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- **Strong Underwriting Performance**: 85% combined ratio and 26% book value growth year-to-date, despite flat top-line growth.
- **Casualty Growth Driver**: 8% premium increase in casualty, fueled by rate hikes and reserve releases.
- **Strategic Rate Adjustments**: 17% personal umbrella rate increase and 12% Hawaii homeowners rate filing to mitigate loss trends.
- **Market Discipline**: 2.5x higher renewal win rates in E&S property vs. pre-hard market, with focus on quality over volume.
- **Tech Investments**: Surety expense ratio rising due to CRM and underwriter training, positioning for long-term growth.

**【CEO Opening Remarks】**
- Reported a 85% combined ratio for Q3 2025, with underwriting profitability across all segments.
- Book value per share grew 26% year-to-date, driven by a 20%+ return on equity.
- Noted flat top-line growth due to softening in the commercial property catastrophe market, but highlighted disciplined underwriting and selective growth in casualty and niche products.

**【CFO Financial Commentary】**
- Operating earnings of $0.83 per share, supported by a 12% increase in investment income and a 85.1% combined ratio (down from 89.6% in Q3 2024).
- Property segment delivered a 60% combined ratio, despite 11% premium decline, driven by Hawaii homeowners growth (33% Q3, 35% YTD) and Marine segment stability.
- Casualty segment grew 8% in gross premiums with a 98% combined ratio, benefiting from rate increases and reserve development.
- Surety segment saw modest premium decline but maintained an 85% combined ratio, with investments in technology and underwriter training.

**【Q&A Highlights】**
- **Personal Umbrella Book**: 17% rate increase in Q3, with new rate filings in Florida and additional states, targeting higher attachment points to reduce frequency.
- **Property Market Competition**: Renewal win rate down 11% Q3, but 2.5x higher than pre-hard market levels; focusing on quality over volume in E&S property (Q3 2025 premium exceeds 2019 total).
- **Casualty Auto Exposure**: 15% rate increases, but competitive pressure leading to cancellations; focusing on public auto and safety-compliant accounts.
- **Surety Expense Ratio**: Rising due to tech investments and underwriter hiring, but expected to drive long-term growth in transactional and account-level surety.
- **Hawaii Homeowners Strategy**: Approved 12% rate increase for 2026, with automation initiatives to improve retention and simplify renewals.


RLI Corp. (RLI) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

RLI

RLI fundamentals

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