RLI

Financial Services

RLI Corp. · Insurance - Property & Casualty · $5B

UQS Score — Balanced Preset
58.4
Good

RLI Corp. scores 58.4/100 using the Balanced preset.

UQS vs Financial Services Sector
RLI
58.4
Sector avg
39.7
Quality
Strong
Moat
Neutral
Growth
Weak
Risk
Good
Valuation
Good

What is RLI Corp.?

RLI Corp. is a Peoria-based specialty insurance holding company that underwrites property and casualty coverage across the United States and select international markets. Founded in 1980, it focuses on niche commercial and personal lines where standard insurers often do not compete.

RLI generates revenue by underwriting specialty insurance risks across two primary segments — Casualty and Property. The Casualty segment covers commercial general liability, professional liability, management liability, commercial auto, and healthcare liability for a range of businesses. The Property segment handles commercial property, marine, cargo, and homeowners coverage. By targeting underserved or complex risk categories, RLI aims to earn underwriting profit rather than relying heavily on investment income — a discipline that distinguishes specialty carriers from broader market competitors.

RLI Corp. was founded in 1980 and is headquartered in Peoria, Illinois.

  • Commercial general liability for contractors, manufacturers, and mercantile risks
  • Professional liability and errors and omissions coverage for small to mid-sized firms
  • Management liability including directors and officers and employment practices
  • Specialty commercial auto for truckers and public transportation entities
  • Marine, cargo, and commercial property coverage

Is RLI a Good Stock to Buy?

UQS Score rates RLI Corp. as Good overall, reflecting a balanced profile with meaningful strengths and one notable area of caution.

The Quality pillar stands out as the clearest highlight — RLI has a long track record of disciplined underwriting that supports consistent profitability. The Risk pillar also rates Good, suggesting the business carries manageable financial and operational risk relative to sector peers. Valuation comes in at a Good rating as well, indicating the stock is not excessively priced given its quality characteristics.

Growth is the weakest pillar in RLI's profile, pointing to a slower expansion trajectory compared to higher-growth peers in the financial services space. Moat rates Neutral, suggesting competitive advantages exist but are not dominant at the sector level.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does RLI pay dividends?

Yes — RLI Corp. pays a dividend.

RLI Corp. pays a regular dividend, consistent with its identity as a mature, profitable specialty insurer. The company's underwriting discipline and steady cash generation support ongoing distributions to shareholders. Income-oriented investors often view RLI's dividend as a reflection of management's confidence in recurring earnings — though dividend levels can vary with underwriting results and capital needs.

When does RLI report earnings?

RLI Corp. reports earnings on a quarterly cadence, typical for US-listed insurance companies.

RLI's results tend to reflect the combined ratio performance of its Casualty and Property segments, with underwriting income playing a central role. Catastrophe exposure in the Property segment can introduce variability quarter to quarter, while the Casualty book generally provides more stable contributions.

For the most recent quarter's results and guidance commentary, visit RLI Corp.'s investor relations page directly.

RLI Price History

+33.0% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in RLI Corp.?

$
Today it would be worth
$12,302
That's a +23.0% total return, or +4.2% annualized.

Based on RLI Corp.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

RLI Long-term Outlook

RLI's fundamental outlook is shaped by its Good Risk profile and disciplined specialty underwriting model, which tend to support earnings stability over time. However, the Weak Growth pillar signals that meaningful top-line expansion is not a near-term expectation — the company competes in mature niches where volume growth is gradual. The Good Valuation rating suggests the market is pricing RLI in line with its quality characteristics rather than applying a significant premium or discount.

Growth drivers

  • Expansion into underserved specialty liability niches with limited standard-market competition
  • Pricing discipline in hard insurance market cycles supporting margin stability
  • Gradual growth in professional and management liability lines serving small to mid-sized businesses

Key risks

  • Catastrophe losses in the Property segment can compress underwriting results in severe weather years
  • Slow organic growth limits upside relative to faster-growing financial services peers
  • Competitive pressure in specialty lines from larger carriers expanding into niche markets

RLI vs Peers

RLI operates in a competitive specialty insurance landscape alongside carriers that differ meaningfully in business model, scale, and strategic focus.

LMNDRLI scores higher
Lemonade, Inc.

Lemonade pursues a technology-first, direct-to-consumer insurance model targeting renters and homeowners — a very different approach from RLI's specialty commercial underwriting.

MCYSimilar UQS
Mercury General Corporation

Mercury General focuses primarily on personal auto and homeowners insurance in select US states, concentrating on standard personal lines rather than RLI's specialty commercial niches.

WTMRLI scores lower
White Mountains Insurance Group, Ltd.

White Mountains operates as a diversified insurance holding company with a capital-allocation-driven strategy, differing from RLI's more focused specialty underwriting identity.

Frequently Asked Questions

What does RLI Corp. do?

RLI Corp. is a specialty insurance holding company that underwrites property and casualty coverage for commercial and personal risks that standard insurers often avoid. Its two segments — Casualty and Property — cover everything from professional liability and management liability to marine cargo and commercial auto for niche industries.

Does RLI pay dividends?

Yes, RLI Corp. pays a regular dividend. The company's consistent underwriting profitability supports ongoing shareholder distributions. Investors seeking income from financial services stocks often consider RLI's dividend history as a sign of earnings durability, though dividend levels depend on underwriting results and capital allocation decisions.

When does RLI report earnings?

RLI Corp. reports earnings on a quarterly cadence, in line with standard practice for US-listed insurance companies. For exact release dates and the most recent quarterly results, check RLI Corp.'s official investor relations page.

Is RLI a good stock to buy?

UQS Score rates RLI as Good overall, with a particularly Strong Quality pillar and Good ratings for both Risk and Valuation. The main caution is a Weak Growth pillar, which reflects a slower expansion pace. Whether it fits your portfolio depends on your goals — see the full pillar breakdown on UQS Pro.

Is RLI overvalued?

RLI's Valuation pillar rates Good, suggesting the stock is not significantly overpriced relative to its quality and risk profile. Specialty insurers with strong underwriting track records often carry a modest premium to peers, and RLI's current valuation appears broadly in line with its fundamentals based on the UQS framework.

How does RLI compare to its competitors?

Compared to peers like Lemonade, Mercury General, and White Mountains, RLI stands out for its specialty commercial underwriting focus and long-standing profitability discipline. Lemonade is a tech-driven personal lines disruptor, Mercury General concentrates on personal auto, and White Mountains takes a broader capital-allocation approach — making RLI the most niche-focused of the group.

What is RLI's market cap bracket?

RLI Corp. is classified as a mid-cap company. This places it in a range that typically offers more stability than small-cap insurers while retaining more growth optionality than the largest mega-cap carriers in the financial services sector.

Who founded RLI Corp.?

RLI Corp. was founded in 1980. Detailed founding history, including the names of original founders, is publicly available through the company's official history and investor relations materials.

Is RLI a long-term quality stock?

From a long-term quality perspective, RLI's Strong Quality pillar and Good Risk rating suggest a business built on durable underwriting practices. The Weak Growth pillar is worth monitoring for investors with a long horizon, as slower expansion can limit compounding. The UQS framework provides a structured way to track these dynamics over time.

What is the main competitive advantage of RLI Corp.?

RLI's edge lies in its specialty underwriting expertise across niche commercial lines where standard carriers lack the appetite or knowledge to compete effectively. This focus allows RLI to price risk more precisely and maintain underwriting discipline — though the Moat pillar rates Neutral, indicating these advantages are real but not insurmountable by well-resourced competitors.

What sector does RLI belong to?

RLI Corp. operates in the Financial Services sector, specifically within the property and casualty insurance industry. It is further distinguished as a specialty insurer, meaning it targets complex or underserved risk categories rather than standard personal or commercial lines.

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Pro Analysis

RLI — Score History

50556065Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 16 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 21, 202658.487.542.024.167.374.0-0.4
May 14, 202658.887.542.024.167.377.1-0.1
May 12, 202658.987.542.024.167.377.3-1.0
May 7, 202659.988.642.024.375.773.7+0.1
May 3, 202659.888.642.024.375.772.6+0.1
May 1, 202659.788.642.024.375.772.0+0.6
Apr 26, 202659.188.642.021.075.772.3+0.4
Apr 25, 202658.788.642.021.075.769.7+0.2
Apr 19, 202658.588.642.020.275.769.80.0
Apr 18, 202658.588.642.020.275.769.9-0.4

RLI — Pillar Breakdown

Quality

87.5/100 (25%)

RLI Corp. demonstrates outstanding capital efficiency and profitability, placing it among the highest-quality businesses in the market.

Return on EquityStrong

Profitability relative to shareholders' equity.

Operating ProfitabilityModerate

Ability to convert revenue into operating profit.

Net ProfitabilityStrong

Bottom-line profit as a share of revenue.

Cash GenerationStrong

Free cash flow relative to market value.

Growth

24.1/100 (20%)

RLI Corp. faces growth headwinds with declining or stagnant revenue trends.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthModerate

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Forward EPS GrowthWeak

Analyst consensus for future earnings growth.

Risk

67.3/100 (15%)

RLI Corp. maintains a reasonable risk profile with manageable debt levels.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageStrong

Earnings capacity relative to interest payments.

Valuation

74.1/100 (15%)

RLI Corp. trades at a reasonable valuation with decent earnings yield and FCF multiples.

Earnings YieldModerate

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

EV/EBITDA vs SectorStrong

Enterprise value multiple relative to sector median.

Moat

42/100 (25%)

RLI Corp. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for RLI.

Score Composition

Quality
87.5×25%21.9
Growth
24.1×20%4.8
Risk
67.3×15%10.1
Valuation
74.1×15%11.1
Moat
42.0×25%10.5
Total
58.4Good

Financial Data

More Stock Analysis

How is the RLI UQS Score Calculated?

The UQS (Unified Quality Score) for RLI Corp. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses RLI Corp.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether RLI Corp. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.