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Q4 2025
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Except for historical information, this presentation may include forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) including, without limitation, statements reflecting our current expectations about the future performance of our company or our business segments or about future market conditions. These statements are subject to certain risk factors that could cause actual results to differ materially. Various risk factors that could affect future results are listed in the company’s filings with the Securities and Exchange Commission, including the most recently filed Annual Report on Form 10-K. Forward looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this report. While the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. You should review the various risks, uncertainties and other factors listed from time to time in our Securities and Exchange Commission filings. Management has included certain non-generally accepted accounting principles (non-GAAP) financial measures in presenting the company’s results. Management believes that these non-GAAP measures further explain the company’s results of operations and allow for a more complete understanding of the underlying trends in the company’s business. These measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles (GAAP). In addition, our definitions of these items may not be comparable to the definitions used by other companies. Operating earnings and operating earnings per share (EPS) consist of our GAAP net earnings adjusted by net realized gains/(losses), net unrealized gains/(losses) on equity securities and taxes related thereto. Beginning in the fourth quarter of 2025, equity in earnings of unconsolidated investees and the related taxes were excluded from operating earnings and operating EPS. The change was made to present a consistent approach in excluding all unrealized changes in equity investments. We view these minority investments as outside of RLI’s operating control. Operating earnings and operating EPS for prior periods have been recast to conform to the current definition. Net earnings and net earnings per share are the GAAP financial measures that are most directly comparable to operating earnings and operating EPS. Please refer to the appendix of this presentation for a reconciliation of operating earnings and operating EPS to the comparable GAAP financial measures. Underwriting income or profit represents the pretax profitability of our insurance operations and is derived by subtracting loss and settlement expenses, policy acquisition costs and insurance operating expenses from net premium earned, which are all GAAP financial measures. The combined ratio, which is derived from components of underwriting income, is a performance measure commonly used by property and casualty insurance companies and is calculated as the sum of loss and settlement expenses, policy acquisition costs and insurance operating expenses, divided by net premiums earned, which are all GAAP measures. 2 DISCLAIMER
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OUR PURPOSE, VISION, MISSION & STRATEGY 3 Our purpose, vision, mission and strategy serve as the foundation of our balanced growth plan. Purpose Vision Mission Strategy Protect people and organizations from life’s uncertainties to help them explore, create, build and thrive. Be the recognized performance leader of the U.S. specialty insurance industry. Provide industry-leading specialty risk management solutions that are convenient, tailored and fill unmet customer needs. Create sustainable value and differentiate RLI in the marketplace through industry-leading products, unmatched expertise and exceptional customer service.
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4 RLI OVERVIEW RLI is a domestic, specialty insurance company that handles its own underwriting and claims. Underwriting Company __________________ • Hire talented, entrepreneurial underwriters with narrow & deep knowledge • Focus on difficult markets that require unique expertise • Encourage a strong feedback loop between underwriting and claims • Underwriting discipline and results are paramount 93% Institutions & other public investors 7% Insiders & Employee Stock Ownership Plan (“ESOP”) Growth through Discipline __________________ • Emphasize profitable, organic product growth • Explore talent acquisition & start-ups • Selectively consider balance sheet acquisitions that preserve RLI’s unique culture Diversified Insurance Product Portfolio __________________ • Products are run like stand-alone, largely- autonomous, businesses • Maintain a highly diverse product portfolio to reduce corporate risk • Many products are tailored to fill a void in the market Ownership Culture & Compensation __________________ • Underwriting leadership compensation is tied to product specific underwriting profit • 139 ESOP accounts exceeded $500,000 as of 12/31/25, highlighting the breadth of our shared rewards and shareholder alignment Capital Management __________________ • Retain enough capital to meet policyholder needs • Lean into profitable underwriting opportunities when they arise • Return excess capital to shareholders • Maintain our ability to raise traditional third- party capital as needed
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5 Customer Focus • Customer Experience • Growth Adjacencies Continuous Improvement • Tech Investment • Innovation Community • People • Cultural Adaptability Ease of Use Trusted Partnerships Stability Value Creation How We Create Value By sharing our expertise and offering exceptional service to our customers, our highly engaged employees create lasting relationships and can see the impact they make on our business. We incorporate our customers’ feedback to ensure our products meet their needs and that we remain a stable, trusted partner that is easy to work with and fulfills our promise to pay claims owed. Our shareholders benefit from our diversified, resilient business model, which produces consistent financial performance. OUR STRATEGY
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SERVICE ORIENTED SAFEGUARD OUR REPUTATION WE CARE EMPOWERED DELIBERATE Interwoven, complementary and fortified by a common DNA. COMPETITIVE ADVANTAGES RLI will capitalize on our competitive advantages to drive profitable growth. 6 UNDERWRITE FOR PROFIT • Responsive • Accountable • Curious • Distributed decision making • Flat structure • People focused • Disciplined • Strive for excellence • Consistent • Stable • Relationship oriented • Community minded • Responsible • Sustainable • Continuously improve • Rational • Diversified • Resilient • Downside risk management • Long-term outlook • Innovative problem solvers • Dedicated • Transparent • Authentic • Humble • Specialists with deep expertise • Collaborative • Tailored risk selection in niche markets • Aligned compensation • Shared rewards
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7 FINANCIAL STRENGTH AND STABILITY Our financial track record has been stellar for decades — a testament to our ownership culture and reputation as an excellent underwriting company. A STRONG WARD’S 50 TOP P&C PERFORMER FOR 35 YEARS2 A++ SUPERIOR1 (2)Only insurer to be recognized every year since inception 4.9/5 STARS ON (1)Upgraded from A+ to A++ in February 2026
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8 SELECT MARKET INFORMATION RLI has a rich history as a publicly traded company and has consistently created value for its shareholders. Ticker / Exchange RLI / NYSE Share Price (as of 12/31/2025) $63.98 Annual Dividend / Yield (as of 12/31/2025) $0.64 / 1.00% Market Cap $5.88 billion Annual Gross Premium (Trailing 4 qtr.) $2,027 million Employees 1,193 Leadership Average Industry Experience / RLI Tenure 28 Years / 18 Years 20 Year Annual Shareholder Return 13.5%
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9 Q4 2025 FINANCIAL UPDATE Fourth Quarter Year to Date 2025 2024 % Change 2025 2024 % Change Earnings Per Diluted Share Net earnings $ 0.99 $ 0.44 125.0% $ 4.37 $ 3.74 16.8% Operating earnings $ 0.94 $ 0.52 80.8% $ 3.47 $ 2.91 19.2% Net Premiums Earned (in millions) Casualty $ 246.8 $ 225.9 9.3% $ 954.0 $ 852.8 11.9% Property $ 122.5 $ 134.6 (9.0)% $ 512.4 $ 531.4 (3.6)% Surety $ 37.1 $ 36.7 1.1% $ 147.9 $ 142.2 4.0% Total $ 406.4 $ 397.2 2.3% $ 1,614.3 $ 1,526.4 5.8% Underwriting Income (Loss) (in millions) Casualty $ 1.0 $ (8.8) (111.4)% $ 15.9 $ 17.8 (10.7)% Property $ 62.3 $ 26.2 137.8% $ 219.1 $ 167.6 30.7% Surety $ 7.6 $ 4.8 58.3% $ 29.2 $ 25.3 15.4% Total $ 70.9 $ 22.2 219.4% $ 264.2 $ 210.7 25.4% Combined Ratio Casualty 99.6 103.9 98.3 97.9 Property 49.2 80.5 57.2 68.5 Surety 79.6 87.1 80.3 82.2 Total 82.6 94.4 83.6 86.2 Other 4Q25 Highlights • 9% increase in net investment income • Favorable development in prior years' loss reserves, resulting in a $22.0 million net increase in underwriting income • Book value per share of $19.35, an increase of 33% (inclusive of dividends) from year-end 2024
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General Liability2 Excess Liability2 Other Executive Products Transportation Professional Services Commercial Package Personal Umbrella Transactional Commercial Contract Hawaii Homeowners/Other Marine Earthquake2 E&S Property2 DIVERSIFIED PRODUCT PORTFOLIO: NET PREMIUM 1 10 Product diversification has fueled our growth & financial success. (1) Trailing 4 Quarters Net Written Premium. (2) E&S line. Casualty (61%)Property (30%) Surety (9%) E&S: 34% of NWP1 Specialty Admitted: 66% of NWP1
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PRODUCT DISTRIBUTION Our strong customer relationships extend across a diverse distribution network. 11 Casualty General liability Excess liability Personal umbrella Transportation Executive products Professional services Commercial package Property E&S property & Earthquake Marine Personal lines Surety Contract Commercial Retail Agent / Broker Wholesale Broker General Agency / Carrier Partner
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12 MARKET CYCLE MANAGEMENT $- $100 $200 $300 $400 $500 $600 $- $500 $1,000 $1,500 $2,000 RLI Total (LHS) Transportation (RHS) E&S Property (RHS) RLI’s strong people, products & processes allow us to effectively manage through different market cycles, which vary by product. • INVEST in people, products & processes in all markets • EMPOWER underwriters to capitalize during hard markets and pull back, when necessary, during soft markets • ENFORCE strict underwriting discipline throughout the cycle • MAXIMIZE financial strength & flexibility Gross Premium (in millions)
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RESERVE DEVELOPMENT RLI has a history of disciplined and prudent reserving. -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% $(20)M $0M $20M $40M $60M $80M $100M $120M $140M 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total Development Favorable/(Unfavorable) (LHS) % of Earned Premium (RHS) 13 Favorable(Unfavorable)
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14 UNDERWRITING PROFIT RLI has achieved 30 straight years of a combined ratio below 100 and has beaten the industry ratio by an average of 11 points1 over the last 10 years. (1) Statutory basis as of year-end 2025. (2) AM Best (2025). Aggregates & Averages – Property/Casualty, United States & Canada. 1996-2024. (3) Conning (2025). Property-Casualty Forecast & Analysis: By Line of Insurance, Fourth Quarter 2025. Estimated for the year ended December 31, 2025. 60 70 80 90 100 110 120 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 RLI Industry (1) (2)Industry2RLI RLI Industry2,3 3-year average 84.9% 97.0% 5-year average 84.6% 98.7% 10-year average 88.5% 99.5%
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Investing for the long term: A diversified, highly-rated bond portfolio complemented by active and passive equities. Portfolio Allocation (as of 12/31/2025) Corporate 32.0% Govt/Agency 8.3% Mortgage Backed 13.1% ABS/CMBS 14.4% Municipal 7.9% Cash 3.7% Equities 19.3% Other Invested Assets 1.3% $4.66 Billion Investment Portfolio Net Investment Income ($M) • Target Asset Allocation: 80% Bonds / 20% Equities • Bonds: AA- quality; 4.8 duration • Equities: ETFs and active large-cap; dividend yield of 1.5% • Emphasis on consistency of income and low turnover 15 INVESTMENT PORTFOLIO $- $20 $40 $60 $80 $100 $120 $140 $160 $180 $- $5 $10 $15 $20 $25 $30 $35 $40 $45 2020 2021 2022 2023 2024 2025 Quarterly (LHS) Trailing 12 Months (RHS)
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Combined Ratio Book Value Growth3 Operating Return on Equity3 Capital Management Reserve Consistency 30 consecutive years under 100 combined ratio1 39/42 years under 100 combined ratio2 11 margin (points) by which we beat the industry3 22.2% average annual growth in book value per share (including dividends) 13.3% average OROE 50 consecutive years of increased dividends (as of February 2025) $1,117.5 million amount returned to shareholders since 12/31/2020 $551 million reserve releases since 12/31/2020 MEASUREMENTS OF OUR SUCCESS (1) As of year-end 2025. (2) 1984 through year-end 2025. (3) Over the last 10 years as of 12/31/25. 16
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(1) Operating return on equity (operating ROE) is operating earnings divided by average shareholders’ equity. Operating earnings is a non-GAAP financial measure and consists of our GAAP net earnings adjusted by net realized gains/(losses), net unrealized gains/(losses) on equity securities that are recognized through net earnings in 2018 and forward and taxes related thereto. Beginning in the fourth quarter of 2025, equity in earnings of unconsolidated investees and the related taxes were excluded from operating earnings. The change was made to present a consistent approach in excluding all unrealized changes in equity investments. Prior periods have been recast to conform to the current definition. Net earnings is the most directly comparable GAAP financial measure to operating earnings. See the appendix to this presentation (“Non-GAAP Reconciliation”) or our quarterly earnings releases for a reconciliation of net earnings to operating earnings. OPERATING RETURN ON EQUITY 1 Over the previous 10 calendar years, RLI has averaged a 13.3% operating return on equity. 17 2022 20242023 9.8% 10.6% 9.4% 10.7% 9.8% 12.3% 17.3% 16.8% 17.3% 18.8% 2016 2017 2018 2019 2020 2021 2025
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$0.29 $0.30 $0.32 $0.34 $0.36 $0.38 $0.40 $0.42 $0.44 $0.46 $0.48 $0.50 $0.52 $0.54 $0.57 $0.63 $0.64 $1.75 $1.25 $1.25 $0.75 $1.50 $1.00 $1.00 $0.88 $0.50 $0.50 $0.50 $1.00 $1.00 $2.00 $2.00 $- $0.50 $1.00 $1.50 $2.00 $2.50 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Run Rate (1) All share information adjusted for January 2025 2-for-1 stock split. (2) As of February 2025. Regular Dividend Special Dividend DIVIDEND GROWTH 1 RLI has a distinguished track record of sharing our success: 50 straight years of dividend increases2, a 5% annualized growth rate over the last 10 calendar years, and 16 years of special dividends. 18 $3.50
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$0 $500 $1,000 $1,500 $2,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 RLI S&P 500 TOTAL SHAREHOLDER RETURN 1 Shareholder returns validate the RLI story. RLI S&P 500 S&P P&C Index 1 year -19.1% 17.9% 9.4% 5 year 8.1% 14.4% 18.0% 10 year 11.3% 14.8% 15.2% 20 year 13.5% 11.0% 10.4% through 12/31/25 (1) Assumes $100 invested on December 31, 2005 in RLI and S&P 500, with reinvestment of dividends.19
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20 VALUE CREATION OPPORTUNITIES RLI is pursuing multiple initiatives designed to create value. Cycle Management Platform Enhancements Talent Acquisition Disciplined pursuit of opportunities in adjacent products Maximize margins throughout the cycle, organic growth enriched by market conditions Invest in technology to leverage distribution and increase efficiency Growth supported by hiring the best underwriters & claim professionals into the RLI model Capitalize on opportunities in niche spaces through organic means and via acquisitions, when they make sense
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21 SELECTED FINANCIAL DATA OPERATING RESULTS 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Gross premiums written 853.6 874.9 885.3 983.2 1,065.0 1,136.4 1,347.4 1,565.5 1,806.7 2,013.0 2,026.8 Consolidated revenue 794.6 816.3 797.2 818.1 1,003.6 983.6 1,179.2 1,698.0 1,512.0 1,770.4 1,882.4 Net earnings 137.5 114.9 105.0 64.2 191.6 157.1 279.4 583.4 304.6 345.8 403.3 Comprehensive earnings (loss) 89.9 113.8 140.3 30.2 258.7 213.3 220.5 304.5 367.4 338.4 489.0 FINANCIAL CONDITION 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total investments 1,951.5 2,021.8 2,140.8 2,194.2 2,560.4 2,837.1 3,163.0 3,272.3 3,676.3 4,084.6 4,663.6 Total assets 2,735.5 2,777.6 2,947.2 3,105.1 3,545.7 3,938.5 4,508.3 4,767.1 5,180.2 5,628.8 6,161.5 Unpaid losses and settlement expenses 1,103.8 1,139.3 1,271.5 1,461.3 1,574.4 1,750.0 2,043.6 2,315.6 2,446.0 2,693.5 2,886.8 Total debt 148.6 148.7 148.9 149.1 149.3 149.5 199.7 199.9 100.0 100.0 100.0 Total shareholders’ equity 823.5 823.6 853.6 806.8 995.4 1,136.0 1,229.4 1,177.3 1,413.5 1,522.0 1,778.2 Statutory surplus 865.3 860.0 864.6 829.8 1,029.7 1,121.6 1,240.6 1,407.9 1,520.1 1,787.3 1,846.6 (Amounts in millions)
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22 SELECTED FINANCIAL DATA SHARE INFORMATION1 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Net earnings per share: Diluted 1.56 1.29 1.18 0.72 2.12 1.73 3.06 6.37 3.31 3.74 4.37 Comprehensive earning (losses) per share: Diluted 1.02 1.28 1.58 0.34 2.86 2.35 2.41 3.32 3.99 3.66 5.29 Cash dividends declared per share: Ordinary 0.38 0.40 0.42 0.44 0.46 0.48 0.50 0.52 0.54 0.57 0.63 Special 1.00 1.00 0.88 0.50 0.50 0.50 1.00 3.50 1.00 2.00 2.00 Book value per share 9.46 9.37 9.67 9.06 11.09 12.58 13.57 12.95 15.49 16.59 19.35 Closing stock price 30.88 31.57 30.33 34.50 45.01 52.08 56.05 65.64 66.56 82.42 63.98 Stock split 2-for-1 Weighted average shares outstanding: Diluted 88,263 88,865 89,000 89,669 90,514 90,752 91,424 91,589 92,155 92,451 92,391 Common shares outstanding 87,088 87,889 88,297 89,008 89,738 90,285 90,579 90,940 91,280 91,738 91,879 OTHER FINANCIAL INFORMATION 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Net premiums written (T4Q) to statutory surplus 83% 86% 87% 99% 84% 80% 85% 88% 94% 90% 88% GAAP combined ratio 84.5 89.5 96.4 94.7 91.9 92.0 86.8 84.4 86.6 86.2 83.6 (Amounts in thousands, except per share data) (1) All share information adjusted for January 2025 2-for-1 stock split.
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23 APPENDIX – NON-GAAP RECONCILIATION (Amounts in thousands, except per share data) Fourth Quarter Full Year OPERATING EARNINGS: 2025 2024 2025 2024 Net earnings 91,177 40,860 403,337 345,779 Less: Net realized (gains) losses (16,882) (8,744) (65,116) (19,966) Income tax on realized gains (losses) 3,545 1,836 13,675 4,193 Net unrealized (gains) losses on equity securities (84) 5,580 (43,247) (81,734) Income tax on unrealized gains (losses) on equity securities 18 (1,171) 9,082 17,164 Equity in earnings of unconsolidated investees 10,979 12,522 3,924 4,869 Income tax on equity in earnings of unconsolidated investees (2,305) (2,629) (824) (1,022) Operating earnings 86,448 48,254 320,831 269,283 Net earnings per share 0.99 0.44 4.37 3.74 Less: Net realized (gains) losses (0.18) (0.09) (0.70) (0.22) Income tax on realized gains (losses) 0.03 0.02 0.14 0.05 Net unrealized (gains) losses on equity securities — 0.06 (0.47) (0.88) Income tax on unrealized gains (losses) on equity securities — (0.02) 0.10 0.18 Equity in earnings of unconsolidated investees 0.12 0.14 0.04 0.05 Income tax on equity in earnings of unconsolidated investees (0.02) (0.03) (0.01) (0.01) Operating earnings per share 0.94 0.52 3.47 2.91