Teacher Retirement System of Texas Raises Holdings in RLI Corp. $RLI

Key Points

• Teacher Retirement System of Texas increased its RLI stake by 24.1% in Q4 to 116,007 shares (about $7.42M), and other large institutions like Vanguard and State Street also boosted positions, leaving roughly 77.9% of the stock owned by institutional investors.
• RLI reported Q1 EPS of $0.83 (beating estimates) but revenue of $423.9M missed expectations; underwriting discipline showed a ~86 combined ratio amid catastrophe and competitive pressures, and the stock carries a consensus analyst rating of "Hold" with a $61.50 target.

Teacher Retirement System of Texas increased its holdings in RLI Corp. (NYSE:RLI - Free Report) by 24.1% in the 4th quarter, according to its most recent disclosure with the SEC. The firm owned 116,007 shares of the insurance provider's stock after acquiring an additional 22,528 shares during the period. Teacher Retirement System of Texas owned approximately 0.13% of RLI worth $7,422,000 at the end of the most recent quarter.

Other hedge funds also recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in shares of RLI by 1.6% during the third quarter. Vanguard Group Inc. now owns 9,138,072 shares of the insurance provider's stock worth $595,985,000 after buying an additional 148,019 shares during the period. State Street Corp boosted its position in shares of RLI by 3.3% during the third quarter. State Street Corp now owns 8,750,315 shares of the insurance provider's stock worth $570,696,000 after buying an additional 279,983 shares during the period. JPMorgan Chase & Co. boosted its position in shares of RLI by 15.5% during the third quarter. JPMorgan Chase & Co. now owns 1,422,596 shares of the insurance provider's stock worth $92,782,000 after buying an additional 191,020 shares during the period. Van Berkom & Associates Inc. boosted its position in shares of RLI by 14.6% during the third quarter. Van Berkom & Associates Inc. now owns 1,229,649 shares of the insurance provider's stock worth $80,198,000 after buying an additional 156,241 shares during the period. Finally, Wasatch Advisors LP purchased a new position in shares of RLI during the second quarter worth $84,608,000. 77.89% of the stock is currently owned by hedge funds and other institutional investors.

RLI Trading Down 3.9%

NYSE:RLI opened at $52.79 on Friday. The firm has a market cap of $4.85 billion, a PE ratio of 12.33 and a beta of 0.52. The stock has a fifty day moving average price of $59.32 and a 200 day moving average price of $60.95. RLI Corp. has a 12-month low of $52.73 and a 12-month high of $77.24. The company has a current ratio of 0.40, a quick ratio of 0.32 and a debt-to-equity ratio of 0.17.

RLI (NYSE:RLI - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The insurance provider reported $0.83 earnings per share for the quarter, beating analysts' consensus estimates of $0.73 by $0.10. RLI had a return on equity of 17.72% and a net margin of 20.81%.The company had revenue of $423.87 million for the quarter, compared to analysts' expectations of $564.47 million. During the same period last year, the firm earned $0.92 earnings per share. RLI's quarterly revenue was up 4.0% on a year-over-year basis. Sell-side analysts anticipate that RLI Corp. will post 2.78 earnings per share for the current fiscal year.

RLI Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, March 16th. Shareholders of record on Monday, March 2nd were paid a $0.16 dividend. The ex-dividend date was Monday, March 2nd. This represents a $0.64 dividend on an annualized basis and a yield of 1.2%. RLI's dividend payout ratio (DPR) is currently 14.95%.

Analyst Ratings Changes

RLI has been the subject of several research analyst reports. Weiss Ratings restated a "hold (c-)" rating on shares of RLI in a research report on Thursday, April 2nd. Zacks Research upgraded RLI from a "strong sell" rating to a "hold" rating in a research report on Thursday, April 2nd. Truist Financial set a $58.00 target price on RLI in a report on Friday, January 23rd. Jefferies Financial Group upgraded RLI from an "underperform" rating to a "hold" rating and set a $52.00 target price for the company in a report on Friday, January 23rd. Finally, Keefe, Bruyette & Woods upgraded RLI from a "moderate buy" rating to a "strong-buy" rating in a report on Tuesday, February 24th. One investment analyst has rated the stock with a Strong Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $61.50.

RLI News Roundup

Here are the key news stories impacting RLI this week:

• Positive Sentiment: Underwriting strength — RLI reported a first-quarter combined ratio of ~86, reflecting disciplined pricing and profitable underwriting that supports core earnings resilience. RLI outlines underwriting discipline as Q1 combined ratio was 86
• Positive Sentiment: Investment income and casualty growth helped offset underwriting pressure, providing some offset to underwriting volatility and supporting near-term profitability. RLI Q1 Earnings Miss Estimates, Investment Income Increases Y/Y
• Neutral Sentiment: A++ financial-strength upgrade — an upgrade was announced, which is positive for franchise strength, but analysts flag it raises questions about future earnings growth and current valuation compression. Investors are debating whether the rating justifies the stock's multiple. RLI’s A++ Upgrade Raises Questions On Earnings Outlook And Valuation
• Neutral Sentiment: Revenue and growth picture is mixed — RLI posted ~3% top-line growth in Q1, signaling modest premium growth but not a clear acceleration. Analysts’ price targets remain dispersed. RLI Corp reports 3% top-line growth for Q1’26
• Negative Sentiment: Mixed earnings beat/miss and revenues below expectations — headline EPS was roughly in line or slightly below some consensus figures and reported revenue came in under analyst estimates, prompting near-term disappointment. RLI Corp. Q1 Earnings Lag Estimates RLI Reports Sales Below Analyst Estimates In Q1 CY2026 Earnings
• Negative Sentiment: Catastrophe and competitive pressures — management cited catastrophe-related losses and a competitive rate environment that compressed underwriting margins in parts of the portfolio, adding near-term uncertainty to earnings cadence. RLI Q1 deep dive: Competitive market pressures and rate discipline shape results

RLI Company Profile

RLI Corporation NYSE: RLI is a specialty property and casualty insurance company focused on underwriting niche risks for businesses and individuals. Headquartered in Peoria, Illinois, the company operates through a network of independent agents and brokers, offering customized coverage solutions. RLI's approach emphasizes disciplined underwriting, targeted product development and strong customer service to maintain profitability and long-term growth.

Founded in 1965 as Replacement Lens, Inc, RLI initially provided insurance for contact lens manufacturers before shifting its focus to specialty insurance in the 1980s.

Want to see what other hedge funds are holding RLI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for RLI Corp. (NYSE:RLI - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.