Market Cap
US$4.9b
Last Updated
2021/03/06 23:19 UTC
Data Sources
Company Financials +
Executive Summary
RLI Corp., an insurance holding company, underwrites property and casualty insurance in the United States and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet average 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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: RLI's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
4.6%
RLI
3.1%
US Insurance
-0.4%
US Market
1 Year Return
33.3%
RLI
14.8%
US Insurance
36.2%
US Market
Return vs Industry: RLI exceeded the US Insurance industry which returned 14.7% over the past year.
Return vs Market: RLI underperformed the US Market which returned 36.3% over the past year.
Shareholder returns
| RLI | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.6% | 3.1% | -0.4% |
| 30 Day | 9.5% | 6.4% | -2.3% |
| 90 Day | 10.0% | 8.4% | 5.0% |
| 1 Year | 36.0%33.3% | 17.9%14.8% | 39.1%36.2% |
| 3 Year | 82.1%70.5% | 22.1%13.0% | 48.4%39.0% |
| 5 Year | 94.4%66.8% | 74.3%52.6% | 116.6%92.4% |
Long-Term 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
1 week ago | Simply Wall St
Here's What We Like About RLI's (NYSE:RLI) Upcoming Dividend2 weeks ago | Simply Wall St
Should Weakness in RLI Corp.'s (NYSE:RLI) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?1 month ago | Simply Wall St
RLI Corp. Just Beat EPS By 51%: Here's What Analysts Think Will Happen NextValuation
Is RLI undervalued compared to its fair value and its price relative to the market?
31.26x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RLI ($109.13) is trading above our estimate of fair value ($65.61)
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 (31.3x) compared to the US Insurance industry average (14.8x).
PE vs Market: RLI is poor value based on its PE Ratio (31.3x) compared to the US market (21.5x).
Price to Earnings Growth Ratio
PEG Ratio: RLI is poor value based on its PEG Ratio (15.1x)
Price to Book Ratio
PB vs Industry: RLI is overvalued based on its PB Ratio (4.3x) compared to the US Insurance industry average (1x).
Next Steps
Future Growth
How is RLI forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
2.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RLI's forecast earnings growth (2.1% per year) is above the savings rate (2%).
Earnings vs Market: RLI's earnings (2.1% per year) are forecast to grow slower than the US market (19.3% per year).
High Growth Earnings: RLI's earnings are forecast to grow, but not significantly.
Revenue vs Market: RLI's revenue (4.7% per year) is forecast to grow slower than the US market (10% per year).
High Growth Revenue: RLI's revenue (4.7% 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 (16.3%).
Next Steps
Past Performance
How has RLI performed over the past 5 years?
1.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RLI has high quality earnings.
Growing Profit Margin: RLI's current net profit margins (16%) are lower than last year (19%).
Past Earnings Growth Analysis
Earnings Trend: RLI's earnings have grown by 1.4% per year over the past 5 years.
Accelerating Growth: RLI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: RLI had negative earnings growth (-17.4%) over the past year, making it difficult to compare to the Insurance industry average (-12.7%).
Return on Equity
High ROE: RLI's Return on Equity (13.8%) is considered low.
Next Steps
Financial Health
How is RLI's financial position?
Financial Position Analysis
Short Term Liabilities: RLI's short term assets ($696.7M) do not cover its short term liabilities ($1.2B).
Long Term Liabilities: RLI's short term assets ($696.7M) do not cover its long term liabilities ($1.6B).
Debt to Equity History and Analysis
Debt Level: RLI's debt to equity ratio (13.2%) is considered satisfactory.
Reducing Debt: RLI's debt to equity ratio has reduced from 18% to 13.2% over the past 5 years.
Debt Coverage: RLI's debt is well covered by operating cash flow (176.1%).
Interest Coverage: RLI's interest payments on its debt are well covered by EBIT (23.3x coverage).
Balance Sheet
Next Steps
Dividend
What is RLI current dividend yield, its reliability and sustainability?
1.80%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RLI's dividend (1.8%) is higher than the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: RLI's dividend (1.8%) is low compared to the top 25% of dividend payers in the US market (3.64%).
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 reasonably low payout ratio (27.2%), RLI's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RLI's dividends in 3 years are forecast to be covered by earnings (85% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.7yrs
Average management tenure
CEO
Jon Michael (67 yo)
20.17yrs
Tenure
US$4,714,007
Compensation
Mr. Jonathan Edward Michael, also known as Jon, has been Chairman of the Board of RLI Corp. since May 5, 2011 and has been its Chief Executive Officer since January 1, 2001. He served as President of RLI C...
CEO Compensation Analysis
Compensation vs Market: Jon's total compensation ($USD4.71M) is about average for companies of similar size in the US market ($USD6.41M).
Compensation vs Earnings: Jon's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Chairman | 20.17yrs | US$4.71m | 2.57% $ 126.8m | |
| President | 0.17yr | US$3.07m | 0.25% $ 12.6m | |
| VP & CFO | 1.67yrs | US$866.84k | 0.10% $ 5.1m | |
| Senior VP | 4.42yrs | US$854.52k | 0.15% $ 7.6m | |
| Senior Vice President of Operations | no data | US$1.64m | 0.078% $ 3.8m | |
| VP, Chief Investment Officer & Treasurer | 9.17yrs | no data | 0.053% $ 2.6m | |
| Vice President of Accounting & Branch Operations | 2.17yrs | no data | no data | |
| VP & Chief Information Officer | 3.5yrs | no data | no data | |
| Vice President of Marketing & Communications | 2.17yrs | no data | no data | |
| Vice President of Human Resources | no data | no data | no data | |
| Senior Vice President of E&S Lines | 7.83yrs | no data | no data | |
| VP & Chief Claim Counsel | 3.92yrs | no data | no data |
3.7yrs
Average Tenure
53yo
Average Age
Experienced Management: RLI's management team is considered experienced (3.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Chairman | 20.17yrs | US$4.71m | 2.57% $ 126.8m | |
| President | 0.17yr | US$3.07m | 0.25% $ 12.6m | |
| Independent Director | 8.58yrs | US$155.63k | 0.53% $ 26.0m | |
| Independent Director | 12.08yrs | US$155.01k | 0.0032% $ 157.2k | |
| Independent Director | 4.67yrs | US$150.01k | 0.023% $ 1.1m | |
| Independent Director | 16.33yrs | US$160.01k | 0.013% $ 635.1k | |
| Independent Lead Director | no data | US$172.82k | 0.080% $ 4.0m | |
| Independent Director | 3.83yrs | US$170.01k | 0.0044% $ 216.3k | |
| Independent Director | 7.25yrs | US$170.63k | 0.024% $ 1.2m | |
| Independent Director | 4.42yrs | US$155.01k | 0.019% $ 932.7k | |
| Independent Director | 2.58yrs | US$150.01k | 0.0029% $ 144.9k | |
| Independent Director | 2.58yrs | US$152.20k | 0.0095% $ 469.1k |
4.7yrs
Average Tenure
60.5yo
Average Age
Experienced Board: RLI's board of directors are considered experienced (4.7 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 not been meaningfully diluted in the past year.
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: 2017
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: US$4.927b
- Shares outstanding: 45.15m
- 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 g...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/06 23:19 |
| End of Day Share Price | 2021/03/05 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.