Fitch Affirms and Withdraws Ratings of RLI Corp.

Fitch Ratings has affirmed and withdrawn the 'A-' Issuer Default Rating (IDR) of RLI Corp. (RLI) and the 'BBB+' rating of RLI's senior unsecured debt. Fitch has also affirmed and withdrawn the 'A+' Insurer Financial Strength (IFS) rating of RLI's operating subsidiaries. The Rating Outlook was Stable prior to the withdrawal.

RLI's ratings reflect its strong operating performance, solid balance sheet, conservative reserving practices and adequate capitalization. An offsetting factor to RLI's ratings is its exposure to catastrophe losses, which is primarily related to west coast earthquakes and hurricanes in the gulf and east coasts as well as Hawaii.

Fitch no longer considers RLI's rating to be relevant to its coverage.

Fitch has affirmed the following ratings with a Stable Outlook and subsequently withdrawn the ratings:

RLI Corp.

--Issuer Default Rating (IDR) at 'A-';

--$100 million 5.95% senior unsecured notes due Jan. 15, 2014 at 'BBB+'.

RLI Insurance Company

Mt. Hawley Insurance Company

RLI Indemnity

--Insurer Financial Strength (IFS) rating at 'A+'.

Additional information is available at 'www.fitchratings.com'. The issuer did not participate in the rating process other than through the medium of its public disclosure.

Applicable Criteria & Related Research:

--'Insurance Rating Methodology' (March 31, 2011);

--'Non-Life Insurance Rating Methodology' (March 31, 2011).

Applicable Criteria and Related Research:

Insurance Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=614266

Non-Life Insurance Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=604366

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