RLI Corp.

These forward-looking statements are subject to 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 of 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 third 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. RLIs 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. Additionally, equity in earnings of unconsolidated investees and related taxes are excluded from operating earnings and operating EPS to present a consistent approach in excluding all unrealized changes in values from equity investments. RLI's management believes these measures are useful in gauging core operating performance across reporting periods, but may not be comparable to other companies' definitions of operating earnings. The form 8-K contains a reconciliation between operating earnings and net earnings. The form 8-K and press release are available at the company's website at www.rlicorp.com. I will now turn the conference over to RLI's President and Chief Executive Officer, Mr. Craig Kliethermes. Please go ahead.

Good morning, everyone, and thank you for joining us today. with me are Aaron Diefenthaler, our Chief Financial Officer, and Jen Klobnak, our Chief Operating Officer. We are pleased with another quarter of consistent, profitable performance. We produced an 86 combined ratio, grew premiums 2%, increased net investment income 13%, and grew book value 10% from year-end, inclusive of dividends and share repurchases. Those results may sound familiar. We're okay with that. Consistency may be boring to some. At RLI, we think boring is beautiful. Behind that consistency is disciplined underwriting. Our underwriters are selective, discerning, and exacting about the risks we take and the price and terms we require. We don't need every opportunity. Across our diverse portfolio of niche We will look for the right opportunities where expertise and risk selection gives us an advantage. Insurance remains a relationship business. People like doing business with people they like. And more importantly, people and companies they trust. Our customers and distribution partners know our people are accessible, genuine, empowered to solve problems, and consistently show up. Our expertise gets us to the right answer. Our service and relationships help earn us the next opportunity. Markets change, our principles don't. We will continue to underwrite with discipline, invest in our people and relationships, and pursue profitable opportunities where expertise makes a difference. With that, I'll turn it over to Aaron for more detail on the financials.

Thanks, Craig, and good morning. Yesterday, we reported third quarter operating earnings of 86 cents per share compared with 82 cents last year. The quarter reflected solid underwriting performance, a 13% increase in net investment income, and 2% growth in gross premiums written. As we have noted in prior quarters, our definition of operating earnings changed in Q4 of 2025, and excludes equity in the earnings of unconsolidated investees and the related taxes. Prior period comparisons have been appropriately recast. On a GAAP basis, third quarter net earnings totaled 88 cents per share compared with $1.35 in the year-ago period. The year-over-year difference was primarily driven by comparable changes in the value of equity securities between periods. Underwriting income totaled $58.8 million for the quarter, and our overall combined ratio was 86.2 compared with 85.1 last year. The loss ratio increased 1.3 points to 47.4, while the expense ratio improved modestly to 38.8. Results benefited from favorable development on prior year's loss reserves which totaled 22.9 million in the current quarter up from 15.5 million in the third quarter of 2025. Current year catastrophe losses were modest at approximately $4 million, primarily in the property segment. Related to catastrophe losses, I want to mention a new display in our earnings press release on page four, where we now break out catastrophe losses by segment. As we have discussed in prior quarters, The casualty segment can pick up some catastrophe activity related to packaged businesses. We believe the new disclosure will be helpful in determining changes in the underlying loss ratio. As discussed in the footnote, any development on prior year storms is included in the upper part of the table. Turning to our segment's results, casualty again led on growth up 4% in the quarter while posting a 99.6 combined ratio Compared with 98.2 last year. Casualties underwriting results benefited from 8.2 million of favorable development on prior year's reserves, roughly in line with Q3 of 2025. Several products contributed to the release including excess casualty and commercial transportation. On a sequential basis, casualties underlying loss ratio was similar to the prior quarter, and remains just under 67 on a year-to-date basis. Property continued to generate very strong underwriting results. Gross premiums were down approximately 1% while the segment produced just over 50 million of underwriting income on a 60.1 combined ratio, equivalent to last year. Property benefited from 10.4 million of favorable prior year reserve development, inclusive of 4 million from prior year storms. During the quarter, property's current year catastrophe losses totaled $3.9 million, about half of which was represented by activity in Hawaii. Surety also had a very good quarter, with gross premiums up approximately 1% on a 79.8% combined ratio compared with 85% last year. The segment benefited from $4.3 million of favorable prior year reserve development and lower loss activity, underwriting income from Surety for surety increased $7.3 million from $5.6 million in the prior year quarter. As usual, Jen will offer more detail on product level performance and market conditions. Turning to cash and investments, operating cash flow was $195 million in the quarter, up 9% from last year and providing meaningful support to portfolio activity. New purchases were largely concentrated in investment grade fixed income with average yields of 5.5%, which is nearly 100 basis points above our book yield. As mentioned, net investment income increased 13% to $46.7 million and remains an important contributor to operating results. On a mark-to-market basis, rising yields, lower bond prices, and a modest offset from equities resulted in a negative 2% total return for the quarter. The movement in fixed income prices also affected comprehensive earnings. We recorded a comprehensive loss of $36.8 million, or 40 cents a share, for the quarter, compared with comprehensive earnings of $152 million, or $1.65 a share, last year. From a capital management perspective, during the quarter, we paid our regular quarterly dividend by 18 cents per share, while repurchasing just under 104,000 shares on a at an average price of $60.51. At September 30, approximately 232 million remained available under our share repurchase authorization. Adjusting for dividends and share repurchases, book value increased 10% from year end 2025. Putting it all together through the first nine months of 2026, we generated 176 million of underwriting income on an 85.9 combined ratio. Net investment income increased 15% and operating earnings were 252 a share, very consistent with the prior year. We are pleased with our third quarter performance and the balance of underwriting profitability, investment income, and capital strength. And with that, I'll turn the call over to Jen for more detail.