
RLI (RLI) Stock Forecast & Price Target
RLI (RLI) Analyst Ratings
Bulls say
RLI Corp has demonstrated strong growth in its Surety segment, bolstered by new agency relationships and increasing construction projects, contributing to a positive outlook for the company. The E&S casualty division reported a 13% increase driven by a 20% rise in submissions, with notable rate increases of 12% in transportation and 14% in commercial auto, indicating strong demand in these areas. This momentum in both the Surety and E&S casualty divisions highlights RLI's effective engagement with distribution channels and a favorable market environment, positioning it well for future revenue growth.
Bears say
RLI Corp has faced a significant decline in surplus lines commercial property premiums, reporting an 8% drop in Q3, marking the largest quarterly decline in this cycle and contrasting sharply with a mere 1% increase in Q2. Additionally, the company’s casualty reserve cushion has weakened, with increased loss development indicators from the 2021-2022 accident years suggesting potential underlying loss inflation, further complicating future financial stability. If loss development trends continue at the previous year's levels, implied redundancy is also projected to decline year-over-year, raising concerns about the overall health of RLI's financial position.
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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