Good morning, welcome to the 61st annual RLI shareholders meeting. I'm Dave Duclos, Chairman of the Board, and it is my pleasure to welcome all of you to the RLI Corp. Annual Meeting and Proceedings. Thank you for your interest and attendance. Voting is now open. Before we begin, I'd like to share our company disclaimer. During today's annual shareholders meeting, we may make comments that reflect our intentions, beliefs, and expectations for the future of RLI. As with any forward-looking statements, these comments are subject to certain risk factors which could cause our actual results to differ materially. For a more comprehensive list of these factors and the text of our forward-looking statement disclaimer, please refer to our various SEC filings, including our 2025 Form 10-K and annual report. All of this information should be reviewed carefully.
RLI delivered another year of outstanding results in 2025, a testament to the team's discipline, focus, and commitment to excellence. Thank you to everyone across the organization for the important role you played in driving this exceptional performance. We also benefit from a dedicated board of directors and strong governance framework, both of which reinforce RLI's position as a trusted partner to our customers and a reliable investment for our shareholders. With that, I would like to call the meeting to order. First, I'd like to introduce the members of our board, all of whom have joined today. Mike Angelina, Susan Fleming, Jordan Graham, Clark Kellogg, Craig Kliethermes, Paul Medini, Robert Restrepo, Jr., Debbie Roberts, and Mike Stone. I'm proud to serve with such a talented group of directors who care deeply about the success of RLI and the shareholders that support this organization.
Also joining us today is Robbie Knight, representing Deloitte, our external independent auditor for fiscal year 2025. The business agenda is described in the notice and proxy statement related to the meeting, copies of which were distributed to all shareholders in advance. The formal meeting will be conducted first, after which RLI Corp. President and CEO, Craig Kliethermes, will make a few remarks about RLI's operations. After Craig's presentation, we will be available to answer your questions. Jeff Fick, our Chief Legal Officer, has reported to me the required notice of the meeting was mailed on time. A certified list of shareholders is also available to review for attendees who entered their 16-digit control number in the web portal prior to joining.
As noted in the proxy statement previously provided to all shareholders of the record, the record date for voting at this meeting was March 16, 2026. Aaron Diefenthaler, our CFO, will serve as inspector of this election, and his report, along with the proxies, will be filed with the meeting minutes. Mr. Fick has reported the voting results. We have 93% of the outstanding shares represented here today in person or by proxy, and therefore, a quorum is present, and we may conduct this meeting. As indicated in the proxy, there are three proposals to be acted upon today. Proposal One, the election of 10 directors of the company. Proposal Two, the non-binding advisory vote to approve the compensation of the company's named executive officers. Proposal Three, ratification of the selection of Deloitte as the company's independent registered public accounting firm.
Each of these proposals is more fully described in the proxy statement. Each is recommended by the Board of Directors. Mr. Fick reported the voting results to me this morning. Based on his report, with respect to Proposal No. 1, the election of directors, a majority of the votes cast have been voted for the election of each of the 10 nominees. Each person nominated for election as a director has been elected to serve as a director until the 2027 annual meeting. With respect to Proposal No. 2, the non-binding advisory vote to approve the compensation of the company's named executive officers, also known as say -on- pay, as described in the 2026 proxy statement. The proposal received approval of 94% of the votes cast.
With respect to Proposal No. 3, the approval of the ratification of Deloitte as independent registered public accounting firm of the company for 2026, the proposal received approval of a majority of the votes cast and has been ratified by shareholders. These actions will be recorded as stated in the minutes. This concludes the formal meeting. I declare this meeting adjourned. Voting is now closed, and I'd like to turn things over to RLI President and CEO, Craig Kliethermes, who will bring you up to date on the company's progress.
Thank you, Dave. Good morning. On behalf of all RLI associate owners, thank you for joining us today and for your continued investment in our company. 2025 marked a defining milestone for RLI, our 30th consecutive year of underwriting profitability. In an industry where sustained performance is rare, this record demonstrates more than results. It reflects a proven business model, a resilient product portfolio, and a culture that prioritizes long-term value creation over short-term gains. For six decades, RLI has been guided by a simple principle: make sound decisions, stay disciplined, and serve niche markets where expertise matters. That approach continues to shape how we allocate capital, manage risk, and build enduring relationships with our customers and distribution partners. Throughout 2025, we remained committed to delivering specialized solutions and responsive service.
Our underwriting teams deepened engagement with our producers and distribution partners using market insight and feedback to enhance our products and strengthen our competitive positioning. At the same time, we maintained a strong and flexible balance sheet. We deployed capital thoughtfully, supporting profitable growth, returning capital to shareholders, and preserving the capacity to act when opportunities emerge. Because of our team's disciplined performance, we achieved the following results in 2025. Generated operating earnings of $320.8 million or $3.47 per share. Reported a combined ratio of 83.6, marking our 30th consecutive year of underwriting profitability. We wrote more than $2 billion in gross premium, led by growth in our casualty segment. Investment income rose 12%, supported by strong operating cash flows and higher reinvestment yields. Shareholders' equity was $1.8 billion at year-end.
In 2025, we increased regular dividends for the 50th consecutive year and paid a $2 per share special dividend. Over the past decade, RLI has returned more than $1.6 billion to shareholders through regular and special dividends. These outcomes underscore the strength of our diversified specialty portfolio, sound underwriting, effective capital management, and the alignment created by our ownership culture. I want to recognize our associate owners for their outstanding efforts and their dedication to serving our customers. Their commitment continues to drive our success. Turning to 2026, we started the year with another quarter of strong results. Operating earnings were $76.8 million, or $0.83 per share, compared to $0.89 per share a year ago. We produced underwriting income of $57.8 million, resulting in an 86% combined ratio. Gross premiums written grew 3% led by our casualty segment.
Net investment income increased 15% compared to the first quarter of 2025. Shareholders' equity was $1.8 billion at quarter end, with book value per share up 2% from year-end 2025, inclusive of dividends. While market conditions remain competitive, these results demonstrate our ability to adapt, leaning into opportunities where pricing is adequate and preserving underwriting quality where it is not. Overall, a solid start to the year and another quarter of profitable growth. Our focus has always been on delivering long-term value, not just near-term results. The strength of that approach is evident in our track record. We have produced profitable underwriting results for 30 consecutive years, outperforming the industry average combined ratio by 11 points over the last decade. Over the 10-year period ending in 2025, we have generated annualized total return of 11% for shareholders.
I am pleased to announce your board has approved a $2 per share special dividend and a regular cash dividend of $0.18 per share, a 12.5% increase over the prior quarter. With this payment, RLI will have raised and paid dividends for 51 consecutive years, a record few companies can match. The board also has authorized a new share repurchase program of up to $250 million of outstanding common stock. Together, these actions reflect our commitment to returning value to shareholders while maintaining the flexibility to invest in future growth. RLI's performance over time is not the result of a single strategy or market cycle. It is the outcome of a differentiated business model. We operate in a cyclical industry, and we do not chase growth for its own sake. When conditions support attractive risk-adjusted returns, we grow.
When they do not, we prioritize profitability and protect the integrity of our portfolio. That model is reinforced by our ownership culture. Our associate owners think like a shareholders because they are shareholders, and that alignment drives better decisions across underwriting, claims, and operations. As we look ahead, our strategic priorities remain clear and well-defined, making it easier for customers to do business with RLI, enhancing our products, service, and relationships, strengthening the ownership culture and discipline that have long set us apart. These priorities are not new, and that is by design. Consistency in strategy combined with disciplined execution is what has allowed us to perform across market cycles and produce durable results. We are confident in our approach, optimistic about the future, and focused on continuing to deliver for our customers and shareholders. Thank you for your trust and investment in RLI.
I will now turn it back over to Dave.
Thank you, Craig. We will now take your questions. Questions can be submitted in the designated field on the online meeting portal. As a reminder, only shareholders who have provided their 16-digit control number prior to joining the meeting today will be able to submit questions. We'll now pause for a moment to allow time for questions to be submitted. We have a question related to the matters to be addressed in today's meeting. The question relates to required holdings of RLI shares. We recently increased required holdings from $500,000 to $1 million for directors, with holdings of $1.5 million required for our chairman. We believe the increased holdings reinforce alignment of our directors with shareholders. Thank you for your time today and for your continued investment in RLI. We look forward to updating you on our progress in the year ahead.
With no further business to address, this concludes our meeting.
Ladies and gentlemen, this concludes today's meeting. You may now disconnect.