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AM Best Affirms Credit Ratings of RLI Corp. and Its Subsidiaries

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AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "aa" of the members of RLI Group (RLI). In addition, AM Best has affirmed the Long-Term ICR of "a" of RLI's publicly traded parent holding company, RLI Corp. (NYSE:RLI). AM Best also has affirmed the Long-Term Issue Credit Rating of "a" on $150 million 4.875% senior unsecured notes due 2023 of RLI Corp. The outlook of these Credit Ratings (ratings) is stable. All companies are headquartered in Peoria, IL. (See below for a detailed listing of the companies and ratings.)

The ratings reflect RLI's balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, favorable business profile and very strong enterprise risk management.

The company's long track record of positive operating results demonstrates the capability of producing results that are consistently above its peer group. RLI has the expertise to focus on niche opportunities by concentrating on markets that often are underserved, which helps insulate it from the various stages of the traditional property/casualty market cycle. Further supporting the ratings is the strong financial flexibility afforded by RLI Corp., as evidenced by its modest financial leverage and strong fixed-charge coverage.

AM Best believes that RLI is well-positioned at its current rating level. Key rating drivers that could lead to downward rating pressure are a significant deterioration in RLI's underwriting performance and a significant decline in its risk-adjusted capitalization.

The FSR of A+ (Superior) and the Long-Term ICRs of "aa", each with a stable outlook, have been affirmed for the members of RLI Group:

  • RLI Insurance Company
  • Contractors Bonding and Insurance Company
  • Mt. Hawley Insurance Company

This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global rating agency and information provider with an exclusive focus on the insurance industry. Visit www.ambest.com for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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