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Upturn AI SWOT - About
RLI 
RLI Corp (RLI)
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Upturn Advisory Summary
04/01/2025: RLI (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit -13.28% | Avg. Invested days 45 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 7.37B USD | Price to earnings Ratio 21.48 | 1Y Target Price 81.8 |
Price to earnings Ratio 21.48 | 1Y Target Price 81.8 | ||
Volume (30-day avg) 426953 | Beta 0.36 | 52 Weeks Range 65.64 - 88.95 | Updated Date 03/31/2025 |
52 Weeks Range 65.64 - 88.95 | Updated Date 03/31/2025 | ||
Dividends yield (FY) 0.75% | Basic EPS (TTM) 3.74 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 19.53% | Operating Margin (TTM) 13.99% |
Management Effectiveness
Return on Assets (TTM) 5.07% | Return on Equity (TTM) 23.56% |
Valuation
Trailing PE 21.48 | Forward PE 26.6 | Enterprise Value 7432099241 | Price to Sales(TTM) 4.18 |
Enterprise Value 7432099241 | Price to Sales(TTM) 4.18 | ||
Enterprise Value to Revenue 4.2 | Enterprise Value to EBITDA - | Shares Outstanding 91764096 | Shares Floating 79321833 |
Shares Outstanding 91764096 | Shares Floating 79321833 | ||
Percent Insiders 4.39 | Percent Institutions 81.81 |
Analyst Ratings
Rating 3.78 | Target Price 186.4 | Buy 1 | Strong Buy 3 |
Buy 1 | Strong Buy 3 | ||
Hold 5 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
RLI Corp
Company Overview
History and Background
RLI Corp was founded in 1965 as Replacement Lens International, Inc. Initially focused on providing replacement contact lenses, it evolved into a specialty insurance company. RLI has grown through organic expansion and strategic acquisitions, establishing itself as a leader in niche insurance markets.
Core Business Areas
- Casualty: Provides commercial and personal umbrella coverage, general liability, and other casualty insurance products.
- Property: Offers commercial property, earthquake, and other property insurance solutions.
- Surety: Provides contract and commercial surety bonds.
Leadership and Structure
Jonathan E. Michael is the Chairman & CEO. The company has a traditional corporate structure with executive leadership overseeing various business segments and functional areas.
Top Products and Market Share
Key Offerings
- Commercial Umbrella: Provides excess liability coverage for businesses. Market share information is fragmented, but RLI is a significant player. Competitors include Chubb (CB), Travelers (TRV), and W. R. Berkley (WRB).
- Contract Surety Bonds: Guarantees that contractors will fulfill their obligations under construction contracts. RLI holds a substantial market share in this niche. Competitors include Travelers (TRV), CNA Financial (CNA), and The Hartford (HIG).
- Excess & Surplus Lines: Specialized insurance for risks traditional insurers won't cover. RLI has a growing market share in the area with low concentration. Competitors include Markel Group (MKL), W. R. Berkley (WRB), and Kinsale Capital Group (KNSL).
Market Dynamics
Industry Overview
The specialty insurance market is characterized by niche offerings, higher risk tolerance, and sophisticated underwriting. Growth is driven by economic activity and demand for specialized coverage.
Positioning
RLI Corp is well-positioned within the specialty insurance market due to its underwriting expertise, disciplined risk management, and focus on niche markets.
Total Addressable Market (TAM)
The total addressable market is in the hundreds of billions. RLI is well-positioned in specific specialty lines within the total insurance market. As of 2023, the Global Insurance Market size was valued at USD 7.39 trillion
Upturn SWOT Analysis
Strengths
- Strong underwriting expertise
- Disciplined risk management
- Focus on niche markets
- Consistent profitability
- Strong balance sheet
Weaknesses
- Reliance on niche markets
- Vulnerability to large individual losses
- Smaller size compared to industry giants
Opportunities
- Expansion into new niche markets
- Increased demand for specialty insurance
- Strategic acquisitions
- Growth in emerging markets
Threats
- Increased competition
- Economic downturns
- Catastrophic events
- Regulatory changes
Competitors and Market Share
Key Competitors
- WRB
- MKL
- HIG
- CB
- TRV
Competitive Landscape
RLI's advantages include its underwriting expertise, disciplined risk management, and focus on niche markets. Its disadvantages include its smaller size compared to industry giants and reliance on niche markets.
Major Acquisitions
Contractors Bonding and Insurance Company
- Year: 2011
- Acquisition Price (USD millions): 97
- Strategic Rationale: Expanded RLI's surety business and strengthened its position in the contract surety market.
Mt. Hawley Insurance Company
- Year: 1999
- Acquisition Price (USD millions): 86
- Strategic Rationale: Significantly expanded RLI's property and casualty insurance offerings.
Growth Trajectory and Initiatives
Historical Growth: RLI's growth has been steady and consistent, driven by organic expansion and strategic acquisitions.
Future Projections: Analysts project continued revenue and earnings growth for RLI, driven by favorable market conditions and the company's strong competitive position.
Recent Initiatives: Recent initiatives include expanding into new product lines and geographies, investing in technology, and enhancing underwriting capabilities.
Summary
RLI Corp demonstrates strength through its specialized underwriting, disciplined risk management, and consistent profitability. Focusing on niche markets has proven effective, but reliance on them is also a weakness. Opportunities lie in expanding product lines and strategic acquisitions, while threats include heightened competition and economic downturns. The company's strong financial performance supports its growth trajectory.
Similar Companies
- WRB
- MKL
- HIG
- CB
- TRV
- KNSL
Sources and Disclaimers
Data Sources:
- RLI Corp Investor Relations
- SEC Filings
- Industry Reports
- Analyst Estimates
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market share data is based on available estimates and may not be precise. Financial data is subject to change. Always consult with a qualified financial advisor before making investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About RLI Corp
Exchange NYSE | Headquaters Peoria, IL, United States | ||
IPO Launch date 1985-08-15 | President, CEO & Director Mr. Craig William Kliethermes CPCU, FCAS | ||
Sector Financial Services | Industry Insurance - Property & Casualty | Full time employees 1147 | Website https://www.rlicorp.com |
Full time employees 1147 | Website https://www.rlicorp.com | ||
RLI Corp., an insurance holding company, underwrites property, casualty, and surety products insurance. Its Casualty segment provides commercial excess, personal umbrella, general liability, transportation and management liability coverages, as well as package business and other specialty coverages, such as professional liability and workers' compensation for office-based professionals. It also offers coverages for security guards and environmental liability for underground storage tanks, contractors and asbestos, and environmental remediation specialists; and professional liability coverages for errors and omission coverage for small to medium-sized design, technical, computer, and miscellaneous professionals. This segment provides commercial automobile liability and physical damage insurance to local, intermediate and long haul truckers, public transportation entities, and other types of specialty commercial automobile risks; incidental related insurance coverages; inland marine coverages; management liability coverages, such as directors and officers liability insurance, fiduciary liability and coverages, employment practice liability, and for various classes of risks, including public and private businesses; 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 commercial surety bonds for medium to large-sized businesses; small bonds for businesses and individuals; and bonds for small to medium-sized contractors. The company also engages in various reinsurance coverages. It markets its products through branch offices, wholesale and retail brokers, carrier partners, and underwriting and independent agents. RLI Corp. was incorporated in 1965 and is headquartered in Peoria, Illinois.
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