RLI Corp Receives Upgraded Rating Outlook as AM Best Affirms Superior Financial Strength

Credit Rating Agency Signals Confidence in Specialty Insurer’s Stability

AM Best, a leading global credit rating authority in the insurance sector, has elevated its assessment of RLI Corp and its insurance subsidiaries, shifting their rating outlook from stable to positive while maintaining the company’s elite Financial Strength Rating (FSR) of A+ (Superior). The Long-Term Issuer Credit Ratings have been affirmed at “aa” (Superior) for RLI Group members and “a” (Excellent) for the parent holding company, RLI Corp [NYSE: RLI], based in Peoria, Illinois.

Balance Sheet Strength Drives Positive Assessment

The upgraded outlook reflects RLI’s fortress-like balance sheet combined with consistently strong operational execution over extended periods. AM Best highlighted the company’s disciplined capital management strategy, favorable reserve performance, and robust liquidity position as key supporting factors. The specialty insurance group maintains the strongest level of risk-adjusted capitalization, measured by Best’s Capital Adequacy Ratio (BCAR), with expectations to sustain this position through the medium term.

Impressive Capital Growth Over Five Years

RLI has demonstrated remarkable capital expansion despite returning substantial dividends to shareholders. Policyholder surplus surged to $1.8 billion as of the end of 2024, compared to $1.0 billion at the close of 2019—a testament to the company’s internal capital generation capabilities. This growth trajectory reinforces the ratings and supports the organization’s financial flexibility.

Consistent Underwriting Performance and Risk Management

The ratings also acknowledge RLI’s track record of stable underwriting results across multiple market cycles. Sound pricing discipline, strategic diversification, and risk optimization form the foundation of this consistency. By concentrating on specialty markets that remain underserved by larger competitors, RLI has insulated itself from traditional property and casualty market cyclicality while benefiting from solid investment returns.

Affirmed Subsidiaries and Financial Metrics

The A+ (Superior) FSR and “aa” (Superior) Long-Term ICRs have been reaffirmed for RLI Insurance Company, Contractors Bonding and Insurance Company, and Mt. Hawley Insurance Company, all with positive outlooks. The parent company’s modest financial leverage and strong fixed-charge coverage further support the ratings.

Contact Information:

• Michael Venezia, Senior Financial Analyst: +1 908 882 2414
• Christopher Sharkey, Associate Director, Public Relations: +1 908 882 2310
• Rosemarie Mirabella, Director: +1 908 882 2125
• Al Slavin, Senior Public Relations Specialist: +1 908 882 2318