
RLI (RLI) Stock Forecast & Price Target
RLI (RLI) Analyst Ratings
Bulls say
RLI Corp's positive outlook can be attributed to the strong performance of its Surety segment, which has benefited from new agency relationships and increased construction projects, contributing to elevated growth in transactional surety. The Excess and Surplus (E&S) casualty division showed noteworthy strength, posting a 13% increase in revenue due to a 20% rise in submissions, highlighting effective engagement with wholesale distribution. Additionally, improvements in rate increases for transportation and commercial auto segments, at 12% and 14% respectively, further underscore the company's strong positioning in the market.
Bears say
RLI Corp has experienced a notable 8% decline in surplus lines commercial property premiums for the third quarter, marking the most significant quarterly drop in this cycle and contributing to constraints on overall growth. Additionally, the company's casualty reserve cushion has reportedly diminished in recent years, evidenced by increased loss development from the 2021-2022 accident years, which raises concerns about potential underlying loss inflation. If the current loss development trends persist, it suggests that implied redundancy in reserves could be decreasing year-over-year, underscoring a deteriorating financial outlook for the company.
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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