Specialty insurer RLI Corp. reported underwriting revenue of $70.9 million and a combined ratio (CoR) of 82.6% in the fourth quarter of 2025 (Q4 2025), compared with $22.2 million and 94.4% in the fourth quarter of 2024.
RLI reported a solid set of results for the final quarter of 2025, as well as a strong performance for the full year, with underwriting revenue of $264.2 million and a CoR of 83.6%, compared with $210.7 million and 86.2% respectively in 2024.
The two-year performance included good development of loss reserves in previous years, which resulted in a net increase in underwriting revenue of $87.4 million in 2025 and $84.1 million in 2024, the insurer explained.
Storm losses resulted in a net decrease in underwriting revenue of $26.5 million in 2025, compared with $93.6 million in losses from hurricanes Beryl, Helen and Milton and other storm losses in 2024.
Overall underwriting revenue in 2025 was primarily driven by the insurer’s property business, which contributed $219.1 million, followed by guarantee business, which increased by $29.2 million, and casualty business, which increased by $15.9 million.
In terms of revenue growth, gross written premiums (GPW) declined to $463 million in 4Q25 from $473 million in 4Q24. In 2025, total gross margin will be $2.03 billion, compared with $2.02 billion in 2024.
Meanwhile, net premiums written (NPW) for the quarter were $360.6 million, compared with $366.4 million in the same period last year. For full year 2025, net income was $1.62 billion, compared with $1.61 billion in 2024.
Net premiums written for the quarter increased 2.3% to $406.4 million, compared with $397.1 million in Q4 2024. This number will grow by 5.8% to $1.6 billion in 2025, compared with $1.5 billion in 2024.
RLI reported net income of $91.2 million in 4Q25, compared to $40.9 million in 4Q24, and operating profit of $86.4 million, compared with $48.3 million in 4Q24.
Additionally, the insurer’s net investment income increased 9% year-over-year to $42.3 million in 4Q25, compared to $38.8 million in 2Q24. For all of 2025, this figure was $159.7 million, compared with $142.3 million in 2024.
The portfolio’s quarterly total return was 1.5% and its full-year total return was 9%. RLI’s consolidated income in 4Q25 was $100.4 million, compared with a significant loss of $26.3 million in 4Q24.
Craig Kliethermes, president and chief executive officer of RLI Corp., commented: “Our fourth quarter results reflect the strength of our diverse specialty product portfolio and underwriting discipline. We achieved a combined ratio of 83, underscoring our ability to deliver positive underwriting results in a highly competitive market while maintaining a focus on profitability.”
He continued: “Full-year premium growth was modest at 1%, but our strong underwriting performance drove a combined ratio of 84, marking our 30th consecutive year of underwriting profitability. Good underwriting and investment results increased book value by 33% from the end of 2024 and delivered strong returns to shareholders. These results highlight the discipline, expertise and ownership mindset of our associate owners, which will continue to differentiate RLI.”
