RLI Corp. (NYSE: RLI), a specialty insurer serving niche property, casualty and surety markets announced strong fourth-quarter and full-year 2025 results. Net earnings hit $91.2 million, or $0.99 per share, up from $40.9 million, or $0.44 per share, in Q4 2024. Operating earnings reached $86.4 million, or $0.94 per share.
Q4 Underwriting Strength
Underwriting income stood at $70.9 million on an 82.6 combined ratio. This marked a sharp improvement from $22.2 million on a 94.4 combined ratio in Q4 2024. Favorable prior-year loss reserve development added $22.0 million to underwriting income. Gross premiums written dipped 2%. Net investment income rose 9% to $42.3 million.
Full-Year Achievements
Annual underwriting income totaled $264.2 million on an 83.6 combined ratio. This delivered RLI’s 30th straight year of underwriting profitability. Gross premiums written grew 1%. Prior-year reserve development boosted income by $87.4 million. Storm losses reduced it by $26.5 million, far below 2024’s $93.6 million from hurricanes and other events. Net investment income climbed 12% to $159.7 million. Book value per share surged 33% to $19.35, including dividends.
Investment and Comprehensive Gains
The investment portfolio returned 1.5% in Q4 and 9.0% for the year. Comprehensive earnings reached $100.4 million, or $1.09 per share, in Q4, versus a $26.3 million loss in 2024. Full-year comprehensive earnings hit $489.0 million, or $5.29 per share, up from $338.4 million.
Shareholder Returns
RLI paid a $2.00 special dividend and $0.16 regular quarterly dividend on December 19, 2025. This returned $198.4 million to shareholders. The company has paid dividends for 198 quarters. Regular dividends rose in each of the last 50 years. Over 10 years, RLI returned over $1.6 billion, with regular dividends growing 5.4% annually on average.
“Our results reflect our diversified specialty portfolio and underwriting discipline,” said President and CEO Craig Kliethermes. “We posted an 83 combined ratio amid competition, driving 33% book value growth.” These outcomes underscore RLI’s focus on profitability and owner mindset.
Leadership Changes
Todd Bryant retired as CFO on December 31, 2025, after over 30 years with RLI, transitioning to an advisory role through mid-2026; Aaron Diefenthaler, former Chief Investment Officer and Treasurer since 2012, assumed the CFO position. Justin Doss was promoted to Vice President, Personal Lines Underwriting on January 4, 2026, bringing 25+ years of experience after roles in sales and distribution since joining in 2016.