investment portfolio’s total return was 3.4% in the second quarter. Total expenses increased 6.4% year over year to $367.9 million, primarily due to higher policy acquisition costs, insurance operating expenses and interest expense on debt. Our estimate was $376.8 million. Underwriting income fell 3.7% year over year to $59.9 million. Our estimate was $53.1 million. The combined ratio deteriorated 110 basis points year over year to 85.6, reflecting higher catastrophe losses. Our estimate was 87.2. Casualty lines’ GPW rose 10.6% year over year to $339 million. The figure was above our estimate of $338.1 million. The underwriting income decreased significantly to $1.7 million from $8.3 million, down 79% year over year. The combined ratio deteriorated 280 bps year over year to 99.3%. The figure was above our estimate of 98.4%. Property lines’ GPW fell 5.9% year over year to $199.3 million. The figure was below our estimate of $207.7 million. The underwriting income increased to $53.5 million, up 8.1%, supported by favorable reserve development. The combined ratio improved 530 bps year over year to 56.8%. Our estimate was 65.2%. Surety lines’ GPW declined 5.7% year over year to $41.4 million. The figure was below our estimate of $47.1 million. The underwriting income improved 5.4% year over year to $4.7 million. The combined ratio improved 70 bps year over year to 87.2%. Our estimate was 84.8%. RLI exited the second quarter with total investments and cash of $4.9 billion, up 4.5% from 2025-end level. Book value was $19.09 per share as of June 30, 2026, up 11% from Dec. 31, 2025. Net cash flow from operations was $145.2 million, down 16.9% year over year. The statutory surplus increased 5.2% from 2025-end to $1.94 billion as of June 30, 2026. Return on equity was 24.5%, expanding 480 bps from the year-ago period. On June 12, 2026, the insurer paid a regular quarterly dividend of 18 cents per share for the second quarter. RLI’s cumulative dividends totaled more than $1.3 billion over the last five years. On May 14, 2026, the board of directors approved a $250 million share repurchase program. The company repurchased 0.2 million shares for $12 million during the second quarter. As of June 30, 2026, $238 million remained available under the authorization. RLI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. First American Financial Corporation FAF reported second-quarter 2026 operating earnings of $2.08 per share, which beat the Zacks Consensus Estimate by 15.6% and rose 35.9% year over year. Operating revenues climbed 15% to $2.1 billion, driven by growth in direct premiums, escrow fees, and Information and other revenues. The top line surpassed the consensus estimate by 4.4%. Direct premiums and escrow fees reached $794.1 million, marking a 14.8% increase from the prior-year level. Investment income totaled $183.7 million in the second quarter, up 14.7% year over year. The figure exceeded both our estimate and the Zacks Consensus Estimate of $182.3 million. The Travelers Companies, Inc. TRV reported second-quarter 2026 core income of $10.04 per share, which beat the Zacks Consensus Estimate of $5.21 by 92.7%. The bottom line climbed 54% year over year. Revenues of $12.09 billion missed the Zacks Consensus Estimate of $12.27 billion by 1.5%. Net investment income rose 14% year over year to $1.07 billion pre-tax ($883 million after tax). The combined ratio improved 670 basis points year over year to 83.6%, reflecting lower catastrophe losses, stronger reserve development and a better underlying combined ratio. W.R. Berkley Corporation WRB reported second-quarter 2026 operating income of $1.27 per share, which beat the Zacks Consensus Estimate by 16.5%. The bottom line increased 21% year over year. Operating revenues totaled $3.8 billion, up 3.6% year over year. The top line surpassed the consensus estimate by 1.87%. W.R. Berkley’s net premiums written were about $3.4 billion, up 2.4% year over year. The figure surpassed our estimate of $3.4 billion. The consolidated combined ratio (a measure of underwriting profitability) improved 160 basis points year over year to 90, missing the Zacks Consensus Estimate of 92. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RLI Corp. (RLI) : Free Stock Analysis Report The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report W.R. Berkley Corporation (WRB) : Free Stock Analysis Report First American Financial Corporation (FAF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in RLI Corp.? Here are five stocks we like better. RLI posted another profitable quarter, with an 85.6 combined ratio, 17% growth in net investment income to $46 million, and operating earnings of $0.83 per share. Net earnings rose to $1.82 per share, helped by strong equity portfolio gains. Growth was strongest in casualty, led by personal umbrella and transportation, while property and surety faced more competitive or softer conditions. Casualty premium rose 11%, but property gross premium fell 6% and surety premium declined 6%. RLI returned significant capital to shareholders through a $0.18 regular dividend, a $2.00 special dividend, and share buybacks, while also authorizing a new $250 million repurchase program. Management said it will keep prioritizing disciplined underwriting and selective growth over chasing market share. Palomar’s High-Risk Insurance Strategy Is Paying Off Big RLI (NYSE:RLI) reported another quarter of profitable underwriting and higher investment income, with management emphasizing disciplined growth, capital returns and selectivity in increasingly competitive specialty insurance markets. President and Chief Executive Officer Craig Kliethermes said the company generated an 86 combined ratio, grew gross premiums written by 3%, increased net investment income by 17% and produced a 25% return on equity during the second quarter. He also noted that RLI returned capital to shareholders through both a special dividend and share repurchases. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? 3 Recession-Resistant Stocks: Low Beta, High Margins, Low Debt “Markets change; our principles don’t,” Kliethermes said, pointing to underwriting discipline, relationships with producers and insureds, and capital management as key drivers of the company’s performance. Chief Financial Officer Aaron Diefenthaler said RLI reported second-quarter operating earnings of $0.83 per share, compared with $0.82 per share in the prior-year period. On a GAAP basis, net earnings were $1.82 per share, up from $1.34 per share a year earlier. → 3 Photonics Companies Making Quantum Tech Possible Don't Overlook Hidden Gem Kinsale As Rallies To New Highs The gap between operating and net earnings was largely driven by the company’s equity portfolio. Diefenthaler said RLI recognized $103 million of unrealized gains on equity securities in the quarter, compared with $44 million last year. Realized gains totaled $9 million, which he described as reflecting modest portfolio rebalancing. Underwriting income was $59.9 million. The company’s combined ratio was 85.6, compared with 84.5 last year. The loss ratio improved by 0.4 percentage points to 45.5, while the expense ratio increased 1.5 points to 40.1 due to personnel-related costs, acquisition expenses and technology investments. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off Results included $39.8 million of favorable development on prior-year loss reserves, compared with $27.6 million in the second quarter of 2025. The quarter also included $10 million of net incurred losses from 2026 catastrophe events. Net investment income increased 17% to $46 million. Diefenthaler said operating cash flow of $145 million supported fixed-income purchases with yields averaging 4.9% during the quarter. Total investments and cash were approximately $4.9 billion at quarter-end. Chief Operating Officer Jen Klobnak said casualty premium rose 11% in the quarter, with rates up 10%. Personal umbrella and transportation were the primary drivers. Personal umbrella premium increased 26%, supported by a 17% rate increase. Klobnak said the rate increase was influenced by higher approved rate filings in California and Florida, though she expects rate increases in the second half of the year to moderate as some filings earn through the book. She said the company has also targeted growth in non-coastal states, which RLI views as more favorable from a litigation standpoint. Transportation premium rose 19%, including an 8% rate increase. Klobnak said some accounts renewed at or near expiring pricing because of strong account performance and prior rate actions. She also said new claim counts continued to decline for the second consecutive year, contributing to management’s confidence and supporting a reserve release in the quarter. Casualty brokerage premium declined 6% amid greater competition from other excess and surplus carriers, managing general agents and standard markets. Klobnak said producers and insureds are seeking broader coverage for less rate, while RLI is “picking our spots.” The casualty segment posted a 99.3 combined ratio, helped by $13 million of favorable development on prior-year reserves. Diefenthaler said contributors to favorable development included excess liability, transportation, the Professional Services Group and Executive Products. RLI’s property segment produced a 56.8 combined ratio, benefiting from lighter catastrophe activity and favorable prior-year development. Property gross premium fell 6% as competitive dynamics persisted in the excess and surplus property market. Klobnak said the market has become increasingly competitive, with some submissions being sent to more than 45 markets. She said standard markets are re-entering classes they exited during the recent hard market and offering broader terms for less premium. Despite rate pressure, Klobnak said RLI’s underwriters are still achieving pricing near the company’s benchmark, which she said equates to its targeted risk-adjusted return. She said the company is holding the line on terms and conditions that will matter when claims are handled after losses occur. Renewal retention in property has declined to just under 70%. Hawaii homeowners premium grew 9%, including a 12% rate increase. Marine premium increased 7%, including a 1% rate increase, in what Klobnak described as an increasingly competitive market. Surety premium declined 6% in the quarter. Klobnak attributed the decline primarily to moderating renewable energy construction activity, customs bonds that required larger limits last year, and RLI’s decision to exit some larger accounts where management no longer believed risk-adjusted returns justified the exposure. The surety segment posted an 87.2 combined ratio, modestly better than last year and supported by $3.4 million of favorable development. Diefenthaler said the loss ratio improvement was partly offset by a three-point increase in the expense ratio due to infrastructure investments and higher acquisition expenses. Klobnak said surety loss ratios are beginning to move higher across the industry, particularly in construction and some renewable energy projects, though she said RLI has not seen those losses in its own book. She said the company wants to keep its book “clean” so it can take advantage of opportunities if market disruption develops. RLI paid a regular quarterly dividend of $0.18 per share and a $2.00 special dividend, returning just over $200 million to shareholders. The company also authorized a new $250 million share repurchase program. Diefenthaler said RLI repurchased approximately 235,000 shares during the quarter at an average price of $51.25. About $238 million remained available under the authorization at June 30. He described buybacks as a complementary way to return capital, not necessarily a replacement for special dividends, and said there is no set timetable for using the remaining authorization. Comprehensive earnings were $166 million, or $1.80 per share, compared with $143 million, or $1.55 per share, last year. Adjusting for dividends and share repurchases, book value per share increased 11% from year-end 2025. Management also emphasized service and relationships as competitive advantages. Klobnak said RLI is using technology to improve efficiency but continues to prioritize direct engagement with producers and insureds. Kliethermes said the company’s culture is built around ownership and long-term value creation, adding that RLI will invest when it can generate attractive returns and return capital when it cannot. RLI Corporation (NYSE:RLI) is a specialty property and casualty insurance company focused on underwriting niche risks for businesses and individuals. Headquartered in Peoria, Illinois, the company operates through a network of independent agents and brokers, offering customized coverage solutions. RLI's approach emphasizes disciplined underwriting, targeted product development and strong customer service to maintain profitability and long-term growth. Founded in 1965 as Replacement Lens, Inc, RLI initially provided insurance for contact lens manufacturers before shifting its focus to specialty insurance in the 1980s. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "RLI Q2 Earnings Call Highlights" was originally published by MarketBeat. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by disciplined execution across a diversified specialty portfolio, achieving an 86% combined ratio and 25% return on equity. Management attributes competitive advantage to a relationship-based model where empowered underwriters provide stability and service through all market phases. Casualty growth of 11% was led by personal umbrella and transportation, benefiting from market disruption and competitors pulling back in specific geographies. Property segment performance remained strong with a 56.8% combined ratio, despite a 6% premium decline due to heightened competition in E&S property markets. The expense ratio increased to 40.1% primarily due to personnel-related costs, incentive compensation tied to strong performance, and strategic technology investments. Surety results were impacted by a slowdown in renewable energy construction and the strategic exit from accounts that no longer met risk-adjusted return standards. Management expects personal umbrella rate increases to temper in the second half of the year as prior filings earn through the book. Strategic focus remains on 'rate adequacy' over 'rate change', prioritizing the retention of profitable accounts even as market competition intensifies. The company anticipates attractive opportunities in Surety as industry-wide loss ratios begin to rise, positioning RLI to capitalize on future market disruption. Investment income is expected to remain a strong contributor, supported by fixed income purchase yields averaging 4.9%, which is accretive to the current book yield. Capital management will continue to balance special dividends with selective share repurchases under the newly authorized $250 million program. RLI changed its operating earnings definition in Q4 2025 to exclude equity in earnings of unconsolidated investees for better core performance transparency. Catastrophe losses for the quarter were contained at $10 million, primarily impacting the property segment following lighter-than-usual activity. Favorable prior-year reserve development of $39.8 million significantly bolstered underwriting income across casualty, property, and surety segments. A new non-admitted product offering in the entertainment and amusement space was launched in July to further diversify the casualty portfolio. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth is supported by a 17% rate increase in personal umbrella and a 19% increase in transportation premium, driven by competitor retreats. Management is shifting the umbrella mix toward non-coastal states to mitigate litigation severity and improve long-term profitability. The casualty loss ratio reflects a cautious approach to reserving for 'wheels-based' businesses where legal system abuse is more prevalent. RLI is maintaining a 70% renewal retention rate, signaling a willingness to lose business rather than compromise on terms and conditions. Current quoting rates are comparable to 2022 levels, but management insists they still meet 'benchmark pricing' for targeted risk-adjusted returns. Underwriters are using increased limits and larger shares of insurance layers to protect renewals while holding the line on policy language. Service is leveraged through in-house loss control for transportation clients, which directly reduces the insured's cost of risk. Management emphasizes that having empowered underwriters who 'answer the phone' and provide quick decisions is a critical advantage over automated competitors. Regular proactive communication with producers allows RLI to tailor coverage to specific risks rather than applying broad, restrictive exclusions.