RLI Corp.

certain factors and uncertainties which could cause actual results to differ materially, please refer to the risk factors described in the company's various SEC filings, including in the annual report on Form 10-K as supplemented in Forms 10-Q, all of which should be reviewed carefully. The company has filed a Form 8-K with the Securities and Exchange Commission that contains the press release announcing fourth quarter results. During the call, RLI management may refer to operating earnings and earnings per share from operations, which are non-GAAP measures of financial results. RLI's operating earnings and earnings per share from operations consist of net earnings after the elimination of after-tax realized gains or losses and after-tax unrealized gains or losses on equity securities. RLI's management believes these measures are useful in gauging core operating performance across reporting periods that may not be comparable to other companies' definitions of operating earnings. The Form 8K contains a reconciliation between operating earnings and net earnings. The Form 8K and press release are available at the company's website at www.RLICorp.com. I will now turn the conference over to RLI's Chief Investment Officer and Treasurer, Mr. Aaron DeFintala. Please go ahead.

Good morning, all. We hope everyone's having a great summer. We appreciate you joining us to review RLI's results for the second quarter and first half of 2025. We have the usual participation for today's call. Craig Cleathermans, President and CEO, Jen Klobnoch, Chief Operating Officer, and Todd Bryant, Chief Financial Officer. In typical form, our agenda will begin with Craig offering some overall remarks, Todd will outline the financial results, and Jen will present color on market conditions and our product portfolio. We will then have the operator open the line for questions, and Craig will close with some final thoughts. Craig?

Well, thank you, Erin, and good morning, everyone. We appreciate your participation on today's call and look forward to addressing your questions after Todd and Jen walk through our results. We are pleased with our second quarter results, which include an 84.5 combined ratio and underwriting profitability across all segments. While top line growth was flat, reflecting significant softening in the commercial property market, we continue to see healthy underlying growth across most of our diversified niche product portfolio. Year to date, book value per share has grown 16% inclusive of dividends on an 82 combined ratio and double digit growth in net investment income. At ROI, We take a long-term view with a focus on discipline, continuous improvement, and sustainability. We concentrate on what we can control and adjust our strategy as market conditions evolve. For example, in wheels-based exposures where legal system abuse is prevalent, we're taking significant rate and being more selective. In property, we're choosing not to compete where the risk-reward profile doesn't make sense. Strong companies are willing to address challenges head-on, pulling back where needed, and leading into the products where the risk-return is in balance. That's how we operate and how we are incentivized, prioritizing profitability and long-term value creation over short-term results. Despite some select challenges, we still see attractive opportunities across most of our portfolios. Our success is not measured by being the largest market, but by consistently delivering strong profitable results to our shareholders and serving our customers with expertise and care through all market cycles. That is what we will continue to focus on as we have for the last 60 years. With that, I will turn it over to Todd, who will provide some detail on our financial results. Todd? Thanks, Craig. Good morning, everyone. Yesterday, we reported second quarter operating earnings of 84 cents per share, supported by solid underwriting performance and a 16% increase in investment income. As a reminder, per share data reflects the two-for-one stock split that was due to shareholders at the end of 2024 and distributed in January. Underwriting income benefited from continued growth in earned premium and positive results on the current accident year were bolstered by favorable development on prior year's reserves across all three segments. Our total combined ratio was 84.5, up from 81.5 last year, reflecting modest increases in the underlying loss and expense ratios, though both remain in line with expectations. Overall, top line was flat between periods. Our casually insured segments posted growth while property declined, reflective of increased competition and rate pressure on catastrophe-exposed business. On a gap basis, second quarter net earnings totaled $1.34 per share versus $0.89 in Q2 2024. This comparison was heavily influenced by the relative price performance of equity securities between periods, as $44 million of unrealized equity gains this quarter outpaced the $4 million of unrealized gains for the same period last year. Turning to segment performance, property experienced a 10% decline in gross premiums, which was influenced by rate decreases in E&S property. However, our marine and Hawaii homeowners products continue to deliver growth. Jim will provide additional detail on sub-segment market conditions shortly. Contributing to property's bottom line was $10 million of favorable prior year's developments including $5 million in reductions related to Hurricane Helene, where losses continued to trend below initial estimates. Storm losses and catastrophe events in the quarter totaled $12.5 million, which was marginally below last year. While the loss ratio improved slightly, the expense ratio increased three points, driven by changes in our reinsurance and higher acquisition-related expenses. All in, property continued its strong performance, posting a 62 combined ratio in the quarter. In casualty, gross premiums advanced 7%, and we posted a 96.5 combined ratio for Q2. The segment benefited from $15.5 million of favorable prior year's reserve development, partially offset by a higher underlying loss ratio and $1.5 million in Q2 catastrophe losses related to certain package policies. Prior year's reserve benefits were realized across multiple products with notable contributions from general liability, excess liability, and personal umbrella. We continue to closely monitor wheels-based exposures, an area we've discussed previously at length. Reserve actions taken in the fourth quarter of 2024 appear to be sufficient, and we continue to approach more challenged coverages with rate increases, and underwriting actions to address the current loss environment. Surety's gross premium was up 7% over last year, with all sub-segments experiencing growth. The combined ratio for the quarter was 87.9, and underwriting income benefited from 2.3 million of favorable reserve development. The expense ratio rose, reflecting higher acquisition costs and increased investments in technology and people. Turning to investments, Operating cash flow for Q2 totaled $175 million, up $33 million from last year, providing a solid foundation for continued portfolio activity. April's market volatility offered an opportunity to attractively add to our equity allocation, while the balance of the quarter was again focused on high-quality fixed income, where treasuries and corporate bonds governed most of the effort to add income. Average purchase yields were 4.7% in the quarter, which is 70 basis points above our book yield. On a total return basis, the market's welcome recovery in May and June resulted in a positive 2.9% return for the quarter, capping an excellent first half of the year. Beyond our traditional invested assets, our investee earnings totaled $2.5 million in the quarter. Incorporating comprehensive earnings of $1.55 per share and adjusting for dividends, book value per share increased 16% from year-end 2024. All in, we are pleased with our second quarter and first half performance. And with that, I'll turn the call over to Jen. Jen?