Market Cap
US$4.1b
Last Updated
2020/02/23 01:05 UTC
Data Sources
Company Financials +
Executive Summary
RLI Corp., an insurance holding company, underwrites property and casualty insurance in the United States and internationally.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -21.6% per year for the next 3 years
Snowflake Analysis
Proven track record second-rate dividend payer.
Similar Companies
Share Price & News
How has RLI's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RLI has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-5.1%
RLI
-1.5%
US Insurance
-1.1%
US Market
1 Year Return
27.8%
RLI
16.3%
US Insurance
17.9%
US Market
Return vs Industry: RLI exceeded the US Insurance industry which returned 16.3% over the past year.
Return vs Market: RLI exceeded the US Market which returned 17.9% over the past year.
Shareholder returns
| RLI | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.1% | -1.5% | -1.1% |
| 30 Day | -4.8% | 3.0% | 1.4% |
| 90 Day | -7.3% | 5.2% | 6.9% |
| 1 Year | 30.4%27.8% | 19.1%16.3% | 20.3%17.9% |
| 3 Year | 68.8%54.7% | 34.4%24.0% | 47.8%38.3% |
| 5 Year | 124.7%88.3% | 72.0%51.3% | 71.9%53.0% |
Price Volatility Vs. Market
How volatile is RLI's share price compared to the market and industry in the last 5 years?
Simply Wall St News
10 months ago | Simply Wall St
Is RLI Corp.'s (NYSE:RLI) CEO Being Overpaid?1 year ago | Simply Wall St
Is RLI Corp (NYSE:RLI) A High Quality Stock To Own?1 year ago | Simply Wall St
Interested In RLI Corp (NYSE:RLI)? Here's What Its Recent Performance Looks LikeValuation
Is RLI undervalued compared to its fair value and its price relative to the market?
21.52x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RLI ($91.11) is trading above our estimate of fair value ($54.98)
Significantly Below Fair Value: RLI is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RLI is poor value based on its PE Ratio (21.5x) compared to the Insurance industry average (13.4x).
PE vs Market: RLI is poor value based on its PE Ratio (21.5x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: RLI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: RLI is overvalued based on its PB Ratio (4.1x) compared to the US Insurance industry average (1.1x).
Next Steps
Future Growth
How is RLI forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
-21.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RLI's earnings are forecast to decline over the next 3 years (-21.6% per year).
Earnings vs Market: RLI's earnings are forecast to decline over the next 3 years (-21.6% per year).
High Growth Earnings: RLI's earnings are forecast to decline over the next 3 years.
Revenue vs Market: RLI's revenue (2.3% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: RLI's revenue (2.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RLI's Return on Equity is forecast to be low in 3 years time (11.5%).
Next Steps
Past Performance
How has RLI performed over the past 5 years?
-2.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RLI has high quality earnings.
Growing Profit Margin: RLI's current net profit margins (19.1%) are higher than last year (7.8%).
Past Earnings Growth Analysis
Earnings Trend: RLI's earnings have declined by -2.2% per year over the past 5 years.
Accelerating Growth: RLI's earnings growth over the past year (198.6%) exceeds its 5-year average (-2.2% per year).
Earnings vs Industry: RLI earnings growth over the past year (198.6%) exceeded the Insurance industry 32.1%.
Return on Equity
High ROE: RLI's Return on Equity (19.3%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is RLI's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: RLI has a low level of unsold assets or inventory.
Debt Coverage by Assets: RLI's debt is covered by short term assets (assets are 4.9x debt).
Financial Institutions Analysis
Asset Level: RLI's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if RLI has a sufficient allowance for bad loans.
Low Risk Liabilities: RLI reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if RLI has an acceptable proportion of non-loan assets held.
Low Risk Deposits: RLI has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if RLI has an appropriate level of bad loans.
Next Steps
Dividend
What is RLI's current dividend yield, its reliability and sustainability?
2.11%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: RLI's dividend (2.11%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: RLI's dividend (2.11%) is low compared to the top 25% of dividend payers in the US market (3.73%).
Stability and Growth of Payments
Stable Dividend: RLI's dividend payments have been volatile in the past 10 years.
Growing Dividend: RLI's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (21.5%), RLI's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RLI's dividends in 3 years are not forecast to be well covered by earnings (96.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.4yrs
Average management tenure
CEO
Jon Michael (66yo)
19.1yrs
Tenure
US$3,212,994
Compensation
Mr. Jonathan Edward Michael, also known as Jon, has been Chairman of the Board of RLI Corp. since May 5, 2011 and has been its Chief Executive Officer since January 1, 2001. He served as President of RLI C ...
CEO Compensation Analysis
Compensation vs Market: Jon's total compensation ($USD3.21M) is below average for companies of similar size in the US market ($USD4.87M).
Compensation vs Earnings: Jon's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 19.1yrs | US$3.21m | 2.58% $105.3m | |
| President & COO | 0yrs | US$1.86m | 0.25% $10.2m | |
| Senior VP | 3.3yrs | US$640.11k | 0.15% $6.1m | |
| Senior Vice President of Operations | 0yrs | US$822.59k | 0.077% $3.2m | |
| VP & CFO | 0.6yrs | no data | 0.10% $4.1m | |
| VP, Chief Investment Officer & Treasurer | 8.1yrs | no data | 0.052% $2.1m | |
| Vice President - Accounting Operations | 1.1yrs | no data | no data | |
| VP & Chief Information Officer | 2.4yrs | no data | no data | |
| Vice President of Marketing & Communications | 1.1yrs | no data | no data | |
| Vice President of Human Resources | 0yrs | no data | no data |
2.4yrs
Average Tenure
52yo
Average Age
Experienced Management: RLI's management team is considered experienced (2.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 19.1yrs | US$3.21m | 2.58% $105.3m | |
| Director | 7.5yrs | US$150.00k | 0.58% $23.8m | |
| Independent Director | 11yrs | US$155.00k | 0.0018% $74.8k | |
| Independent Director | 3.6yrs | US$150.00k | 0.022% $894.0k | |
| Independent Director | 15.3yrs | US$160.00k | 0.011% $465.2k | |
| Lead Director | 0yrs | US$170.00k | 0.17% $7.0m | |
| Independent Director | 2.8yrs | US$163.18k | 0.011% $459.5k | |
| Independent Director | 6.2yrs | US$165.00k | 0.022% $913.7k | |
| Independent Director | 3.3yrs | US$155.00k | 0.015% $596.0k | |
| Independent Director | 1.5yrs | US$88.15k | 0.0029% $119.8k |
6.2yrs
Average Tenure
63.5yo
Average Age
Experienced Board: RLI's board of directors are considered experienced (6.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: RLI insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2%.
Top Shareholders
Company Information
RLI Corp.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: RLI Corp.
- Ticker: RLI
- Exchange: NYSE
- Founded: 1965
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: US$4.088b
- Shares outstanding: 44.87m
- Website: https://www.rlicorp.com
Number of Employees
Location
- RLI Corp.
- 9025 North Lindbergh Drive
- Peoria
- Illinois
- 61615
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RLI | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Dec 1972 |
| RL1 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 1972 |
Biography
RLI Corp., an insurance holding company, underwrites property and casualty insurance in the United States and internationally. Its Casualty segment provides commercial and personal coverage products; and general liability products, such as coverage for third-party liability of commercial insureds, including manufacturers, contractors, apartments, and mercantile. This segment also offers coverages for security guards and in the areas of onshore energy-related businesses and environmental liability for underground storage tanks, contractors and asbestos, and environmental remediation specialists; and professional liability coverages focuses on providing errors and omission coverage to small to medium-sized design, technical, computer, and miscellaneous professionals. In addition, this segment provides commercial automobile liability and physical damage insurance to local, intermediate and long haul truckers, public transportation entities, and equipment dealers; incidental and related insurance coverages; inland marine coverages; management liability coverages, such as directors and officers liability insurance, fiduciary liability and fidelity coverages, and for low to moderate classes of risks, including public and private businesses; and healthcare liability and home business insurance products. The company’s Property segment offers commercial property, cargo, hull, protection and indemnity, marine liability, inland marine, homeowners’ and dwelling fire, and other property insurance products. Its Surety segment offers small bonds for businesses and individuals; bonds for small to medium-sized contractors; commercial surety bonds for medium-to-large businesses; and commercial surety bonds for the energy, petrochemical, and refining industries. The company also underwrites various reinsurance coverages. The company markets its products through branch offices and independent agents. RLI Corp. was founded in 1965 and is headquartered in Peoria, Illinois.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 01:05 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.