On this page of StockholderLetter.com we present the latest annual shareholder letter from RLI CORP — ticker symbol RLI. Reading current and past RLI letters to shareholders can bring important insights into the investment thesis.
R L I C O R P. ANNUAL REPORT ON FORM 10K
2024 YEAR IN REVIEW 02 FINANCIAL HIGHLIGHTS 03 OUR PURPOSE, VISION, MISSION & VALUES 04 LETTER TO SHAREHOLDERS 08 OUR LEADERSHIP TEAM 10 SELECTED FINANCIAL DATA 12 INVESTOR INFORMATION
FINANCIAL HIGHLIGHTS In thousands, except combined ratio, per-share data and return on equity 2024 Gross premiums written 2,013,048 2023 % Change 1,806,660 11.4% Net premiums written 1,605,521 1,427,747 12.5% Consolidated revenue 1,770,384 1,511,994 17.1% Net earnings 345,779 304,611 13.5% Operating earnings(1) 265,436 227,740 16.6% GAAP combined ratio 86.2 86.6 -0.5% 1,521,967 1,413,514 7.7% Total shareholders equity Per-share data : (2) Net earnings (diluted) 3.74 3.31 13.0% 2.87 2.47 16.2% Regular 0.57 0.54 5.6% Special 2.00 1.00 100.0% Book value(3) 16.59 15.49 7.1% Year-end closing stock price 82.42 66.56 23.8% 22.2% 23.3% -4.7% Operating earnings (diluted) (1) Cash dividends paid: Return on equity 2 (1) See discussion of non-GAAP measures in note 1 of the SELECTED FINANCIAL DATA section on page 11 of the YEAR IN REVIEW wrap. (2) On January 15, 2025, our stock split on a 2-for-1 basis. All share and per share data reflect the stock split. (3) With the inclusion of dividends paid (regular and special), book value per share growth was 24% year over year.
OUR PURPOSE Protect people and organizations from life s uncertainties to help them explore, create, build and thrive. OUR VISION Be the recognized performance leader of the U.S. specialty insurance industry. OUR MISSION Provide industry-leading specialty risk management solutions that are convenient, tailored and fill unmet customer needs. OUR VALUES Ownership Customer Focus Drive Innovation Integrity 3
LETTER TO SHAREHOLDERS DEAR SHAREHOLDERS, I am pleased to share that RLI delivered outstanding financial results in 2024. Through the dedication of our associateowners, we achieved strong top-line growth and our 29th consecutive year of underwriting profitability. These results were attained amid an active year of catastrophes and highly competitive market conditions. In 2024, we remained dedicated to providing exceptional products and best-in-class service to our customers. We strengthened our relationships with existing distribution partners and actively explored opportunities in new markets. By strategically managing our business and maintaining a strong balance sheet, we reinforced our position as a financially secure and stable market leader. While we are proud of our achievements, we recognize the true measure of success lies in our ability to create sustainable, long-term value for our stakeholders. With this strategic priority guiding us, we invested in many areas of our business to support RLI s continued profitable growth and success. ABOUT OUR BUSINESS RLI is a U.S.-based, specialty insurance company that offers a diverse portfolio of tailored property, casualty and surety products. Our coverages are designed to protect our customers from life s uncertainties so they can explore, create, build and thrive. We distribute our products through a trusted network of specialized wholesale and retail brokers and independent agents. At the core of RLI s business model is our commitment to prudent risk selection. In exchange for a fair premium, we assume risks that individuals and businesses are unwilling or unable to bear alone. Our diversified product portfolio and disciplined underwriting approach enable us to navigate all market cycles, ensuring we remain a dependable partner for our customers. RLI is financially strong and stable, as demonstrated by our A+ (Superior) rating from AM Best and A (Strong) rating from S&P. In 2024, we proudly celebrated our 34th consecutive year on Ward s 50 P&C Top Performers list. RLI is the only insurance company that has received this honor every year since the list s inception. What truly distinguishes us in the industry is our people and culture. We hire talented individuals who share our values and enable them to become owners of the company through our Employee Stock Ownership Plan. Our ownership culture 4 promotes shared accountability and aligns employee and shareholder interests. It empowers our team members to continuously improve our business and make the best longterm decisions that benefit our customers and the company. We are also committed to being a strong partner to our agents and brokers. By investing in personal connections that cultivate mutual trust, we nurture these relationships to provide a solid foundation for collaboration and ensure we remain responsive to evolving customer needs. MARKET CONDITIONS The economy remained fundamentally strong in 2024, marked by robust consumer spending and substantial business investment. However, the insurance industry continued to be dynamic and faced challenges such as legal system abuse, significant catastrophe activity, increased severity of autorelated losses and disruptions in select markets. Our expertise, strong producer relationships and consistent underwriting appetite enabled us to leverage our core strengths and navigate market challenges. As a result, we capitalized on opportunities to serve more customers and achieved profitable growth. UNDERWRITING RESULTS In 2024, we posted underwriting income of $211 million and a combined ratio of 86.2, compared to $173 million of underwriting income and an 86.6 combined ratio in 2023. Gross premiums written increased 11 percent in 2024, and we surpassed $2 billion in premium for the first time, driven by growth across all three of our product segments. Our casualty segment reported a 15 percent increase in gross premiums written and a 97.9 combined ratio. Growth was fueled by rate increases across a large portion of our casualty segment, as well as new business growth within our personal umbrella and small commercial distribution channels. We also experienced an increase in new business opportunities across other product lines, including commercial excess and commercial transportation. The property segment reported a 7 percent increase in gross premiums written and a 68.5 combined ratio, despite the impact of hurricane activity. Our marine and commercial property products led segment growth, which was driven by rate increases and strong new business flow.
 • shareholder letter icon 2/21/2025 Letter Continued (Full PDF)
 • stockholder letter icon 2/24/2023 RLI Stockholder Letter
 • stockholder letter icon 2/23/2024 RLI Stockholder Letter
 • stockholder letter icon More "Insurance Brokers" Category Stockholder Letters
 • Benford's Law Stocks icon RLI Benford's Law Stock Score = 64


RLI Shareholder/Stockholder Letter Transcript:

R L I C O R P.
ANNUAL
REPORT ON
FORM 10K

2024
YEAR IN
REVIEW
02
FINANCIAL HIGHLIGHTS
03
OUR PURPOSE, VISION,
MISSION & VALUES
04
LETTER TO SHAREHOLDERS
08
OUR LEADERSHIP TEAM
10
SELECTED FINANCIAL DATA
12
INVESTOR INFORMATION

FINANCIAL
HIGHLIGHTS
In thousands, except combined ratio, per-share data and return on equity
2024

Gross premiums written
2,013,048

2023
% Change
1,806,660
11.4%
Net premiums written
1,605,521
1,427,747
12.5%
Consolidated revenue
1,770,384
1,511,994
17.1%
Net earnings
345,779
304,611
13.5%
Operating earnings(1)
265,436
227,740
16.6%
GAAP combined ratio
86.2
86.6
-0.5%
1,521,967
1,413,514
7.7%


Total shareholders    equity
Per-share data :
(2)
Net earnings (diluted)
3.74
3.31
13.0%
2.87
2.47
16.2%
Regular
0.57
0.54
5.6%
Special
2.00
1.00
100.0%
Book value(3)
16.59
15.49
7.1%
Year-end closing stock price
82.42
66.56
23.8%
22.2%
23.3%
-4.7%
Operating earnings (diluted)
(1)
Cash dividends paid:
Return on equity
2
(1)
See discussion of non-GAAP measures in note 1 of the SELECTED FINANCIAL DATA section on page 11 of the YEAR IN REVIEW wrap.
(2)
On January 15, 2025, our stock split on a 2-for-1 basis. All share and per share data reflect the stock split.
(3)
With the inclusion of dividends paid (regular and special), book value per share growth was 24% year over year.

OUR
PURPOSE
Protect people and organizations from
life   s uncertainties to help them explore,
create, build and thrive.
OUR
VISION
Be the recognized performance leader
of the U.S. specialty insurance industry.
OUR
MISSION
Provide industry-leading specialty risk
management solutions that are convenient,
tailored and fill unmet customer needs.
OUR
VALUES
Ownership
Customer Focus
Drive
Innovation
Integrity
3

LETTER TO
SHAREHOLDERS
DEAR SHAREHOLDERS,
I am pleased to share that RLI delivered outstanding financial
results in 2024. Through the dedication of our associateowners, we achieved strong top-line growth and our 29th
consecutive year of underwriting profitability. These results
were attained amid an active year of catastrophes and highly
competitive market conditions.
In 2024, we remained dedicated to providing exceptional
products and best-in-class service to our customers. We
strengthened our relationships with existing distribution
partners and actively explored opportunities in new markets.
By strategically managing our business and maintaining
a strong balance sheet, we reinforced our position as a
financially secure and stable market leader.
While we are proud of our achievements, we recognize
the true measure of success lies in our ability to create
sustainable, long-term value for our stakeholders. With this
strategic priority guiding us, we invested in many areas of
our business to support RLI   s continued profitable growth
and success.
ABOUT OUR BUSINESS
RLI is a U.S.-based, specialty insurance company that
offers a diverse portfolio of tailored property, casualty and
surety products. Our coverages are designed to protect our
customers from life   s uncertainties so they can explore, create,
build and thrive. We distribute our products through a trusted
network of specialized wholesale and retail brokers and
independent agents.
At the core of RLI   s business model is our commitment to
prudent risk selection. In exchange for a fair premium, we
assume risks that individuals and businesses are unwilling
or unable to bear alone. Our diversified product portfolio and
disciplined underwriting approach enable us to navigate all
market cycles, ensuring we remain a dependable partner for
our customers.
RLI is financially strong and stable, as demonstrated by our
A+ (Superior) rating from AM Best and A (Strong) rating from
S&P. In 2024, we proudly celebrated our 34th consecutive
year on Ward   s 50 P&C Top Performers list. RLI is the only
insurance company that has received this honor every year
since the list   s inception.
What truly distinguishes us in the industry is our people and
culture. We hire talented individuals who share our values
and enable them to become owners of the company through
our Employee Stock Ownership Plan. Our ownership culture
4
promotes shared accountability and aligns employee and
shareholder interests. It empowers our team members to
continuously improve our business and make the best longterm decisions that benefit our customers and the company.
We are also committed to being a strong partner to our
agents and brokers. By investing in personal connections
that cultivate mutual trust, we nurture these relationships to
provide a solid foundation for collaboration and ensure we
remain responsive to evolving customer needs.
MARKET CONDITIONS
The economy remained fundamentally strong in 2024, marked
by robust consumer spending and substantial business
investment. However, the insurance industry continued to be
dynamic and faced challenges such as legal system abuse,
significant catastrophe activity, increased severity of autorelated losses and disruptions in select markets.
Our expertise, strong producer relationships and consistent
underwriting appetite enabled us to leverage our core
strengths and navigate market challenges. As a result, we
capitalized on opportunities to serve more customers and
achieved profitable growth.
UNDERWRITING RESULTS
In 2024, we posted underwriting income of $211 million
and a combined ratio of 86.2, compared to $173 million of
underwriting income and an 86.6 combined ratio in 2023.
Gross premiums written increased 11 percent in 2024, and
we surpassed $2 billion in premium for the first time, driven
by growth across all three of our product segments.
Our casualty segment reported a 15 percent increase in gross
premiums written and a 97.9 combined ratio. Growth was
fueled by rate increases across a large portion of our casualty
segment, as well as new business growth within our personal
umbrella and small commercial distribution channels. We
also experienced an increase in new business opportunities
across other product lines, including commercial excess and
commercial transportation.
The property segment reported a 7 percent increase in gross
premiums written and a 68.5 combined ratio, despite the
impact of hurricane activity. Our marine and commercial
property products led segment growth, which was driven by
rate increases and strong new business flow.



shareholder letter icon 2/21/2025 Letter Continued (Full PDF)
 

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