Shares of RLI Corp. (NYSE:RLI) climbed 4.9% on Thursday after the insurer detailed a special cash distribution and a sizable share repurchase authorization.
The company declared a special cash dividend of $2.00 per share, which RLI estimates will amount to roughly $184 million in total. In addition to the special payout, the board approved a regular quarterly cash dividend of $0.18 per share, a 12.5% increase relative to the previous quarter.
Both the special dividend and the increased quarterly dividend are scheduled to be paid on June 12, 2026, to shareholders of record as of May 29, 2026. RLI noted that this most recent action continues a long-standing pattern of returning capital to shareholders: the company has increased its regular dividend in each of the past 51 years.
The Board also authorized a new share repurchase program allowing the company to buy up to $250 million of its outstanding common stock. Management said the company’s stock price was one of the elements considered by the Board in approving the repurchase plan.
Company guidance on how repurchases will be executed is limited to the following: repurchases may be made from time to time in the open market or through privately negotiated transactions, the program carries no expiration date, and the authorization does not obligate RLI to acquire any specific number of shares.
RLI expects to finance any repurchases with available cash and operating cash flow. The company stated that the timing, volume, and method of any repurchases will be influenced by factors such as market conditions, share price, and capital needs.
"This share repurchase program, special dividend and 51st consecutive annual increase in our regular dividend reflect the strength of our business and our confidence in RLI’s long-term strategy," said RLI Corp. President & CEO Craig W. Kliethermes.
The payment dates and record date for the dividends, the size of the special dividend and the repurchase authorization, and the board’s rationale were the specific items disclosed in the company announcement. The market reaction was an immediate increase in the stock price, with the share gain reported on Thursday.
Sectors impacted: insurance companies and equity markets, particularly investors tracking dividend income and capital-return programs.