RLI Corp. Common Stock (DE) (RLI)

FairStock Score: 80/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I begin with the underwriting record, because an insurer is only as good as the risks it accepts. RLI is a specialty property-and-casualty insurer with just 1,193 employees. The filed figures show real progress: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $575.6 million and net income was $168.0 million, or $1.82 diluted EPS, versus fiscal Q2 2025, the quarter ended 2025-06-30, revenue of $499.8 million and net income of $124.3 million. For FY2025, period ended 2025-12-31, revenue was $1.9 billion, net income $403.3 million, and diluted EPS $4.37, up from $3.74 in FY2024 and $3.31 in FY2023. FairStock calculates ROE at 25.16%, debt-to-equity at 0.18, P/E at 12.00, and price-to-book at 2.99 based on the 2026-10-13 close of $57.10. Its PEG is 0.34, and the FairStock score is 80/100; the computed Lynch category is FAST GROWER, citing profit growth of 20.8% a year over five years and revenue growth of 13.9%. That combination is attractive if underwriting remains disciplined. But the data lacks the combined ratio, reserve development, catastrophe exposure, and investment portfolio detail that matter most for an insurer. CET1 and NIM are bank measures and do not apply here. FairStock's ROCE of 5.67% is modest, and Piotroski is 6/9. At 12 times earnings, the price looks fair to cheap relative to reported growth, but not a clear bargain without proof that today's margins and reserves are durable.

In plain English: RLI is a specialty property-and-casualty insurance company that sells coverage to businesses, professionals, and transportation firms. The business looks strong: sales and profits have grown, returns on shareholder money are high, and debt is modest. At $57.10 a share, the stock trades at about 12 times yearly earnings and 3 times net worth; compared with its recent growth, the price looks reasonable to somewhat cheap, though insurance can be volatile if claims rise.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer