0.15%
-10.52%
-5.44%
-2.06%
8.15%
40.77%
58.57%
AI Spotlight on RLI
Company Description
RLI Corp., an insurance holding company, underwrites property and casualty insurance in the United States and internationally.Its Casualty segment provides commercial and personal coverage products; and general liability products, such as coverage for third-party liability of commercial insureds, including manufacturers, contractors, apartments, and mercantile.It also offers coverages for security guards and in the areas of onshore energy-related businesses and environmental liability for underground storage tanks, contractors and asbestos, and environmental remediation specialists; and professional liability coverages focuses on providing errors and omission coverage to small to medium-sized design, technical, computer, and miscellaneous professionals.
This segment provides commercial automobile liability and physical damage insurance to local, intermediate and long haul truckers, public transportation entities, and other types of specialty commercial automobile risks; incidental and related insurance coverages; inland marine coverages; management liability coverages, such as directors and officers liability insurance, fiduciary liability and coverages, employment practice liability, and for various classes of risks, including public and private businesses; and healthcare liability and home business insurance products.The company's Property segment offers commercial property, cargo, hull, protection and indemnity, marine liability, inland marine, homeowners' and dwelling fire, and other property insurance products.Its Surety segment offers commercial surety bonds for medium to large-sized businesses; small bonds for businesses and individuals; and bonds for small to medium-sized contractors.
The company also underwrites various reinsurance coverages.It markets its products through branch offices, brokers, carrier partners, and underwriting and independent agents.RLI Corp.
was founded in 1965 and is headquartered in Peoria, Illinois.
Market Data
| Last Price | 73.75 |
| Change Percentage | 0.15% |
| Open | 73.34 |
| Previous Close | 73.64 |
| Market Cap ( Millions) | 6759 |
| Volume | 98181 |
| Year High | 91.14 |
| Year Low | 67.53 |
| M A 50 | 82.35 |
| M A 200 | 76.41 |
Financial Ratios
| FCF Yield | 8.12% |
| Dividend Yield | 6.96% |
| ROE | 13.19% |
| Debt / Equity | 1.78% |
| Net Debt / EBIDTA | 156.96% |
| Price To Book | 1.22 |
| Price Earnings Ratio | 19.82 |
| Price To FCF | 12.32 |
| Price To sales | 4.94 |
| EV / EBITDA | 178.1 |
News
- Jan -30 - AM Best Revises Outlooks to Positive for RLI Corp. and Its Subsidiaries
- Jan -27 - After Plunging -12.62% in 4 Weeks, Here's Why the Trend Might Reverse for RLI Corp. (RLI)
- Jan -25 - These Could Be The 10 Best Deep Value Dividend Aristocrat Bargains For February
- Jan -23 - RLI Corp. (RLI) Q4 2024 Earnings Call Transcript
- Jan -23 - RLI's Q4 Earnings Miss on Higher Expenses, Premiums Rise Y/Y
- Jan -23 - RLI Corp. (RLI) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
- Jan -22 - RLI Corp. (RLI) Lags Q4 Earnings and Revenue Estimates
- Jan -22 - RLI Reports Fourth Quarter and Year-End 2024 Results
- Jan -17 - RLI Stock Trades Above 50-Day SMA: What Should Investors Do?
- Jan -16 - Stay Ahead of the Game With RLI Corp. (RLI) Q4 Earnings: Wall Street's Insights on Key Metrics
- Jan -09 - Will RLI Corp. (RLI) Beat Estimates Again in Its Next Earnings Report?
- Jan -06 - RLI Fourth Quarter earnings release & teleconference
- Nov -15 - RLI Stock Rises 31.5% Year to Date: More Room for Growth?
- Nov -08 - RLI's Board Okays Special Cash Dividend to Share More Profit
- Nov -06 - 3 Recession-Resistant Stocks: Low Beta, High Margins, Low Debt
- Oct -25 - RLI Corp: A Resilient Dividend Champion Navigating 2024 With Strong Underwriting And Growth Potential
- Oct -23 - RLI Corp. (RLI) Q3 2024 Earnings Call Transcript
- Oct -22 - RLI's Stock Gains Following Q3 Earnings and Revenue Beat
- Oct -21 - Compared to Estimates, RLI Corp. (RLI) Q3 Earnings: A Look at Key Metrics
- Oct -21 - RLI Corp. (RLI) Q3 Earnings and Revenues Beat Estimates
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Casualty
Expected Growth : 10 %
What the company do ?
Casualty from RLI Corp. refers to insurance products that provide liability coverage for businesses, protecting them from financial losses due to accidents or injuries.
Why we expect these perspectives ?
RLI Corp's 10% growth in Casualty segment is driven by increasing demand for specialty insurance products, expansion into new markets, and strategic partnerships. Additionally, favorable market conditions, improved underwriting discipline, and effective risk management practices contribute to the segment's growth.
Segment n°2 -> Property
Expected Growth : 12 %
What the company do ?
The Property from RLI Corp. is a reinsurance product that provides coverage for commercial property risks, offering flexible policy terms and competitive pricing.
Why we expect these perspectives ?
RLI Corp's 12% growth in Property segment is driven by increasing demand for specialty insurance products, expansion into new markets, and strategic partnerships. Additionally, favorable underwriting results, improved pricing, and a strong capital position contribute to the segment's growth.
Segment n°3 -> Surety
Expected Growth : 9 %
What the company do ?
RLI Corp.'s Surety segment provides bonds that guarantee the performance of contractual obligations, such as construction projects and license requirements.
Why we expect these perspectives ?
RLI Corp's surety segment growth is driven by increasing demand for construction bonds, expansion into new markets, and strategic partnerships. Additionally, the company's strong underwriting discipline, diversified product offerings, and favorable regulatory environment contribute to its 9% growth rate.
Rli Corp. Products
| Product Range | What is it ? |
|---|---|
| Casualty | RLI Corp.'s Casualty segment offers a range of liability insurance products, including general liability, umbrella, and excess liability coverage to protect businesses from unforeseen events. |
| Property | RLI Corp.'s Property segment provides insurance coverage for commercial and personal property, including buildings, equipment, and inventory, against damage or loss. |
| Transportation | RLI Corp.'s Transportation segment offers insurance products for the transportation industry, including trucking, public transportation, and logistics companies. |
| Professional Services | RLI Corp.'s Professional Services segment provides insurance coverage for professionals, including lawyers, doctors, and accountants, against errors and omissions. |
| Reinsurance | RLI Corp.'s Reinsurance segment offers reinsurance products to other insurance companies, providing additional coverage and risk management solutions. |
RLI Corp.'s Porter Forces
Threat Of Substitutes
RLI Corp. operates in a niche market, providing specialty insurance products. While there are substitutes available, they are not easily accessible, and the company's products are highly specialized, reducing the threat of substitutes.
Bargaining Power Of Customers
RLI Corp.'s customers are primarily businesses and individuals who require specialized insurance products. The company's strong relationships with its customers and the complexity of its products reduce the bargaining power of customers.
Bargaining Power Of Suppliers
RLI Corp. has a diversified supplier base, and the company is not heavily dependent on a single supplier. This reduces the bargaining power of suppliers.
Threat Of New Entrants
The specialty insurance market has high barriers to entry, including regulatory hurdles and the need for specialized expertise. This reduces the threat of new entrants.
Intensity Of Rivalry
RLI Corp. operates in a competitive market, but the company's specialized products and strong relationships with its customers help to mitigate the intensity of rivalry.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 12.62% |
| Debt Cost | 5.66% |
| Equity Weight | 87.38% |
| Equity Cost | 5.66% |
| WACC | 5.66% |
| Leverage | 14.44% |
RLI Corp. : Quality Control
RLI Corp. passed 8 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| MKL | Markel Corporation, a diverse financial holding company, markets and underwrites specialty insurance products in the United States, Bermuda, the United Kingdom, rest of Europe, Canada, the Asia Pacific, and the … |
| WRB | W. R. Berkley Corporation, an insurance holding company, operates as a commercial lines writer in the United States and internationally. It operates in two segments, Insurance and Reinsurance & Monoline … |
| MCY | Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States. The company also writes homeowners, commercial automobile, commercial property, mechanical protection, and umbrella … |
| L | Loews Corporation provides commercial property and casualty insurance in the United States and internationally. The company offers specialty insurance products, such as management and professional liability, and other coverage products; … |
| THG | The Hanover Insurance Group, Inc., through its subsidiaries, provides various property and casualty insurance products and services in the United States. The company operates through three segments: Commercial Lines, Personal … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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RLI
A-Score
1-Year Total Return ->
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WR Berkley
A-Score
1-Year Total Return ->
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Mercury General
A-Score
1-Year Total Return ->
4
Markel
A-Score
1-Year Total Return ->
5
Hanover Insurance
A-Score
1-Year Total Return ->
6
