RLI starts 2026 strong, stays disciplined as E&S softens
RLI Insurance Company opened 2026 with an 86% combined ratio and 3% premium growth, while net investment income rose 15%. Results were slightly impacted by catastrophe losses, but the underlying business remains stable.
Casualty continues to lead. Premiums grew 10%, with personal umbrella up 23% and rates increasing 16%. Growth is shifting away from more litigious states toward the Midwest, reflecting tighter underwriting and rate discipline.
Property is moving the other way. E&S premiums declined as rates fell 19% for hurricane and 16% for earthquake, with competition rising as admitted carriers reenter select classes. RLI is maintaining discipline even as some competitors relax terms like coinsurance.
Some “E&S light” business is shifting back to the admitted market, particularly location-driven risks. To defend renewals, RLI is offering higher limits, while brokers spread placements across multiple carriers ahead of the next hard market.
Management also flagged growing competition from MGAs and broker facilities, where incentives are not always aligned with long-term profitability. In response, RLI is leaning into producer relationships and selective underwriting.
“The insurance marketplace continues to be dynamic. We’re seeing more competition in some areas from broker-owned facilities and MGAs that operate with incentives that are not always aligned with long-term underwriting profitability. In the most competitive spaces, we are picking our spots, finding rate adequacy on accounts where it’s still available, focusing on producer relationships and adding value to customers that want our expertise and service.”
One area to watch is “wheels-based” products, where RLI sees rate acceleration and disruption creating opportunity.
“We are seeing rate acceleration and market disruption in wheels-based products. There is opportunity here when done with discipline and vigilance. Our underwriting and claims expertise positions us to select the right accounts, achieve the rate we need and drive better claim outcomes over time.”
On AI, the tone was practical. RLI is using it to improve data access and decision-making while keeping underwriting judgment central.
“We’re encouraged by what we’re seeing with AI, not as a headline, but as a tool. It’s helping us put better data in the hands of decision-makers, making us more responsive, more efficient, easier to do business with while keeping human intelligence and judgment at the core of everything we do.”
