Underwrites property and casualty insurance in the United States and internationally. Offers commercial and personal coverage products through its Casualty segment. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
This is an established company with proven profits.
Average growth of 12% a year over the last 4 years. Every year shown ended in profit.
The market pays 13.8× for every dollar of annual profit — cheap, which is either an opportunity or a warning.
Against companies in its own sector, it looks cheaper than 87% of them.
Analysts' average target sits 1% above today's price.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Profit power and business quality lead the class.
For a bank, strength is measured by capital buffers and reserves — not cash minus debt.
The price looks reasonable next to what the company earns.
Clearly above the class average — a step short of the very top.
The price is looking for direction — no strong breakout, no collapse.
No real weak spot in any of the five subjects — a balanced report card.
The stock trades 33% below its peak. The market has trimmed its expectations for the company.
The net profit margin is 21% — still a thick cushion, though costs have been eating into it lately.
Over the last 4 years, sales grew about 12% a year on average.
Over the last 12 months, company executives reported 71 buys and 17 sells. Management buying with its own money is usually read as a good sign.
Since the drop from its peak, buyer appetite hasn’t come back.
On our five-subject report card, RLI sits near the top of the class. A high grade doesn’t mean “guaranteed win” — it means “the evidence looks strong for now.”
The takeaway: RLI is an established business that has proven its profits for years. The real debate here isn’t the price — it’s whether the company can keep up this pace.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.