RLI : Investor Presentation 1st Quarter, 2024

Q1

2024

DISCLAIMER

Except for historical information, this presentation may include forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) including, without limitation, statements reflecting our current expectations about the future performance of our company or our business segments or about future market conditions. These statements are subject to certain risk factors that could cause actual results to differ materially. Various risk factors that could

affect future results are listed in the company's filings with the Securities and Exchange Commission, including the Form 10-K

Annual Report for the year ended December 31, 2023. Forward looking statements reflect the Company's expectations, plans or forecasts of future events and views as of the date of this report. While the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. You should review the various risks, uncertainties and other factors listed from time to time in our Securities and Exchange Commission filings.

Management has included certain non-generally accepted accounting principles (non-GAAP) financial measures in presenting the

company's results. Management believes that these non-GAAP measures further explain the company's results of operations and

allow for a more complete understanding of the underlying trends in the company's business. These measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles (GAAP). In addition, our definitions of these items may not be comparable to the definitions used by other companies.

Operating earnings and operating earnings per share (EPS) consist of our GAAP net earnings adjusted by net realized gains/(losses), net unrealized gains/(losses) on equity securities and taxes related thereto. Net earnings and net earnings per share are the GAAP financial measures that are most directly comparable to operating earnings and operating EPS. Please refer to the appendix of this presentation for a reconciliation of operating earnings and operating EPS to the comparable GAAP financial measures.

Underwriting income or profit represents the pretax profitability of our insurance operations and is derived by subtracting loss and settlement expenses, policy acquisition costs and insurance operating expenses from net premium earned, which are all GAAP financial measures. The combined ratio, which is derived from components of underwriting income, is a performance measure commonly used by property and casualty insurance companies and is calculated as the sum of loss and settlement expenses, policy acquisition costs and insurance operating expenses, divided by net premiums earned, which are all GAAP measures.

2

OUR PURPOSE, VISION, MISSION & STRATEGY

Our purpose, vision, mission and strategy serve as the foundation of our balanced growth plan.

Purpose

Vision

Mission

Strategy

Protect people and	Be the recognized	Provide industry-leading	Create sustainable value
organizations from life's	performance leader of the	specialty risk	and differentiate RLI in the
uncertainties to help them	U.S. specialty insurance	management solutions	marketplace through
explore, create, build and	industry.	that are convenient,	industry-leading products,
thrive.		tailored and fill unmet	unmatched expertise and
		customer needs.	exceptional customer
			service.

3

RLI OVERVIEW

RLI is a domestic, specialty insurance company that handles its own underwriting and claims.

Underwriting

Company

__________________

• Hire talented, entrepreneurial underwriters with narrow & deep knowledge
• Focus on difficult markets that require unique expertise
• Encourage a strong feedback loop between underwriting and claims
• Underwriting discipline and results are paramount

		Ownership
	Growth through	Culture &
	Discipline	Compensation
__________________	__________________
•	Emphasize profitable,	• Underwriting leadership
	organic product growth	compensation is tied to
•	Explore talent acquisition	product specific
underwriting profit
	& start-ups

• Selectively consider balance sheet acquisitions that preserve RLI's unique culture

91% Institutions & other public investors

 9% Insiders & Employee Stock Ownership Plan ("ESOP")

Diversified

Insurance Product

Portfolio

__________________

• Products are run like stand-alone, largely- autonomous, businesses
• Maintain a highly diverse product portfolio to reduce corporate risk
• Many products are tailored to fill a void in the market

Capital

Management

__________________

• Retain enough capital to meet policyholder needs
• Lean into profitable underwriting opportunities when they arise
• Return excess capital to shareholders
• Maintain our ability to raise traditional third party capital as needed

4

OUR STRATEGY

Customer Focus

• Customer Experience
• Growth Adjacencies

	Trusted	Ease of Use
	Partnerships
		Value Creation
Community	Continuous
Improvement
•	People
•	Cultural Adaptability	•	Tech Investment
		•	Innovation
		Stability

How We Create Value

By sharing our expertise and offering exceptional service to our customers, our highly engaged employees create lasting relationships and can see the impact they make on our business.

We incorporate our customers' feedback to ensure our

products meet their needs and that we remain a stable, trusted partner that is easy to work with and fulfills our promise to pay claims owed.

Our shareholders benefit from our diversified, resilient business model, which produces consistent financial performance.

5

COMPETITIVE ADVANTAGES

RLI will capitalize on its competitive advantages to drive profitable growth.

WE CARE

• Relationship oriented
• Community minded
• Responsible
• Sustainable
• Continuously improve

EMPOWERED

• Responsive
• Accountable
• Curious
• Distributed decision making
• Flat structure

PRUDENT

• Rational
• Principled
• Diversified
• Resilient
• Downside risk management
• Long-termoutlook

SERVICE ORIENTED

• Problem solvers
• Dedicated
• Transparent
• Authentic
• Humble

UNDERWRITE

FOR PROFIT

• Specialists
• Deep expertise
• Tailored products in niche markets
• Collaborative feedback
• Aligned compensation
• Shared rewards

REPUTATION

• People focused
• Disciplined
• Strive for excellence
• Consistent
• Stable

6	Interwoven, complementary and fortified by a common DNA

FINANCIAL STRENGTH AND STABILITY

Our financial track record has been stellar for decades - a testament to our ownership culture and reputation as an excellent underwriting company.

A+

SUPERIOR

A

STRONG

WARD'S 50

TOP P&C PERFORMER FOR 33 YEARS1

(1)Only insurer to be recognized every year since inception

4.9/5

STARS ON

7

SELECT MARKET INFORMATION

RLI has a rich history as a publicly traded company and has consistently created value for its shareholders.

Ticker / Exchange	RLI / NYSE
Share Price (as of 3/31/2024)	$148.47
Annual Dividend / Yield (as of 5/2/2024)	$1.16 / 0.81%
Market Cap	$6.79 billion
Annual Gross Premium (Trailing 4 qtr.)	$1,860 million
Employees	1,074
Leadership Average Industry Experience	28 Years
20 Year Annual Shareholder Return	15.2%

8

Q1 2024 FINANCIAL UPDATE

			First Quarter
	2024		2023		% Change
Earnings Per Diluted Share
Net earnings	$	2.77	$	2.15	28.8%
Operating earnings	$	1.89	$	1.63	16.0%
Net Premiums Earned (in millions)
Casualty	$	198.3	$	186.0	6.6%
Property	$	129.4	$	88.8	45.8%
Surety	$	33.0	$	32.9	0.2%
Total	$	360.7	$	307.7	17.2%
Underwriting Income (Loss) (in millions)
Casualty	$	13.7	$	31.8	(57.0)%
Property	$	57.7	$	28.4	103.3%
Surety	$	6.3	$	7.7	(17.9)%
Total	$	77.7	$	67.9	14.4%
Combined Ratio
Casualty		93.1		82.9
Property		55.4		68.0
Surety		80.9		76.7
Total		78.5		77.9

Other 1Q24 Highlights

• 13% increase in gross premiums written
• Favorable development in prior years' loss reserves, resulting in a $37.4 million net increase in underwriting income
• 21% increase in net investment income
• Book value per share of $33.27, an increase of 8% (inclusive of dividends) from year-end 2023

9

DIVERSIFIED PRODUCT PORTFOLIO: NET PREMIUM 1

Product diversification has fueled our growth & financial success.

E&S: 40% of NWP1

Specialty Admitted: 60% of NWP1

E&S Property2

Earthquake2

General Liability2	Excess Liability2

Other

Executive Products

Transportation

Casualty

Property (55%)Professional Services

(35%)

Surety

(10%)	Commercial
	Package

Marine

Hawaii Homeowners/Other

Contract	Personal
Commercial	Umbrella
Transactional

10 (1) Trailing 4 Quarters Net Written Premium

1. Exclusively E&S line