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RLIRLI +1.23%80 Pretax Margin % is 36.61% as of Jun. 2026, which is 55% above its 10-year median of 23.64. GuruFocus rates RLI with a GF Score™ of 80/100 and a GF Value™ of $80.87 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 500 Insurance companies, RLI ranks better than 85.2% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. RLI's Pre-Tax Income for the
three
months ended in Jun. 2026 was $211 Mil. RLI's Revenue for the
three
months ended in Jun. 2026 was $576 Mil. Therefore, RLI's pretax margin for the quarter that ended in Jun. 2026 was 36.61%.
The historical rank and industry rank for RLI's Pretax Margin % or its related term are showing as below:
RLI'
s Pretax Margin % Range Over the Past 10 Years
Min: 8.24 Med: 23.64 Max: 42.44
Current: 27.8
RLI's Pretax Margin % is ranked better than 85.2% of 500
companies
in the Insurance industry
Industry Median: 12.11
vs RLI: 27.80
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
RLI Pretax Margin % Related Terms
RLI Pretax Margin % Historical Data
* Premium members only.
The historical data trend for RLI's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Insurance - Property & Casualty subindustry, RLI's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
RLI Pretax Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, RLI's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where RLI's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
RLI (RLI) has a Pretax Margin % of 36.61% as of Jun. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on RLI and its competitors. This is 55% above median its historical median of 23.64. Over the past decade, RLI's Pretax Margin % has ranged from 8.24 to 42.44. According to the industry distribution chart, RLI ranks #74 out of 500 companies in the Insurance industry, placing it in the top 14.8%.
Is RLI's Pretax Margin % too high?
RLI's current Pretax Margin % of 36.61% is 55% above median its 10-year median of 23.64. Over the past 10 years, this metric has ranged from a low of 8.24 to a high of 42.44. The Insurance industry median Pretax Margin % is 12.11. RLI's value of 36.61% is 202.3% above this industry median. Based on the distribution chart, RLI ranks #74 out of 500 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, RLI has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does RLI's Pretax Margin % compare to SIGI and WTM?
According to the Insurance industry distribution chart, RLI ranks #74 out of 500 companies for Pretax Margin %. This places RLI in the top 15% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 12.11. RLI's value of 36.61% is 202.3% above this benchmark. Historically, RLI's own Pretax Margin % has ranged from 8.24 to 42.44 over the past decade. While the company's 10-year median is 23.64 vs. the industry median of 12.11, RLI has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for an Insurance company?
The median Pretax Margin % among Insurance companies is 12.11, based on 500 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. RLI's current Pretax Margin % of 36.61% is 202.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on RLI and its competitors. For the Insurance industry, the median Pretax Margin % is 12.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RLI's current Pretax Margin % is 36.61%, which is 55% above median its own 10-year median of 23.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RLI stock overvalued right now?
Based on GuruFocus' analysis, RLI (RLI) is currently considered Modestly Undervalued. The stock's GF Value™ is $80.87, compared to a current price of $65.10 — trading 19.5% below its estimated fair value. The current Pretax Margin % is 36.61%, which is 55% above median its 10-year median of 23.64 and 202.3% above the Insurance industry median of 12.11. RLI's overall GF Score™ is 80/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For RLI (RLI), the current Pretax Margin % is 36.61% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is RLI (RLI) Overvalued in 2026?
Based on GuruFocus' analysis, RLI stock appears to be undervalued.
The current stock price of $65.10 is trading 19.5% below its estimated GF Value™ of $80.87.
GuruFocus considers RLI to be Modestly Undervalued.
Key valuation signals for RLI:
Pretax Margin %: 36.61% (55% above median its 10-year median of 23.64)
GF Value™: $80.87 vs. price of $65.10 (19.5% below fair value)
Industry Position: 202.3% above the Insurance median (#74 of 500)
No single metric tells the full story. See the RLI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RLI Corp 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. It also offers products in the excess and surplus markets, which provides an alternative for customers with risks or loss exposures that generally cannot be written in the standard admitted market. RLI distributes property and casualty insurance through its wholly-owned branch offices that market to wholesale and retail producers. The company's insurance operation segments include Casualty, Property, and Surety, and it derives a majority of its revenue from the Casualty segment.
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