RLI vs Enact

RLI vs Enact: This page compares the business models, financial performance, and market context of RLI Corp. and Enact Holdings, Inc., presenting a neutral, accessible view for readers seeking context about these two companies. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

RLI

Metric

ACT

$5.47B

Market Cap

$5.55B

10.48%

Potential Profit

-0.06%

Hold

Analyst Rating

Buy

Investment Analysis

RLI

Pros

RLI Corp. reported a 17% revenue increase in 2024, reaching $1.77 billion, evidencing strong growth momentum.
The company maintains a solid dividend yield of 4.11%, providing steady income to shareholders.
RLI has a low beta of 0.56, suggesting lower volatility and potentially less risk compared to the market.

Considerations

RLI's forward price-to-earnings (PE) ratio at 19.5 indicates relatively higher valuation compared to some peers.
Analyst consensus rates the stock as 'Hold,' suggesting limited upside or market caution.
RLI’s 52-week stock price range shows recent declines from its high, indicating potential stock price pressure.

Enact

ACT

Pros

Enact Holdings has a comparatively low price-to-earnings ratio of 8.46, trading at a significant discount to industry peers.
The company achieved solid returns with a 14.6% normalized return on equity and 11.1% return on assets, reflecting profitability.
Enact has strong interest coverage of 18.5, indicating robust ability to meet debt obligations.

Considerations

As a small-cap company, Enact may face higher market volatility and limited liquidity compared to larger peers.
The company operates primarily in mortgage insurance, exposing it to cyclical risks tied to the U.S. housing market.
Enact's price-to-book ratio at 1.10, while below peers, suggests limited asset revaluation potential.

About The Companies

RLI (RLI)

RLI Corporation (RLI) is a US-focused specialty insurer known for selective underwriting in small-to-medium commercial property and casualty lines, specialty commercial, personal insurance and surety products. With a market capitalisation of about $5.6 billion, RLI aims to combine disciplined risk selection with conservative reserving and a modest investment portfolio to generate profit. Investors should note RLI’s niche approach can deliver relatively stable underwriting margins in favourable loss environments, but results remain sensitive to catastrophe losses, economic cycles and investment returns. The company’s scale is smaller than large multi-line insurers, which may mean less diversification but also the potential for focused profitability if underwriting and pricing remain disciplined. This summary provides general, educational information only and is not investment advice. Before considering any position, investors should assess suitability, risks and time horizon and may wish to consult a qualified financial adviser.

Enact (ACT)

Enact Holdings, Inc. is a prominent American company operating in the private mortgage insurance sector. Through its primary subsidiary, Enact Mortgage Insurance Corporation, it provides insurance that protects lenders and investors from losses if a borrower defaults on their home loan. This service is crucial as it helps facilitate the sale of mortgages in the secondary market to key institutions like Fannie Mae and Freddie Mac. Enact serves a diverse customer base, including national banks, local credit unions, and non-bank mortgage lenders, establishing long-standing relationships across the industry. As a key player in the US housing finance system, the company's performance is closely linked to the health of the residential property market. For investors, understanding Enact means looking at its role in enabling homeownership and the economic factors that influence the mortgage industry. Remember, the value of any investment can go down as well as up.

Which Baskets Do They Appear In?

Property & Casualty Insurance Momentum Play

This carefully selected group of stocks captures the potential upside across the property and casualty insurance sector. Professional analysts have identified these companies following Travelers' impressive earnings report, suggesting similar strength may benefit other disciplined insurers with solid underwriting practices.

Published: July 20, 2025

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Which Baskets Do They Appear In?

Property & Casualty Insurance Momentum Play

Published: July 20, 2025

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Comparison Snapshot

Investment Analysis

RLI

Pros

Considerations

Enact

Pros

Considerations

About The Companies

Which Baskets Do They Appear In?

Property & Casualty Insurance Momentum Play

Which Baskets Do They Appear In?

Property & Casualty Insurance Momentum Play

Buy RLI or ACT in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Discover More Comparisons

RLI vs Home BancShares

RLI vs Glacier Bancorp

RLI vs Virtu

Frequently asked questions

What is the main difference between a company like RLI Corp. and Enact Holdings, in terms of business model?

What does a low beta imply when comparing stocks like RLI Corp. and Enact Holdings?

How should you read a forward price-to-earnings (PE) ratio in this comparison?

What does a dividend yield tell you about RLI Corp. in this context?

How does return on equity (ROE) help compare Enact Holdings to RLI Corp.?

What is the significance of Enact’s interest coverage ratio in this comparison?

How do sector and market context influence the interpretation of these two stocks?

What does the 52-week price range tell you about recent performance for these stocks?

How should an investor use these metrics together rather than in isolation?

What is the scope and limitation of this page's analysis for beginners?

Comparison Snapshot

About The Companies