RLI: Still RLIable, But No Longer Cheap Enough To Buy

RLI delivered a strong quarter with an 85.6% combined ratio and $59.9 million in pre-tax underwriting income. The company's 24.5% trailing ROE and consistent capital returns support a premium valuation. The stock has been downgraded from Buy to Hold due to its rally to 3.1x book value and 12.1x annualized earnings.