Wealthedge Acquires $3.3M Stake in Specialty Insurer RLI Amid AI Expansion

Wealthedge Investment Advisors, LLC acquired a new position in RLI Corporation during the third quarter of 2025, purchasing 50,952 shares valued at approximately $3.32 million. This new stake represents 1.26% of Wealthedge's reportable U.S. equity assets under management, ranking as the 25th largest holding out of 127 in its portfolio.

RLI is a national specialty insurer that focuses on niche markets within the property and casualty sector. Despite its expertise, RLI's stock has underperformed significantly compared to the broader market, declining nearly 25% in the past year and lagging the S&P 500 by more than 38 percentage points.

Over a three-year period, RLI's total return stands at 8%, with a compound annual growth rate of 2.6%, which contrasts with the S&P 500's 74% total return and 20.2% CAGR. Despite this, Wealthedge's initiation of a substantial position indicates a bullish outlook on RLI's future prospects.

RLI's innovations, notably its application of artificial intelligence and telematics technology, aim to enhance underwriting accuracy by better predicting risk and pricing insurance premiums based on driving behavior. These initiatives reflect efforts to improve competitive positioning and financial performance.

The establishment of this stake by an institutional investor highlights ongoing interest in specialty insurers amid a complex market environment, but the stock's historical underperformance underscores the need for cautious evaluation.

Overall, Wealthedge's move signals confidence in RLI's strategic direction, driven in part by technology adoption, though the insurer's stock still faces significant challenges to match broader market gains.