RLI Corp. (RLI) — Fundamental Analysis & Key Financial Ratios

Kaplio overview: RLI Corp.

Market cap $6B · 52 weeks $48 – $67 (5 % below the high) · P/E 14.9× · 2027 expected P/E 22.8× · Dividend 7.3 % · Next earnings January 20, 2027 · expected EPS $0.70 · Closing price, Oct 28 · accounts published Oct 19.

• Valuation: P/B 3.5× (expensive).
• Business: 5-year op. margin 29.6 % (excellent).
• Balance sheet: Debt/Equity 0.18 (solid).
• Earnings: 6 of 8 (on track).

What would it be worth at its usual multiples?

At a P/B justified by its ROE del 22,5 % (2.0×) $37 (-42 %); at its peers' median (1.9×) $36 (-44 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.

What matters in insurance: 3 of 5 pass

• P/B (Price / Book) 3.5×, fails.
• Dividend growth streak 2 años, fails.
• Op Margin 5y (Combined Ratio proxy) 29.6 %, passes.
• Book Value / Share growth 8.8 %, passes.
• Debt / Equity 0.18, passes.

Against its peers (reference peers) — RLI Corp.: P/E 14.9×; P/B 3.5×; ROE 22.5 %; $5.9B. Selective Insurance Group, Inc. (P/E 12.1×; P/B 1.7×; ROE 14.3 %; $5.8B), Mercury General Corporation (P/E 5.9×; P/B 1.9×; ROE 37.2 %; $5.5B), The Hanover Insurance Group, Inc. (P/E 14.7×; P/B 2.4×; ROE 21.0 %; $8.1B).

Expensive or cheap against its last ten fiscal years?

Precio / valor contable at each close: today 3.5× · median 4.2× · minimum 2.7× · maximum 5.8× · cheap below 3.7× · expensive above 4.9×. It has been cheaper than today only 23% of the time over its last ten fiscal years.

Dividend

tight (only raised recently) · Yield 7.3 % ($2.62 per share in 2025) · Years raising it 2 · 5-year growth +22 % a year · Free cash flow coverage payout 60 % · With $1,000 invested today you'd collect $73.40 a year ($6.12 a month).