RLI (RLI) 10-Q 28 Oct 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Oct. 11, 2013
Document and Entity Information
Entity Registrant Name	RLI CORP
Entity Central Index Key	84246
Document Type	10-Q
Document Period End Date	30-Sep-13
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		21,446,816
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Earnings and Comprehensive Earnings (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Condensed Consolidated Statements of Earnings and Comprehensive Earnings
Net premiums earned	$163,702	$149,943	$462,406	$428,807
Net investment income	13,598	14,221	39,331	44,340
Net realized investment gains	10,999	5,481	18,425	17,389
Other-than-temporary impairment (OTTI) losses on investments				-1,156
Consolidated revenue	188,299	169,645	520,162	489,380
Losses and settlement expenses	64,246	70,598	191,301	193,486
Policy acquisition costs	54,176	49,262	156,014	145,632
Insurance operating expenses	13,462	11,553	37,916	34,595
Interest expense on debt	1,513	1,512	4,538	4,537
General corporate expenses	2,157	2,099	6,235	5,901
Total expenses	135,554	135,024	396,004	384,151
Equity in earnings of unconsolidated investee	2,564	1,859	10,696	8,928
Earnings before income taxes	55,309	36,480	134,854	114,157
Income tax expense	17,662	11,017	42,458	35,908
Net earnings	37,647	25,463	92,396	78,249
Other comprehensive earnings (loss), net of tax	-1,946	21,047	-17,874	37,713
Comprehensive earnings	$35,701	$46,510	$74,522	$115,962
Basic:
Basic net earnings per share (in dollars per share)	$1.76	$1.20	$4.33	$3.69
Basic comprehensive earnings per share (in dollars per share)	$1.67	$2.19	$3.49	$5.47
Diluted:
Diluted net earnings per share (in dollars per share)	$1.73	$1.19	$4.26	$3.64
Diluted comprehensive earnings per share (in dollars per share)	$1.64	$2.16	$3.44	$5.39
Weighted average number of common shares outstanding
Basic (in shares)	21,422	21,218	21,337	21,207
Diluted (in shares)	21,773	21,486	21,665	21,519
Cash dividends declared per common share (in dollars per share)	$0.34	$0.32	$1	$0.94

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Fixed income
Available-for-sale, at fair value	$1,379,012	$1,378,582
Held-to-maturity, at amortized cost	651	11,728
Trading, at fair value		7
Equity securities, at fair value	392,156	375,788
Short-term investments, at cost	22,994	30,462
Cash	87,398	44,314
Total investments and cash	1,882,211	1,840,881
Bond issuance - proceeds receivable	148,596
Accrued investment income	12,781	14,403
Premiums and reinsurance balances receivable	157,213	139,355
Ceded unearned premium	69,842	73,192
Reinsurance balances recoverable on unpaid losses	360,194	359,884
Deferred policy acquisition costs	63,215	52,344
Property and equipment	36,007	27,987
Investment in unconsolidated investee	62,506	52,128
Goodwill and intangibles	75,140	76,113
Other assets	18,932	8,345
TOTAL ASSETS	2,886,637	2,644,632
Liabilities:
Unpaid losses and settlement expenses	1,135,698	1,158,483
Unearned premiums	416,886	369,346
Reinsurance balances payable	44,530	43,959
Funds held	64,047	56,633
Income taxes-deferred	54,337	55,566
Debt, notes payable due 2014	100,000	100,000
Debt, notes payable due 2023	150,000
Accrued expenses	49,108	49,933
Other liabilities	17,453	14,349
TOTAL LIABILITIES	2,032,059	1,848,269
Shareholders' Equity
Common stock ($1 par value, 100,000,000 shares authorized) (32,911,923 shares issued, 21,446,816 shares outstanding at 9/30/13) (32,727,731 shares issued, 21,262,624 shares outstanding at 12/31/12)	32,912	32,728
Paid-in capital	240,125	235,262
Accumulated other comprehensive earnings	125,296	143,170
Retained earnings	849,244	778,202
Deferred compensation	10,482	11,106
Less: Treasury shares at cost (11,465,107 shares at 9/30/13 and 12/31/12)	-403,481	-404,105
TOTAL SHAREHOLDERS' EQUITY	854,578	796,363
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$2,886,637	$2,644,632

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Condensed Consolidated Balance Sheets
Common stock, par value (in dollars per share)	$1	$1
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	32,911,923	32,727,731
Common stock, shares outstanding (in shares)	21,446,816	21,262,624
Treasury stock, shares (in shares)	11,465,107	11,465,107

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Condensed Consolidated Statements of Cash Flows
Net cash provided by operating activities	$81,736	$13,154
Cash Flows from Investing Activities
Investments purchased	-358,510	-628,331
Investments sold	221,133	180,641
Investments called or matured	114,929	469,041
Net change in short-term investments	10,869	-59,088
Net property and equipment purchased	-10,766	-11,073
Net cash used in investing activities	-22,345	-48,810
Cash Flows from Financing Activities
Cash dividends paid	-21,354	-19,940
Stock plan share issuance	159	4,842
Excess tax benefit from exercise of stock options	4,888	871
Net cash used in financing activities	-16,307	-14,227
Net increase (decrease) in cash	43,084	-49,883
Cash at the beginning of the period	44,314	81,184
Cash at September 30	$87,398	$31,301

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2013
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1.                            SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	A.          BASIS OF PRESENTATION
	The unaudited condensed consolidated interim financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) for interim financial reporting and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements. As such, these unaudited condensed consolidated interim financial statements should be read in conjunction with our 2012 Annual Report on Form 10-K. Management believes that the disclosures are adequate to make the information presented not misleading, and all normal and recurring adjustments necessary to present fairly the financial position at September 30, 2013 and the results of operations of RLI Corp. and Subsidiaries for all periods presented have been made. The results of operations for any interim period are not necessarily indicative of the operating results for a full year.
	The preparation of the unaudited condensed consolidated interim financial statements requires management to make estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated interim financial statements, and the reported amounts of revenue and expenses during the period. These estimates are inherently subject to change and actual results could differ significantly from these estimates.
	B.          ADOPTED ACCOUNTING STANDARDS
	ASU 2012-02, Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment
	This ASU permits an entity the option to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. The results of the qualitative assessment are used as a basis in determining whether it is necessary to perform the two-step quantitative impairment test. If the qualitative assessment supports the conclusion that it is more likely than not that the fair value of the asset exceeds its carrying amount, the entity would not need to perform the two-step quantitative impairment test. The focus of the guidance is to reduce the cost and complexity of performing impairment tests for indefinite-lived intangible assets other than goodwill, and to improve consistency in impairment testing among long-lived asset categories.
	We adopted ASU 2012-02 on January 1, 2013. The adoption did not have a material effect on our financial statements. There have been no triggering events that would suggest possible impairment or that it is more likely than not that the fair values of indefinite-lived intangible assets are less than their carrying amounts.
	ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income
	This ASU was issued to improve the reporting of reclassifications out of accumulated other comprehensive income. The guidance requires an entity to present, either on the face of the statement where net earnings is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items in the statement of earnings. The intent of the guidance is to provide financial statement users with a single location to determine the effect of reclassification adjustments on the financial statements.
	We adopted ASU 2013-02 on January 1, 2013. The required disclosures have been included in note 1.F. to these unaudited condensed consolidated interim financial statements.
	C.            PROSPECTIVE ACCOUNTING STANDARDS
	There are no prospective accounting standards which would impact our financial statements as of September 30, 2013.
	D.            INTANGIBLE ASSETS
	In accordance with GAAP guidelines, the amortization of goodwill and indefinite-lived intangible assets is not permitted. Goodwill and indefinite-lived intangible assets remain on the balance sheet and are tested for impairment on an annual basis, or earlier if there is reason to suspect that their values may have been diminished or impaired. Goodwill and intangibles totaled $75.1 million at September 30, 2013. These assets relate to acquisition activity including our recent acquisitions of Contractors Bonding and Insurance Company (CBIC) and Rockbridge Underwriting Agency (Rockbridge).
	Goodwill resulting from acquisitions completed prior to 2011 totaled $26.2 million and is attributable to our surety segment. Goodwill and intangible assets resulting from the CBIC acquisition in April 2011 totaled $32.6 million. The CBIC-related assets include goodwill attributable to our casualty and surety segments of $5.3 million and $15.1 million, respectively, and an indefinite-lived intangible asset in the amount of $8.8 million. Annual impairment testing was performed on each of these goodwill and indefinite-lived intangible assets during the second quarter of 2013. Based upon these reviews, none of the assets were impaired. In addition, as of September 30, 2013, there were no triggering events that occurred that would suggest an updated review was necessary. Definite-lived intangible assets related to the CBIC acquisition totaled $3.4 million, net of amortization, as of September 30, 2013.
	The remaining $16.3 million of goodwill and intangibles relates to our purchase of Rockbridge in November 2012. Goodwill attributable to our casualty segment totaled $12.4 million. Definite-lived intangible assets totaled $3.9 million, net of amortization, as of September 30, 2013. Our initial annual impairment testing on this goodwill will be performed in the fourth quarter of 2013. As of September 30, 2013, there were no triggering events that occurred that would suggest an interim review was necessary. See note 6 to the unaudited condensed consolidated interim financial statements for further discussion.
	The aforementioned definite-lived intangible assets are amortized against future operating results based on their estimated useful lives. Amortization of intangible assets resulting from the acquisitions of CBIC and Rockbridge was $0.4 million for the third quarter of 2013, and $1.0 million for the nine months ended September 30, 2013.
	E.             EARNINGS PER SHARE
	Basic earnings per share (EPS) excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the dilution that could occur if securities or other contracts to issue common stock or common stock equivalents were exercised or converted into common stock. When inclusion of common stock equivalents increases the earnings per share or reduces the loss per share, the effect on earnings is anti-dilutive. Under these circumstances, the diluted net earnings or net loss per share is computed excluding the common stock equivalents.
	The following represents a reconciliation of the numerator and denominator of the basic and diluted EPS computations contained in the unaudited condensed consolidated interim financial statements.
		For the Three-Month Period								For the Three-Month Period
		Ended September 30, 2013								Ended September 30, 2012
	(in thousands, except	Income			Shares		Per Share			Income			Shares	Per Share
	per share data)	(Numerator)			(Denominator)		Amount			(Numerator)			(Denominator)	Amount
	Basic EPS
	Income available to common shareholders	$	37,647		21,422		$	1.76		$	25,463		21,218	$	1.2
	Effect of Dilutive Securities
	Stock options	—			351					—			268
	Diluted EPS
	Income available to common shareholders	$	37,647		21,773		$	1.73		$	25,463		21,486	$	1.19
		For the Nine-Month Period								For the Nine-Month Period
		Ended September 30, 2013								Ended September 30, 2012
	(in thousands, except	Income			Shares		Per Share			Income			Shares	Per Share
	per share data)	(Numerator)			(Denominator)		Amount			(Numerator)			(Denominator)	Amount
	Basic EPS
	Income available to common shareholders	$	92,396		21,337		$	4.33		$	78,249		21,207	$	3.69
	Effect of Dilutive Securities
	Stock options	—			328					—			312
	Diluted EPS
	Income available to common shareholders	$	92,396		21,665		$	4.26		$	78,249		21,519	$	3.64
	F.              COMPREHENSIVE EARNINGS
	Our comprehensive earnings include net earnings plus unrealized gains/losses on our available-for-sale investment securities, net of tax. In reporting comprehensive earnings on a net basis in the statement of earnings, we used a 35 percent tax rate. The following table illustrates the changes in the balance of each component of accumulated other comprehensive earnings for each period presented in the unaudited condensed consolidated interim financial statements.
		For the Three-Month Periods Ended					For the Nine-Month Periods
		September 30,					Ended September 30,
	(in thousands)	2013			2012		2013			2012
	Unrealized Gains/Losses on Available-for-Sale Securities
	Beginning balance	$	127,242		133,991		$	143,170		117,325
	Other comprehensive earnings before reclassifications	5,203			25,127		(5,354		)	50,066
	Amounts reclassified from accumulated other comprehensive earnings	(7,149		)	(4,080	)	(12,520		)	(12,353	)
	Net current-period other comprehensive earnings	$	(1,946	)	21,047		$	(17,874	)	37,713
	Ending balance	$	125,296		155,038		$	125,296		155,038
	The sale or other-than-temporary impairment of an available-for-sale security results in amounts being reclassified from accumulated other comprehensive earnings to current period net earnings. The effects of reclassifications out of accumulated other comprehensive earnings by the respective line items of net earnings are presented in the following table.
		Amount Reclassified from Accumulated Other
		Comprehensive Earnings
	(in thousands)	For the Three-Month					For the Nine-Month					Affected line item in the
	Component of Accumulated	Periods Ended					Periods Ended
		September 30,					September 30,
	Other Comprehensive Earnings	2013			2012		2013			2012		Statement of Earnings
	Unrealized gains and losses on available-for-sale securities	$	10,998		6,278		$	19,261		20,161		Net realized investment gains
		—			—		—			(1,156	)	Other-than-temporary impairment (OTTI) losses on investments
		10,998			6,278		19,261			19,005		Earnings before income taxes
		(3,849		)	(2,198	)	(6,741		)	(6,652	)	Income tax expense
		$	7,149		4,080		$	12,520		12,353		Net earnings

INVESTMENTS

INVESTMENTS	9 Months Ended
	Sep. 30, 2013
INVESTMENTS
INVESTMENTS	2.                            INVESTMENTS
	Our investments include fixed income debt securities and common stock equity securities. As disclosed in our 2012 Annual Report on Form 10-K, we present our investments in these classes as available-for-sale and held-to-maturity. When available, we obtain quoted market prices to determine fair value for our investments. If a quoted market price is not available, fair value is estimated using a secondary pricing source or using quoted market prices of similar securities. We have no investment securities for which fair value is determined using Level 3 inputs as defined in note 3 to the unaudited condensed consolidated interim financial statements, “Fair Value Measurements.”
	The following tables show the amortized cost, unrealized gains/losses, fair value and contractual maturities for our available-for-sale and held-to-maturity securities.
	Available-for-Sale Securities
	The amortized cost and fair value of available-for-sale securities at September 30, 2013 and December 31, 2012 were as follows:
	Available-for-sale
	(in thousands)
		9/30/13
		Cost or			Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
	Asset Class	Cost			Gains			Losses			Value
	U.S. agency	$	8,537		$	52		$	(130	)	$	8,459
	Corporate	474,628			23,746			(6,850		)	491,524
	Mortgage-backed	247,317			7,722			(3,475		)	251,564
	ABS/CMBS*	94,123			1,609			(1,725		)	94,007
	Non-U.S. govt. & agency	11,414			469			(16		)	11,867
	U.S. government	17,090			253			—			17,343
	Municipal	506,834			8,079			(10,665		)	504,248
	Total Fixed Income	$	1,359,943		$	41,930		$	(22,861	)	$	1,379,012
	Equity	$	218,656		$	173,861		$	(361	)	$	392,156
	Available-for-sale
	(in thousands)
		12/31/12
		Cost or			Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
	Asset Class	Cost			Gains			Losses			Value
	U.S. agency	$	11,609		$	150		$	—		$	11,759
	Corporate	535,437			45,497			(226		)	580,708
	Mortgage-backed	234,629			15,758			—			250,387
	ABS/CMBS*	72,681			4,648			—			77,329
	Non-U.S. govt. & agency	8,410			957			—			9,367
	U.S. government	16,358			355			—			16,713
	Municipal	415,226			17,250			(157		)	432,319
	Total Fixed Income	$	1,294,350		$	84,615		$	(383	)	$	1,378,582
	Equity	$	240,287		$	136,376		$	(875	)	$	375,788
	*Asset-backed and commercial mortgage-backed
	The following table presents the amortized cost and fair value of available-for-sale debt securities by contractual maturity dates as of September 30, 2013:
		9/30/13
	AFS	Amortized			Fair
	(in thousands)	Cost			Value
	Due in one year or less	$	12,910		$	13,014
	Due after one year through five years	146,264			155,143
	Due after five years through 10 years	616,368			627,254
	Due after 10 years	242,961			238,030
	Mtge/ABS/CMBS*	341,440			345,571
	Total available-for-sale	$	1,359,943		$	1,379,012
	*Mortgage-backed, asset-backed & commercial mortgage-backed
	Held-to-Maturity Debt Securities
	The carrying value and fair value of held-to-maturity securities at September 30, 2013 and December 31, 2012 were as follows:
	Held-to-maturity
	(in thousands)
		9/30/13
					Gross			Gross
		Amortized Cost/			Unrecognized			Unrecognized			Fair
	Asset Class	Carrying Value**			Gains			Losses			Value
	U.S. agency	$	—		$	—		$	—		$	—
	Corporate	—			—			—			—
	Mortgage-backed	—			—			—			—
	ABS/CMBS*	—			—			—			—
	Non-U.S. govt. & agency	—			—			—			—
	U.S. government	—			—			—			—
	Municipal	651			44			—			695
	Total Fixed Income	$	651		$	44		$	—		$	695
	Held-to-maturity
(in thousands)
	12/31/12
				Gross			Gross
	Amortized Cost/			Unrecognized			Unrecognized			Fair
Asset Class	Carrying Value**			Gains			Losses			Value
U.S. agency	$	10,076		$	74		$	—		$	10,150
Corporate	—			—			—			—
Mortgage-backed	—			—			—			—
ABS/CMBS*	—			—			—			—
U.S. government	—			—			—			—
Municipal	1,652			66			—			1,718
Total Fixed Income	$	11,728		$	140		$	—		$	11,868
* Asset-backed and commercial mortgage-backed
** Held-to-maturity securities are carried on the unaudited condensed consolidated balance sheets at amortized cost and changes in the fair value of these securities, other than impairment charges, are not reported on the financial statements.
The following table presents the carrying value and fair value of debt securities held-to-maturity by contractual maturity dates as of September 30, 2013:
	9/30/13
HTM	Amortized			Fair
(in thousands)	Cost			Value
Due in one year or less	$	—		$	—
Due after one year through five years	651			695
Due after five years through 10 years	—			—
Due after 10 years	—			—
Mtge/ABS/CMBS*	—			—
Total held-to-maturity	$	651		$	695
*Mortgage-backed, asset-backed & commercial mortgage-backed
We conduct and document periodic reviews of all securities with unrealized losses to evaluate whether the impairment is other-than-temporary. The following tables are used as part of our impairment analysis and illustrate the total value of securities that were in an unrealized loss position as of September 30, 2013 and December 31, 2012. The tables segregate the securities based on type, noting the fair value, cost (or amortized cost), and unrealized loss on each category of investment as well as in total. The tables further classify the securities based on the length of time they have been in an unrealized loss position. As of September 30, 2013 unrealized losses, as shown in the following tables, were 1.2% of total invested assets. Unrealized losses have increased in 2013, as interest rates have increased throughout the year, particularly during the second quarter.
Investment Positions with Unrealized Losses
Segmented by Type and Period of Continuous
Unrealized Loss at September 30, 2013
(in thousands)	< 12 Mos.			12 Mos. & Greater			Total
U.S. Government
Fair value	$	—		$	—		$	—
Cost or Amortized Cost	—			—			—
Unrealized Loss	—			—			—
U.S. Agency
Fair value	$	3,866		$	—		$	3,866
Cost or Amortized Cost	3,996			—			3,996
Unrealized Loss	(130		)	—			(130		)
Non-U.S. govt. & agency
Fair value	$	2,985		$	—		$	2,985
Cost or Amortized Cost	3,001			—			3,001
Unrealized Loss	(16		)	—			(16		)
Mortgage-backed
Fair value	$	92,321		$	—		$	92,321
Cost or Amortized Cost	95,796			—			95,796
Unrealized Loss	(3,475		)	—			(3,475		)
ABS/CMBS*
Fair value	$	50,376		$	—		$	50,376
Cost or Amortized Cost	52,101			—			52,101
Unrealized Loss	(1,725		)	—			(1,725		)
Corporate
Fair value	$	175,314		$	—		$	175,314
Cost or Amortized Cost	182,164			—			182,164
Unrealized Loss	(6,850		)	—			(6,850		)
Municipal
Fair value	$	283,155		$	946		$	284,101
Cost or Amortized Cost	293,809			957			294,766
Unrealized Loss	(10,654		)	(11		)	(10,665		)
Subtotal, debt securities
Fair value	$	608,017		$	946		$	608,963
Cost or Amortized Cost	630,867			957			631,824
Unrealized Loss	(22,850		)	(11		)	(22,861		)
Equity securities
Fair value	$	7,041		$	—		$	7,041
Cost or Amortized Cost	7,402			—			7,402
Unrealized Loss	(361		)	—			(361		)
Total
Fair value	$	615,058		$	946		$	616,004
Cost or Amortized Cost	638,269			957			639,226
Unrealized Loss	(23,211		)	(11		)	(23,222		)
* Asset-backed & commercial mortgage-backed.
Investment Positions with Unrealized Losses
Segmented by Type and Period of Continuous
Unrealized Loss at December 31, 2012
(in thousands)	< 12 Mos.			12 Mos. & Greater			Total
U.S. Government
Fair value	$	749		$	—		$	749
Cost or Amortized Cost	749			—			749
Unrealized Loss	—			—			—
U.S. Agency
Fair value	$	—		$	—		$	—
Cost or Amortized Cost	—			—			—
Unrealized Loss	—			—			—
Non-U.S. govt. & agency
Fair value	$	—		$	—		$	—
Cost or Amortized Cost	—			—			—
Unrealized Loss	—			—			—
Mortgage-backed
Fair value	$	—		$	—		$	—
Cost or Amortized Cost	—			—			—
Unrealized Loss	—			—			—
ABS/CMBS*
Fair value	$	18		$	—		$	18
Cost or Amortized Cost	18			—			18
Unrealized Loss	—			—			—
Corporate
Fair value	$	35,969		$	960		$	36,929
Cost or Amortized Cost	36,162			993			37,155
Unrealized Loss	(193		)	(33		)	(226		)
Municipal
Fair value	$	35,064		$	—		$	35,064
Cost or Amortized Cost	35,221			—			35,221
Unrealized Loss	(157		)	—			(157		)
Subtotal, debt securities
Fair value	$	71,800		$	960		$	72,760
Cost or Amortized Cost	72,150			993			73,143
Unrealized Loss	(350		)	(33		)	(383		)
Equity securities
Fair value	$	16,207		$	—		$	16,207
Cost or Amortized Cost	17,082			—			17,082
Unrealized Loss	(875		)	—			(875		)
Total
Fair value	$	88,007		$	960		$	88,967
Cost or Amortized Cost	89,232			993			90,225
Unrealized Loss	(1,225		)	(33		)	(1,258		)
* Asset-backed & commercial mortgage-backed.
This table excludes securities with a fair value of less than $0.1 million, classified as trading.
The following table shows the composition of the fixed income securities in unrealized loss positions at September 30, 2013 by the National Association of Insurance Commissioners (NAIC) rating and the generally equivalent Standard & Poor’s (S&P) and Moody’s ratings. The vast majority of the securities are rated by S&P and/or Moody’s.
	Equivalent		Equivalent		(dollars in thousands)
NAIC	S&P		Moody’s		Amortized						Unrealized			Percent
Rating	Rating		Rating		Cost			Fair Value			Loss			to Total
1	AAA/AA/A		Aaa/Aa/A		$	597,964		$	576,292		$	(21,672	)	94.8	%
2	BBB		Baa		32,870			31,703			(1,167		)	5.1	%
3	BB		Ba		990			968			(22		)	0.1	%
4	B		B		—			—			—			—
5	CCC or lower		Caa or lower		—			—			—			—
6					—			—			—			—
			Total		$	631,824		$	608,963		$	(22,861	)	100	%
Cash and Short-term Investments
Cash consists of uninvested balances in bank accounts. We had a cash balance of $87.4 million at the end of the third quarter of 2013, compared to $44.3 million at the end of 2012. Short-term investments are carried at cost, which approximates fair value. The balance at September 30, 2013 was $23.0 million compared to $30.5 million at December 31, 2012.
Evaluating Investments for OTTI
The fixed income portfolio contained 288 securities in an unrealized loss position as of September 30, 2013. The $22.9 million in associated unrealized losses for these 288 securities represents 1.7% of the fixed income portfolio’s cost basis. Of these 288 securities, one has been in an unrealized loss position for 12 consecutive months or longer. All fixed income securities in the investment portfolio continue to pay the expected coupon payments under the contractual terms of the securities. Any credit-related impairment related to fixed income securities we do not plan to sell and for which we are not more likely than not to be required to sell is recognized in net earnings, with the non-credit related impairment recognized in comprehensive earnings. Based on our analysis, our fixed income portfolio is of high credit quality and we believe we will recover the amortized cost basis of our fixed income securities. We continually monitor the credit quality of our fixed income investments to assess if it is probable that we will receive our contractual or estimated cash flows in the form of principal and interest. There were no other-than-temporary impairment (OTTI) losses recognized in net earnings or other comprehensive earnings in the periods presented on the fixed income portfolio.
As of September 30, 2013, we held three common stock securities that were in an unrealized loss position. The unrealized loss on these securities was $0.4 million. Based on our analysis, we believe each security will recover in a reasonable period of time and we have the intent and ability to hold them until recovery. No equity securities have been in an unrealized loss position for 12 consecutive months or longer.
No securities were considered to be other-than-temporarily impaired during the first nine months of 2013. During the first nine months of 2012, we recognized $1.2 million in other-than-temporary impairment charges for equity securities we no longer had the intent to hold until recovery.

FAIR_VALUE_MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2013
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	3.                            FAIR VALUE MEASUREMENTS
	Assets and Liabilities Recorded at Fair Value on a Recurring Basis
	Fair value is defined as the price in the principal market that would be received for an asset to facilitate an orderly transaction between market participants on the measurement date.
	We determined the fair values of certain financial instruments based on their underlying characteristics and relevant transactions in the marketplace. GAAP guidance requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance also describes three levels of inputs that may be used to measure fair value.
	Financial assets are classified based upon the lowest level of significant input that is used to determine fair value. The following are the levels of the fair value hierarchy and a brief description of the type of valuation inputs that are used to establish each level:
	Pricing Level 1 is applied to valuations based on readily available, unadjusted quoted prices in active markets for identical assets. These valuations are based on quoted prices that are readily and regularly available in an active market.
	Pricing Level 2 is applied to valuations based upon quoted prices for similar assets in active markets, quoted prices for identical or similar assets in inactive markets; or valuations based on models where the significant inputs are observable (e.g. interest rates, yield curves, prepayment speeds, default rates, loss severities) or can be corroborated by observable market data.
	Pricing Level 3 is applied to valuations that are derived from techniques in which one or more of the significant inputs are unobservable.
	As a part of management’s process to determine fair value, we utilize a widely recognized, third-party pricing source to determine our fair values.  We have obtained an understanding of the third-party pricing source’s valuation methodologies and inputs. The following is a description of the valuation techniques used for financial assets that are measured at fair value, including the general classification of such assets pursuant to the fair value hierarchy.
	Corporate, Agencies, Government and Municipal Bonds: The pricing vendor uses a generic model which uses standard inputs, including (listed in order of priority for use), benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, market bids/offers and other reference data. The pricing vendor also monitors market indicators, as well as industry and economic events. All bonds valued using these techniques are classified as Level 2. All corporate, agency, government and municipal securities were deemed Level 2.
	Mortgage-backed Securities (MBS)/Commercial Mortgage-backed Securities (CMBS) and Asset-backed Securities (ABS): The pricing vendor evaluation methodology includes interest rate movements, new issue data and other pertinent data. Evaluation of the tranches (non-volatile, volatile or credit sensitivity) is based on the pricing vendors’ interpretation of accepted modeling and pricing conventions. This information is then used to determine the cash flows for each tranche, benchmark yields, prepayment assumptions and to incorporate collateral performance. To evaluate MBS and CMBS volatility, an option adjusted spread model is used in combination with models that simulate interest rate paths to determine market price information. This process allows the pricing vendor to obtain evaluations of a broad universe of securities in a way that reflects changes in yield curve, index rates, implied volatility, mortgage rates and recent trade activity. MBS/CMBS and ABS with corroborated, observable inputs are classified as Level 2. All of our MBS/CMBS and ABS are deemed Level 2.
	Common Stock: Exchange traded equities have readily observable price levels and are classified as Level 1 (fair value based on quoted market prices). All of our common stock holdings are deemed Level 1.
	For the Level 2 securities, as described above, we periodically conduct a review to assess the reasonableness of the fair values provided by our pricing service. Our review consists of a two pronged approach. First, we compare prices provided by our pricing service to those provided by an additional source. Second, we obtain prices from securities brokers and compare them to the prices provided by our pricing service. In both comparisons, when discrepancies are found, we compare our prices to actual reported trade data. Based on this assessment, we determined that the fair values of our Level 2 securities provided by our pricing service are reasonable.
	For common stock, we receive prices from the same nationally recognized pricing service. Prices are based on observable inputs in an active market and are therefore classified as Level 1. Based on this assessment, we determined that the fair values of our Level 1 securities provided by our pricing service are reasonable.
	Due to the relatively short-term nature of cash, short-term investments, accounts receivable and accounts payable, their carrying amounts are reasonable estimates of fair value.
	Assets measured at fair value in the accompanying unaudited condensed consolidated interim financial statements on a recurring basis are summarized below:
		As of September 30, 2013
		Fair Value Measurements Using
		Quoted Prices in		Significant Other		Significant
		Active Markets for		Observable		Unobservable
	(in thousands)	Identical Assets		Inputs		Inputs
	Description	(Level 1)		(Level 2)		(Level 3)		Total
	Trading securities
	Corporate	$	—	$	—	$	—	$	—
	Mortgage-backed	—		—		—		—
	ABS/CMBS*	—		—		—		—
	U.S. government	—		—		—		—
	Total trading securities	$	—	$	—	$	—	$	—
	Available-for-sale securities
	U.S. agency	$	—	$	8,459	$	—	$	8,459
	Corporate	—		491,524		—		491,524
	Mortgage-backed	—		251,564		—		251,564
	ABS/CMBS*	—		94,007		—		94,007
	Non-U.S. govt. & agency	—		11,867		—		11,867
	U.S. government	—		17,343		—		17,343
	Municipal	—		504,248		—		504,248
	Equity	392,156		—		—		392,156
	Total available-for-sale securities	$	392,156	$	1,379,012	$	—	$	1,771,168
	Total	$	392,156	$	1,379,012	$	—	$	1,771,168
	*Asset-backed & commercial mortgage-backed
		As of December 31, 2012
		Fair Value Measurements Using
		Quoted Prices in		Significant Other		Significant
		Active Markets for		Observable		Unobservable
	(in thousands)	Identical Assets		Inputs		Inputs
	Description	(Level 1)		(Level 2)		(Level 3)		Total
	Trading securities
	Corporate	$	—	$	—	$	—	$	—
	Mortgage-backed	—		7		—		7
	ABS/CMBS*	—		—		—		—
	U.S. government	—		—		—		—
	Total trading securities	$	—	$	7	$	—	$	7
	Available-for-sale securities
	U.S. agency	$	—	$	11,759	$	—	$	11,759
	Corporate	—		580,708		—		580,708
	Mortgage-backed	—		250,387		—		250,387
	ABS/CMBS*	—		77,329		—		77,329
	Non-U.S. govt. & agency	—		9,367		—		9,367
	U.S. government	—		16,713		—		16,713
	Municipal	—		432,319		—		432,319
	Equity	375,788		—		—		375,788
	Total available-for-sale securities	$	375,788	$	1,378,582	$	—	$	1,754,370
	Total	$	375,788	$	1,378,589	$	—	$	1,754,377
	*Asset-backed & commercial mortgage-backed
As noted in the above table, we do not have any assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the period. Additionally, there were no securities transferred in or out of levels 1 or 2 during the three-month period ended September 30, 2013.

STOCK_BASED_COMPENSATION

STOCK BASED COMPENSATION	9 Months Ended
	Sep. 30, 2013
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION	4.                            STOCK BASED COMPENSATION
	Our RLI Corp. Omnibus Stock Plan (omnibus plan) was in place from 2005 to 2010. The omnibus plan provided for grants of up to 1,500,000 shares (subject to adjustment for changes in our capitalization). Since 2005, we have granted 1,228,726 stock options under this plan, including incentive stock options (ISOs), which were adjusted as part of the special dividends in 2012, 2011 and 2010.
	During the second quarter of 2010, our shareholders approved the RLI Corp. Long-Term Incentive Plan (LTIP), which replaced the omnibus plan. In conjunction with the adoption of the LTIP, effective May 6, 2010, options will no longer be granted under the omnibus plan. Awards under the LTIP may be in the form of restricted stock, stock options (nonqualified only), stock appreciation rights, performance units, as well as other stock-based awards. Eligibility under the LTIP is limited to employees or directors of the company or any affiliate. The granting of awards under the LTIP is solely at the discretion of the board of directors. The total number of shares of common stock available for distribution under the LTIP may not exceed 2,000,000 shares (subject to adjustment for changes in our capitalization and certain other events). Since 2010, we have granted 1,131,000 stock options under the LTIP, including 291,100 thus far in 2013.
	Under the LTIP, as under the omnibus plan, we grant stock options for shares with an exercise price equal to the fair market value of the shares at the date of grant. Options generally vest and become exercisable ratably over a five-year period. Beginning with the annual grant in May 2009, options granted under both plans have an eight-year life. Prior to that grant, options were granted with a ten-year life. The related compensation expense is recognized over the requisite service period.
	In most instances, the requisite service period and vesting period will be the same. For participants who are retirement eligible, defined by the plan as those individuals whose age and years of service equals 75, the requisite service period is deemed to be met and options are immediately expensed on the date of grant. For participants who will become retirement eligible during the vesting period, the requisite service period over which expense is recognized is the period between the grant date and the attainment of retirement eligibility. Shares issued upon option exercise are newly issued shares.
	The following tables summarize option activity for the periods ended September 30, 2013 and 2012:
							Weighted
				Weighted			Average	Aggregate
		Number of		Average			Remaining	Intrinsic
		Options		Exercise			Contractual	Value
		Outstanding		Price			Life	(in 000’s)
	Outstanding options at January 1, 2013	1,472,602		$	44.45
	Options granted	291,100		$	72.62
	Options exercised	(380,681	)	$	34.36			$	17,211
	Options canceled/forfeited	(22,440	)	$	51.86
	Outstanding options at September 30, 2013	1,360,581		$	53.18		5.65	$	46,590
	Exercisable options at September 30, 2013	530,331		$	42.18		4.35	$	23,995
							Weighted
				Weighted			Average	Aggregate
		Number of		Average			Remaining	Intrinsic
		Options		Exercise			Contractual	Value
		Outstanding		Price			Life	(in 000’s)
	Outstanding options at January 1, 2012	1,280,866		$	43.23
	Options granted	292,900		$	68.46
	Options exercised	(63,721	)	$	40.29			$	1,966
	Options canceled/forfeited	(3,120	)	$	45.84
	Outstanding options at September 30, 2012	1,506,925		$	48.26		5.32	$	28,385
	Exercisable options at September 30, 2012	738,945		$	40.78		4.33	$	19,125
	The majority of our options are granted annually at our regular board meeting in May. In addition, options are approved at the May meeting for quarterly grants to certain retirement eligible employees. Since grants to retirement eligible employees are fully expensed when issued, the approach allows for a more even expense distribution throughout the year.
	Thus far in 2013, 291,100 options were granted with an average exercise price of $72.62 and a weighted average fair value of $13.17. We recognized $1.0 million of expense in the third quarter of 2013, and $2.8 million in the first nine months of 2013, related to options vesting. Since options granted under our plan are non-qualified, we recorded a tax benefit of $0.3 million in the third quarter of 2013, and $1.0 million in the first nine months of 2013, related to this compensation expense. Total unrecognized compensation expense relating to outstanding and unvested options was $5.1 million, which will be recognized over the remainder of the vesting period. Comparatively, we recognized $0.9 million of expense in the third quarter of 2012, and $2.7 million of expense in the first nine months of 2012. We recorded a tax benefit of $0.3 million in the third quarter of 2012, and $0.9 million in the first nine months of 2012, related to this compensation expense.
	The fair value of options was estimated using a Black-Scholes based option pricing model with the following weighted average grant-date assumptions and weighted average fair values as of September 30:
		2013			2012
	Weighted-average fair value of grants	$	13.17		$	13.13
	Risk-free interest rates	0.8		%	0.9		%
	Dividend yield	2		%	1.93		%
	Expected volatility	25.41		%	25.64		%
	Expected option life	5.23 years			5.39 years
	The risk-free rate is determined based on U.S. treasury yields that most closely approximate the option’s expected life. The dividend yield is calculated based on the average annualized dividends paid during the most recent five-year period. It excludes the special dividends paid in the fourth quarters of 2012, 2011 and 2010. The expected volatility is calculated based on the mean reversion of RLI’s stock. The expected option life is determined based on historical exercise behavior and the assumption that all outstanding options will be exercised at the midpoint of the current date and remaining contractual term, adjusted for the demographics of the current year’s grant.
	In 2013, we began providing restricted common stock to outside directors. Shares are issued to outside directors from the LTIP as part of annual director compensation and are directly owned by each director on the date of issuance. Currently, each director receives restricted shares worth $10,000 at the time of issuance. The shares are issued annually in the first quarter and include a one-year restriction on the sale or transfer of such shares. In the first quarter of 2013, we issued a total of 1,160 restricted shares and recognized $0.1 million of compensation expense.

OPERATING_SEGMENT_INFORMATION

OPERATING SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 2013
OPERATING SEGMENT INFORMATION
OPERATING SEGMENT INFORMATION	5. OPERATING SEGMENT INFORMATION - Selected information by operating segment is presented in the table below.  Additionally, the table reconciles segment totals to total earnings and total revenues.
	SEGMENT DATA (in thousands)
		For the Three-Month Periods						For the Nine-Month Periods
		Ended September 30,						Ended September 30,
		REVENUES						REVENUES
		2013			2012			2013			2012
	Net premiums earned:
	Casualty	$	83,966		$	68,194		$	235,307		$	197,409
	Property	52,705			54,741			147,305			151,581
	Surety	27,031			27,008			79,794			79,817
	Segment totals before income taxes	$	163,702		$	149,943		$	462,406		$	428,807
	Net investment income	13,598			14,221			39,331			44,340
	Net realized gains	10,999			5,481			18,425			16,233
	Total consolidated revenue	$	188,299		$	169,645		$	520,162		$	489,380
		NET EARNINGS						NET EARNINGS
		2013			2012			2013			2012
	Casualty	$	20,799		$	10,806		$	39,517		$	22,409
	Property	6,468			(310		)	19,614			11,317
	Surety	4,551			8,034			18,044			21,368
	Net underwriting income	$	31,818		$	18,530		$	77,175		$	55,094
	Net investment income	13,598			14,221			39,331			44,340
	Net realized gains	10,999			5,481			18,425			16,233
	General corporate expense and interest on debt	(3,670		)	(3,611		)	(10,773		)	(10,438		)
	Equity in earnings of unconsolidated investee	2,564			1,859			10,696			8,928
	Total earnings before income taxes	$	55,309		$	36,480		$	134,854		$	114,157
	Income tax expense	17,662			11,017			42,458			35,908
	Total net earnings	$	37,647		$	25,463		$	92,396		$	78,249
	The following table further summarizes revenues (net premiums earned) by major product type within each operating segment:
		For the Three-Month Periods						For the Nine-Month Periods
		Ended September 30,						Ended September 30,
	(in thousands)	2013			2012			2013			2012
	Casualty
	General liability	$	20,342		$	21,556		$	61,139		$	63,449
	Commercial and personal umbrella	22,247			17,430			61,803			50,337
	Commercial transportation	13,463			8,583			35,594			25,252
	P&C package business	7,643			7,479			22,671			21,334
	Executive products	4,550			3,914			13,175			11,666
	Professional services	11,021			7,386			30,092			19,704
	Medical professional liability	2,674			—			5,136			—
	Other	2,026			1,846			5,697			5,667
	Total	$	83,966		$	68,194		$	235,307		$	197,409
	Property
	Commercial property	$	18,938		$	18,640		$	57,813		$	55,285
	Marine	14,242			14,026			43,898			44,591
	Crop reinsurance	11,846			9,876			19,501			15,992
	Property reinsurance	2,848			6,826			12,503			20,193
	Other property	4,831			5,373			13,590			15,520
	Total	$	52,705		$	54,741		$	147,305		$	151,581
	Surety
	Miscellaneous	$	9,590		$	10,026		$	28,559		$	29,600
	Contract	7,025			6,835			20,137			19,507
	Commercial	5,857			5,574			17,285			16,536
	Oil and Gas	4,559			4,573			13,813			14,174
	Total	$	27,031		$	27,008		$	79,794		$	79,817
	Grand Total	$	163,702		$	149,943		$	462,406		$	428,807

ACQUISITION

ACQUISITION	9 Months Ended
	Sep. 30, 2013
ACQUISITION
ACQUISITION	6. ACQUISITION
	On November 2, 2012, we acquired Rockbridge, a Houston-based managing general agency. Rockbridge specializes in medical professional liability insurance in the excess and surplus market. Coverage is offered to individual physicians and physician groups in all 50 states through a network of retail and wholesale brokers.
	Total consideration for the acquisition was $16.7 million, which included $15.5 million of cash paid at acquisition, and $1.2 million associated with the present value of a contingent earn-out agreement. The earn-out is subject to the achievement of certain loss ratio targets and may be adjusted, either upward or downward, in future periods based on actual performance achieved. As of September 30, 2013, the recorded value of the contingent earn-out agreement is $1.2 million.
	During the third quarter of 2013, Rockbridge contributed gross premiums written of $3.5 million and net premiums earned of $2.7 million to our casualty segment. For the nine months ended September 30, 2013, Rockbridge contributed gross premiums written of $11.5 million and net premiums earned of $5.1 million.

SUBSEQUENT_EVENT

SUBSEQUENT EVENT	9 Months Ended
	Sep. 30, 2013
SUBSEQUENT EVENT
SUBSEQUENT EVENT	7. SUBSEQUENT EVENT
	On September 25, 2013, we entered into an underwriting agreement to issue $150.0 million of senior unsecured notes. On October 2, 2013, the public offering was completed with funds received and notes issued bearing a coupon rate of 4.875% and a maturity date of September 15, 2023 (a 10-year maturity). The condensed consolidated balance sheet as of September 30, 2013, presented in these unaudited condensed interim consolidated financial statements reflects amounts related to this debt offering. The condensed consolidated statement of cash flows for the nine-month period ended September 30, 2013, however, does not reflect our receipt of the net debt offering proceeds. Actual cash receipt occurred on October 2, 2013, subsequent to quarter end, and will be reflected in financing activity cash flows for the fourth quarter of 2013.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2013
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION	A.          BASIS OF PRESENTATION
	The unaudited condensed consolidated interim financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) for interim financial reporting and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements. As such, these unaudited condensed consolidated interim financial statements should be read in conjunction with our 2012 Annual Report on Form 10-K. Management believes that the disclosures are adequate to make the information presented not misleading, and all normal and recurring adjustments necessary to present fairly the financial position at September 30, 2013 and the results of operations of RLI Corp. and Subsidiaries for all periods presented have been made. The results of operations for any interim period are not necessarily indicative of the operating results for a full year.
	The preparation of the unaudited condensed consolidated interim financial statements requires management to make estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated interim financial statements, and the reported amounts of revenue and expenses during the period. These estimates are inherently subject to change and actual results could differ significantly from these estimates.
INTANGIBLE ASSETS	D.            INTANGIBLE ASSETS
	In accordance with GAAP guidelines, the amortization of goodwill and indefinite-lived intangible assets is not permitted. Goodwill and indefinite-lived intangible assets remain on the balance sheet and are tested for impairment on an annual basis, or earlier if there is reason to suspect that their values may have been diminished or impaired. Goodwill and intangibles totaled $75.1 million at September 30, 2013. These assets relate to acquisition activity including our recent acquisitions of Contractors Bonding and Insurance Company (CBIC) and Rockbridge Underwriting Agency (Rockbridge).
	Goodwill resulting from acquisitions completed prior to 2011 totaled $26.2 million and is attributable to our surety segment. Goodwill and intangible assets resulting from the CBIC acquisition in April 2011 totaled $32.6 million. The CBIC-related assets include goodwill attributable to our casualty and surety segments of $5.3 million and $15.1 million, respectively, and an indefinite-lived intangible asset in the amount of $8.8 million. Annual impairment testing was performed on each of these goodwill and indefinite-lived intangible assets during the second quarter of 2013. Based upon these reviews, none of the assets were impaired. In addition, as of September 30, 2013, there were no triggering events that occurred that would suggest an updated review was necessary. Definite-lived intangible assets related to the CBIC acquisition totaled $3.4 million, net of amortization, as of September 30, 2013.
	The remaining $16.3 million of goodwill and intangibles relates to our purchase of Rockbridge in November 2012. Goodwill attributable to our casualty segment totaled $12.4 million. Definite-lived intangible assets totaled $3.9 million, net of amortization, as of September 30, 2013. Our initial annual impairment testing on this goodwill will be performed in the fourth quarter of 2013. As of September 30, 2013, there were no triggering events that occurred that would suggest an interim review was necessary. See note 6 to the unaudited condensed consolidated interim financial statements for further discussion.
	The aforementioned definite-lived intangible assets are amortized against future operating results based on their estimated useful lives. Amortization of intangible assets resulting from the acquisitions of CBIC and Rockbridge was $0.4 million for the third quarter of 2013, and $1.0 million for the nine months ended September 30, 2013.
EARNINGS PER SHARE	E.             EARNINGS PER SHARE
	Basic earnings per share (EPS) excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the dilution that could occur if securities or other contracts to issue common stock or common stock equivalents were exercised or converted into common stock. When inclusion of common stock equivalents increases the earnings per share or reduces the loss per share, the effect on earnings is anti-dilutive. Under these circumstances, the diluted net earnings or net loss per share is computed excluding the common stock equivalents.
	The following represents a reconciliation of the numerator and denominator of the basic and diluted EPS computations contained in the unaudited condensed consolidated interim financial statements.
		For the Three-Month Period								For the Three-Month Period
		Ended September 30, 2013								Ended September 30, 2012
	(in thousands, except	Income			Shares		Per Share			Income			Shares	Per Share
	per share data)	(Numerator)			(Denominator)		Amount			(Numerator)			(Denominator)	Amount
	Basic EPS
	Income available to common shareholders	$	37,647		21,422		$	1.76		$	25,463		21,218	$	1.2
	Effect of Dilutive Securities
	Stock options	—			351					—			268
	Diluted EPS
	Income available to common shareholders	$	37,647		21,773		$	1.73		$	25,463		21,486	$	1.19
		For the Nine-Month Period								For the Nine-Month Period
		Ended September 30, 2013								Ended September 30, 2012
	(in thousands, except	Income			Shares		Per Share			Income			Shares	Per Share
	per share data)	(Numerator)			(Denominator)		Amount			(Numerator)			(Denominator)	Amount
	Basic EPS
	Income available to common shareholders	$	92,396		21,337		$	4.33		$	78,249		21,207	$	3.69
	Effect of Dilutive Securities
	Stock options	—			328					—			312
	Diluted EPS
	Income available to common shareholders	$	92,396		21,665		$	4.26		$	78,249		21,519	$	3.64
COMPREHENSIVE EARNINGS	F.              COMPREHENSIVE EARNINGS
	Our comprehensive earnings include net earnings plus unrealized gains/losses on our available-for-sale investment securities, net of tax. In reporting comprehensive earnings on a net basis in the statement of earnings, we used a 35 percent tax rate. The following table illustrates the changes in the balance of each component of accumulated other comprehensive earnings for each period presented in the unaudited condensed consolidated interim financial statements.
		For the Three-Month Periods Ended					For the Nine-Month Periods
		September 30,					Ended September 30,
	(in thousands)	2013			2012		2013			2012
	Unrealized Gains/Losses on Available-for-Sale Securities
	Beginning balance	$	127,242		133,991		$	143,170		117,325
	Other comprehensive earnings before reclassifications	5,203			25,127		(5,354		)	50,066
	Amounts reclassified from accumulated other comprehensive earnings	(7,149		)	(4,080	)	(12,520		)	(12,353	)
	Net current-period other comprehensive earnings	$	(1,946	)	21,047		$	(17,874	)	37,713
	Ending balance	$	125,296		155,038		$	125,296		155,038
	The sale or other-than-temporary impairment of an available-for-sale security results in amounts being reclassified from accumulated other comprehensive earnings to current period net earnings. The effects of reclassifications out of accumulated other comprehensive earnings by the respective line items of net earnings are presented in the following table.
		Amount Reclassified from Accumulated Other
		Comprehensive Earnings
	(in thousands)	For the Three-Month					For the Nine-Month					Affected line item in the
	Component of Accumulated	Periods Ended					Periods Ended
		September 30,					September 30,
	Other Comprehensive Earnings	2013			2012		2013			2012		Statement of Earnings
	Unrealized gains and losses on available-for-sale securities	$	10,998		6,278		$	19,261		20,161		Net realized investment gains
		—			—		—			(1,156	)	Other-than-temporary impairment (OTTI) losses on investments
		10,998			6,278		19,261			19,005		Earnings before income taxes
		(3,849		)	(2,198	)	(6,741		)	(6,652	)	Income tax expense
		$	7,149		4,080		$	12,520		12,353		Net earnings

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2013
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of reconciliation of numerator and denominator of the basic and diluted earnings per share computations
		For the Three-Month Period								For the Three-Month Period
		Ended September 30, 2013								Ended September 30, 2012
	(in thousands, except	Income			Shares		Per Share			Income			Shares	Per Share
	per share data)	(Numerator)			(Denominator)		Amount			(Numerator)			(Denominator)	Amount
	Basic EPS
	Income available to common shareholders	$	37,647		21,422		$	1.76		$	25,463		21,218	$	1.2
	Effect of Dilutive Securities
	Stock options	—			351					—			268
	Diluted EPS
	Income available to common shareholders	$	37,647		21,773		$	1.73		$	25,463		21,486	$	1.19
		For the Nine-Month Period								For the Nine-Month Period
		Ended September 30, 2013								Ended September 30, 2012
	(in thousands, except	Income			Shares		Per Share			Income			Shares	Per Share
	per share data)	(Numerator)			(Denominator)		Amount			(Numerator)			(Denominator)	Amount
	Basic EPS
	Income available to common shareholders	$	92,396		21,337		$	4.33		$	78,249		21,207	$	3.69
	Effect of Dilutive Securities
	Stock options	—			328					—			312
	Diluted EPS
	Income available to common shareholders	$	92,396		21,665		$	4.26		$	78,249		21,519	$	3.64
Schedule of changes in the balance of each component of accumulated other comprehensive earnings
		For the Three-Month Periods Ended					For the Nine-Month Periods
		September 30,					Ended September 30,
	(in thousands)	2013			2012		2013			2012
	Unrealized Gains/Losses on Available-for-Sale Securities
	Beginning balance	$	127,242		133,991		$	143,170		117,325
	Other comprehensive earnings before reclassifications	5,203			25,127		(5,354		)	50,066
	Amounts reclassified from accumulated other comprehensive earnings	(7,149		)	(4,080	)	(12,520		)	(12,353	)
	Net current-period other comprehensive earnings	$	(1,946	)	21,047		$	(17,874	)	37,713
	Ending balance	$	125,296		155,038		$	125,296		155,038
Schedule of effects of reclassifications out of accumulated other comprehensive earnings
		Amount Reclassified from Accumulated Other
		Comprehensive Earnings
	(in thousands)	For the Three-Month					For the Nine-Month					Affected line item in the
	Component of Accumulated	Periods Ended					Periods Ended
		September 30,					September 30,
	Other Comprehensive Earnings	2013			2012		2013			2012		Statement of Earnings
	Unrealized gains and losses on available-for-sale securities	$	10,998		6,278		$	19,261		20,161		Net realized investment gains
		—			—		—			(1,156	)	Other-than-temporary impairment (OTTI) losses on investments
		10,998			6,278		19,261			19,005		Earnings before income taxes
		(3,849		)	(2,198	)	(6,741		)	(6,652	)	Income tax expense
		$	7,149		4,080		$	12,520		12,353		Net earnings

INVESTMENTS_Tables

INVESTMENTS (Tables)	9 Months Ended
	Sep. 30, 2013
INVESTMENTS
Schedule of amortized cost and fair value of available-for-sale securities	Available-for-sale
	(in thousands)
		9/30/13
		Cost or			Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
	Asset Class	Cost			Gains			Losses			Value
	U.S. agency	$	8,537		$	52		$	(130	)	$	8,459
	Corporate	474,628			23,746			(6,850		)	491,524
	Mortgage-backed	247,317			7,722			(3,475		)	251,564
	ABS/CMBS*	94,123			1,609			(1,725		)	94,007
	Non-U.S. govt. & agency	11,414			469			(16		)	11,867
	U.S. government	17,090			253			—			17,343
	Municipal	506,834			8,079			(10,665		)	504,248
	Total Fixed Income	$	1,359,943		$	41,930		$	(22,861	)	$	1,379,012
	Equity	$	218,656		$	173,861		$	(361	)	$	392,156
	Available-for-sale
	(in thousands)
		12/31/12
		Cost or			Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
	Asset Class	Cost			Gains			Losses			Value
	U.S. agency	$	11,609		$	150		$	—		$	11,759
	Corporate	535,437			45,497			(226		)	580,708
	Mortgage-backed	234,629			15,758			—			250,387
	ABS/CMBS*	72,681			4,648			—			77,329
	Non-U.S. govt. & agency	8,410			957			—			9,367
	U.S. government	16,358			355			—			16,713
	Municipal	415,226			17,250			(157		)	432,319
	Total Fixed Income	$	1,294,350		$	84,615		$	(383	)	$	1,378,582
	Equity	$	240,287		$	136,376		$	(875	)	$	375,788
	*Asset-backed and commercial mortgage-backed
Schedule of carrying value and fair value of held-to-maturity securities	Held-to-maturity
	(in thousands)
		9/30/13
					Gross			Gross
		Amortized Cost/			Unrecognized			Unrecognized			Fair
	Asset Class	Carrying Value**			Gains			Losses			Value
	U.S. agency	$	—		$	—		$	—		$	—
	Corporate	—			—			—			—
	Mortgage-backed	—			—			—			—
	ABS/CMBS*	—			—			—			—
	Non-U.S. govt. & agency	—			—			—			—
	U.S. government	—			—			—			—
	Municipal	651			44			—			695
	Total Fixed Income	$	651		$	44		$	—		$	695
	Held-to-maturity
	(in thousands)
		12/31/12
					Gross			Gross
		Amortized Cost/			Unrecognized			Unrecognized			Fair
	Asset Class	Carrying Value**			Gains			Losses			Value
	U.S. agency	$	10,076		$	74		$	—		$	10,150
	Corporate	—			—			—			—
	Mortgage-backed	—			—			—			—
	ABS/CMBS*	—			—			—			—
	U.S. government	—			—			—			—
	Municipal	1,652			66			—			1,718
	Total Fixed Income	$	11,728		$	140		$	—		$	11,868
	* Asset-backed and commercial mortgage-backed
	** Held-to-maturity securities are carried on the unaudited condensed consolidated balance sheets at amortized cost and changes in the fair value of these securities, other than impairment charges, are not reported on the financial statements.
Schedule of securities in an unrealized loss position segregated by type and length of time in an unrealized loss position	Investment Positions with Unrealized Losses
	Segmented by Type and Period of Continuous
	Unrealized Loss at September 30, 2013
	(in thousands)	< 12 Mos.			12 Mos. & Greater			Total
	U.S. Government
	Fair value	$	—		$	—		$	—
	Cost or Amortized Cost	—			—			—
	Unrealized Loss	—			—			—
	U.S. Agency
	Fair value	$	3,866		$	—		$	3,866
	Cost or Amortized Cost	3,996			—			3,996
	Unrealized Loss	(130		)	—			(130		)
	Non-U.S. govt. & agency
	Fair value	$	2,985		$	—		$	2,985
	Cost or Amortized Cost	3,001			—			3,001
	Unrealized Loss	(16		)	—			(16		)
	Mortgage-backed
	Fair value	$	92,321		$	—		$	92,321
	Cost or Amortized Cost	95,796			—			95,796
	Unrealized Loss	(3,475		)	—			(3,475		)
	ABS/CMBS*
	Fair value	$	50,376		$	—		$	50,376
	Cost or Amortized Cost	52,101			—			52,101
	Unrealized Loss	(1,725		)	—			(1,725		)
	Corporate
	Fair value	$	175,314		$	—		$	175,314
	Cost or Amortized Cost	182,164			—			182,164
	Unrealized Loss	(6,850		)	—			(6,850		)
	Municipal
	Fair value	$	283,155		$	946		$	284,101
	Cost or Amortized Cost	293,809			957			294,766
	Unrealized Loss	(10,654		)	(11		)	(10,665		)
	Subtotal, debt securities
	Fair value	$	608,017		$	946		$	608,963
	Cost or Amortized Cost	630,867			957			631,824
	Unrealized Loss	(22,850		)	(11		)	(22,861		)
	Equity securities
	Fair value	$	7,041		$	—		$	7,041
	Cost or Amortized Cost	7,402			—			7,402
	Unrealized Loss	(361		)	—			(361		)
	Total
	Fair value	$	615,058		$	946		$	616,004
	Cost or Amortized Cost	638,269			957			639,226
	Unrealized Loss	(23,211		)	(11		)	(23,222		)
	* Asset-backed & commercial mortgage-backed.
	Investment Positions with Unrealized Losses
	Segmented by Type and Period of Continuous
	Unrealized Loss at December 31, 2012
	(in thousands)	< 12 Mos.			12 Mos. & Greater			Total
	U.S. Government
	Fair value	$	749		$	—		$	749
	Cost or Amortized Cost	749			—			749
	Unrealized Loss	—			—			—
	U.S. Agency
	Fair value	$	—		$	—		$	—
	Cost or Amortized Cost	—			—			—
	Unrealized Loss	—			—			—
	Non-U.S. govt. & agency
	Fair value	$	—		$	—		$	—
	Cost or Amortized Cost	—			—			—
	Unrealized Loss	—			—			—
	Mortgage-backed
	Fair value	$	—		$	—		$	—
	Cost or Amortized Cost	—			—			—
Unrealized Loss	—			—			—
ABS/CMBS*
Fair value	$	18		$	—		$	18
Cost or Amortized Cost	18			—			18
Unrealized Loss	—			—			—
Corporate
Fair value	$	35,969		$	960		$	36,929
Cost or Amortized Cost	36,162			993			37,155
Unrealized Loss	(193		)	(33		)	(226		)
Municipal
Fair value	$	35,064		$	—		$	35,064
Cost or Amortized Cost	35,221			—			35,221
Unrealized Loss	(157		)	—			(157		)
Subtotal, debt securities
Fair value	$	71,800		$	960		$	72,760
Cost or Amortized Cost	72,150			993			73,143
Unrealized Loss	(350		)	(33		)	(383		)
Equity securities
Fair value	$	16,207		$	—		$	16,207
Cost or Amortized Cost	17,082			—			17,082
Unrealized Loss	(875		)	—			(875		)
Total
Fair value	$	88,007		$	960		$	88,967
Cost or Amortized Cost	89,232			993			90,225
Unrealized Loss	(1,225		)	(33		)	(1,258		)
* Asset-backed & commercial mortgage-backed.
Schedule of credit quality indicators for investments in unrealized loss positions
		Equivalent		Equivalent		(dollars in thousands)
	NAIC	S&P		Moody’s		Amortized						Unrealized			Percent
	Rating	Rating		Rating		Cost			Fair Value			Loss			to Total
	1	AAA/AA/A		Aaa/Aa/A		$	597,964		$	576,292		$	(21,672	)	94.8	%
	2	BBB		Baa		32,870			31,703			(1,167		)	5.1	%
	3	BB		Ba		990			968			(22		)	0.1	%
	4	B		B		—			—			—			—
	5	CCC or lower		Caa or lower		—			—			—			—
	6					—			—			—			—
				Total		$	631,824		$	608,963		$	(22,861	)	100	%
Available-For-Sale Securities
INVESTMENTS
Schedule of contractual maturity of securities		9/30/13
	AFS	Amortized			Fair
	(in thousands)	Cost			Value
	Due in one year or less	$	12,910		$	13,014
	Due after one year through five years	146,264			155,143
	Due after five years through 10 years	616,368			627,254
	Due after 10 years	242,961			238,030
	Mtge/ABS/CMBS*	341,440			345,571
	Total available-for-sale	$	1,359,943		$	1,379,012
Held-to-Maturity Securities
INVESTMENTS
Schedule of contractual maturity of securities
		9/30/13
	HTM	Amortized			Fair
	(in thousands)	Cost			Value
	Due in one year or less	$	—		$	—
	Due after one year through five years	651			695
	Due after five years through 10 years	—			—
	Due after 10 years	—			—
	Mtge/ABS/CMBS*	—			—
	Total held-to-maturity	$	651		$	695
	*Mortgage-backed, asset-backed & commercial mortgage-backed

FAIR_VALUE_MEASUREMENTS_Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2013
FAIR VALUE MEASUREMENTS
Schedule of assets measured at fair value on recurring basis		As of September 30, 2013
		Fair Value Measurements Using
		Quoted Prices in		Significant Other		Significant
		Active Markets for		Observable		Unobservable
	(in thousands)	Identical Assets		Inputs		Inputs
	Description	(Level 1)		(Level 2)		(Level 3)		Total
	Trading securities
	Corporate	$	—	$	—	$	—	$	—
	Mortgage-backed	—		—		—		—
	ABS/CMBS*	—		—		—		—
	U.S. government	—		—		—		—
	Total trading securities	$	—	$	—	$	—	$	—
	Available-for-sale securities
	U.S. agency	$	—	$	8,459	$	—	$	8,459
	Corporate	—		491,524		—		491,524
	Mortgage-backed	—		251,564		—		251,564
	ABS/CMBS*	—		94,007		—		94,007
	Non-U.S. govt. & agency	—		11,867		—		11,867
	U.S. government	—		17,343		—		17,343
	Municipal	—		504,248		—		504,248
	Equity	392,156		—		—		392,156
	Total available-for-sale securities	$	392,156	$	1,379,012	$	—	$	1,771,168
	Total	$	392,156	$	1,379,012	$	—	$	1,771,168
	*Asset-backed & commercial mortgage-backed
		As of December 31, 2012
		Fair Value Measurements Using
		Quoted Prices in		Significant Other		Significant
		Active Markets for		Observable		Unobservable
	(in thousands)	Identical Assets		Inputs		Inputs
	Description	(Level 1)		(Level 2)		(Level 3)		Total
	Trading securities
	Corporate	$	—	$	—	$	—	$	—
	Mortgage-backed	—		7		—		7
	ABS/CMBS*	—		—		—		—
	U.S. government	—		—		—		—
	Total trading securities	$	—	$	7	$	—	$	7
	Available-for-sale securities
	U.S. agency	$	—	$	11,759	$	—	$	11,759
	Corporate	—		580,708		—		580,708
	Mortgage-backed	—		250,387		—		250,387
	ABS/CMBS*	—		77,329		—		77,329
	Non-U.S. govt. & agency	—		9,367		—		9,367
	U.S. government	—		16,713		—		16,713
	Municipal	—		432,319		—		432,319
	Equity	375,788		—		—		375,788
	Total available-for-sale securities	$	375,788	$	1,378,582	$	—	$	1,754,370
	Total	$	375,788	$	1,378,589	$	—	$	1,754,377
	*Asset-backed & commercial mortgage-backed

STOCK_BASED_COMPENSATION_Table

STOCK BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2013
STOCK BASED COMPENSATION
Schedule of stock option activity
							Weighted
				Weighted			Average	Aggregate
		Number of		Average			Remaining	Intrinsic
		Options		Exercise			Contractual	Value
		Outstanding		Price			Life	(in 000’s)
	Outstanding options at January 1, 2013	1,472,602		$	44.45
	Options granted	291,100		$	72.62
	Options exercised	(380,681	)	$	34.36			$	17,211
	Options canceled/forfeited	(22,440	)	$	51.86
	Outstanding options at September 30, 2013	1,360,581		$	53.18		5.65	$	46,590
	Exercisable options at September 30, 2013	530,331		$	42.18		4.35	$	23,995
							Weighted
				Weighted			Average	Aggregate
		Number of		Average			Remaining	Intrinsic
		Options		Exercise			Contractual	Value
		Outstanding		Price			Life	(in 000’s)
	Outstanding options at January 1, 2012	1,280,866		$	43.23
	Options granted	292,900		$	68.46
	Options exercised	(63,721	)	$	40.29			$	1,966
	Options canceled/forfeited	(3,120	)	$	45.84
	Outstanding options at September 30, 2012	1,506,925		$	48.26		5.32	$	28,385
	Exercisable options at September 30, 2012	738,945		$	40.78		4.33	$	19,125
Schedule of stock option assumptions for fair value estimate
		2013			2012
	Weighted-average fair value of grants	$	13.17		$	13.13
	Risk-free interest rates	0.8		%	0.9		%
	Dividend yield	2		%	1.93		%
	Expected volatility	25.41		%	25.64		%
	Expected option life	5.23 years			5.39 years

OPERATING_SEGMENT_INFORMATION_

OPERATING SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2013
OPERATING SEGMENT INFORMATION
Schedule of revenues and net earnings by segment	SEGMENT DATA (in thousands)
		For the Three-Month Periods						For the Nine-Month Periods
		Ended September 30,						Ended September 30,
		REVENUES						REVENUES
		2013			2012			2013			2012
	Net premiums earned:
	Casualty	$	83,966		$	68,194		$	235,307		$	197,409
	Property	52,705			54,741			147,305			151,581
	Surety	27,031			27,008			79,794			79,817
	Segment totals before income taxes	$	163,702		$	149,943		$	462,406		$	428,807
	Net investment income	13,598			14,221			39,331			44,340
	Net realized gains	10,999			5,481			18,425			16,233
	Total consolidated revenue	$	188,299		$	169,645		$	520,162		$	489,380
		NET EARNINGS						NET EARNINGS
		2013			2012			2013			2012
	Casualty	$	20,799		$	10,806		$	39,517		$	22,409
	Property	6,468			(310		)	19,614			11,317
	Surety	4,551			8,034			18,044			21,368
	Net underwriting income	$	31,818		$	18,530		$	77,175		$	55,094
	Net investment income	13,598			14,221			39,331			44,340
	Net realized gains	10,999			5,481			18,425			16,233
	General corporate expense and interest on debt	(3,670		)	(3,611		)	(10,773		)	(10,438		)
	Equity in earnings of unconsolidated investee	2,564			1,859			10,696			8,928
	Total earnings before income taxes	$	55,309		$	36,480		$	134,854		$	114,157
	Income tax expense	17,662			11,017			42,458			35,908
	Total net earnings	$	37,647		$	25,463		$	92,396		$	78,249
Schedule of net premiums earned by major product type
		For the Three-Month Periods						For the Nine-Month Periods
		Ended September 30,						Ended September 30,
	(in thousands)	2013			2012			2013			2012
	Casualty
	General liability	$	20,342		$	21,556		$	61,139		$	63,449
	Commercial and personal umbrella	22,247			17,430			61,803			50,337
	Commercial transportation	13,463			8,583			35,594			25,252
	P&C package business	7,643			7,479			22,671			21,334
	Executive products	4,550			3,914			13,175			11,666
	Professional services	11,021			7,386			30,092			19,704
	Medical professional liability	2,674			—			5,136			—
	Other	2,026			1,846			5,697			5,667
	Total	$	83,966		$	68,194		$	235,307		$	197,409
	Property
	Commercial property	$	18,938		$	18,640		$	57,813		$	55,285
	Marine	14,242			14,026			43,898			44,591
	Crop reinsurance	11,846			9,876			19,501			15,992
	Property reinsurance	2,848			6,826			12,503			20,193
	Other property	4,831			5,373			13,590			15,520
	Total	$	52,705		$	54,741		$	147,305		$	151,581
	Surety
	Miscellaneous	$	9,590		$	10,026		$	28,559		$	29,600
	Contract	7,025			6,835			20,137			19,507
	Commercial	5,857			5,574			17,285			16,536
	Oil and Gas	4,559			4,573			13,813			14,174
	Total	$	27,031		$	27,008		$	79,794		$	79,817
	Grand Total	$	163,702		$	149,943		$	462,406		$	428,807

SUMMARY_OF_SIGNIFICANT_ACCOUNT3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	3 Months Ended		9 Months Ended			3 Months Ended	9 Months Ended		1 Months Ended			1 Months Ended
Share data in Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Apr. 30, 2011	Apr. 30, 2011	Sep. 30, 2013	Apr. 30, 2011	Sep. 30, 2013	Nov. 30, 2012
						CBIC and Rockbridge	CBIC and Rockbridge	Surety segment	Surety segment	Casualty and Surety segment	Casualty and Surety segment	Casualty	Casualty	Casualty
								Acquisitions prior to 2011	Contractors Bonding and Insurance Company	Contractors Bonding and Insurance Company	Contractors Bonding and Insurance Company	Contractors Bonding and Insurance Company	Rockbridge	Rockbridge
INTANGIBLE ASSETS
Goodwill and intangibles	$75,140,000		$75,140,000		$76,113,000					$32,600,000				$16,300,000
Goodwill								26,200,000					12,400,000
Goodwill acquired									15,100,000			5,300,000
Indefinite Lived Intangible Assets Acquired										8,800,000
Impairment of assets			0
Definite-lived intangible assets, net of amortization											3,400,000		3,900,000
Amortization of intangible assets						400,000	1,000,000
Basic EPS, Income (Numerator)
Income available to common shareholders	37,647,000	25,463,000	92,396,000	78,249,000
Diluted EPS, Income (Numerator)
Income available to common shareholders	$37,647,000	$25,463,000	$92,396,000	$78,249,000
Basic EPS, Weighted Average Shares (Denominator)
Number of shares outstanding	21,422	21,218	21,337	21,207
Effect of Dilutive Securities, Shares (Denominator)
Stock options (in shares)	351	268	328	312
Diluted EPS, Weighted Average Shares (Denominator)
Number of shares outstanding	21,773	21,486	21,665	21,519
Basic EPS, Per Share Amount
Basic net earnings per share (in dollars per share)	$1.76	$1.20	$4.33	$3.69
Diluted EPS, Per Share Amount
Diluted earnings per share (in dollars per share)	$1.73	$1.19	$4.26	$3.64

SUMMARY_OF_SIGNIFICANT_ACCOUNT4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Tax rate used (as a percent)			35.00%
Changes in the balance of each component of accumulated other comprehensive earnings
Beginning balance			$143,170
Ending balance	125,296		125,296
Unrealized Gains and Losses on Available-for-Sale Securities
Changes in the balance of each component of accumulated other comprehensive earnings
Beginning balance	127,242	133,991	143,170	117,325
Other comprehensive earnings before reclassifications	5,203	25,127	-5,354	50,066
Amounts reclassified from accumulated other comprehensive earnings	-7,149	-4,080	-12,520	-12,353
Net current-period other comprehensive earnings	-1,946	21,047	-17,874	37,713
Ending balance	$125,296	$155,038	$125,296	$155,038

SUMMARY_OF_SIGNIFICANT_ACCOUNT5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Amount Reclassified from Accumulated Other Comprehensive Earnings
Net realized investment gains	$10,999	$5,481	$18,425	$17,389
Other-than-temporary impairment (OTTI) losses on investments				-1,156
Earnings before income taxes	55,309	36,480	134,854	114,157
Income tax expense	-17,662	-11,017	-42,458	-35,908
Net earnings	37,647	25,463	92,396	78,249
Reclassifications out of accumulated other comprehensive earnings | Unrealized gains and losses on available-for-sale securities
Amount Reclassified from Accumulated Other Comprehensive Earnings
Net realized investment gains	10,998	6,278	19,261	20,161
Other-than-temporary impairment (OTTI) losses on investments				-1,156
Earnings before income taxes	10,998	6,278	19,261	19,005
Income tax expense	-3,849	-2,198	-6,741	-6,652
Net earnings	$7,149	$4,080	$12,520	$12,353

INVESTMENTS_Details

INVESTMENTS (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Amortized Cost
Due in one year or less	$12,910
Due after one year through five years	146,264
Due after five years through 10 years	616,368
Due after 10 years	242,961
Total	1,359,943
Fair Value
Due in one year or less	13,014
Due after one year through five years	155,143
Due after five years through 10 years	627,254
Due after 10 years	238,030
Total	1,379,012	1,378,582
Fair value measured on recurring basis | Significant Unobservable Inputs (Level 3)
INVESTMENTS
Total assets at fair value	0
Fixed income securities
Available-for-sale
Cost or Amortized Cost	1,359,943	1,294,350
Gross Unrealized Gains	41,930	84,615
Gross Unrealized Losses	-22,861	-383
Fair Value	1,379,012	1,378,582
U.S. agency
Available-for-sale
Cost or Amortized Cost	8,537	11,609
Gross Unrealized Gains	52	150
Gross Unrealized Losses	-130
Fair Value	8,459	11,759
Corporate
Available-for-sale
Cost or Amortized Cost	474,628	535,437
Gross Unrealized Gains	23,746	45,497
Gross Unrealized Losses	-6,850	-226
Fair Value	491,524	580,708
Mortgage-backed
Available-for-sale
Cost or Amortized Cost	247,317	234,629
Gross Unrealized Gains	7,722	15,758
Gross Unrealized Losses	-3,475
Fair Value	251,564	250,387
ABS/CMBS
Available-for-sale
Cost or Amortized Cost	94,123	72,681
Gross Unrealized Gains	1,609	4,648
Gross Unrealized Losses	-1,725
Fair Value	94,007	77,329
Non-U.S. govt. & agency
Available-for-sale
Cost or Amortized Cost	11,414	8,410
Gross Unrealized Gains	469	957
Gross Unrealized Losses	-16
Fair Value	11,867	9,367
U.S. government
Available-for-sale
Cost or Amortized Cost	17,090	16,358
Gross Unrealized Gains	253	355
Fair Value	17,343	16,713
Municipal
Available-for-sale
Cost or Amortized Cost	506,834	415,226
Gross Unrealized Gains	8,079	17,250
Gross Unrealized Losses	-10,665	-157
Fair Value	504,248	432,319
Mtge/ABS/CMBS
Amortized Cost
Total	341,440
Fair Value
Total	345,571
Equity securities
Available-for-sale
Cost or Amortized Cost	218,656	240,287
Gross Unrealized Gains	173,861	136,376
Gross Unrealized Losses	-361	-875
Fair Value	$392,156	$375,788

INVESTMENTS_Details_2

INVESTMENTS (Details 2) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Held-to-Maturity Debt Securities
Amortized Cost/Carrying Value	$651	$11,728
Fair Value	695
Amortized Cost
Due after one year through five years	651
Total amortized cost	651	11,728
Fair value
Due after one year through five years	695
Fair Value	695
Fixed income securities
Held-to-Maturity Debt Securities
Amortized Cost/Carrying Value	651	11,728
Gross Unrecognized Gains	44	140
Fair Value	695	11,868
Amortized Cost
Total amortized cost	651	11,728
Fair value
Fair Value	695	11,868
U.S. agency
Held-to-Maturity Debt Securities
Amortized Cost/Carrying Value		10,076
Gross Unrecognized Gains		74
Fair Value		10,150
Amortized Cost
Total amortized cost		10,076
Fair value
Fair Value		10,150
Municipal
Held-to-Maturity Debt Securities
Amortized Cost/Carrying Value	651	1,652
Gross Unrecognized Gains	44	66
Fair Value	695	1,718
Amortized Cost
Total amortized cost	651	1,652
Fair value
Fair Value	$695	$1,718

INVESTMENTS_Details_3

INVESTMENTS (Details 3) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011
In Thousands, unless otherwise specified
INVESTMENTS
Unrealized losses relative to total invested assets (as a percent)	1.20%
Fair value
Less than 12 months	$615,058	$88,007
12 Months and Greater	946	960
Total Fair value	616,004	88,967
Cost or amortized Cost
Less than 12 months	638,269	89,232
12 months and greater	957	993
Total Cost or Amortized Cost	639,226	90,225
Unrealized Loss
Less than 12 months	-23,211	-1,225
12 Months and Greater	-11	-33
Total Unrealized Loss	-23,222	-1,258
Cash and Short-term Investments
Cash	87,398	44,314	31,301	81,184
Short-term investments, at cost	22,994	30,462
Maximum
Unrealized Loss
Fair value of trading securities		100
Debt securities
Fair value
Less than 12 months	608,017	71,800
12 Months and Greater	946	960
Total Fair value	608,963	72,760
Cost or amortized Cost
Less than 12 months	630,867	72,150
12 months and greater	957	993
Total Cost or Amortized Cost	631,824	73,143
Unrealized Loss
Less than 12 months	-22,850	-350
12 Months and Greater	-11	-33
Total Unrealized Loss	-22,861	-383
Percent to Total	100.00%
Debt securities | NAIC Rating 1 | AAA/AA/A | Aaa/Aa/A
Fair value
Total Fair value	576,292
Cost or amortized Cost
Total Cost or Amortized Cost	597,964
Unrealized Loss
Total Unrealized Loss	-21,672
Percent to Total	94.80%
Debt securities | NAIC Rating 2 | BBB | Baa
Fair value
Total Fair value	31,703
Cost or amortized Cost
Total Cost or Amortized Cost	32,870
Unrealized Loss
Total Unrealized Loss	-1,167
Percent to Total	5.10%
Debt securities | NAIC Rating 3 | BB | Ba
Fair value
Total Fair value	968
Cost or amortized Cost
Total Cost or Amortized Cost	990
Unrealized Loss
Total Unrealized Loss	-22
Percent to Total	0.10%
U.S. Government
Fair value
Less than 12 months		749
Total Fair value		749
Cost or amortized Cost
Less than 12 months		749
Total Cost or Amortized Cost		749
U.S. Agency
Fair value
Less than 12 months	3,866
Total Fair value	3,866
Cost or amortized Cost
Less than 12 months	3,996
Total Cost or Amortized Cost	3,996
Unrealized Loss
Less than 12 months	-130
Total Unrealized Loss	-130
Non-U.S. govt. & agency
Fair value
Less than 12 months	2,985
Total Fair value	2,985
Cost or amortized Cost
Less than 12 months	3,001
Total Cost or Amortized Cost	3,001
Unrealized Loss
Less than 12 months	-16
Total Unrealized Loss	-16
Mortgage-backed
Fair value
Less than 12 months	92,321
Total Fair value	92,321
Cost or amortized Cost
Less than 12 months	95,796
Total Cost or Amortized Cost	95,796
Unrealized Loss
Less than 12 months	-3,475
Total Unrealized Loss	-3,475
ABS/CMBS
Fair value
Less than 12 months	50,376	18
Total Fair value	50,376	18
Cost or amortized Cost
Less than 12 months	52,101	18
Total Cost or Amortized Cost	52,101	18
Unrealized Loss
Less than 12 months	-1,725
Total Unrealized Loss	-1,725
Corporate
Fair value
Less than 12 months	175,314	35,969
12 Months and Greater		960
Total Fair value	175,314	36,929
Cost or amortized Cost
Less than 12 months	182,164	36,162
12 months and greater		993
Total Cost or Amortized Cost	182,164	37,155
Unrealized Loss
Less than 12 months	-6,850	-193
12 Months and Greater		-33
Total Unrealized Loss	-6,850	-226
Municipal
Fair value
Less than 12 months	283,155	35,064
12 Months and Greater	946
Total Fair value	284,101	35,064
Cost or amortized Cost
Less than 12 months	293,809	35,221
12 months and greater	957
Total Cost or Amortized Cost	294,766	35,221
Unrealized Loss
Less than 12 months	-10,654	-157
12 Months and Greater	-11
Total Unrealized Loss	-10,665	-157
Equity securities
Fair value
Less than 12 months	7,041	16,207
Total Fair value	7,041	16,207
Cost or amortized Cost
Less than 12 months	7,402	17,082
Total Cost or Amortized Cost	7,402	17,082
Unrealized Loss
Less than 12 months	-361	-875
Total Unrealized Loss	($361)	($875)

INVESTMENTS_Details_4

INVESTMENTS (Details 4) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Fixed income securities in unrealized loss positions
Unrealized Loss	($23,222,000)		($1,258,000)
Other-than-temporary impairment charges for equity securities no longer intended to be held until recovery		1,200,000
Other-than-temporary impairment (OTTI) losses recognized in net earnings or other comprehensive earnings	0	1,200,000
Debt securities
Fixed income securities in unrealized loss positions
Number of unrealized loss positions	288
Unrealized Loss	22,900,000
Number of securities in unrealized loss positions for 12 months or longer	1
Debt securities | Maximum
Fixed income securities in unrealized loss positions
Unrealized losses as percentage of fixed income portfolio cost basis	1.70%
Common stock security
Fixed income securities in unrealized loss positions
Number of unrealized loss positions	3
Unrealized Loss	$400,000
Number of securities in unrealized loss positions for 12 months or longer	0

FAIR_VALUE_MEASUREMENTS_Detail

FAIR VALUE MEASUREMENTS (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Assets measured at Fair Value
Transfers in (out of) level 1	$0
Transfers in (out of) level 2	0
Fair value measured on recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets measured at Fair Value
Available-for-sale securities	392,156,000	375,788,000
Total assets at fair value	392,156,000	375,788,000
Fair value measured on recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity
Assets measured at Fair Value
Available-for-sale securities	392,156,000	375,788,000
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2)
Assets measured at Fair Value
Trading securities		7,000
Available-for-sale securities	1,379,012,000	1,378,582,000
Total assets at fair value	1,379,012,000	1,378,589,000
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2) | Corporate
Assets measured at Fair Value
Available-for-sale securities	491,524,000	580,708,000
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed
Assets measured at Fair Value
Trading securities		7,000
Available-for-sale securities	251,564,000	250,387,000
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2) | ABS/CMBS
Assets measured at Fair Value
Available-for-sale securities	94,007,000	77,329,000
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2) | Non-U.S. govt. & agency
Assets measured at Fair Value
Available-for-sale securities	11,867,000	9,367,000
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2) | U.S. government
Assets measured at Fair Value
Available-for-sale securities	17,343,000	16,713,000
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2) | U.S. agency
Assets measured at Fair Value
Available-for-sale securities	8,459,000	11,759,000
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2) | Municipal
Assets measured at Fair Value
Available-for-sale securities	504,248,000	432,319,000
Fair value measured on recurring basis | Significant Unobservable Inputs (Level 3)
Assets measured at Fair Value
Total assets at fair value	0
Fair value measured on recurring basis | Total
Assets measured at Fair Value
Trading securities		7,000
Available-for-sale securities	1,771,168,000	1,754,370,000
Total assets at fair value	1,771,168,000	1,754,377,000
Fair value measured on recurring basis | Total | Corporate
Assets measured at Fair Value
Available-for-sale securities	491,524,000	580,708,000
Fair value measured on recurring basis | Total | Mortgage-backed
Assets measured at Fair Value
Trading securities		7,000
Available-for-sale securities	251,564,000	250,387,000
Fair value measured on recurring basis | Total | ABS/CMBS
Assets measured at Fair Value
Available-for-sale securities	94,007,000	77,329,000
Fair value measured on recurring basis | Total | Non-U.S. govt. & agency
Assets measured at Fair Value
Available-for-sale securities	11,867,000	9,367,000
Fair value measured on recurring basis | Total | U.S. government
Assets measured at Fair Value
Available-for-sale securities	17,343,000	16,713,000
Fair value measured on recurring basis | Total | U.S. agency
Assets measured at Fair Value
Available-for-sale securities	8,459,000	11,759,000
Fair value measured on recurring basis | Total | Municipal
Assets measured at Fair Value
Available-for-sale securities	504,248,000	432,319,000
Fair value measured on recurring basis | Total | Equity
Assets measured at Fair Value
Available-for-sale securities	$392,156,000	$375,788,000

STOCK_BASED_COMPENSATION_Detai

STOCK BASED COMPENSATION (Details) (USD $)	3 Months Ended		9 Months Ended					9 Months Ended	41 Months Ended	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2005	Sep. 30, 2013	Sep. 30, 2013	Mar. 31, 2013	Mar. 31, 2013
					RLI Corp. Long-Term Incentive Plan (LTIP) and Omnibus Stock Plan	Omnibus Stock Plan	Omnibus Stock Plan	RLI Corp. Long-Term Incentive Plan (LTIP)	RLI Corp. Long-Term Incentive Plan (LTIP)	RLI Corp. Long-Term Incentive Plan (LTIP)	Outside Directors' Stock Option Plan (the director's plan)
										Outside director
Stock based compensation
Shares authorized for grant							1,500,000	2,000,000	2,000,000
Stock options granted to date (in shares)						1,228,726			1,131,000
Award vesting period					5 years
Term of options					8 years
Term of options granted prior to 2009					10 years
Age and period of service of the participant to be eligible for retirement								75 years
Weighted Number of Options Outstanding
Outstanding options at the beginning of the period (in shares)			1,472,602	1,280,866
Options granted (in shares)			291,100	292,900				291,100
Options exercised (in shares)			-380,681	-63,721
Options canceled/forfeited (in shares)			-22,440	-3,120
Outstanding options at the end of the period (in shares)	1,360,581	1,506,925	1,360,581	1,506,925
Exercisable options at the end of the period (in shares)	530,331	738,945	530,331	738,945
Weighted Average Exercise Price
Outstanding options at the beginning of the period (in dollars per share)			$44.45	$43.23
Options granted (in dollars per share)			$72.62	$68.46
Options exercised (in dollars per share)			$34.36	$40.29
Options canceled/forfeited (in dollars per share)			$51.86	$45.84
Outstanding options at the end of the period (in dollars per share)	$53.18	$48.26	$53.18	$48.26
Exercisable options at the end of the period (in dollars per share)	$42.18	$40.78	$42.18	$40.78
Weighted Average Remaining Contractual Life
Weighted-average remaining contractual term of options outstanding			5 years 7 months 24 days	5 years 3 months 25 days
Weighted-average remaining contractual term of exercisable options			4 years 4 months 6 days	4 years 3 months 29 days
Aggregate Intrinsic Value
Options exercised (in dollars)			$17,211,000	$1,966,000
Outstanding options at the end of the period (in dollars)	46,590,000	28,385,000	46,590,000	28,385,000
Exercisable options at the end of the period (in dollars)	23,995,000	19,125,000	23,995,000	19,125,000
Weighted average fair value of options granted (in dollars per share)			$13.17	$13.13
Stock-based compensation expenses (in dollars)	1,000,000	900,000	2,800,000	2,700,000							100,000
Income tax benefit from stock-based compensation (in dollars)	300,000	300,000	1,000,000	900,000
Unrecognized stock-based compensation expense (in dollars)	5,100,000		5,100,000
Weighted average grant date assumptions and weighted average fair value
Weighted-average fair value of grants (in dollars per share)			$13.17	$13.13
Risk-free interest rates (as a percent)			0.80%	0.90%
Dividend yield (as a percent)			2.00%	1.93%
Expected volatility (as a percent)			25.41%	25.64%
Expected option life			5 years 2 months 23 days	5 years 4 months 20 days
Period for which annualized dividends is considered to calculate dividend yield			5 years
Restricted shares issued per recipient (in dollars)										$10,000
Restriction period											1 year
Restricted shares issued											1,160

OPERATING_SEGMENT_INFORMATION_1

OPERATING SEGMENT INFORMATION (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
REVENUES
Segment totals before income taxes	$163,702	$149,943	$462,406	$428,807
Net investment income	13,598	14,221	39,331	44,340
Net realized gains	10,999	5,481	18,425	16,233
Consolidated revenue	188,299	169,645	520,162	489,380
NET EARNINGS
Net underwriting income	31,818	18,530	77,175	55,094
Net investment income	13,598	14,221	39,331	44,340
Net realized gains	10,999	5,481	18,425	16,233
General corporate expense and interest on debt	-3,670	-3,611	-10,773	-10,438
Equity in earnings of unconsolidated investee	2,564	1,859	10,696	8,928
Earnings before income taxes	55,309	36,480	134,854	114,157
Income tax expense	17,662	11,017	42,458	35,908
Net earnings	37,647	25,463	92,396	78,249
Casualty
REVENUES
Segment totals before income taxes	83,966	68,194	235,307	197,409
NET EARNINGS
Net underwriting income	20,799	10,806	39,517	22,409
Property
REVENUES
Segment totals before income taxes	52,705	54,741	147,305	151,581
NET EARNINGS
Net underwriting income	6,468	-310	19,614	11,317
Surety
REVENUES
Segment totals before income taxes	27,031	27,008	79,794	79,817
NET EARNINGS
Net underwriting income	$4,551	$8,034	$18,044	$21,368

OPERATING_SEGMENT_INFORMATION_2

OPERATING SEGMENT INFORMATION (Details 2) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenue by major product
Net premiums earned	$163,702	$149,943	$462,406	$428,807
Casualty
Revenue by major product
Net premiums earned	83,966	68,194	235,307	197,409
Casualty | General liability
Revenue by major product
Net premiums earned	20,342	21,556	61,139	63,449
Casualty | Commercial and personal umbrella
Revenue by major product
Net premiums earned	22,247	17,430	61,803	50,337
Casualty | Commercial transportation
Revenue by major product
Net premiums earned	13,463	8,583	35,594	25,252
Casualty | P&C package business
Revenue by major product
Net premiums earned	7,643	7,479	22,671	21,334
Casualty | Executive products
Revenue by major product
Net premiums earned	4,550	3,914	13,175	11,666
Casualty | Professional services
Revenue by major product
Net premiums earned	11,021	7,386	30,092	19,704
Casualty | Medical professional liability
Revenue by major product
Net premiums earned	2,674		5,136
Casualty | Other
Revenue by major product
Net premiums earned	2,026	1,846	5,697	5,667
Property
Revenue by major product
Net premiums earned	52,705	54,741	147,305	151,581
Property | Commercial property
Revenue by major product
Net premiums earned	18,938	18,640	57,813	55,285
Property | Marine
Revenue by major product
Net premiums earned	14,242	14,026	43,898	44,591
Property | Crop reinsurance
Revenue by major product
Net premiums earned	11,846	9,876	19,501	15,992
Property | Property reinsurance
Revenue by major product
Net premiums earned	2,848	6,826	12,503	20,193
Property | Other property
Revenue by major product
Net premiums earned	4,831	5,373	13,590	15,520
Surety
Revenue by major product
Net premiums earned	27,031	27,008	79,794	79,817
Surety | Miscellaneous
Revenue by major product
Net premiums earned	9,590	10,026	28,559	29,600
Surety | Contract
Revenue by major product
Net premiums earned	7,025	6,835	20,137	19,507
Surety | Commercial
Revenue by major product
Net premiums earned	5,857	5,574	17,285	16,536
Surety | Oil and Gas
Revenue by major product
Net premiums earned	$4,559	$4,573	$13,813	$14,174

ACQUISITION_Details

ACQUISITION (Details) (USD $)

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

0 Months Ended

3 Months Ended

9 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Nov. 02, 2012

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Casualty

Casualty

Casualty

Casualty

Rockbridge

Rockbridge

Rockbridge

Rockbridge

state

Casualty

Casualty

Business acquisition

Number of states in which coverage is offered to individual physicians and physician groups

50

Total business acquisition consideration

$16,700,000

Business acquisition consideration paid in cash

15,500,000

Present value of an earn-out agreement to be paid in future years

1,200,000

1,200,000

Premiums written

3,500,000

11,500,000

Premiums Earned, Net

$163,702,000

$149,943,000

$462,406,000

$428,807,000

$83,966,000

$68,194,000

$235,307,000

$197,409,000

$2,700,000

$5,100,000

SUBSEQUENT_EVENT_Details

SUBSEQUENT EVENT (Details) (Senior notes maturing September 15, 2023, USD $)	0 Months Ended
In Millions, unless otherwise specified	Sep. 25, 2013
Senior notes maturing September 15, 2023
SUBSEQUENT EVENT
Issue of senior notes by public debt offering	$150
Stated interest rate, payable semi-annually (as a percent)	4.88%
Maturity period	10 years