AM Best Upgrades Credit Ratings for RLI Corp. and Its Subsidiaries

Key Terms

financial strength rating financial

A financial strength rating is an assessment of an organization's overall financial health, indicating how well it can meet its financial commitments. Think of it as a report card that shows whether a company or institution is financially stable and capable of withstanding economic challenges. This rating helps investors gauge the level of risk involved in engaging with or investing in that organization.

long-term issuer credit ratings financial

Long-term issuer credit ratings are assessments of a borrower's ability to repay debt over a period longer than one year. They help investors understand the level of risk involved in lending to that entity, similar to how a credit score indicates trustworthiness. These ratings influence borrowing costs and investment decisions, guiding investors on the safety and stability of their investments.

enterprise risk management technical

Enterprise Risk Management is a process companies use to identify, assess, and prepare for potential problems that could disrupt their success, like financial losses or reputation damage. It’s like a safety plan that helps a business stay strong and adapt quickly when unexpected challenges come up. This helps the company protect its future and keep running smoothly.

reinsurance program technical

A reinsurance program is a plan where an insurance company shares some of its risks with another company to protect itself from very large or unexpected losses. It acts like an insurance policy for the insurance company, helping it stay financially stable. For investors, understanding a reinsurance program is important because it affects the company's ability to handle large claims and maintain financial health.

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has upgraded the Financial Strength Rating (FSR) to A++ (Superior) from A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “aa+” (Superior) from “aa” (Superior) for the members of RLI Group (RLI). In addition, AM Best has upgraded the Long-Term ICR to “a+” (Excellent) from “a” (Excellent) of RLI’s publicly traded parent holding company, RLI Corp. [NYSE: RLI]. The outlook of these Credit Ratings (ratings) has been revised to stable from positive. 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 assesses as strongest, as well as its strong operating performance, favorable business profile and very strong enterprise risk management.

The rating upgrades reflect RLI’s exceptional balance sheet strength fundamentals, buttressed by the group’s effective capital management strategies, historically positive reserve development, strong underwriting controls and RLI’s quality reinsurance program. RLI’s overall liquidity ratios outperform the industry benchmarks, despite the group’s elevated level of common stock leverage and significant earthquake exposure. AM Best expects that RLI’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), will remain at the strongest level, with favorable operating performance trends benefiting from management’s niche specialty market expertise and robust risk management program, which places an ardent emphasis on safeguarding the balance sheet from capital risks and meeting corporate profitability goals.

The consistency in the group’s underwriting results is driven by rigorous pricing discipline and diversification, augmented by solid investment returns. Perpetual internal capital generation has enabled RLI to grow its capital size over the past five years (albeit the return of substantial capital in the form of stockholder dividends to RLI Corp.), with policyholder surplus reaching $1.9 billion as of the third quarter of 2025. Further supporting the ratings is the strong financial flexibility afforded by RLI Corp., as demonstrated by its modest financial leverage and very strong fixed-charge coverage.

The stable outlooks reflect AM Best’s expectation that RLI will maintain strong underwriting and operating profitability, a favorable business profile along with an overall balance sheet strength assessment that is comparable to other companies in the composite assessed at strongest.

The FSR has been upgraded to A++ (Superior) from A+ (Superior) and the Long-Term ICRs to “aa+” (Superior) from “aa” (Superior), with the outlooks revised to stable from positive 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 Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260220226818/en/

Christine DePalma, CPCU, ASLI

Financial Analyst

+1 908 882 1732

christine.depalma@ambest.com

Rosemarie Mirabella

Director

+1 908 882 2125

rosemarie.mirabella@ambest.com

Christopher Sharkey

Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com

Al Slavin

Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com

Source: AM Best