RLI
27 named things its latest annual report says its results depend on, each in the company's own words. 17 of them are also named by other companies we've read.
Customers
Construction industry
earns from · approximately a third of our businessnamed as a riskIn addition, as approximately a third of our business relates to the construction industry, our results of operations could be significantly impacted in an economic downturn if the construction industry is affected disproportionately.Risk factors (Item 1A)
Top ten producer entities (brokers and carrier partners)
earns from · 49 percent of our gross premiums writtennamed as a riskIn 2025, 49 percent of our gross premiums written were produced through ten producer entities, while no other entity’s production exceeded 2 percent of our gross premiums written.Risk factors (Item 1A)
Energy sector surety bonds
earns fromnamed as a riskSome of the bonds we issue, particularly in the energy sector, are non-cancelable and may expose the Company to greater losses, should the surety reinsurance coverage we are able to secure be reduced or become unavailable.Risk factors (Item 1A)
Suppliers
Reinsurers
depends on · $404,717 thousand reinsurance cedednamed as a riskReinsurance is also subject to credit risk, which is the risk that our reinsurers may not pay on losses in a timely fashion or at all.Business (Item 1)
Catastrophe modeling software vendors
depends onnamed as a riskFor example, we have license agreements for software that we use to model natural catastrophes, process claims, and manage policies, producers and financial processes.Risk factors (Item 1A)
Partners and platforms
U.S. Small Business Administration
depends onWe also offer bonds for small and emerging contractors that are reinsured through the Federal Small Business Administration.Business (Item 1)
Prime Holdings Insurance Services, Inc.
earns fromWe had a quota share reinsurance agreement with Prime Insurance Company and Prime Property and Casualty Insurance Inc., the two insurance subsidiaries of Prime Holdings Insurance Services, Inc. (Prime).Business (Item 1)
Other companies
S&P 500 Index
exposed to its price · $85 million and $169 millionnamed as a riskThese scenarios would result in approximate decreases in the equity fair value of $85 million and $169 million, respectively.Market risk (Item 7A)
Moody's
A2named as a riskMoody’s reaffirmed our group rating of A2 for RLI Ins. and Mt. Hawley.Risk factors (Item 1A)
AM Best
A+, Superiornamed as a riskIf our ratings are significantly reduced from their current levels by AM Best, Standard & Poor’s or Moody’s, our competitive position in the industry, and therefore our business, could be adversely affected.Risk factors (Item 1A)
Standard & Poor's
A, Strongnamed as a riskStandard & Poor’s reaffirmed our A rating for the group of RLI Ins. and Mt. Hawley.Risk factors (Item 1A)
Federal Home Loan Bank of Chicago
Other invested assets represented 1 percent of the total portfolio and include investments in low-income housing tax credit and historic tax credit partnerships, membership stock in the Federal Home Loan Bank of Chicago and investments in private funds.Business (Item 1)
Also named by OSBC
Places
Florida
concentrated in · 18 percentnamed as a riskAlthough we operate in all 50 states, 56 percent of our direct premiums earned were generated in four states in 2025: Florida – 18 percent; California – 18 percent; Texas – 11 percent; and New York – 9 percent.Risk factors (Item 1A)
Also named by ABR, ALLY, AN, AXP, AZO, BBY, BJ, BRO and 54 more
California
concentrated in · 18 percentnamed as a riskAlthough we operate in all 50 states, 56 percent of our direct premiums earned were generated in four states in 2025: Florida – 18 percent; California – 18 percent; Texas – 11 percent; and New York – 9 percent.Risk factors (Item 1A)
Also named by A, AAON, AFRM, ALK, ALLY, AN, ARE, AVAV and 88 more
Texas
concentrated in · 11 percentnamed as a riskAlthough we operate in all 50 states, 56 percent of our direct premiums earned were generated in four states in 2025: Florida – 18 percent; California – 18 percent; Texas – 11 percent; and New York – 9 percent.Risk factors (Item 1A)
Also named by ABR, AFRM, ALLY, AN, ASO, ASTS, ATO, AXP and 70 more
New York
concentrated in · 9 percentnamed as a riskAlthough we operate in all 50 states, 56 percent of our direct premiums earned were generated in four states in 2025: Florida – 18 percent; California – 18 percent; Texas – 11 percent; and New York – 9 percent.Risk factors (Item 1A)
Also named by ABR, AXP, BJ, BPOP, BRO, BWA, CHE, CINF and 12 more
Hazards
Hurricanes (U.S. coastal regions)
concentrated in · $416 million 1-in-100 gross lossnamed as a riskOur insurance coverages include exposure to catastrophic events, particularly hurricanes and tropical storms affecting coastal regions of the United States and earthquakes, primarily on the West Coast.Risk factors (Item 1A)
Also named by AIG, AN, ASO, BAC, BBY, BJ, BPOP, BRO and 89 more
California earthquake
concentrated in · $295 million 1-in-100 gross lossnamed as a riskAlthough covered in one program, limits and attachment points differ for California earthquakes and all other perils.Business (Item 1)
Hawaii lava flows
concentrated innamed as a riskIn addition, catastrophe losses can occur from events such as wildfires, lava flows in Hawaii and terrorist events in the United States.Risk factors (Item 1A)
COVID-19 claims litigation
named as a riskAlthough we have investigated and closed a majority of COVID-19-related claims without payment, state and federal courts could rule that such claims are covered under our policies.Risk factors (Item 1A)
Regulators
Laws and programs
Illinois insurance dividend restrictions
subject to · greater of 10 percent of RLI Ins. policyholder surplusnamed as a riskThe maximum ordinary dividend distribution from our principal insurance subsidiary in a rolling 12-month period is limited by Illinois law to the greater of 10 percent of RLI Ins. policyholder surplus as of December 31 of the preceding year, or the net income of RLI Ins. for the 12-month period ending December 31 of the preceding year.Risk factors (Item 1A)
Delaware General Corporation Law Section 203
subject to · 15 percentnamed as a riskIn particular, we are subject to Section 203 of the Delaware General Corporation Law which, under certain circumstances, restricts our ability to engage in a business combination, such as a merger or sale of assets, with any shareholder that, together with affiliates, owns 15 percent or more of our common stock, which similarly could prohibit or delay the accomplishment of a change of control transaction.Risk factors (Item 1A)
NAIC risk-based capital (RBC) model
subject to · authorized control level RBC of $306 millionRLI Ins., our principal insurance company subsidiary, had an authorized control level RBC of $306 million compared to actual statutory capital and surplus of $1.8 billion as of December 31, 2025, resulting in statutory capital that is more than six times the authorized control level.Business (Item 1)
New York State Department of Financial Services (NYDFS) cybersecurity regulation
subject toThese regulations are revised from time-to-time, such as New York’s second amendment to its cybersecurity act, requiring us to periodically revise our cybersecurity governance, processes and controls to comply with the revised regulations.Business (Item 1)
Also named by AJG
Illinois Risk Management and Own Risk and Solvency Assessment (ORSA) Law
subject toThe Illinois legislature has adopted the Risk Management and Own Risk and Solvency Assessment (ORSA) Law, which requires domestic insurers to maintain a risk management framework and establishes a legal requirement for domestic insurers to conduct an ORSA in accordance with the NAIC’s ORSA Guidance Manual.Risk factors (Item 1A)