We are upgrading RLI Corporation (RLI) to Outperform on the back of strong results during the fourth quarter. The company’s fourth quarter earnings results exceeded the Zacks Consensus Estimate largely on the heels of lower expenses and better performance at the Property and Surety segment.
The company continues to benefit from its business expansion drive diversification into crop and other assumed property reinsurance. Also its extensive product offerings, strong local branch network and focus on specialty insurance lines are expected to aid top-line growth.
RLI also scores strongly with rating agencies. Continued dividend payments, coupled with special dividend payment and share repurchases further reflect a solid capital position.
RLI CORP (RLI): Free Stock Analysis Report
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