The business behind the dividend
| Measure | RLI | Median | Formula |
|---|---|---|---|
| Return on equity | 22.7% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | — | — | Operating income ÷ (equity + total debt) |
| Owner earnings | $405.94m | $120.90m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $608.70m | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 26.9% | 14.3% | Operating income ÷ revenue |
| Net margin | 21.4% | 10.1% | Net income ÷ revenue |
| Debt to equity | — | — | Total debt ÷ shareholders’ equity |
| Interest cover | — | — | Operating income ÷ interest expense |
| Current ratio | — | — | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | — | — | Operating cash flow ÷ net income |
| Accruals | -3.4% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Cash conversion, Current ratio, Debt to equity, Long-term debt to working capital, Interest cover, Return on capital employed — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 22.7% | 22.7% | 21.5% | 49.6% | 22.7% | 13.8% | 19.3% | 8.0% | 12.3% | 14.0% | 19.3% |
| Operating margin | 26.9% | 24.2% | 25.0% | 42.4% | 29.2% | 19.3% | 23.2% | 8.3% | 10.6% | 19.2% | 23.2% |
| Net margin | 21.4% | 19.5% | 20.1% | 34.4% | 23.7% | 16.0% | 19.1% | 7.8% | 13.2% | 14.1% | 19.1% |
How it compares in banks & insurers
Among the 377 banks & insurers companies here measured on GAAP earnings, RLI pays out less than 45 of them. The median for that group is 30.6%, against this company’s 60.2%.
Closest on GAAP earnings
- Union Bankshares (UNB) 59.8%
- Provident Financial Holdings (PROV) 59.9%
- Bank of Hawaii (BOH) 60.5%
- National Bankshares (NKSH) 60.6%
Same sector and same denominator, so the figures are comparable. All 377 in banks & insurers →