RLI Corp Delivers Consistent Profitability in Q3 2026
Ruthless efficiency is no longer a dirty word at RLI Corp, as the company reported another quarter of consistent profitable performance in its third quarter earnings call. The results may sound familiar, but for CEO Craig Kliethermes, that's exactly what he wants - "boring is beautiful," he said.
RLI's Q3 2026 results saw a combined ratio of 86%, up from last year's 85.1%. Gross premiums written grew by 2% and net investment income rose 13%, with book value increasing by 10% from the end of last year, inclusive of dividends and share repurchases.
Behind this consistency is disciplined underwriting, according to Kliethermes, who highlighted the company's selective approach to risk-taking. "We don't need every opportunity," he said, emphasizing that expertise and risk selection give RLI an advantage in niche specialty markets.
RLI's focus on relationships and people has also contributed to its success. The CEO noted that insurance is a relationship business where people like doing business with those they trust and respect. "Our customers and distribution partners know our people are accessible, genuine, empowered to solve problems, and consistently show up," he said.
On the financial front, CFO Aaron Diefenthaler provided further details on RLI's performance. He reported operating earnings of $0.86 per share for Q3 2026, compared to $0.82 last year, driven by solid underwriting results and a 13% increase in net investment income.
The company's overall combined ratio was 86.2%, with the loss ratio increasing 1.3 points to 47.4%. However, favorable development on prior year's loss reserves contributed $22.9 million to the current quarter's underwriting income, up from $15.5 million in Q3 2025.
RLI's focus remains on pursuing profitable opportunities where expertise makes a difference. As Kliethermes said, "Markets change, our principles don't." The company will continue to underwrite with discipline, invest in its people and relationships, and seek out opportunities that leverage its strengths.
