Insurer RLI lowered 2026 catastrophe reinsurance limits by $150 million at renewal time in January, citing lower exposure and continued weak conditions in what it described as a “buyer’s market” for real estate.
RLI Corp. renewed about two-thirds of its annual reinsurance spending on Jan. 1, with catastrophe program rates reduced by 15% to 20% and property working tier pricing also more moderate, Chief Operating Officer Jen Klobnak said.
“As our risk exposure decreases and market conditions continue to soften, we have reduced the catastrophe limits purchased for 2026 by $150 million,” Klobnak said.
“As we have done in previous years, we remain ready to enter the market in the medium term if the opportunity arises. On the casualty side, rates are down by approximately 5%. We have achieved similar terms and conditions by extending property treaty coverage.”
RLI Corp President and CEO Craig Kliethermes said the competitive environment remains and the company’s premium growth has been modest.
“This is when our model tends to show its strength. We don’t measure success by how fast we grow. We measure success by how much we grow and whether today’s decisions stand the test of time,” Kliethermes said.
He continued, “Our founder, Gerald Stephens, once reminded us that you can’t win long games by swinging at every pitch. You win by knowing which pitches to give up. This mentality is ingrained at RLI.
“We feel comfortable retreating when the risk-reward equation doesn’t work, and we are confident we have the expertise and market support to rely on.
“Our diverse portfolio of specialty products, strong balance sheet and ownership culture provide us with significant flexibility and confidence as we look to the future.”
RLI reported underwriting revenue of $70.9 million and a combined ratio (CoR) of 82.6% in the fourth quarter of 2025, compared with $22.2 million and a combined ratio of 94.4% in the fourth quarter of 2024.
The insurer also performed strongly for the full year, with underwriting revenue of $264.2 million and a CoR of 83.6%, compared with $210.7 million and a CoR of 86.2% in 2024.
RLI said results in both periods benefited from good development in loss reserves from the prior year, which contributed net underwriting income of $87.4 million in 2025 and $84.1 million in 2024.
