RLI保险 2025年季度报告

Transition Report Pursuant to Section13 or 15(d)of the Securities Exchange Act of 1934For the transition period from company☐Emerging growthcompany☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant toSection13(a)of the Exchange Act.☐ Three and Six-Month Periods Ended June 30, 2025 and 2024 (unaudited)Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 (unaudited)Condensed Consolidated Statements of Shareholders’ Equity for the Three and Six-Month Periods Ended June 30, 2025 and 2024 (unaudited)Condensed Consolidated Statements of Cash Flows for the Six-Month Periods EndedJune 30, 2025 and 2024 (unaudited)Notes to Unaudited Condensed Consolidated Financial StatementsItem 2.Management’s Discussion and Analysis of Financial Condition and Results ofOperationsItem 3.Quantitative and Qualitative Disclosures about Market RiskItem 4.Controls and ProceduresPart II - Other InformationItem 1.Legal ProceedingsItem 1a.Risk FactorsItem 2.Unregistered Sales of Equity Securities and Use of ProceedsItem 3.Defaults upon Senior SecuritiesItem 4.Mine Safety DisclosuresItem 5.Other InformationItem 6.ExhibitsSignatures RLI Corp. and SubsidiariesCondensed Consolidated Statements of Earnings and Comprehensive Earnings Ended June 30,(inthousands,exceptpersharedata)2025 (inthousands,exceptshareand per share data) A. BASIS OF PRESENTATIONThe unaudited interim condensed consolidated financial statements of RLI Corp. (the Company) and recoverable by monitoring the AM Best and Standard& Poor’s (S&P) ratings of our reinsurers. We subjectour reinsurance balances recoverable to detailed recoverability tests, including a segment-based analysisusing the average default ratingpercentage by S&P rating, which assists the Company in assessing thesufficiency of its allowance. Additionally, we perform an in-depth reinsurer financial condition analysisprior to the renewal of our reinsurance placements. Earnings available to commonshareholders$124,33691,827$1.35$81,99291,474$0.90Effect of Dilutive SecuritiesStock options and restricted stock units—691—884 diluted EPS48—For the Six MonthsFor the Six MonthsEnded June 30, 2025Ended June 30, 2024IncomeSharesPerShareIncomeSharesPerShare(inthousands,except persharedata)(Numerator)(Denominator)Amount(Numerator)(Denominator)Amount Effect of Dilutive SecuritiesStock options and restricted stock units—713—921Diluted EPSEarnings available to common$187,55092,512$2.03$209,89 diluted EPS G.COMPREHENSIVE EARNINGS income portfolio. Interest rates increased during 2024, which decreased the fair value of securities held inthe fixed income portfolio. statements: (inthousands)For the Three MonthsFor the Six MonthsEnded June 30,Ended June 30,Unrealized Gains (Losses) on Available-for-Sale Securities2025202420252024Beginning balance$(143,693)$(178,974)$(173,723)$(166,303)Other comprehensive earnings (loss) before reclassifications17,922(8,571)47,822(21,846) significant inputs are unobservable.As a part of management’s process to determine fair value, we utilize widely recognized, third-partypricing sources to determine our fair values. We have obtained an understanding of the third-party pricing Corporate, Agencies, Government and Municipal Bonds:The pricing vendor employs a multi-dimensional model which uses standard inputs including (listed in approximate order of priority for use)benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmarksecurities, market bids/offers and other reference data. The pricing vendor also monitors market indicators, Mortgage-backed Securities (MBS)/Commercial Mortgage-backed Securities (CMBS) and by sector, rating and average life, as well as investment and non-investment grade matrices created fromfixed income indices. Unobservable inputs include a liquidity spread premium calculated based on public equity securities not traded on an exchange rely on one or more unobservable inputs and are classified asLevel 3. Due to the relatively short-term nature of cash, short-term investments, accounts receivable andaccounts payable, their carrying amounts are reasonable estimates of fair value. Our investments in private 2.INVESTMENTS Our investments are primarily composed of fixed income debt securities and common stock equitysecurities. We carry our equity securities at fair value and categorize all of our debt securities as available- Realized gains and losses on disposition of investments are based on the specific identification of theinvestments sold on the settlement date. The following is a summary of the disposition of fixed income andequity securities for the six-month periods ended June30, 2025 and 2024: ProceedsGrossRealizedFromSale (inthousands)sGainsLosses Fixed income securities - available-for-sale$29,579$188$(1,000)$(812)E