A.M. Best Affirms Ratings of RLI Group and Its Members

A.M. Best Co. has affirmed the financial strength rating (FSR) of A+ (Superior) and issuer credit ratings (ICR) of “aa-” of RLI Group (RLI) and its members. A.M. Best also has affirmed the ICR of “a-”of RLI’s publicly traded parent holding company, RLI Corp. (NYSE:RLI). Additionally, A.M. Best has affirmed the debt rating of “a-” on $100 million 5.95% senior unsecured notes, due 2014 of RLI Corp. The outlook for all ratings is stable. All companies are domiciled in Peoria, IL. (See below for a detailed listing of the companies and ratings.)

The ratings reflect RLI’s superior capitalization, outstanding long-term operating profitability and the financial flexibility afforded by RLI Corp. Somewhat offsetting these positive factors are the group’s high equity leverage and susceptibility to natural and man-made catastrophes. Continued utilization of strict underwriting discipline and rate adequacy have been keys to generating strong operating results. RLI’s investment philosophy has successfully focused on preserving capital and maintaining adequate liquidity to meet financial obligations.

RLI is a leading specialty lines insurer with operations conducted on an admitted and non-admitted basis throughout the United States. Principal lines of business include earthquake, commercial property, marine, commercial, automobile, errors and omissions, directors and officers, general liability, commercial and personal umbrella and surety.

The FSR of A+ (Superior) and ICRs of “aa-” have been affirmed for RLI Group and its following members:

• Mt. Hawley Insurance Company
• RLI Indemnity Company
• RLI Insurance Company

For Best’s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.