AM Best Upgrades Financial Strength Rating to A++ (Superior) and Revises Outlook to Stable for RLI Corp., RLI Insurance Co., Mt. Hawley Insurance Co. and Contractors Bonding and Insurance Co.

RLI Corp. (NYSE: RLI) recently announced a significant upgrade from AM Best, which has elevated the financial strength rating of its subsidiaries—RLI Insurance Company, Mt. Hawley Insurance Company, and Contractors Bonding and Insurance Company—to A++ (Superior). Additionally, the Long-Term Issuer Credit Ratings (ICR) for each of these insurance entities have been upgraded to “aa+” (Superior), while RLI Corp. itself received an ICR upgrade to “a+” (Excellent). These ratings come with a revised outlook, now stable instead of positive.

AM Best, a prestigious global credit rating agency specializing in the insurance industry, highlighted several strengths justifying this upgrade. Key factors include RLI's robust balance sheet, consistent strong operating performance, favorable business profile, and exceptional enterprise risk management strategies. The ratings reflect RLI's effective approach to navigating the complexities of the insurance market, ensuring financial resilience and operational excellence.

Founded as a specialty insurer, RLI serves niche property, casualty, and surety markets, backed by a legacy of deep underwriting expertise and a commitment to superior customer service across commercial and personal lines nationwide. The company's subsidiaries are now all rated A++, illustrating a strong collective standing in the insurance landscape.

RLI Corp. boasts a remarkable financial history, having paid and increased regular dividends for 50 consecutive years while achieving underwriting profits for 30 straight years. This track record underscores RLI’s stability and reliability as a financial partner.

Investors and industry participants can explore further details about RLI’s offerings and corporate ethos by visiting their website at www.rlicorp.com. For media inquiries, CFO Aaron Diefenthaler is available at 309-693-5846 or via email at investors@rlicorp.com.

The recent upgrade of RLI Corp. and its subsidiaries by AM Best to a financial strength rating of A++ (Superior) coupled with a stable outlook presents a compelling opportunity for investors. This reassessment, which highlights RLI’s robust balance sheet, strong operating performance, and solid enterprise risk management, signifies a trustworthy investment in the competitive niche insurance sector.

Investors should note that RLI Corp.'s sustained financial discipline is evident in its history—having paid and increased regular dividends for 50 consecutive years while maintaining underwriting profits for 30 years. This kind of consistency not only demonstrates the firm’s operational excellence but also its commitment to shareholder returns, positioning RLI as a potentially resilient choice in turbulent markets.

The upgrade in AM Best’s ratings to “aa+” (Superior) for its subsidiaries reflects not only RLI’s current financial solidity but also a confidence in its future stability and operational strategy. With a focus on specialty insurance, including niche markets that often endure less volatility than broader markets, RLI Corp. is well-poised to capitalize on opportunities even in challenging economic environments.

For potential investors, the fact that AM Best has revised its outlook to stable suggests a favorable risk-adjusted return going forward. However, the stable outlook also implies a caution against expecting significant rapid growth; instead, investors should consider holding RLI as a defensive stock in their portfolios offering consistent returns as opposed to high volatility.

In conclusion, with AM Best’s endorsement of RLI Corp. and its subsidiaries, the stock represents not just a safe harbor for conservative investors but also a reliable candidate for those looking to maintain income through dividends in the specialty insurance marketplace.