📊 RLI Key Takeaways
Is Rli Corp. (RLI) a Good Investment?
RLI exhibits severe growth quality deterioration: revenue surged 1,022.7% while net income remained flat at 0% YoY growth, indicating new revenue sources have minimal profitability contribution. Combined with exceptionally weak returns on equity (3.1%) and assets (0.9%), the company demonstrates poor capital efficiency despite a fortress balance sheet, suggesting either problematic acquisition integration, deteriorating underwriting fundamentals, or structural margin compression.
RLI exhibits exceptional underwriting profitability and capital efficiency, with a 26.9% operating margin, 21.4% net margin, 22.7% ROE, and strong free cash flow, supported by minimal leverage and 94x interest coverage. Despite flat net income and an anomalous revenue spike, cash generation and sustained EPS growth suggest resilient, high-quality earnings and prudent capital allocation.
Why Buy Rli Corp. Stock? RLI Key Strengths
- Fortress balance sheet with conservative leverage (0.17x D/E) and exceptional interest coverage (28.6x)
- Solid free cash flow generation ($41.8M) with favorable 9.9% FCF margin despite minimal capex needs
- Respectable operating (15.9%) and net margins (12.9%) provide some profitability cushion
- High ROE with strong operating/net margins indicating disciplined underwriting and expenses
- Conservative balance sheet with very low leverage and excellent interest coverage
- Robust operating cash flow and FCF conversion supporting capital flexibility
RLI Stock Risks: Rli Corp. Investment Risks
- Massive revenue growth (+1,023%) paired with zero profit growth signals severe deterioration in new business quality or major acquisition integration failure
- Critically low returns on equity (3.1%) and assets (0.9%) indicate capital is not being deployed productively, destroying shareholder value
- Minimal cash position ($49.1M on $6.4B assets) leaves limited flexibility if underwriting conditions deteriorate further for insurance operations
- Catastrophe and underwriting cycle exposure causing earnings volatility
- Reserve adequacy and claims inflation risk leading to adverse development
- Investment income sensitivity to interest rates and market performance
Key Metrics to Watch
- Organic vs. acquired revenue breakdown to assess if growth quality improves when excluding M&A
- Return on equity and underwriting ratios (loss ratios, combined ratios) to determine if profitability can recover
- Cash flow conversion rate and dividend sustainability given flat earnings despite investment base
- Combined ratio
- Net written premium growth
Rli Corp. (RLI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
RLI Profit Margin, ROE & Profitability Analysis
RLI vs Finance Sector: How Rli Corp. Compares
How Rli Corp. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Rli Corp. Stock Overvalued? RLI Valuation Analysis 2026
Based on fundamental analysis, Rli Corp. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Rli Corp. Balance Sheet: RLI Debt, Cash & Liquidity
RLI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Rli Corp.'s revenue has grown significantly by 60% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.31 reflects profitable operations.
RLI Revenue Growth, EPS Growth & YoY Performance
RLI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $407.7M | $54.9M | $0.60 |
| Q3 2025 | $470.0M | $63.2M | $1.03 |
| Q2 2025 | $416.4M | $63.2M | $0.89 |
| Q1 2025 | $407.7M | $63.2M | $0.68 |
| Q3 2024 | $331.7M | $13.5M | $0.29 |
| Q2 2024 | $381.9M | $77.7M | $1.69 |
| Q1 2024 | $364.9M | $98.8M | $2.15 |
| Q3 2023 | $331.7M | -$2.2M | $0.29 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Rli Corp. Dividends, Buybacks & Capital Allocation
RLI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Rli Corp. (CIK: 0000084246)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 20, 2026 | 8-K | rli-20260514x8k.htm | View → |
| May 19, 2026 | 4 | xslF345X06/form4-05192026_050501.xml | View → |
| May 15, 2026 | 4 | xslF345X06/form4-05152026_040521.xml | View → |
| May 15, 2026 | 4 | xslF345X06/form4-05152026_040527.xml | View → |
| May 15, 2026 | 4 | xslF345X06/form4-05152026_040519.xml | View → |
❓ Frequently Asked Questions about RLI
What is the AI rating for RLI?
Rli Corp. (RLI) has a Combined AI Rating of HOLD from Claude (SELL) and ChatGPT (BUY) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are RLI's key strengths?
Claude: Fortress balance sheet with conservative leverage (0.17x D/E) and exceptional interest coverage (28.6x). Solid free cash flow generation ($41.8M) with favorable 9.9% FCF margin despite minimal capex needs. ChatGPT: High ROE with strong operating/net margins indicating disciplined underwriting and expenses. Conservative balance sheet with very low leverage and excellent interest coverage.
What are the risks of investing in RLI?
Claude: Massive revenue growth (+1,023%) paired with zero profit growth signals severe deterioration in new business quality or major acquisition integration failure. Critically low returns on equity (3.1%) and assets (0.9%) indicate capital is not being deployed productively, destroying shareholder value. ChatGPT: Catastrophe and underwriting cycle exposure causing earnings volatility. Reserve adequacy and claims inflation risk leading to adverse development.
What is RLI's revenue and growth?
Rli Corp. reported revenue of $423.9M.
Does RLI pay dividends?
Rli Corp. pays dividends, with $14.7M distributed to shareholders in the trailing twelve months.
Where can I find RLI SEC filings?
Official SEC filings for Rli Corp. (CIK: 0000084246) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RLI's EPS?
Rli Corp. has a diluted EPS of $0.60.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is RLI a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Rli Corp. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is RLI stock overvalued or undervalued?
Valuation metrics for RLI: ROE of 3.1% (sector avg: 12%), net margin of 12.9% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy RLI stock in 2026?
Our dual AI analysis gives Rli Corp. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is RLI's free cash flow?
Rli Corp.'s operating cash flow is $42.8M, with capital expenditures of $1.1M. FCF margin is 9.9%.
How does RLI compare to other Finance stocks?
Vs Finance sector averages: Net margin 12.9% (avg: 25%), ROE 3.1% (avg: 12%), current ratio N/A (avg: 1.2).