RLI Corp's stock plummeted 8.80% in the pre-market trading session on Thursday, following the company's release of lower-than-expected fourth-quarter earnings results and the impact of losses stemming from Hurricane Milton.
The insurance provider reported a significant decline in profit for the fourth quarter of 2024, with earnings per share of $0.41 missing analyst expectations of $0.52. The company's underwriting income, a key measure of profitability for its insurance operations, fell to $22.2 million from $59.8 million a year earlier, largely due to a $42.4 million net decrease in underwriting income related to losses from Hurricane Milton.
RLI Corp's fourth-quarter earnings results and the impact of hurricane losses appear to be the primary factors behind the stock's pre-market plunge. Analysts have maintained a mixed outlook on the company, with some reiterating hold ratings and others maintaining buy ratings with price targets well above the current trading levels.
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