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

Core Viewpoint - AM Best has upgraded the credit ratings for RLI Corp. and its subsidiaries, reflecting strong financial performance and balance sheet strength [1] Group 1: Credit Ratings Upgrade - AM Best upgraded the Financial Strength Rating (FSR) to A++ (Superior) from A+ (Superior) for RLI Group members [1] - The Long-Term Issuer Credit Ratings (Long-Term ICR) were upgraded to "aa+" (Superior) from "aa" (Superior) for RLI Group members and to "a+" (Excellent) from "a" (Excellent) for RLI Corp. [1] - The outlook for these ratings has been revised to stable from positive [1] Group 2: Financial Strength and Performance - RLI's balance sheet strength is assessed as strongest, supported by effective capital management strategies and strong underwriting controls [1] - RLI's policyholder surplus reached $1.9 billion as of Q3 2025, indicating robust internal capital generation [1] - The company's liquidity ratios outperform industry benchmarks, despite elevated common stock leverage and significant earthquake exposure [1] Group 3: Risk Management and Underwriting - RLI's risk-adjusted capitalization is expected to remain at the strongest level, benefiting from management's niche specialty market expertise [1] - Consistency in underwriting results is driven by rigorous pricing discipline and diversification, along with solid investment returns [1] - The stable outlook reflects expectations of continued strong underwriting and operating profitability [1]