RLIRLI +3.07%79 3-Year RORE % is 7.14 as of Mar. 2026. GuruFocus rates RLI with a GF Score™ of 79/100 and a GF Value™ of $77.18 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 474 Insurance companies, RLI ranks worse than 57.59% on this metric.
Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
RLI's 3-Year RORE % for the quarter that ended in Mar. 2026 was 7.14%.
The industry rank for RLI's 3-Year RORE % or its related term are showing as below:
RLI's 3-Year RORE % is ranked worse than 57.59% of 474
companies
in the Insurance industry
Industry Median: 11.865
vs RLI: 7.14
RLI (NYSE:RLI) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
RLI 3-Year RORE % Related Terms
RLI 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for RLI's 3-Year RORE % 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 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Insurance Industry
For the Insurance industry and Financial Services sector, RLI's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where RLI's 3-Year RORE % 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.
In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
RLI (RLI) has a 3-Year RORE % of 7.14 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on RLI and its competitors. According to the industry distribution chart, RLI ranks #273 out of 474 companies in the Insurance industry, placing it in the top 57.6%.
Is RLI's 3-Year RORE % too high?
RLI's current 3-Year RORE % is 7.14. The Insurance industry median 3-Year RORE % is 11.87. RLI's value of 7.14 is 39.8% below this industry median. Based on the distribution chart, RLI ranks #273 out of 474 companies in the Insurance industry, which is below the industry midpoint. Overall, RLI has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does RLI's 3-Year RORE % compare to WTM and SIGI?
According to the Insurance industry distribution chart, RLI ranks #273 out of 474 companies for 3-Year RORE %. This places RLI in the lower half of its industry. The industry median 3-Year RORE % is 11.87. RLI's value of 7.14 is 39.8% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for an Insurance company?
The median 3-Year RORE % among Insurance companies is 11.87, based on 474 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. RLI's current 3-Year RORE % of 7.14 is 39.8% below 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on RLI and its competitors. For the Insurance industry, the median 3-Year RORE % is 11.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RLI's current 3-Year RORE % is 7.14. 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 $77.18, compared to a current price of $62.52 — trading 19% below its estimated fair value. The current 3-Year RORE % is 7.14 and 39.8% below the Insurance industry median of 11.87. RLI's overall GF Score™ is 79/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For RLI (RLI), the current 3-Year RORE % is 7.14 as of Mar. 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 $62.52 is trading 19% below its estimated GF Value™ of $77.18.
GuruFocus considers RLI to be Modestly Undervalued.
Key valuation signals for RLI:
3-Year RORE %: 7.14
GF Value™: $77.18 vs. price of $62.52 (19% below fair value)
Industry Position: 39.8% below the Insurance median (#273 of 474)
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.
79GF Score
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