Sallie Mae vs RLI

This page compares Sallie Mae and RLI Corp, examining their business models, financial performance, and market context in a neutral, accessible way. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

SLM

Metric

RLI

$5.28B

Market Cap

$5.47B

20.39%

Potential Profit

10.48%

Buy

Analyst Rating

Hold

Investment Analysis

Sallie Mae

SLM

Pros

SLM Corp demonstrated robust financial performance in Q2 and Q3 2025, with rising net interest income and strong credit quality metrics.
The company maintains a dominant market share in private student lending, holding 60-67% of the undergraduate and graduate loan segments.
SLM is expanding its capital-light fee-based business model and forging strategic partnerships, positioning it to benefit from federal policy reforms.

Considerations

Provisions for credit losses remain elevated, reflecting ongoing risk in the student loan portfolio despite recent improvements.
Analyst price targets have recently been revised, but the stock has underperformed consensus earnings estimates in recent quarters.
The business is highly sensitive to changes in federal student loan policies and macroeconomic conditions affecting student borrowing.

RLI

Pros

RLI Corp maintains a diversified insurance portfolio with strong underwriting discipline and a history of consistent profitability.
The company boasts a solid balance sheet, with high liquidity and capital ratios supporting its ability to withstand market volatility.
RLI has demonstrated resilience in challenging insurance cycles, benefiting from its specialty risk focus and disciplined pricing.

Considerations

Insurance sector cyclicality exposes RLI to fluctuating loss ratios and potential earnings volatility during periods of increased claims.
The company faces competitive pressures in specialty insurance markets, which may constrain premium growth and margin expansion.
RLI's performance is sensitive to natural catastrophes and regulatory changes, both of which can impact underwriting results unpredictably.

About The Companies

Sallie Mae (SLM)

SLM Corporation, widely known by its brand name Sallie Mae, is a US-based financial services company focused on higher education. Its principal business involves originating and servicing private education loans for students and their families. The company's flagship product, the Smart Option Student Loan, is designed to help borrowers reduce their total loan costs through features like in-school payments. Beyond general student loans, Sallie Mae also offers specialised loan products for specific graduate programmes, such as law, medicine, and business. In addition to its lending activities, the company provides a selection of savings and deposit products, which are insured by the Federal Deposit Insurance Corporation (FDIC). This dual focus on lending and saving makes it a significant entity in the American education finance landscape. As with any investment, its value can go down as well as up.

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.

Which Baskets Do They Appear In?

No baskets available in this category

Which Baskets Do They Appear In?

No baskets available in this category

Buy SLM or RLI in Nemo

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

Discover More Comparisons

Sallie Mae vs Enact

Sallie Mae vs Enact: stock comparison

Sallie Mae vs Home BancShares

Sallie Mae vs Home BancShares: a comparison

Sallie Mae vs RLI

Comparison Snapshot