What Happened?

Shares of specialty insurance provider RLI (NYSE: RLI) jumped 2.5% in the morning session after the company reported third-quarter earnings and revenue that beat Wall Street's expectations. 

The specialty insurer announced quarterly adjusted earnings of $0.83 per share, an increase from $0.66 in the same quarter last year and 19% above what analysts had forecast. Additionally, the company's revenue for the quarter reached $509.3 million, surpassing market estimates by 12.4%. The strong performance in both key metrics pointed to solid operational results for the insurance company, leading to a positive reaction from investors.

After the initial pop the shares cooled down to $61.30, up 2.8% from previous close.

Is now the time to buy RLI? Access our full analysis report here.

What Is The Market Telling Us

RLI’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

RLI is down 24.9% since the beginning of the year, and at $61.30 per share, it is trading 32.2% below its 52-week high of $90.45 from November 2024. Investors who bought $1,000 worth of RLI’s shares 5 years ago would now be looking at an investment worth $1,400.

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