RLI Maintains Underwriting Profitability Amid Market Softening
On its third-quarter 2026 earnings call, RLI Corporation (ticker: RLI) reported an 86% combined ratio and maintained underwriting profitability despite a softening property market. Management emphasized pricing discipline over retaining unprofitable business as standard carriers returned to the market, leading to a 17% decline in excess and surplus lines property premiums. RLI also highlighted its strategy of not setting top-line growth targets for underwriters, allowing them flexibility to adjust volume based on profitability goals rather than chasing market share. Additionally, personal umbrella policy premiums rose by 22%, supported by cumulative rate hikes exceeding 50% over three years due to rising loss severity. Looking ahead, RLI is focusing on niche product diversification and underwriting consistency to outlast soft pricing cycles. The company aims for continued profitability through disciplined risk selection rather than aggressive market expansion.
Tickers: $RLI
Topics: commercial insurance market pricing strategy profitability underwriting discipline