Earnings release
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EXHIBIT 99.1 RLI REPORTS THIRD QUARTER 2026 RESULTS PEORIA, ILLINOIS, October 19, 2026 – RLI Corp. (NYSE: RLI) reported third quarter 2026 net earnings of $81.0 million ($0.88 per share), compared to $124.6 million ($1.35 per share) for the third quarter of 2025. Operating earnings(1) for the third quarter of 2026 were $79.3 million ($0.86 per share), compared to $75.8 million ($0.82 per share) for the same period in 2025. Third Quarter Year to Date Earnings Per Diluted Share 2026 2025 2026 2025 Net earnings $ 0.88 $ 1.35 $ 3.29 $ 3.38 Operating earnings (1)(2) $ 0.86 $ 0.82 $ 2.52 $ 2.53 (1) See discussion below: Non-GAAP and Performance Measures. (2) Equity in earnings of unconsolidated investees and the related taxes were removed from operating earnings and operating earnings per share beginning in the fourth quarter of 2025, resulting in consistent exclusion of unrealized changes in equity investments from operating results. Prior period amounts have been recast to conform to the current definition. Highlights for the quarter included: ● Underwriting income(1) of $58.8 million on a combined ratio(1) of 86.2. ● Gross premiums written increased 2% and net investment income increased 13%. ● Favorable development in prior years’ loss reserves resulted in a $20.1 million net increase in underwriting income. ● Book value increased 10% from year-end 2025, inclusive of dividends and share repurchases. “Our third-quarter results reflect consistent, disciplined execution across the business,” said RLI Corp. President & CEO Craig Kliethermes. “We delivered an 86 combined ratio, with strong underwriting performance in our property and surety segments. Gross premiums written increased 2%, led by our casualty segment. Investment income grew 13%, further contributing to earnings. As market conditions evolve across our portfolio, we remain focused on risk selection and profitable growth. We will continue to pursue opportunities where our underwriting expertise can deliver attractive long-term returns.” Underwriting Income RLI achieved $58.8 million of underwriting income in the third quarter of 2026 on an 86.2 combined ratio, compared to $60.5 million on an 85.1 combined ratio in 2025. Results for both years include favorable development in prior years’ loss reserves, which resulted in a $20.1 million and $13.7 million net increase to underwriting income in 2026 and 2025, respectively. The following table highlights underwriting income and combined ratios by segment for the third quarter. Underwriting Income(1) Combined Ratio(1) (in millions) 2026 2025 2026 2025 Casualty $ 1.0 $ 4.5 Casualty 99.6 98.2 Property 50.5 50.4 Property 60.1 60.2 Surety 7.3 5.6 Surety 79.8 85.0 Total $ 58.8 $ 60.5 Total 86.2 85.1 (1) See discussion below: Non-GAAP and Performance Measures.
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2 Other Income Net investment income for the quarter increased 13% to $46.7 million, compared to the same period in 2025. The investment portfolio’s total return was -2.0% for the quarter and 0.9% for the nine months ended September 30, 2026. RLI’s comprehensive loss was $36.8 million for the quarter (-$0.40 per share), compared to $152.3 million of comprehensive earnings ($1.65 per share) for the same quarter in 2025. In addition to net earnings, comprehensive loss for 2026 included after-tax unrealized losses from the fixed income portfolio, due to rising interest rates. Dividends and Share Repurchase Program On September 15, 2026, the company paid a regular quarterly dividend of $0.18 per share, the same amount as the prior quarter. During the third quarter, RLI repurchased 103,573 shares at an average price of $60.51 per share for a total cost of $6.3 million. As of September 30, 2026, $231.7 million of capacity remained available under the share repurchase program. Over the past five years, RLI has returned more than $1.3 billion to its shareholders through dividends and share repurchases. Non-GAAP and Performance Measures 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. Equity in earnings of unconsolidated investees and the related taxes were excluded from operating earnings and operating EPS beginning in the fourth quarter of 2025. The change was made to present a consistent approach in excluding all unrealized changes in equity investments. 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. A reconciliation of the operating earnings and operating EPS to the comparable GAAP financial measures is included in the 2026 financial highlights below. 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. Other News At 10 a.m. central daylight time (CDT) on October 20, 2026, RLI management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion at https://events.q4inc.com/attendee/320165068. Except for historical information, this news release 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 Form 10-K Annual Report for the year ended December 31, 2025.
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3 About RLI RLI Corp. (NYSE: RLI) is a specialty insurer serving niche property, casualty and surety markets. The company provides deep underwriting expertise and superior service to commercial and personal lines customers nationwide. RLI’s products are offered through its insurance subsidiaries – RLI Insurance Company, Mt. Hawley Insurance Company and Contractors Bonding and Insurance Company. All of RLI’s insurance subsidiaries are rated A++ (Superior) by AM Best Company. RLI has paid and increased regular dividends for 51 consecutive years and delivered underwriting profits for 30 consecutive years. To learn more about RLI, visit www.rlicorp.com. Media Contact Aaron Diefenthaler Chief Financial Officer 309-693-5846 Investors@rlicorp.com
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4 Supplemental disclosure regarding the earnings impact of specific items: Reserve Development(1) and Catastrophe Losses, Net of Reinsurance Three Months EndedNine Months Ended September 30, September 30, (Dollars in millions, except per share amounts) 2026 2025 2026 2025 Favorable development in prior accident years' casualty reserves$ 8.2 $ 8.1 $ 35.8 $ 28.4 Favorable development in prior accident years' property reserves$ 10.4 $ 4.7 $ 54.2 $ 32.4 Favorable development in prior accident years' surety reserves$ 4.3 $ 2.7 $ 8.2 $ 13.3 Net incurred losses from current accident year catastrophe events(2): Casualty $ (0.1)$ (0.2)$ (2.6)$ (2.0) Property $ (3.9)$ 0.2 $ (27.4)$ (24.0) Operating Earnings Per Share Three Months EndedNine Months Ended September 30, September 30, 2026 2025 2026 2025 Operating Earnings Per Share(3)(4) $ 0.86 $ 0.82 $ 2.52 $ 2.53 Specific items included in operating earnings per share:(1)(5) Net favorable development in prior accident years' casualty reserves$ 0.06 $ 0.05$ 0.23 $ 0.19 Net favorable development in prior accident years' property reserves$ 0.08 $ 0.04$ 0.43 $ 0.25 Net favorable development in prior accident years' surety reserves$ 0.03 $ 0.02$ 0.06 $ 0.10 Net incurred losses from current accident year catastrophe events(2): Casualty $ — $ — $ (0.02)$ (0.01) Property $ (0.03)$ — $ (0.20)$ (0.18) (1) Reserve development reflects changes in estimated losses for prior accident years, including development related to catastrophe events occurring in prior accident years. (2) Current accident year catastrophe losses reflect net incurred losses from catastrophe events occurring during the current accident year. Development on prior accident year catastrophe events is included in reserve development by segment above. (3) See discussion above: Non-GAAP and Performance Measures. (4) Equity in earnings of unconsolidated investees and the related taxes were removed from operating earnings and operating earnings per share beginning in the fourth quarter of 2025, resulting in consistent exclusion of unrealized changes in equity investments from operating results. Prior period amounts have been recast to conform to the current definition. (5) Items included in operating earnings per share are after tax and incorporate incentive and profit sharing-related impacts which affected policy acquisition, insurance operating and general corporate expenses.
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RLI CORP 2026 FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, SUMMARIZED INCOME STATEMENT DATA: 2026 2025 % Change 2026 2025 % Change Net premiums earned $ 424,914 $ 407,695 4.2 % $ 1,253,396 $ 1,207,944 3.8 % Net investment income 46,694 41,270 13.1 % 135,057 117,414 15.0 % Net realized gains 8,637 18,318 (52.8)% 27,603 48,234 (42.8)% Net unrealized gains (losses) on equity securities (3,282) 41,981 NM 60,346 43,163 39.8 % Consolidated revenue $ 476,963 $ 509,264 (6.3)% $ 1,476,402 $ 1,416,755 4.2 % Loss and settlement expenses 201,341 187,998 7.1 % 584,480 549,814 6.3 % Policy acquisition costs 134,147 128,937 4.0 % 400,897 378,126 6.0 % Insurance operating expenses 30,657 30,215 1.5 % 91,554 86,683 5.6 % Interest expense on debt 4,200 1,364 NM 10,994 4,049 171.5 % General corporate expenses 3,388 5,045 (32.8)% 12,335 12,747 (3.2)% Total expenses $ 373,733 $ 353,559 5.7 % $ 1,100,260 $ 1,031,419 6.7 % Equity in earnings of unconsolidated investees (3,137) 1,540 NM 1,980 7,055 (71.9)% Earnings before income taxes $ 100,093 $ 157,245 (36.3)% $ 378,122 $ 392,391 (3.6)% Income tax expense 19,084 32,635 (41.5)% 74,200 80,231 (7.5)% Net earnings $ 81,009 $ 124,610 (35.0)% $ 303,922 $ 312,160 (2.6)% Other comprehensive earnings (loss), net of tax (117,809) 27,674 NM (145,489) 76,405 NM Comprehensive earnings (loss) $ (36,800) $ 152,284 NM $ 158,433 $ 388,565 (59.2)% Operating earnings(1): Net earnings $ 81,009 $ 124,610 (35.0)% $ 303,922 $ 312,160 (2.6)% Less: Net realized gains (8,637) (18,318) (52.8)% (27,603) (48,234) (42.8)% Income tax on realized gains 1,814 3,848 (52.9)% 5,797 10,130 (42.8)% Net unrealized (gains) losses on equity securities 3,282 (41,981) NM (60,346) (43,163) 39.8 % Income tax on unrealized gains (losses) on equity securities (689) 8,816 NM 12,672 9,064 39.8 % Equity in earnings of unconsolidated investees 3,137 (1,540) NM (1,980) (7,055) (71.9)% Income tax on equity in earnings of unconsolidated investees (659) 323 NM 416 1,481 (71.9)% Operating earnings(2) $ 79,257 $ 75,758 4.6 % $ 232,878 $ 234,383 (0.6)% Return on Equity: Net earnings (trailing four quarters) 22.2 % 20.8 % Comprehensive earnings (trailing four quarters) 14.5 % 21.3 % Per Share Data: Diluted: Weighted average shares outstanding (in 000's) 92,251 92,310 92,259 92,460 Net earnings per share $ 0.88 $ 1.35 (34.8)% $ 3.29 $ 3.38 (2.7)% Less: Net realized gains (0.09) (0.20) (55.0)% (0.30) (0.52) (42.3)% Income tax on realized gains 0.02 0.04 (50.0)% 0.06 0.11 (45.5)% Net unrealized (gains) losses on equity securities 0.04 (0.45) NM (0.65) (0.47) 38.3 % Income tax on unrealized gains (losses) on equity securities (0.01) 0.09 NM 0.14 0.10 40.0 % Equity in earnings of unconsolidated investees 0.03 (0.01) NM (0.02) (0.08) (75.0)% Income tax on equity in earnings of unconsolidated investees (0.01) — NM — 0.01 (100.0)% Operating earnings per share(1)(2) $ 0.86 $ 0.82 4.9 % $ 2.52 $ 2.53 (0.4)% Comprehensive earnings (loss) per share $ (0.40) $ 1.65 NM $ 1.72 $ 4.20 (59.0)% Cash dividends per share - ordinary $ 0.18 $ 0.16 12.5 % $ 0.52 $ 0.47 10.6 % Cash dividends per share - special $ — $ — NM $ 2.00 $ — NM Net cash flow provided by operations $ 194,659 $ 179,220 8.6 % $ 382,708 $ 457,453 (16.3)% (1) See discussion above: Non-GAAP and Performance Measures. (2) Equity in earnings of unconsolidated investees and the related taxes were removed from operating earnings and operating earnings per share beginning in the fourth quarter of 2025, resulting in consistent exclusion of unrealized changes in equity investments from operating results. Prior period amounts have been recast to conform to the current definition. NM = Not Meaningful
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6 RLI CORP 2026 FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands, except per share amounts) September 30, December 31, 2026 2025 % Change SUMMARIZED BALANCE SHEET DATA: Fixed income, at fair value $ 3,600,969 $ 3,533,336 1.9 % (amortized cost - $3,892,806 at 9/30/26) (amortized cost - $3,642,362 at 12/31/25) Equity securities, at fair value 948,319 898,876 5.5 % (cost - $523,206 at 9/30/26) (cost - $534,311 at 12/31/25) Short-term investments 254,273 120,562 110.9 % Other invested assets 57,608 59,281 (2.8)% Cash and cash equivalents 46,212 51,565 (10.4)% Total investments and cash $ 4,907,381 $ 4,663,620 5.2 % Accrued investment income 32,205 30,026 7.3 % Premiums and reinsurance balances receivable 231,730 212,226 9.2 % Ceded unearned premiums 124,169 124,669 (0.4)% Reinsurance balances recoverable on unpaid losses 727,036 746,798 (2.6)% Deferred policy acquisition costs 191,393 172,648 10.9 % Property and equipment 41,032 40,733 0.7 % Investment in unconsolidated investees 54,455 53,521 1.7 % Goodwill and intangibles 53,562 53,562 0.0 % Income taxes - deferred 9,508 — NM Other assets 73,088 63,683 14.8 % Total assets $ 6,445,559 $ 6,161,486 4.6 % Unpaid losses and settlement expenses $ 2,997,555 $ 2,886,819 3.8 % Unearned premiums 1,069,378 991,636 7.8 % Reinsurance balances payable 30,535 40,580 (24.8)% Funds held 140,441 127,242 10.4 % Income taxes - current 1,842 29,724 (93.8)% Income taxes - deferred — 21,769 (100.0)% Short-term debt — 100,000 (100.0)% Long-term debt 297,044 — NM Accrued expenses 110,054 128,597 (14.4)% Other liabilities 102,537 56,923 80.1 % Total liabilities $ 4,749,386 $ 4,383,290 8.4 % Shareholders' equity 1,696,173 1,778,196 (4.6)% Total liabilities & shareholders' equity $ 6,445,559 $ 6,161,486 4.6 % OTHER DATA: Common shares outstanding (in 000's) 91,732 91,879 Book value per share $ 18.49 $ 19.35 (4.4)% Closing stock price per share $ 55.31 $ 63.98 (13.6)% Statutory surplus $ 1,964,770 $ 1,846,615 6.4 % NM = Not Meaningful
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7 RLI CORP 2026 FINANCIAL HIGHLIGHTS UNDERWRITING SEGMENT DATA (Unaudited) (Dollars in thousands, except per share amounts) Three Months Ended September 30, GAAP GAAP GAAP GAAP Casualty Ratios Property Ratios Surety Ratios Total Ratios 2026 Gross premiums written $ 330,937 $ 152,373 $ 38,937 $ 522,247 Net premiums written 275,573 118,302 35,408 429,283 Net premiums earned 262,177 126,520 36,217 424,914 Net loss & settlement expenses 168,087 64.1 % 31,103 24.6 % 2,151 5.9 % 201,341 47.4 % Net operating expenses 93,050 35.5 % 44,991 35.5 % 26,763 73.9 % 164,804 38.8 % Underwriting income (1) $ 1,040 99.6 %$ 50,426 60.1 %$ 7,303 79.8 %$ 58,769 86.2 % 2025 Gross premiums written $ 317,063 $ 154,631 $ 38,527 $ 510,221 Net premiums written 263,395 109,007 34,924 407,326 Net premiums earned 243,508 126,689 37,498 407,695 Net loss & settlement expenses 150,912 62.0 % 32,815 25.9 % 4,271 11.4 % 187,998 46.1 % Net operating expenses 88,110 36.2 % 43,450 34.3 % 27,592 73.6 % 159,152 39.0 % Underwriting income (1) $ 4,486 98.2 %$ 50,424 60.2 %$ 5,635 85.0 %$ 60,545 85.1 % Nine Months Ended September 30, GAAP GAAP GAAP GAAP Casualty Ratios Property Ratios Surety Ratios Total Ratios 2026 Gross premiums written $ 976,950 $ 506,412 $ 122,421 $ 1,605,783 Net premiums written 821,080 398,369 112,188 1,331,637 Net premiums earned 767,665 376,684 109,047 1,253,396 Net loss & settlement expenses 480,605 62.6 % 91,682 24.3 % 12,193 11.2 % 584,480 46.6 % Net operating expenses 276,985 36.1 % 132,892 35.3 % 82,574 75.7 % 492,451 39.3 % Underwriting income (1) $ 10,075 98.7 %$ 152,110 59.6 %$ 14,280 86.9 %$ 176,465 85.9 % 2025 Gross premiums written $ 902,127 $ 536,500 $ 124,981 $ 1,563,608 Net premiums written 755,247 391,662 114,567 1,261,476 Net premiums earned 707,194 389,897 110,853 1,207,944 Net loss & settlement expenses 438,007 61.9 % 103,999 26.7 % 7,808 7.0 % 549,814 45.5 % Net operating expenses 254,341 36.0 % 129,048 33.1 % 81,420 73.5 % 464,809 38.5 % Underwriting income (1) $ 14,846 97.9 %$ 156,850 59.8 %$ 21,625 80.5 %$ 193,321 84.0 % (1) See discussion above: Non-GAAP and Performance Measures.