10 Best Property & Casualty Insurance Stocks to Buy

4) RLI Corp. (NYSE:RLI)

Average Upside Potential: 14.44%

RLI Corp. (NYSE:RLI) underwrites property and casualty insurance through its subsidiaries. The company offers insurance coverage in the specialty admitted market where the products are designed for special risks.

RLI Corp. (NYSE:RLI) delivered healthy 2Q 2024 results, with 82 combined ratio, ~11% growth in gross premiums written, and ~18% rise in investment income.  The company’s casualty and surety segments found expansion opportunities, while market conditions in the property segment enabled it to demonstrate underwriting discipline. The performance highlighted the value of its underwriting-focused business model and the strength of its diversified portfolio.

RLI Corp. (NYSE:RLI)’s strong local branch office network, range of product offerings, and focus on specialty insurance lines continue to support its profitability.

The company’s ability to maintain the combined ratio at favorable levels, despite the toughest operating environment, demonstrates superior underwriting discipline. The company has decided to drop underperforming products from the property business, which should also help it in this year’s earnings and revenue growth. Therefore, its compelling product portfolio, higher rates, improved retention, and higher receipts of premium bode well for future performance.

Keefe, Bruyette & Woods upped its target price on shares of RLI Corp. (NYSE:RLI) from $169.00 to $175.00, giving an “Outperform” rating on 29^th July. Insider Monkey’s database of Q1 2024 indicated that 20 hedge funds held stakes in RLI Corp. (NYSE:RLI).