
RLI (RLI) Stock Forecast & Price Target
RLI (RLI) Analyst Ratings
Bulls say
RLI Corp has demonstrated robust performance in its Surety and Excess & Surplus (E&S) Casualty divisions, with the latter seeing a 13% increase in the period due to a 20% rise in submissions, underpinned by heightened engagement with wholesale distribution. Additionally, rate increases of 12% in transportation and 14% in commercial auto further bolster the company's revenue prospects. The positive impact of new agency relationships and ongoing construction projects within the Surety segment positions RLI favorably for continued growth in the competitive insurance market.
Bears say
RLI Corp has experienced a significant decline of 8% in surplus lines commercial property premium during the third quarter, marking the largest quarterly drop in this cycle and indicating challenges in the property insurance market. Additionally, the company's casualty reserve cushion has weakened in recent years, with increased loss development in the 2021-2022 accident years suggesting potential underlying loss inflation issues. Consequently, if loss development trends persist, the implied redundancy of reserves is projected to decrease year-over-year, raising concerns about the company's financial stability and growth prospects.
This aggregate rating is based on analysts' research of RLI and is not a guaranteed prediction by Public.com or investment advice.
RLI (RLI) Analyst Forecast & Price Prediction
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