A Closer Look at RLI Corp (RLI), a Quiet Dividend Grower

RLI Corp. (NYSE:RLI) was recently included on our list of Dividend Champion vs Aristocrats: 12 Under the Radar Stocks to Buy.

A Closer Look at RLI Corp (RLI), a Quiet Dividend Grower

A smiling couple walking hand-in-hand out of a modern insurance office, illustrating the company’s commitment to its customers.

It is a specialty insurer that provides targeted coverage within the property and casualty insurance sectors. The company has built a strong track record over the years by consistently underwriting profitable policies.

RLI Corp. (NYSE:RLI) recently reported its Q2 2025 earnings and showed a stellar performance. The company’s revenue came in at $499.8 million, up over 20% from the same period last year. The revenue also beat analysts’ estimates by $56.4 million. The company reported underwriting income of $62.2 million, supported by a combined ratio of 84.5. While gross premiums written remained unchanged, net investment income saw a 16% rise. A significant boost to underwriting income came from favorable adjustments to prior years’ loss reserves, contributing an additional $24.4 million.

RLI Corp. (NYSE:RLI)’s operating cash flow for the quarter came in at $174.7 million, up 23% on a YoY basis. The company ended the quarter with $21.4 million available in cash and cash equivalents. Over the past five years, it has returned $971 million cumulatively in dividends. The company’s dividend growth streak spans 50 years. Its quarterly dividend comes in at $0.16 per share for a dividend yield of 0.93%, as of July 23.

While we acknowledge the potential of RLI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RLI and that has 100x upside potential, check out our report about this cheapest AI stock.

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