Schedule II -Condensed Financial Information of Registrant (Parent Company)

12 Months Ended

Dec. 31, 2024

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Schedule II -Condensed Financial Information of Registrant (Parent Company)

RLI CORP. AND SUBSIDIARIES

SCHEDULE II—CONDENSED FINANCIAL INFORMATION OF REGISTRANT

(PARENT COMPANY)

CONDENSED BALANCE SHEETS

December 31,

(in thousands, except share data)	2024		2023
ASSETS
Cash	$	121	$	1,048
Short-term investments, at cost which approximates fair value		1,400		76,926
Accounts receivable, affiliates		2,365		2,393
Investments in subsidiaries		1,525,833		1,312,323
Fixed income:
Available-for-sale, at fair value		37,372		67,029
(amortized cost of $47,655 and allowance for credit losses of $0 in 2024)
(amortized cost of $78,431 and allowance for credit losses of $0 in 2023)
Property and equipment, at cost, net of accumulated depreciation of $913 in 2024 and $1,375 in 2023		1,375		1,375
Income taxes receivable - current		349		—
Income taxes - deferred		3,104		3,101
Other assets		9,824		6,170
TOTAL ASSETS	$	1,581,743	$	1,470,365
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Income taxes payable - current	$	—	$	778
Short-term debt		50,000		50,000
Interest payable on debt		108		157
Other liabilities		9,668		5,916
TOTAL LIABILITIES	$	59,776	$	56,851
SHAREHOLDERS' EQUITY
Common stock ($0.01 par value)
(Shares authorized - 400,000,000)
(137,598,560 shares issued and 91,738,132 shares outstanding in 2024)
(137,140,522 shares issued and 91,280,094 shares outstanding in 2023)	$	1,376	$	1,371
Paid-in capital		367,645		361,660
Accumulated other comprehensive earnings		(173,723)		(166,303)
Retained earnings		1,719,668		1,609,785
Deferred compensation		13,498		13,539
Treasury stock, at cost (45,860,428 shares in 2024 and 2023)		(406,497)		(406,538)
TOTAL SHAREHOLDERS’ EQUITY	$	1,521,967	$	1,413,514
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,581,743	$	1,470,365

See Notes to Consolidated Financial Statements. See also the accompanying reports of independent registered public accounting firms starting on page 90 of this report.

RLI CORP. AND SUBSIDIARIES

SCHEDULE II—CONDENSED FINANCIAL INFORMATION OF REGISTRANT

(PARENT COMPANY)—(continued)

CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE EARNINGS

Years ended December 31,

(in thousands)	2024		2023		2022
Net investment income	$	7,470	$	10,351	$	6,245
Net realized gains (losses)		(1,542)		14,134		570,888
Equity in earnings of unconsolidated investee		—		—		372
Selling, general and administrative expenses		(15,880)		(15,917)		(12,900)
Interest expense on debt		(3,617)		(6,543)		(7,622)
Earnings (loss) before income taxes	$	(13,569)	$	2,025	$	556,983
Income tax expense (benefit)		(6,321)		(1,802)		108,699
Net earnings (loss) before equity in net earnings of subsidiaries	$	(7,248)	$	3,827	$	448,284
Equity in net earnings of subsidiaries		353,027		300,784		135,127
Net earnings	$	345,779	$	304,611	$	583,411
Other comprehensive earnings (loss), net of tax
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) arising during the period	$	(334)	$	1,754	$	(12,188)
Less: reclassification adjustment for (gains) losses included in net earnings		1,218		—		115
Other comprehensive earnings (loss) - parent only	$	884	$	1,754	$	(12,073)
Equity in other comprehensive earnings (loss) of subsidiaries/investees		(8,304)		61,019		(266,829)
Other comprehensive earnings (loss)	$	(7,420)	$	62,773	$	(278,902)
Comprehensive earnings	$	338,359	$	367,384	$	304,509

See Notes to Consolidated Financial Statements. See also the accompanying reports of independent registered public accounting firms starting on page 90 of this report.

RLI CORP. AND SUBSIDIARIES

SCHEDULE II—CONDENSED FINANCIAL INFORMATION OF REGISTRANT

(PARENT COMPANY)—(continued)

CONDENSED STATEMENTS OF CASH FLOWS

Years ended December 31,

(in thousands)	2024		2023		2022
Cash flows from operating activities
Earnings (loss) before equity in net earnings of subsidiaries	$	(7,248)	$	3,827	$	448,284
Adjustments to reconcile net losses to net cash provided by (used in) operating activities:
Net realized (gains) losses		1,542		(14,134)		(570,888)
Depreciation		—		35		64
Other items, net		6,553		1,350		1,403
Change in:
Affiliate balances receivable/payable		28		(821)		(724)
Federal income taxes		(1,364)		(1,409)		(19,484)
Changes in investment in unconsolidated investee:
Undistributed earnings		—		—		(372)
Net cash used in operating activities	$	(489)	$	(11,152)	$	(141,717)
Cash flows from investing activities
Purchase of:
Fixed income, available-for-sale	$	—	$	(89,501)	$	(1,356,177)
Other		(3,993)		(1,832)		(1,420)
Sale of:
Fixed income, available-for-sale		26,921		—		1,373
Equity method investee		—		14,134		686,566
Other		1,024		54		221
Property and equipment		—		—		298
Call or maturity of:
Fixed income, available-for-sale		1,968		263,939		1,192,050
Net sale (purchase) of short-term investments		75,526		(74,696)		(2,229)
Cash dividends received-subsidiaries		152,000		145,000		13,000
Net cash provided by investing activities	$	253,446	$	257,098	$	533,682
Cash flows from financing activities
Proceeds from stock option exercises	$	(2,327)	$	1,245	$	(465)
Proceeds from issuance of debt		—		50,000		—
Repayment of debt		—		(150,000)		—
Cash dividends paid		(256,443)		(152,508)		(397,323)
Other		4,886		5,314		5,441
Net cash used in financing activities	$	(253,884)	$	(245,949)	$	(392,347)
Net increase (decrease) in cash	$	(927)	$	(3)	$	(382)
Cash at beginning of year		1,048		1,051		1,433
Cash at end of year	$	121	$	1,048	$	1,051

Interest paid on outstanding debt amounted to $4 million, $8 million and $7 million for 2024, 2023 and 2022, respectively. See Notes to Consolidated Financial Statements. See also the accompanying reports of independent registered public accounting firms starting on page 90 of this report.