RLI

A month has gone by since the last earnings report for RenaissanceRe (RNR). Shares have lost about 4.6% 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 RenaissanceRe due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. RNR Q1 Earnings Beat on Lower Expenses & Strong Investment Results RenaissanceRe reported first-quarter 2026 operating income of $13.75 per share, which surpassed the Zacks Consensus Estimate by 24.2%. The bottom line improved from the year-ago quarter’s operating loss of $1.49. Total operating revenues declined 16.6% year over year to $2.6 billion. The top line missed the consensus mark by 10.6%. The quarterly earnings were aided by a decline in expenses and strong underwriting performance in both segments. Improved combined ratio and fee income also contributed to the upside. However, the upside was partly offset by lower net premiums earned across both segments. Gross premiums written of $3.5 billion tumbled 16.3% year over year and missed our estimate of $4 billion. Net premiums earned fell 19.7% year over year to $2.2 billion. The metric fell short of the Zacks Consensus Estimate and our estimate of $2.5 billion. Net investment income of $420.5 million advanced 3.7% year over year in the quarter under review on the back of increased average invested assets and reallocation of the portfolio. The metric missed the consensus mark of $446.6 million and our estimate of $446.2 million. Fee income of $94.1 million increased more than threefold year over year. Total expenses came in at $1.6 billion, which dropped 53.5% year over year and came lower than our estimate of $2.2 billion. The year-over-year decrease resulted from a decline in net claims and claim expenses incurred, acquisition costs and operational expenses. RenaissanceRe’s underwriting income increased to $588.8 million from the prior-year quarter’s loss of $770.6 million. The combined ratio of 73% improved from 128.3% a year ago. Book value per common share was $250.48 as of March 31, 2026, up 27.7% year over year. Annualized operating return on average common equity improved to 22.3% year over year from nega...

It has been about a month since the last earnings report for Cincinnati Financial (CINF). Shares have added about 1.3% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Cincinnati Financial due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers. Cincinnati Financial Q1 Earnings Beat Estimates on Higher PremiumsCincinnati Financial reported first-quarter 2026 operating income of $2.10 per share, which surpassed the Zacks Consensus Estimate by 8.8%. The bottom line improved significantly from a loss of 24 cents per share in the year-ago quarter.Total operating revenues for the quarter were $2.9 billion, reflecting a 12% year-over-year increase. The figure, however, missed the Zacks Consensus Estimate by 0.7%.Quarterly results benefited from strong premium growth, improved pricing, and higher net investment income, alongside a sharp reduction in losses and related expenses.Operational UpdateEarned premiums climbed 11% year over year to $2.6 billion, driven by premium growth initiatives, price increases and higher insured exposures. The figure marginally missed the Zacks Consensus Estimate by 0.7%.Net investment income, net of expenses, increased 14% year over year to $318 million, primarily due to a 12% rise in interest income from fixed-maturity securities and a 13% jump in equity portfolio dividends. The figure marginally beat the Zacks Consensus Estimate by 3.6%Total benefits and expenses declined 6% year over year to $2.4 billion, mainly due to a 12% decrease in loss and loss expense.In its property and casualty insurance business, CINF reported underwriting income of $115 million, which improved significantly from a loss of $298 million. The figure was below the Zacks Consensus Estimates of $129.7 million.The combined ratio, a key measure of underwriting profitability, improved 1770 basis points year over year to 95.6, outperforming the consensus estimate of 96.3.Quarterly Segment UpdateCommercial Lines Insurance: Total revenues of $1.2 billion increased 5% year over year, missing the Zacks Consensus Estimate by 1.2%. The upside was primarily driven by a 5% rise in earned premiums.Underwriting income was $18 million, down 81%...

A month has gone by since the last earnings report for RLI Corp. (RLI). Shares have lost about 3.5% 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 RLI Corp. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. RLI Q1 Earnings Miss Estimates, Investment Income Increases Y/YRLI Corp. reported first-quarter 2026 operating earnings of 83 cents per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 13.2% from the prior-year quarter. The quarterly results reflect underwriting strain from catastrophe losses, though investment income and casualty growth offer resilience. Operating revenues for the reported quarter were $454 million, up 4.4% year over year, driven by higher net premiums earned and net investment income. The top line beat the Zacks Consensus Estimate by 1%.Gross premiums written (GPW) increased 3% year over year to $503.9 million, driven by strong growth in the casualty segment (up 10%). Our estimate was $523.9 million.Net investment income increased 15.2% year over year to $42.3 million. The Zacks Consensus Estimate was $40.2 million, while our estimate for the metric was pegged at $38.3 million. The investment portfolio’s total return was -0.4% in the quarter.Total expenses increased 8% year over year to $385.7 million, primarily due to higher loss and settlement expenses and interest expense on debt. Our estimate was $349.4 million.Underwriting income fell 18% year over year to $57.8 million. Our estimate was $71.4 million. The combined ratio deteriorated 370 basis points (bps) year over year to 86, reflecting higher catastrophe losses. Our estimate was 82. Casualty lines’ GPW rose 10.3% year over year to $307.0 million. The figure was below our estimate of $300.9 million. The underwriting income increased significantly to $7.3 million from $2.1 million, up 249% year over year, supported by strong premium growth. The combined ratio improved 200 bps year over year to 97.1%. The figure was below our estimate of 99%.Property lines’ GPW fell 9.0% year over year to $154.8 million. The figure was below our estimate of $180.1 million. The underwri...

Let’s dig into the relative performance of RLI (NYSE:RLI) and its peers as we unravel the now-completed Q1 property & casualty insurance earnings season. Property & Casualty (P&C) insurers protect individuals and businesses against financial loss from damage to property or from legal liability. This is a cyclical industry, and the sector benefits when there is 'hard market', characterized by strong premium rate increases that outpace loss and cost inflation, resulting in robust underwriting margins. The opposite is true in a 'soft market'. Interest rates also matter, as they determine the yields earned on fixed-income portfolios. On the other hand, P&C insurers face a major secular headwind from the increasing frequency and severity of catastrophe losses due to climate change. Furthermore, the liability side of the business is pressured by 'social inflation'—the trend of rising litigation costs and larger jury awards. The 32 property & casualty insurance stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1.9%. While some property & casualty insurance stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.2% since the latest earnings results. Founded in 1965 and named after its original focus on "replacement lens insurance" for contact lens wearers, RLI (NYSE:RLI) is a specialty insurance company that underwrites property, casualty, and surety products through wholesale brokers, independent agents, and carrier partnerships. RLI reported revenues of $453.2 million, up 4.3% year on year. This print exceeded analysts’ expectations by 1.5%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ net premiums earned estimates but a significant miss of analysts’ book value per share estimates. The stock is down 12.7% since reporting and currently trades at $49.85. Read our full report on RLI here, it’s free. Founded in 1961 and maintaining a network of over 6,300 independent agents across the country, Mercury General (NYSE:MCY) is an insurance company that primarily sells automobile insurance policies through independent agents in 11 states, with a strong focus on California. Mercury General reported revenues of $1.54 billion, up 10.5% year on year, outperforming analysts’ expectations by 5.4%. The business h...

RLI (RLI) raised its quarterly cash dividend by $0.02 to $0.18 a share, declared a $2 special divide

CNA Financial Corporation CNA reported first-quarter 2026 core earnings of 83 cents per share, which missed the Zacks Consensus Estimate by 44.3%. The bottom line decreased 19.4% year over year. The quarterly results of CNA reflected higher claims and expenses, a sharp deterioration in the combined ratio, which pressured underwriting income. These factors were partially offset by modest premium growth, improved investment income and decreased catastrophe losses. Total operating revenues of CNA Financial were $3.3 billion, up 2.2% year over year, driven by higher premiums and net investment income. The top line missed the Zacks Consensus Estimate by 0.3%. CNA Financial Corporation price-consensus-eps-surprise-chart | CNA Financial Corporation Quote Net written premiums of Property & Casualty Operations increased 1% year over year to $2.7 billion. The new business grew 3% to $581 million. Net investment income rose 1% year over year to $610 million. The increase was supported by higher fixed income returns, partly offset by weaker performance in limited partnerships and equities. Our estimate for net investment income was $640 million. The Zacks Consensus Estimate was pegged at $640.5 million. Total claims, benefits and expenses increased 4% to $3.4 billion, primarily due to higher insurance claims and policyholders’ benefits, amortization of deferred acquisition costs, other operating expenses and interest expenses. Our estimate was $3.2 billion. Catastrophe losses were $88 million, narrower than the loss of $96 million in the year-ago quarter. Underlying underwriting income declined 28% year over year to $144 million. The combined ratio deteriorated 380 basis points (bps) year over year to 102.2. The Zacks Consensus Estimate was pegged at 92.5, while our estimate was 92.5. Specialty’s net written premiums decreased 1% year over year to $834 million. Our estimate was $875.5 million. The combined ratio deteriorated 760 bps to 102.7. The Zacks Consensus Estimate was pegged at 90.3. Commercial’s net written premiums decreased 1% year over year to $1.5 billion. Our estimate was $1.5 billion. The combined ratio deteriorated 240 bps to 103.5. The Zacks Consensus Estimate was pegged at 94.2. International’s net written premiums increased 16% year over year to $308 million. Our estimate was $254.4 million. The combined ratio deteriorated 50 bps to 95.9. The Zacks Con...

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. RLI (RLI) reported first quarter 2026 results that paired higher revenue of US$423.87 million with lower net income of US$54.89 million and diluted EPS of US$0.60 compared with the same period last year. See our latest analysis for RLI. The earnings release appears to have weighed on sentiment, with a 1 day share price return of a 1.90% decline and a 7 day share price return of a 10.44% decline. This has contributed to an 18.13% decline year to date and a 1 year total shareholder return of a 27.97% decline. However, the 5 year total shareholder return of a 10.30% gain shows a different picture over a longer horizon. If these moves have you reassessing your portfolio, it could be a good moment to scan for ideas using our list of 17 top founder-led companies With RLI trading at US$51.15 and sitting below both analyst price targets and some estimates of intrinsic value, you need to ask: is this a reset that opens a buying window, or is the market already baking in future growth? With RLI last closing at $51.15 against a narrative fair value of $58, the current gap reflects a story built on shifting growth and margin expectations. Read the complete narrative. Want to see what sits behind that fair value call? The narrative leans heavily on changing revenue trajectories, thinner margins, and a higher future earnings multiple. The key is how those moving parts are wired together. Result: Fair Value of $58 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, that undervalued story can break if competition in property lines keeps pressuring margins, or if higher tech and acquisition spending leaves expense ratios stuck at elevated levels. Find out about the key risks to this RLI narrative. The fair value narrative points to RLI being 11.8% undervalued, but the earnings multiple tells a different story. At a P/E of 11.9x versus peers at 10.4x and a fair ratio of 8.8x, the stock carries a richer tag that could matter if sentiment weakens further. That gap between today’s P/E and the fair ratio is the kind of tension readers often weigh carefully, especially after a sharp share price pullback. See what the numbers say about this price — find out in o...

Brown & Brown, Inc.’s BRO first-quarter 2026 adjusted earnings of $1.39 per share beat the Zacks Consensus Estimate by 2.2%. The bottom line increased 7.8% year over year. The quarterly results were supported by higher commissions and fees, improved investment income and higher adjusted EBITDAC, though partially offset by elevated expenses and flat organic growth. Total revenues of $1.9 billion beat the Zacks Consensus Estimate by 1.4%. The top line improved 35.4% year over year. The upside can be primarily attributed to commission and fees, which grew 35.7% year over year to $1.8 billion. The figure beat the Zacks Consensus Estimate for commission and fees by 1%. Improved investment and other income added to the top line. Brown & Brown, Inc. price-consensus-eps-surprise-chart | Brown & Brown, Inc. Quote Organic revenues remained flat year over year at $1.3 billion. Investment income and other income increased 10.5% year over year to $21 million. Adjusted EBITDAC was $731 million, up 36.6% year over year. The EBITDAC margin improved 40 basis points year over year to 38.5%. Total expenses increased 40% to $1.36 billion due to a rise in employee compensation and benefits, other operating expenses, amortization, depreciation and interest. Brown & Brown exited the first quarter with cash and cash equivalents of $1 billion, which decreased 7% from the 2025-end level. Long-term debt was $6.5 billion as of March 31, 2026, down 4.5% from the 2025-end level. Net cash provided by operating activities was $262 million, up 23% year over year. The board of directors approved a regular quarterly cash dividend of 16.5 cents per share to be paid out on May 20, 2026, to shareholders of record as of May 11, 2026. BRO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Travelers Companies, Inc. TRV reported first-quarter 2026 core income of $7.71 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line surged fourfold year over year. Travelers’ total revenues remained flat from the year-ago quarter at $11.9 billion. The top-line figure, however, missed the Zacks Consensus Estimate by 3.7%. Net written premiums increased 2% year over year to a record $10.3 billion, driven by strong growth across Business Insurance and Bond & Specialty Insurance segments. Net investment income increase...

Principal Financial Group, Inc.’s PFG first-quarter 2026 operating net income of $2.07 per share beat the Zacks Consensus Estimate by 2.9%. The bottom line increased 14% year over year. Total revenues decreased 4.5% year over year to $3.5 billion, missing the Zacks Consensus Estimate by 14.5% Principal Financial witnessed operating earnings rising on strong fee income, assets under management ("AUM") growth and improved underwriting across segments. Despite a modest decline in total revenues, lower expenses and margin expansion led to a significant increase in the bottom line. Total expenses decreased 8.2% year over year to $3 billion due to lower benefits, claims and settlement expenses as well as operating expenses. Principal Financial Group, Inc. price-consensus-eps-surprise-chart | Principal Financial Group, Inc. Quote As of March 31, 2026, Principal Financial’s AUM were $770.2 billion, included within assets under administration of $1.8 trillion. Retirement and Income Solution: Revenues increased 4% year over year to $750 million due to higher premiums and other considerations, fees and other revenues, and net investment income. Pre-Tax operating earnings increased 6% year over year to $302.1 million, primarily due to higher net revenues and disciplined expense management. Investment Management: Revenues of $426 million were up 2% from the prior-year quarter due to higher fees and other revenues and net investment income. Pre-Tax operating earnings increased 8% year over year to $125.1 million, primarily due to higher operating revenues less pass-through expenses. The operating margin has increased 100 bps year over year to 30%. International Pension: Revenues increased 15% year over year to $169.3 million, owing to lower premiums and other considerations, fees and other revenues, and net investment income. Pre-Tax operating earnings of $83.4 million increased 17% year over year, driven by higher net revenues and disciplined expense management. Specialty Benefits: Premiums and fees increased 4% year over year to $861.4 million, owing to higher premiums and other considerations as well as net investment income. Pre-tax operating earnings of $136.8 million increased 29% year over year, primarily due to more favorable underwriting. Life Insurance: Revenues increased 1% year over year to $238.6 million, owing to higher premiums and other considerations, fee...

This article first appeared on GuruFocus. Combined Ratio: 86% for the quarter. Premium Growth: 3% increase, led by the Casualty segment. Net Investment Income: Increased by 15%. Operating Earnings: $0.83 per share, compared to $0.89 last year. Net Earnings (GAAP): $0.60 per share, compared to $0.68 in the prior year. Underwriting Income: $58 million, with $35.5 million favorable prior year reserve development. Catastrophe Losses: $16 million for the quarter. Casualty Segment Growth: 10% increase in premiums. Property Segment Premium Decline: 9% decrease due to rate decreases in E&S property. Surety Segment Premium Decline: 1% decrease in gross premium. Operating Cash Flow: $43 million, down $60 million from last year. Effective Tax Rate: 18.5% for the quarter. Fixed Income Purchase Yields: Averaging 4.8% in the portfolio. Total Return for Portfolio: Negative 0.4% for the quarter. Long-term Debt Issuance: $300 million raised with a 5 3/8% coupon and 10-year maturity. Book Value Per Share: Increased 2% from year-end 2025. A.M. Best Rating Upgrade: Upgraded to A++. Warning! GuruFocus has detected 2 Warning Sign with RLI. Is RLI fairly valued? Test your thesis with our free DCF calculator. Release Date: April 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. RLI Corp (NYSE:RLI) reported a strong start to 2026 with an 86% combined ratio, indicating solid underwriting performance. Premiums grew by 3%, with the Casualty segment showing a significant 10% growth, driven by personal umbrella and commercial transportation. Net investment income increased by 15%, contributing positively to overall financial results. RLI Corp (NYSE:RLI) achieved a favorable prior year reserve development of $35.5 million, which positively impacted underwriting income. The company received an upgrade from A.M. Best to A++, recognizing its strong financial strength and consistent underwriting results. Operating earnings per share decreased to $0.83 from $0.89 in the previous year, reflecting a slight decline in profitability. The Property segment experienced a 9% decline in gross premiums due to rate decreases in E&S property. Surety's top line gross premium was down by about 1%, with limited favorable prior year development compared to the previous year. Operating cash flow for Q1 totaled $43 million, down $60 million from the pr...

RLI reported another quarter of underwriting profit with a combined ratio of 86 and 3% gross-premium growth, although operating EPS fell to $0.83 (GAAP $0.60) as catastrophe activity and equity-market unrealized losses weighed on results. Business mix was divergent: Casualty led growth (+10% GWP) driven by Personal Umbrella (+23%) and Transportation (+27%), while Property premiums declined ~9% amid E&S rate decreases; results were aided by $35.5M of favorable prior-year reserve development but offset by $16M of catastrophe losses. Investment and capital moves included a 15% rise in investment income but $39M of unrealized equity losses and a total portfolio return of -0.4%; RLI also raised $300M of 10-year debt at 5.375% and received an AM Best upgrade to A++. Interested in RLI Corp.? Here are five stocks we like better. 3 Recession-Resistant Stocks: Low Beta, High Margins, Low Debt RLI (NYSE:RLI) reported another quarter of underwriting profitability to open 2026, posting an 86 combined ratio and 3% growth in gross premiums written as higher investment income helped offset increased catastrophe losses and a more competitive pricing environment in several lines. President and CEO Craig Kliethermes said the company “feel[s] good about how we’ve started 2026,” calling results “still excellent, but a bit more tempered” compared with a strong first quarter last year, primarily due to catastrophe activity and the “normal variability that comes with taking on insurance risk.” He also described a marketplace influenced by broker-owned facilities and MGAs and pointed to “rate acceleration and market disruption in wheels-based products” as an area of opportunity if approached with discipline. → STMicronelectronics Sends Industrial Chips Into Overdrive Don't Overlook Hidden Gem Kinsale As Rallies To New Highs Chief Financial Officer Aaron Diefenthaler said operating earnings were $0.83 per share, down from $0.89 in the year-ago quarter, reflecting “solid underwriting performance” and a 15% increase in investment income. On a GAAP basis, net earnings were $0.60 per share versus $0.68 last year. Diefenthaler attributed the gap between operating earnings and GAAP net earnings to equity market performance, noting that the “largest driver of the differential” was a negative return in RLI’s equity portfolio and “$39 million of unrealized losses.” Total portfolio return was...

Specialty insurance provider RLI (NYSE:RLI) missed Wall Street’s revenue expectations in Q1 CY2026, with sales falling 2.4% year on year to $423.9 million. Its non-GAAP profit of $0.83 per share was 6.1% above analysts’ consensus estimates. Is now the time to buy RLI? Find out in our full research report (it’s free). Revenue: $423.9 million vs analyst estimates of $446.5 million (2.4% year-on-year decline, 5.1% miss) Adjusted EPS: $0.83 vs analyst estimates of $0.78 (6.1% beat) Market Capitalization: $5.25 billion RLI's first quarter saw the company miss Wall Street’s revenue expectations, while adjusted earnings per share came in above consensus. The negative market reaction reflected investor concerns around softer premium growth and heightened catastrophe activity, both noted by management as key drivers of the quarter. CEO Craig Kliethermes cited a “dynamic” insurance market environment with growing competition from broker-owned facilities and managing general agents, emphasizing RLI’s focus on underwriting discipline and selective growth. Management acknowledged that catastrophe losses and competitive pressures, particularly in property and surety, tempered results even as core business performance remained steady. Looking ahead, RLI’s forward guidance is shaped by ongoing market uncertainty and the company’s strategy of disciplined underwriting. Management emphasized their intent to maintain rate adequacy in key segments like casualty and transportation, while selectively seeking growth where risk-adjusted returns remain attractive. CFO Aaron Diefenthaler noted that investment income is expected to remain a meaningful contributor, but also flagged that macroeconomic factors such as interest rates and supply chain issues could impact construction and specialty lines. CEO Kliethermes stated, “We are staying true to our underwriting principles, even if it means stepping back when market conditions do not support adequate returns.” Management attributed the quarter’s performance to rate-driven growth in key segments, ongoing competitive pressures, and the impact of catastrophe losses across the portfolio. Casualty segment momentum: RLI’s casualty division saw 10% premium growth, led by personal umbrella and commercial transportation lines, both benefiting from rate increases and new business opportunities as some competitors pulled back. Property segment c...