RLI (RLI) 10-Q 28 Apr 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	Apr. 11, 2014
Document and Entity Information	'	'
Entity Registrant Name	'RLI CORP	'
Entity Central Index Key	'0000084246	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Large Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	42,989,841
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Earnings and Comprehensive Earnings (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Condensed Consolidated Statements of Earnings and Comprehensive Earnings	'	'
Net premiums earned	$161,132	$144,151
Net investment income	13,582	12,886
Net realized investment gains	6,501	3,684
Consolidated revenue	181,215	160,721
Losses and settlement expenses	71,016	61,448
Policy acquisition costs	55,051	50,336
Insurance operating expenses	12,533	12,569
Interest expense on debt	1,851	1,512
General corporate expenses	2,198	2,386
Total expenses	142,649	128,251
Equity in earnings of unconsolidated investees	3,425	3,499
Earnings before income taxes	41,991	35,969
Income tax expense	13,022	11,122
Net earnings	28,969	24,847
Other comprehensive earnings, net of tax	17,737	17,553
Comprehensive earnings	$46,706	$42,400
Basic:	'	'
Basic net earnings per share (in dollars per share)	$0.67	$0.58
Basic comprehensive earnings per share (in dollars per share)	$1.09	$1
Diluted:	'	'
Diluted net earnings per share (in dollars per share)	$0.66	$0.57
Diluted comprehensive earnings per share (in dollars per share)	$1.07	$0.98
Weighted average number of common shares outstanding	'	'
Basic (in shares)	42,985	42,544
Diluted (in shares)	43,674	43,245
Cash dividends paid per common share (in dollars per share)	$0.17	$0.16

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Fixed income	'	'
Available-for-sale, at fair value	$1,467,282	$1,440,052
Held-to-maturity, at amortized cost	651	651
Equity securities, at fair value	426,680	418,654
Short-term investments, at cost	37,030	23,232
Cash	20,618	39,469
Total investments and cash	1,952,261	1,922,058
Accrued investment income	13,256	15,710
Premiums and reinsurance balances receivable	166,165	152,509
Ceded unearned premium	58,835	60,407
Reinsurance balances recoverable on unpaid losses	353,674	354,924
Deferred policy acquisition costs	62,586	61,508
Property and equipment	42,107	40,261
Investment in unconsolidated investees	58,568	49,793
Goodwill and intangibles	74,641	74,876
Other assets	9,254	8,264
TOTAL ASSETS	2,791,347	2,740,310
Liabilities:	'	'
Unpaid losses and settlement expenses	1,141,735	1,129,433
Unearned premiums	390,968	392,081
Reinsurance balances payable	44,784	47,334
Funds held	58,850	61,656
Income taxes-deferred	68,995	57,801
Bonds payable, long-term debt	149,593	149,582
Accrued expenses	34,069	59,596
Other liabilities	32,777	13,861
TOTAL LIABILITIES	1,921,771	1,911,344
Shareholders' Equity	'	'
Common stock ($1 par value, 100,000,000 shares authorized) (65,919,435 shares issued, 42,989,221 shares outstanding at 3/31/14) (65,912,638 shares issued, 42,982,424 shares outstanding at 12/31/13)	65,919	65,913
Paid-in capital	209,908	208,705
Accumulated other comprehensive earnings	153,764	136,027
Retained earnings	832,984	811,320
Deferred compensation	11,565	11,562
Less: Treasury shares at cost (22,930,214 shares at 3/31/14 and 12/31/13)	-404,564	-404,561
TOTAL SHAREHOLDERS' EQUITY	869,576	828,966
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$2,791,347	$2,740,310

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
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)	65,919,435	65,912,638
Common stock, shares outstanding (in shares)	42,989,221	42,982,424
Treasury stock, shares (in shares)	22,930,214	22,930,214

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Condensed Consolidated Statements of Cash Flows	'	'
Net cash used in operating activities	($2,007)	($6,328)
Cash Flows from Investing Activities	'	'
Investments purchased	-129,559	-123,747
Investments sold	92,989	54,647
Investments called or matured	31,770	36,680
Net change in short-term investments	2,286	26,329
Net property and equipment purchased	-2,933	-4,276
Investment in equity method investee	-5,301	'
Net cash used in investing activities	-10,748	-10,367
Cash Flows from Financing Activities	'	'
Cash dividends paid	-7,305	-6,807
Stock plan share issuance	1,123	819
Excess tax benefit from exercise of stock options	86	740
Net cash used in financing activities	-6,096	-5,248
Net decrease in cash	-18,851	-21,943
Cash at the beginning of the period	39,469	44,314
Cash at March 31	$20,618	$22,371

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2014
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 2013 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 March 31, 2014 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
	We have not adopted any new accounting standards as there have been no accounting standard updates which would impact our financial statements.
	C.            PROSPECTIVE ACCOUNTING STANDARDS
	There are no prospective accounting standards which would impact our financial statements as of March 31, 2014.
	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 $74.6 million at March 31, 2014. These assets relate to acquisition activity including our 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 $32.3 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. Definite-lived intangible assets related to the CBIC acquisition totaled $3.1 million, net of amortization, as of March 31, 2014. The remaining $16.1 million of goodwill and intangibles relates to our purchase of Rockbridge in November 2012. Of this amount, $12.4 million is recorded as goodwill attributable to our casualty segment. The remaining $3.7 million relates to definite-lived intangible assets, net of amortization, as of March 31, 2014. Annual impairment testing was performed on each of these goodwill and indefinite-lived intangible assets during 2013. Based upon these reviews, the assets were not impaired. In addition, as of March 31, 2014, there were no triggering events that occurred that would suggest an updated review was necessary.
	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 $0.2 million for the first quarter of 2014.
	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 March 31, 2014							Ended March 31, 2013
	(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	$	28,969		42,985		$	0.67	$	24,847	42,544	$	0.58
	Effect of Dilutive Securities
	Stock options	—			689				—		701
	Diluted EPS
	Income available to common shareholders	$	28,969		43,674		$	0.66	$	24,847	43,245	$	0.57
	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
		March 31,
	(in thousands)	2014			2013
	Unrealized Gains/Losses on Available-for-Sale Securities
	Beginning balance	$	136,027		$	143,170
	Other comprehensive earnings before reclassifications	21,960			20,267
	Amounts reclassified from accumulated other comprehensive earnings	(4,223		)	(2,714		)
	Net current-period other comprehensive earnings	$	17,737		$	17,553
	Ending balance	$	153,764		$	160,723
	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 Periods Ended						Affected line item in the
	Component of Accumulated	March 31,
	Other Comprehensive Earnings	2014			2013			Statement of Earnings
	Unrealized gains and losses on available-for-sale securities	$	6,497		$	4,176		Net realized investment gains
		—			—			Other-than-temporary impairment (OTTI) losses on investments
		$	6,497		$	4,176		Earnings before income taxes
		(2,274		)	(1,462		)	Income tax expense
		$	4,223		$	2,714		Net earnings

INVESTMENTS

INVESTMENTS	3 Months Ended
	Mar. 31, 2014
INVESTMENTS	'
INVESTMENTS	'
	2.  INVESTMENTS
	Our investments include fixed income debt securities and common stock equity securities. As disclosed in our 2013 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 March 31, 2014 and December 31, 2013 were as follows:
	Available-for-sale
	(in thousands)
		3/31/14
		Cost or			Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
	Asset Class	Cost			Gains			Losses			Value
	U.S. agency	$	2,000		$	—		$	(3	)	$	1,997
	Corporate	543,143			25,241			(2,803		)	565,581
	Mtge/ABS/CMBS*	341,781			8,581			(5,408		)	344,954
	Non-U.S. govt. & agency	13,852			736			—			14,588
	U.S. government	18,205			190			—			18,395
	Municipal	518,642			9,171			(6,046		)	521,767
	Total Fixed Income	$	1,437,623		$	43,919		$	(14,260	)	$	1,467,282
	Equity	$	220,292		$	206,744		$	(356	)	$	426,680
	Available-for-sale
	(in thousands)
		12/31/13
		Cost or			Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
	Asset Class	Cost			Gains			Losses			Value
	U.S. agency	$	10,513		$	22		$	(237	)	$	10,298
	Corporate	511,748			22,302			(8,012		)	526,038
	Mtge/ABS/CMBS*	350,187			8,188			(7,650		)	350,725
	Non-U.S. govt. & agency	13,306			437			(65		)	13,678
	U.S. government	17,086			217			—			17,303
	Municipal	528,209			6,495			(12,694		)	522,010
	Total Fixed Income	$	1,431,049		$	37,661		$	(28,658	)	$	1,440,052
	Equity	$	218,848		$	200,081		$	(275	)	$	418,654
	*Mortgage-backed, 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 March 31, 2014:
		3/31/14
	AFS	Amortized			Fair
	(in thousands)	Cost			Value
	Due in one year or less	$	11,988		$	12,080
	Due after one year through five years	176,091			184,885
	Due after five years through 10 years	652,781			669,893
	Due after 10 years	254,982			255,470
	Mtge/ABS/CMBS*	341,781			344,954
	Total available-for-sale	$	1,437,623		$	1,467,282
	*Mortgage-backed, asset-backed & commercial mortgage-backed
	Held-to-Maturity Debt Securities
	The carrying value and fair value of held-to-maturity securities was $0.7 million at March 31, 2014 and December 31, 2013. 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. Unrecognized gains on our held-to-maturity securities were less than $0.1 million at March 31, 2014 and December 31, 2013. As of March 31, 2014, the carrying value and fair value of all debt securities held-to-maturity have a contractual maturity date of one year or less.
	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 March 31, 2014 and December 31, 2013. 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 March 31, 2014 unrealized losses, as shown in the following tables, were 0.8 percent of total invested assets. Unrealized losses decreased in 2014, as interest rates declined during the first quarter of the year.
		March 31, 2014									December 31, 2013
	(in thousands)	< 12 Mos.			12 Mos. &			Total			< 12 Mos.			12 Mos. &			Total
					Greater									Greater
	U.S. Agency
	Fair value	$	1,997		$	—		$	1,997		$	5,760		$	—		$	5,760
	Cost or amortized cost	2,000			—			2,000			5,997			—			5,997
	Unrealized Loss	$	(3	)	$	—		$	(3	)	$	(237	)	$	—		$	(237	)
	Non-U.S. Government
	Fair value	$	—		$	—		$	—		$	1,825		$	—		$	1,825
	Cost or amortized cost	—			—			—			1,890			—			1,890
	Unrealized Loss	$	—		$	—		$	—		$	(65	)	$	—		$	(65	)
	Mortgage-backed
	Fair value	$	98,902		$	7,737		$	106,639		$	118,283		$	—		$	118,283
	Cost or amortized cost	102,619			8,199			110,818			124,034			—			124,034
	Unrealized Loss	$	(3,717	)	$	(462	)	$	(4,179	)	$	(5,751	)	$	—		$	(5,751	)
ABS/CMBS*
Fair value	$	33,089		$	7,668		$	40,757		$	54,115		$	—		$	54,115
Cost or amortized cost	33,777			8,209			41,986			56,014			—			56,014
Unrealized Loss	$	(688	)	$	(541	)	$	(1,229	)	$	(1,899	)	$	—		$	(1,899	)
Corporate
Fair value	$	159,687		$	—		$	159,687		$	190,470		$	2,245		$	192,715
Cost or amortized cost	162,490			—			162,490			198,250			2,477			200,727
Unrealized Loss	$	(2,803	)	$	—		$	(2,803	)	$	(7,780	)	$	(232	)	$	(8,012	)
Municipal
Fair value	$	249,856		$	—		$	249,856		$	309,407		$	943		$	310,350
Cost or amortized cost	255,902			—			255,902			322,095			949			323,044
Unrealized Loss	$	(6,046	)	$	—		$	(6,046	)	$	(12,688	)	$	(6	)	$	(12,694	)
Subtotal, fixed income
Fair value	$	543,531		$	15,405		$	558,936		$	679,860		$	3,188		$	683,048
Cost or amortized cost	556,788			16,408			573,196			708,280			3,426			711,706
Unrealized Loss	$	(13,257	)	$	(1,003	)	$	(14,260	)	$	(28,420	)	$	(238	)	$	(28,658	)
Equity securities
Fair value	$	3,275		$	2,472		$	5,747		$	2,394		$	—		$	2,394
Cost or amortized cost	3,434			2,669			6,103			2,669			—			2,669
Unrealized Loss	$	(159	)	$	(197	)	$	(356	)	$	(275	)	$	—		$	(275	)
Total
Fair value	$	546,806		$	17,877		$	564,683		$	682,254		$	3,188		$	685,442
Cost or amortized cost	560,222			19,077			579,299			710,949			3,426			714,375
Unrealized Loss	$	(13,416	)	$	(1,200	)	$	(14,616	)	$	(28,695	)	$	(238	)	$	(28,933	)
*Asset-backed & commercial mortgage-backed
The following table shows the composition of the fixed income securities in unrealized loss positions at March 31, 2014 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		$	521,155		$	507,536		$	(13,619	)	95.6	%
2	BBB		Baa		24,881			24,418			(463		)	3.2	%
3	BB		Ba		20,571			20,427			(144		)	1	%
4	B		B		6,589			6,555			(34		)	0.2	%
5	CCC or lower		Caa or lower		—			—			—			—
6					—			—			—			—
			Total		$	573,196		$	558,936		$	(14,260	)	100	%
Cash and Short-term Investments
Cash consists of uninvested balances in bank accounts. We had a cash balance of $20.6 million at the end of the first quarter of 2014, compared to $39.5 million at the end of 2013. Short-term investments are carried at cost, which approximates fair value. The balance at March 31, 2014 was $37.0 million compared to $23.2 million at December 31, 2013.
Evaluating Investments for OTTI
The fixed income portfolio contained 306 securities in an unrealized loss position as of March 31, 2014. The $14.3 million in associated unrealized losses for these 306 securities represents 1.0 percent of the fixed income portfolio’s cost basis. Of these 306 securities, six have 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 March 31, 2014, we held two 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. There were no OTTI losses recognized in the periods presented on the equity portfolio.

FAIR_VALUE_MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2014
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 value 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 widely recognized, third-party pricing sources to determine our fair values. We have obtained an understanding of the third-party pricing sources’ 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 employs a multi-dimensional 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 principally interest rate movements and new issue 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 services. Our review consists of a two pronged approach. First, we compare prices provided by our pricing services to those provided by an additional source. Second, we obtain prices from securities brokers and compare them to the prices provided by our pricing services. In both comparisons, when discrepancies are found, we compare our prices to actual reported trade data for like securities. Based on this assessment, we determined that the fair values of our Level 2 securities provided by our pricing services are reasonable.
	For common stock, we receive prices from a nationally recognized pricing service. Prices are based on observable inputs in an active market and are therefore disclosed 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 March 31, 2014
		Fair Value Measurements Using
		Quoted Prices in		Significant Other		Significant
		Active Markets for		Observable		Unobservable
		Identical Assets		Inputs		Inputs
	(in thousands)	(Level 1)		(Level 2)		(Level 3)		Total
	Total trading securities	$	—	$	—	$	—	$	—
	Available-for-sale securities
	U.S. agency	$	—	$	1,997	$	—	$	1,997
	Corporate	—		565,581		—		565,581
	Mortgage-backed	—		239,148		—		239,148
	ABS/CMBS*	—		105,806		—		105,806
	Non-U.S. govt. & agency	—		14,588		—		14,588
	U.S. government	—		18,395		—		18,395
	Municipal	—		521,767		—		521,767
	Equity	426,680		—		—		426,680
	Total available-for-sale securities	$	426,680	$	1,467,282	$	—	$	1,893,962
	Total	$	426,680	$	1,467,282	$	—	$	1,893,962
	*Asset-backed & commercial mortgage-backed
		As of December 31, 2013
		Fair Value Measurements Using
		Quoted Prices in		Significant Other		Significant
		Active Markets for		Observable		Unobservable
		Identical Assets		Inputs		Inputs
	(in thousands)	(Level 1)		(Level 2)		(Level 3)		Total
	Total trading securities	$	—	$	—	$	—	$	—
	Available-for-sale securities
	U.S. agency	$	—	$	10,298	$	—	$	10,298
	Corporate	—		526,038		—		526,038
	Mortgage-backed	—		244,416		—		244,416
	ABS/CMBS*	—		106,309		—		106,309
	Non-U.S. govt. & agency	—		13,678		—		13,678
	U.S. government	—		17,303		—		17,303
	Municipal	—		522,010		—		522,010
	Equity	418,654		—		—		418,654
	Total available-for-sale securities	$	418,654	$	1,440,052	$	—	$	1,858,706
	Total	$	418,654	$	1,440,052	$	—	$	1,858,706
	*Asset-backed & commercial mortgage-backed
	As noted in the above table, we did 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 March 31, 2014.

STOCK_BASED_COMPENSATION

STOCK BASED COMPENSATION	3 Months Ended
	Mar. 31, 2014
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 3,000,000 shares (subject to adjustment for changes in our capitalization). Since 2005, we granted 2,457,644 stock options under this plan, including incentive stock options (ISOs), which were adjusted as part of the special dividends paid in 2013 and prior years.
	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 were no longer granted under the omnibus plan. Awards under the LTIP may be in the form of restricted stock, stock options (non-qualified 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 4,000,000 shares (subject to adjustment for changes in our capitalization). Since 2010, we have granted 2,363,000 stock options under the LTIP, including 50,500 thus far in 2014.
	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 and expire eight years after grant.
	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 March 31, 2014 and 2013:
							Weighted
				Weighted			Average	Aggregate
		Number of		Average			Remaining	Intrinsic
		Options		Exercise			Contractual	Value
		Outstanding		Price			Life	(in 000’s)
	Outstanding options at January 1, 2014	2,595,084		$	26.04
	Options granted	50,500		$	40.43
	Options exercised	(4,700	)	$	18.53			$	115
	Options canceled/forfeited	(740	)	$	16.51
	Outstanding options at March 31, 2014	2,640,144		$	26.33		5.36	$	47,359
	Exercisable options at March 31, 2014	972,284		$	20.66		4.07	$	22,927
							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	2,945,204		$	22.23
	Options granted	59,000		$	34.74
	Options exercised	(85,146	)	$	18.05			$	1,408
	Options canceled/forfeited	(38,820	)	$	25.45
	Outstanding options at March 31, 2013	2,880,238		$	22.56		5.28	$	38,492
	Exercisable options at March 31, 2013	1,310,778		$	18.49		4.1	$	22,857
	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 2014, 50,500 options were granted with an average exercise price of $40.43 and a weighted average fair value of $8.14. We recognized $0.9 million of expense in the first three months of 2014 related to options vesting. Since options granted under our plan are non-qualified, we recorded a tax benefit of $0.3 million in the first three months of 2014 related to this compensation expense. Total unrecognized compensation expense relating to outstanding and unvested options was $4.1 million, which will be recognized over the remainder of the vesting period. Comparatively, we recognized $0.8 million of expense in the first three months of 2013 and a tax benefit of $0.3 million 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 March 31:
		2014			2013
	Weighted-average fair value of grants	$	8.14		$	6.69
	Risk-free interest rates	1.76		%	1.14		%
	Dividend yield	1.92		%	1.98		%
	Expected volatility	25.2		%	25.52		%
	Expected option life	5.66 years			5.65 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 2013 and prior years. 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 2014, we issued a total of 2,097 restricted shares and recognized $0.1 million of compensation expense.

OPERATING_SEGMENT_INFORMATION

OPERATING SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2014
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
		Ended March 31,
		REVENUES
		2014			2013
	Net premiums earned:
	Casualty	$	90,977		$	72,969
	Property	43,318			44,981
	Surety	26,837			26,201
	Segment totals before income taxes	$	161,132		$	144,151
	Net investment income	13,582			12,886
	Net realized gains	6,501			3,684
	Total consolidated revenue	$	181,215		$	160,721
		NET EARNINGS
		2014			2013
	Casualty	$	6,078		$	4,104
	Property	9,678			10,924
	Surety	6,776			4,770
	Net underwriting income	$	22,532		$	19,798
	Net investment income	13,582			12,886
	Net realized gains	6,501			3,684
	General corporate expense and interest on debt	(4,049		)	(3,898		)
	Equity in earnings of unconsolidated investees	3,425			3,499
	Total earnings before income taxes	$	41,991		$	35,969
	Income tax expense	13,022			11,122
	Total net earnings	$	28,969		$	24,847
	The following table further summarizes revenues (net premiums earned) by major product type within each operating segment:
		For the Three-Month Periods
		Ended March 31,
	(in thousands)	2014			2013
	Casualty
	Commercial and personal umbrella	$	24,756		$	18,950
	General liability	19,932			20,777
	Commercial transportation	14,511			9,934
	Professional services	12,861			9,009
	P&C package business	8,283			7,421
	Executive products	4,684			4,716
	Medical professional liability	3,700			750
	Other casualty	2,250			1,412
	Total	$	90,977		$	72,969
	Property
	Commercial property	$	20,433		$	19,616
	Marine	12,201			14,614
	Property reinsurance	3,361			5,272
	Crop reinsurance	1,186			1,267
	Other property	6,137			4,212
	Total	$	43,318		$	44,981
	Surety
	Miscellaneous	$	9,482		$	9,481
	Contract	6,761			6,459
	Commercial	6,134			5,711
	Oil and Gas	4,460			4,550
	Total	$	26,837		$	26,201
	Grand Total	$	161,132		$	144,151

ACQUISITION

ACQUISITION	3 Months Ended
	Mar. 31, 2014
ACQUISITION	'
ACQUISITION	'
	6. ACQUISITION
	On February 5, 2014, we invested $5.3 million for a 20 percent equity ownership interest in Prime Holdings Insurance Services, Inc. (Prime), an Illinois domiciled insurance carrier based in Salt Lake City, Utah. Prime is a privately-held excess and surplus lines insurance company operating in 49 states through a network of wholesale brokers and specializing in hard-to-place risks. The investment in Prime is reflected on our balance sheet as an investment in unconsolidated investee. Under the equity method of accounting we recognize our proportionate share of Prime’s income as equity in earnings of unconsolidated investees. For the first quarter of 2014, our share of Prime’s earnings amounted to $0.1 million.
	Additionally, we entered into a 25 percent quota share treaty with Prime, effective January 1, 2014. During the first quarter of 2014, we assumed gross premiums of $2.5 million related to this quota share agreement.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2014
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 2013 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 March 31, 2014 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 $74.6 million at March 31, 2014. These assets relate to acquisition activity including our 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 $32.3 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. Definite-lived intangible assets related to the CBIC acquisition totaled $3.1 million, net of amortization, as of March 31, 2014. The remaining $16.1 million of goodwill and intangibles relates to our purchase of Rockbridge in November 2012. Of this amount, $12.4 million is recorded as goodwill attributable to our casualty segment. The remaining $3.7 million relates to definite-lived intangible assets, net of amortization, as of March 31, 2014. Annual impairment testing was performed on each of these goodwill and indefinite-lived intangible assets during 2013. Based upon these reviews, the assets were not impaired. In addition, as of March 31, 2014, there were no triggering events that occurred that would suggest an updated review was necessary.
	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 $0.2 million for the first quarter of 2014.
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 March 31, 2014							Ended March 31, 2013
	(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	$	28,969		42,985		$	0.67	$	24,847	42,544	$	0.58
	Effect of Dilutive Securities
	Stock options	—			689				—		701
	Diluted EPS
	Income available to common shareholders	$	28,969		43,674		$	0.66	$	24,847	43,245	$	0.57
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
		March 31,
	(in thousands)	2014			2013
	Unrealized Gains/Losses on Available-for-Sale Securities
	Beginning balance	$	136,027		$	143,170
	Other comprehensive earnings before reclassifications	21,960			20,267
	Amounts reclassified from accumulated other comprehensive earnings	(4,223		)	(2,714		)
	Net current-period other comprehensive earnings	$	17,737		$	17,553
	Ending balance	$	153,764		$	160,723
	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 Periods Ended						Affected line item in the
	Component of Accumulated	March 31,
	Other Comprehensive Earnings	2014			2013			Statement of Earnings
	Unrealized gains and losses on available-for-sale securities	$	6,497		$	4,176		Net realized investment gains
		—			—			Other-than-temporary impairment (OTTI) losses on investments
		$	6,497		$	4,176		Earnings before income taxes
		(2,274		)	(1,462		)	Income tax expense
		$	4,223		$	2,714		Net earnings

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2014
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 March 31, 2014							Ended March 31, 2013
	(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	$	28,969		42,985		$	0.67	$	24,847	42,544	$	0.58
	Effect of Dilutive Securities
	Stock options	—			689				—		701
	Diluted EPS
	Income available to common shareholders	$	28,969		43,674		$	0.66	$	24,847	43,245	$	0.57
Schedule of changes in the balance of each component of accumulated other comprehensive earnings	'
		For the Three-Month Periods Ended
		March 31,
	(in thousands)	2014			2013
	Unrealized Gains/Losses on Available-for-Sale Securities
	Beginning balance	$	136,027		$	143,170
	Other comprehensive earnings before reclassifications	21,960			20,267
	Amounts reclassified from accumulated other comprehensive earnings	(4,223		)	(2,714		)
	Net current-period other comprehensive earnings	$	17,737		$	17,553
	Ending balance	$	153,764		$	160,723
Schedule of effects of reclassifications out of accumulated other comprehensive earnings	'
		Amount Reclassified from Accumulated
		Other Comprehensive Earnings
	(in thousands)	For the Three-Month Periods Ended						Affected line item in the
	Component of Accumulated	March 31,
	Other Comprehensive Earnings	2014			2013			Statement of Earnings
	Unrealized gains and losses on available-for-sale securities	$	6,497		$	4,176		Net realized investment gains
		—			—			Other-than-temporary impairment (OTTI) losses on investments
		$	6,497		$	4,176		Earnings before income taxes
		(2,274		)	(1,462		)	Income tax expense
		$	4,223		$	2,714		Net earnings

INVESTMENTS_Tables

INVESTMENTS (Tables)	3 Months Ended
	Mar. 31, 2014
INVESTMENTS	'
Schedule of amortized cost and fair value of available-for-sale securities	'
	Available-for-sale
	(in thousands)
		3/31/14
		Cost or			Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
	Asset Class	Cost			Gains			Losses			Value
	U.S. agency	$	2,000		$	—		$	(3	)	$	1,997
	Corporate	543,143			25,241			(2,803		)	565,581
	Mtge/ABS/CMBS*	341,781			8,581			(5,408		)	344,954
	Non-U.S. govt. & agency	13,852			736			—			14,588
	U.S. government	18,205			190			—			18,395
	Municipal	518,642			9,171			(6,046		)	521,767
	Total Fixed Income	$	1,437,623		$	43,919		$	(14,260	)	$	1,467,282
	Equity	$	220,292		$	206,744		$	(356	)	$	426,680
	Available-for-sale
	(in thousands)
		12/31/13
		Cost or			Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
	Asset Class	Cost			Gains			Losses			Value
	U.S. agency	$	10,513		$	22		$	(237	)	$	10,298
	Corporate	511,748			22,302			(8,012		)	526,038
	Mtge/ABS/CMBS*	350,187			8,188			(7,650		)	350,725
	Non-U.S. govt. & agency	13,306			437			(65		)	13,678
	U.S. government	17,086			217			—			17,303
	Municipal	528,209			6,495			(12,694		)	522,010
	Total Fixed Income	$	1,431,049		$	37,661		$	(28,658	)	$	1,440,052
	Equity	$	218,848		$	200,081		$	(275	)	$	418,654
	*Mortgage-backed, asset-backed and commercial mortgage-backed
Schedule of securities in an unrealized loss position segregated by type and length of time in an unrealized loss position	'
		March 31, 2014									December 31, 2013
	(in thousands)	< 12 Mos.			12 Mos. &			Total			< 12 Mos.			12 Mos. &			Total
					Greater									Greater
	U.S. Agency
	Fair value	$	1,997		$	—		$	1,997		$	5,760		$	—		$	5,760
	Cost or amortized cost	2,000			—			2,000			5,997			—			5,997
	Unrealized Loss	$	(3	)	$	—		$	(3	)	$	(237	)	$	—		$	(237	)
	Non-U.S. Government
	Fair value	$	—		$	—		$	—		$	1,825		$	—		$	1,825
	Cost or amortized cost	—			—			—			1,890			—			1,890
	Unrealized Loss	$	—		$	—		$	—		$	(65	)	$	—		$	(65	)
	Mortgage-backed
	Fair value	$	98,902		$	7,737		$	106,639		$	118,283		$	—		$	118,283
	Cost or amortized cost	102,619			8,199			110,818			124,034			—			124,034
	Unrealized Loss	$	(3,717	)	$	(462	)	$	(4,179	)	$	(5,751	)	$	—		$	(5,751	)
	ABS/CMBS*
	Fair value	$	33,089		$	7,668		$	40,757		$	54,115		$	—		$	54,115
	Cost or amortized cost	33,777			8,209			41,986			56,014			—			56,014
	Unrealized Loss	$	(688	)	$	(541	)	$	(1,229	)	$	(1,899	)	$	—		$	(1,899	)
	Corporate
	Fair value	$	159,687		$	—		$	159,687		$	190,470		$	2,245		$	192,715
	Cost or amortized cost	162,490			—			162,490			198,250			2,477			200,727
	Unrealized Loss	$	(2,803	)	$	—		$	(2,803	)	$	(7,780	)	$	(232	)	$	(8,012	)
	Municipal
	Fair value	$	249,856		$	—		$	249,856		$	309,407		$	943		$	310,350
	Cost or amortized cost	255,902			—			255,902			322,095			949			323,044
	Unrealized Loss	$	(6,046	)	$	—		$	(6,046	)	$	(12,688	)	$	(6	)	$	(12,694	)
	Subtotal, fixed income
	Fair value	$	543,531		$	15,405		$	558,936		$	679,860		$	3,188		$	683,048
	Cost or amortized cost	556,788			16,408			573,196			708,280			3,426			711,706
	Unrealized Loss	$	(13,257	)	$	(1,003	)	$	(14,260	)	$	(28,420	)	$	(238	)	$	(28,658	)
	Equity securities
	Fair value	$	3,275		$	2,472		$	5,747		$	2,394		$	—		$	2,394
	Cost or amortized cost	3,434			2,669			6,103			2,669			—			2,669
	Unrealized Loss	$	(159	)	$	(197	)	$	(356	)	$	(275	)	$	—		$	(275	)
	Total
	Fair value	$	546,806		$	17,877		$	564,683		$	682,254		$	3,188		$	685,442
	Cost or amortized cost	560,222			19,077			579,299			710,949			3,426			714,375
	Unrealized Loss	$	(13,416	)	$	(1,200	)	$	(14,616	)	$	(28,695	)	$	(238	)	$	(28,933	)
	*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		$	521,155		$	507,536		$	(13,619	)	95.6	%
	2	BBB		Baa		24,881			24,418			(463		)	3.2	%
	3	BB		Ba		20,571			20,427			(144		)	1	%
	4	B		B		6,589			6,555			(34		)	0.2	%
	5	CCC or lower		Caa or lower		—			—			—			—
	6					—			—			—			—
				Total		$	573,196		$	558,936		$	(14,260	)	100	%
Available-For-Sale Securities	'
INVESTMENTS	'
Schedule of contractual maturity of securities	'
		3/31/14
	AFS	Amortized			Fair
	(in thousands)	Cost			Value
	Due in one year or less	$	11,988		$	12,080
	Due after one year through five years	176,091			184,885
	Due after five years through 10 years	652,781			669,893
	Due after 10 years	254,982			255,470
	Mtge/ABS/CMBS*	341,781			344,954
	Total available-for-sale	$	1,437,623		$	1,467,282
	*Mortgage-backed, asset-backed & commercial mortgage-backed

FAIR_VALUE_MEASUREMENTS_Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2014
FAIR VALUE MEASUREMENTS	'
Schedule of assets measured at fair value on recurring basis	'
		As of March 31, 2014
		Fair Value Measurements Using
		Quoted Prices in		Significant Other		Significant
		Active Markets for		Observable		Unobservable
		Identical Assets		Inputs		Inputs
	(in thousands)	(Level 1)		(Level 2)		(Level 3)		Total
	Total trading securities	$	—	$	—	$	—	$	—
	Available-for-sale securities
	U.S. agency	$	—	$	1,997	$	—	$	1,997
	Corporate	—		565,581		—		565,581
	Mortgage-backed	—		239,148		—		239,148
	ABS/CMBS*	—		105,806		—		105,806
	Non-U.S. govt. & agency	—		14,588		—		14,588
	U.S. government	—		18,395		—		18,395
	Municipal	—		521,767		—		521,767
	Equity	426,680		—		—		426,680
	Total available-for-sale securities	$	426,680	$	1,467,282	$	—	$	1,893,962
	Total	$	426,680	$	1,467,282	$	—	$	1,893,962
	*Asset-backed & commercial mortgage-backed
		As of December 31, 2013
		Fair Value Measurements Using
		Quoted Prices in		Significant Other		Significant
		Active Markets for		Observable		Unobservable
		Identical Assets		Inputs		Inputs
	(in thousands)	(Level 1)		(Level 2)		(Level 3)		Total
	Total trading securities	$	—	$	—	$	—	$	—
	Available-for-sale securities
	U.S. agency	$	—	$	10,298	$	—	$	10,298
	Corporate	—		526,038		—		526,038
	Mortgage-backed	—		244,416		—		244,416
	ABS/CMBS*	—		106,309		—		106,309
	Non-U.S. govt. & agency	—		13,678		—		13,678
	U.S. government	—		17,303		—		17,303
	Municipal	—		522,010		—		522,010
	Equity	418,654		—		—		418,654
	Total available-for-sale securities	$	418,654	$	1,440,052	$	—	$	1,858,706
	Total	$	418,654	$	1,440,052	$	—	$	1,858,706
	*Asset-backed & commercial mortgage-backed

STOCK_BASED_COMPENSATION_Table

STOCK BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2014
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, 2014	2,595,084		$	26.04
	Options granted	50,500		$	40.43
	Options exercised	(4,700	)	$	18.53			$	115
	Options canceled/forfeited	(740	)	$	16.51
	Outstanding options at March 31, 2014	2,640,144		$	26.33		5.36	$	47,359
	Exercisable options at March 31, 2014	972,284		$	20.66		4.07	$	22,927
							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	2,945,204		$	22.23
	Options granted	59,000		$	34.74
	Options exercised	(85,146	)	$	18.05			$	1,408
	Options canceled/forfeited	(38,820	)	$	25.45
	Outstanding options at March 31, 2013	2,880,238		$	22.56		5.28	$	38,492
	Exercisable options at March 31, 2013	1,310,778		$	18.49		4.1	$	22,857
Schedule of stock option assumptions for fair value estimate	'
		2014			2013
	Weighted-average fair value of grants	$	8.14		$	6.69
	Risk-free interest rates	1.76		%	1.14		%
	Dividend yield	1.92		%	1.98		%
	Expected volatility	25.2		%	25.52		%
	Expected option life	5.66 years			5.65 years

OPERATING_SEGMENT_INFORMATION_

OPERATING SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2014
OPERATING SEGMENT INFORMATION	'
Schedule of revenues and net earnings by segment	'
	SEGMENT DATA (in thousands)
		For the Three-Month Periods
		Ended March 31,
		REVENUES
		2014			2013
	Net premiums earned:
	Casualty	$	90,977		$	72,969
	Property	43,318			44,981
	Surety	26,837			26,201
	Segment totals before income taxes	$	161,132		$	144,151
	Net investment income	13,582			12,886
	Net realized gains	6,501			3,684
	Total consolidated revenue	$	181,215		$	160,721
		NET EARNINGS
		2014			2013
	Casualty	$	6,078		$	4,104
	Property	9,678			10,924
	Surety	6,776			4,770
	Net underwriting income	$	22,532		$	19,798
	Net investment income	13,582			12,886
	Net realized gains	6,501			3,684
	General corporate expense and interest on debt	(4,049		)	(3,898		)
	Equity in earnings of unconsolidated investees	3,425			3,499
	Total earnings before income taxes	$	41,991		$	35,969
	Income tax expense	13,022			11,122
	Total net earnings	$	28,969		$	24,847
Schedule of net premiums earned by major product type	'
		For the Three-Month Periods
		Ended March 31,
	(in thousands)	2014			2013
	Casualty
	Commercial and personal umbrella	$	24,756		$	18,950
	General liability	19,932			20,777
	Commercial transportation	14,511			9,934
	Professional services	12,861			9,009
	P&C package business	8,283			7,421
	Executive products	4,684			4,716
	Medical professional liability	3,700			750
	Other casualty	2,250			1,412
	Total	$	90,977		$	72,969
	Property
	Commercial property	$	20,433		$	19,616
	Marine	12,201			14,614
	Property reinsurance	3,361			5,272
	Crop reinsurance	1,186			1,267
	Other property	6,137			4,212
	Total	$	43,318		$	44,981
	Surety
	Miscellaneous	$	9,482		$	9,481
	Contract	6,761			6,459
	Commercial	6,134			5,711
	Oil and Gas	4,460			4,550
	Total	$	26,837		$	26,201
	Grand Total	$	161,132		$	144,151

SUMMARY_OF_SIGNIFICANT_ACCOUNT3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	3 Months Ended			3 Months Ended		1 Months Ended			1 Months Ended
Share data in Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Mar. 31, 2014	Mar. 31, 2014	Apr. 30, 2011	Apr. 30, 2011	Mar. 31, 2014	Apr. 30, 2011	Mar. 31, 2014	Nov. 30, 2012
				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	$74,641,000	'	$74,876,000	'	'	'	$32,300,000	'	'	'	$16,100,000
Goodwill	'	'	'	'	26,200,000	'	'	'	'	12,400,000	'
Goodwill acquired	'	'	'	'	'	15,100,000	'	'	5,300,000	'	'
Indefinite Lived Intangible Assets Acquired	'	'	'	'	'	'	8,800,000	'	'	'	'
Definite-lived intangible assets, net of amortization	'	'	'	'	'	'	'	3,100,000	'	3,700,000	'
Amortization of intangible assets	'	'	'	200,000	'	'	'	'	'	'	'
Basic EPS, Income (Numerator)	'	'	'	'	'	'	'	'	'	'	'
Income available to common shareholders	28,969,000	24,847,000	'	'	'	'	'	'	'	'	'
Diluted EPS, Income (Numerator)	'	'	'	'	'	'	'	'	'	'	'
Income available to common shareholders	$28,969,000	$24,847,000	'	'	'	'	'	'	'	'	'
Basic EPS, Weighted Average Shares (Denominator)	'	'	'	'	'	'	'	'	'	'	'
Number of shares outstanding	42,985	42,544	'	'	'	'	'	'	'	'	'
Effect of Dilutive Securities, Shares (Denominator)	'	'	'	'	'	'	'	'	'	'	'
Stock options (in shares)	689	701	'	'	'	'	'	'	'	'	'
Diluted EPS, Weighted Average Shares (Denominator)	'	'	'	'	'	'	'	'	'	'	'
Number of shares outstanding	43,674	43,245	'	'	'	'	'	'	'	'	'
Basic EPS, Per Share Amount	'	'	'	'	'	'	'	'	'	'	'
Basic net earnings per share (in dollars per share)	$0.67	$0.58	'	'	'	'	'	'	'	'	'
Diluted EPS, Per Share Amount	'	'	'	'	'	'	'	'	'	'	'
Diluted earnings per share (in dollars per share)	$0.66	$0.57	'	'	'	'	'	'	'	'	'

SUMMARY_OF_SIGNIFICANT_ACCOUNT4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
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	$136,027	'
Net current-period other comprehensive earnings (loss)	17,737	17,553
Ending balance	153,764	'
Unrealized Gains and Losses on Available-for-Sale Securities	'	'
Changes in the balance of each component of accumulated other comprehensive earnings	'	'
Beginning balance	136,027	143,170
Other comprehensive earnings before reclassifications	21,960	20,267
Amounts reclassified from accumulated other comprehensive earnings	-4,223	-2,714
Net current-period other comprehensive earnings (loss)	17,737	17,553
Ending balance	$153,764	$160,723

SUMMARY_OF_SIGNIFICANT_ACCOUNT5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Amount Reclassified from Accumulated Other Comprehensive Earnings	'	'
Net realized investment gains	$6,501	$3,684
Earnings before income taxes	41,991	35,969
Income tax expense	-13,022	-11,122
Net earnings	28,969	24,847
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	6,497	4,176
Earnings before income taxes	6,497	4,176
Income tax expense	-2,274	-1,462
Net earnings	$4,223	$2,714

INVESTMENTS_Details

INVESTMENTS (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Amortized Cost	'	'
Due in one year or less	$11,988	'
Due after one year through five years	176,091	'
Due after five years through 10 years	652,781	'
Due after 10 years	254,982	'
Total amortized cost	1,437,623	'
Fair Value	'	'
Due in one year or less	12,080	'
Due after one year through five years	184,885	'
Due after five years through 10 years	669,893	'
Due after 10 years	255,470	'
Total fair value	1,467,282	1,440,052
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	1,437,623	1,431,049
Gross Unrealized Gains	43,919	37,661
Gross Unrealized Losses	-14,260	-28,658
Fair Value	1,467,282	1,440,052
U.S. agency	'	'
Available-for-sale	'	'
Cost or Amortized Cost	2,000	10,513
Gross Unrealized Gains	'	22
Gross Unrealized Losses	-3	-237
Fair Value	1,997	10,298
Corporate	'	'
Available-for-sale	'	'
Cost or Amortized Cost	543,143	511,748
Gross Unrealized Gains	25,241	22,302
Gross Unrealized Losses	-2,803	-8,012
Fair Value	565,581	526,038
Mtge/ABS/CMBS	'	'
Available-for-sale	'	'
Cost or Amortized Cost	341,781	350,187
Gross Unrealized Gains	8,581	8,188
Gross Unrealized Losses	-5,408	-7,650
Fair Value	344,954	350,725
Amortized Cost	'	'
Total amortized cost	341,781	'
Fair Value	'	'
Total fair value	344,954	'
Non-U.S. govt. & agency	'	'
Available-for-sale	'	'
Cost or Amortized Cost	13,852	13,306
Gross Unrealized Gains	736	437
Gross Unrealized Losses	'	-65
Fair Value	14,588	13,678
U.S. government	'	'
Available-for-sale	'	'
Cost or Amortized Cost	18,205	17,086
Gross Unrealized Gains	190	217
Fair Value	18,395	17,303
Municipal	'	'
Available-for-sale	'	'
Cost or Amortized Cost	518,642	528,209
Gross Unrealized Gains	9,171	6,495
Gross Unrealized Losses	-6,046	-12,694
Fair Value	521,767	522,010
Equity securities	'	'
Available-for-sale	'	'
Cost or Amortized Cost	220,292	218,848
Gross Unrealized Gains	206,744	200,081
Gross Unrealized Losses	-356	-275
Fair Value	$426,680	$418,654

INVESTMENTS_Details_2

INVESTMENTS (Details 2) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Millions, unless otherwise specified
Held-to-Maturity Debt Securities	'	'
Fair value of held-to-maturity securities, due in one year or less	$0.70	$0.70
Carrying value of held-to-maturity securities, due in one year or less	0.7	0.7
Maximum	'	'
Held-to-Maturity Debt Securities	'	'
Gross Unrecognized Gains	$0.10	$0.10

INVESTMENTS_Details_3

INVESTMENTS (Details 3) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
INVESTMENTS	'	'	'	'
Unrealized losses relative to total invested assets (as a percent)	0.80%	'	'	'
Fair value	'	'	'	'
Less than 12 months	$546,806	$682,254	'	'
12 Months and Greater	17,877	3,188	'	'
Total Fair value	564,683	685,442	'	'
Cost or amortized Cost	'	'	'	'
Less than 12 months	560,222	710,949	'	'
12 months and greater	19,077	3,426	'	'
Total Cost or Amortized Cost	579,299	714,375	'	'
Unrealized Loss	'	'	'	'
Less than 12 months	-13,416	-28,695	'	'
12 Months and Greater	-1,200	-238	'	'
Total Unrealized Loss	-14,616	-28,933	'	'
Cash and Short-term Investments	'	'	'	'
Cash	20,618	39,469	22,371	44,314
Short-term investments, at cost which approximates fair value	37,030	23,232	'	'
Debt securities	'	'	'	'
Fair value	'	'	'	'
Less than 12 months	543,531	679,860	'	'
12 Months and Greater	15,405	3,188	'	'
Total Fair value	558,936	683,048	'	'
Cost or amortized Cost	'	'	'	'
Less than 12 months	556,788	708,280	'	'
12 months and greater	16,408	3,426	'	'
Total Cost or Amortized Cost	573,196	711,706	'	'
Unrealized Loss	'	'	'	'
Less than 12 months	-13,257	-28,420	'	'
12 Months and Greater	-1,003	-238	'	'
Total Unrealized Loss	-14,260	-28,658	'	'
Percent to Total	100.00%	'	'	'
Debt securities | NAIC Rating 1 | AAA/AA/A | Aaa/Aa/A	'	'	'	'
Fair value	'	'	'	'
Total Fair value	507,536	'	'	'
Cost or amortized Cost	'	'	'	'
Total Cost or Amortized Cost	521,155	'	'	'
Unrealized Loss	'	'	'	'
Total Unrealized Loss	-13,619	'	'	'
Percent to Total	95.60%	'	'	'
Debt securities | NAIC Rating 2 | BBB | Baa	'	'	'	'
Fair value	'	'	'	'
Total Fair value	24,418	'	'	'
Cost or amortized Cost	'	'	'	'
Total Cost or Amortized Cost	24,881	'	'	'
Unrealized Loss	'	'	'	'
Total Unrealized Loss	-463	'	'	'
Percent to Total	3.20%	'	'	'
Debt securities | NAIC Rating 3 | BB | Ba	'	'	'	'
Fair value	'	'	'	'
Total Fair value	20,427	'	'	'
Cost or amortized Cost	'	'	'	'
Total Cost or Amortized Cost	20,571	'	'	'
Unrealized Loss	'	'	'	'
Total Unrealized Loss	-144	'	'	'
Percent to Total	1.00%	'	'	'
Debt securities | NAIC Rating 4 | B | B	'	'	'	'
Fair value	'	'	'	'
Total Fair value	6,555	'	'	'
Cost or amortized Cost	'	'	'	'
Total Cost or Amortized Cost	6,589	'	'	'
Unrealized Loss	'	'	'	'
Total Unrealized Loss	-34	'	'	'
Percent to Total	0.20%	'	'	'
U.S. Agency	'	'	'	'
Fair value	'	'	'	'
Less than 12 months	1,997	5,760	'	'
Total Fair value	1,997	5,760	'	'
Cost or amortized Cost	'	'	'	'
Less than 12 months	2,000	5,997	'	'
Total Cost or Amortized Cost	2,000	5,997	'	'
Unrealized Loss	'	'	'	'
Less than 12 months	-3	-237	'	'
Total Unrealized Loss	-3	-237	'	'
Non-U.S. Government	'	'	'	'
Fair value	'	'	'	'
Less than 12 months	'	1,825	'	'
Total Fair value	'	1,825	'	'
Cost or amortized Cost	'	'	'	'
Less than 12 months	'	1,890	'	'
Total Cost or Amortized Cost	'	1,890	'	'
Unrealized Loss	'	'	'	'
Less than 12 months	'	-65	'	'
Total Unrealized Loss	'	-65	'	'
Mortgage-backed	'	'	'	'
Fair value	'	'	'	'
Less than 12 months	98,902	118,283	'	'
12 Months and Greater	7,737	'	'	'
Total Fair value	106,639	118,283	'	'
Cost or amortized Cost	'	'	'	'
Less than 12 months	102,619	124,034	'	'
12 months and greater	8,199	'	'	'
Total Cost or Amortized Cost	110,818	124,034	'	'
Unrealized Loss	'	'	'	'
Less than 12 months	-3,717	-5,751	'	'
12 Months and Greater	-462	'	'	'
Total Unrealized Loss	-4,179	-5,751	'	'
ABS/CMBS	'	'	'	'
Fair value	'	'	'	'
Less than 12 months	33,089	54,115	'	'
12 Months and Greater	7,668	'	'	'
Total Fair value	40,757	54,115	'	'
Cost or amortized Cost	'	'	'	'
Less than 12 months	33,777	56,014	'	'
12 months and greater	8,209	'	'	'
Total Cost or Amortized Cost	41,986	56,014	'	'
Unrealized Loss	'	'	'	'
Less than 12 months	-688	-1,899	'	'
12 Months and Greater	-541	'	'	'
Total Unrealized Loss	-1,229	-1,899	'	'
Corporate	'	'	'	'
Fair value	'	'	'	'
Less than 12 months	159,687	190,470	'	'
12 Months and Greater	'	2,245	'	'
Total Fair value	159,687	192,715	'	'
Cost or amortized Cost	'	'	'	'
Less than 12 months	162,490	198,250	'	'
12 months and greater	'	2,477	'	'
Total Cost or Amortized Cost	162,490	200,727	'	'
Unrealized Loss	'	'	'	'
Less than 12 months	-2,803	-7,780	'	'
12 Months and Greater	'	-232	'	'
Total Unrealized Loss	-2,803	-8,012	'	'
Municipal	'	'	'	'
Fair value	'	'	'	'
Less than 12 months	249,856	309,407	'	'
12 Months and Greater	'	943	'	'
Total Fair value	249,856	310,350	'	'
Cost or amortized Cost	'	'	'	'
Less than 12 months	255,902	322,095	'	'
12 months and greater	'	949	'	'
Total Cost or Amortized Cost	255,902	323,044	'	'
Unrealized Loss	'	'	'	'
Less than 12 months	-6,046	-12,688	'	'
12 Months and Greater	'	-6	'	'
Total Unrealized Loss	-6,046	-12,694	'	'
Equity securities	'	'	'	'
Fair value	'	'	'	'
Less than 12 months	3,275	2,394	'	'
12 Months and Greater	2,472	'	'	'
Total Fair value	5,747	2,394	'	'
Cost or amortized Cost	'	'	'	'
Less than 12 months	3,434	2,669	'	'
12 months and greater	2,669	'	'	'
Total Cost or Amortized Cost	6,103	2,669	'	'
Unrealized Loss	'	'	'	'
Less than 12 months	-159	-275	'	'
12 Months and Greater	-197	'	'	'
Total Unrealized Loss	($356)	($275)	'	'

INVESTMENTS_Details_4

INVESTMENTS (Details 4) (USD $)	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Total securities in unrealized loss positions	'	'
Unrealized Loss	$14,616,000	$28,933,000
Other-than-temporary impairment (OTTI) losses recognized in the periods presented on the equity portfolio	0	'
Debt securities	'	'
Total securities in unrealized loss positions	'	'
Number of unrealized loss positions	306	'
Unrealized Loss	14,300,000	'
Unrealized losses as percentage of fixed income portfolio cost basis	1.00%	'
Number of securities in unrealized loss positions for 12 months or longer	6	'
Common stock security	'	'
Total securities in unrealized loss positions	'	'
Number of unrealized loss positions	2	'
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 $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
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	426,680	418,654
Total assets at fair value	426,680	418,654
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	426,680	418,654
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2)	'	'
Assets measured at Fair Value	'	'
Available-for-sale securities	1,467,282	1,440,052
Total assets at fair value	1,467,282	1,440,052
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2) | U.S. agency	'	'
Assets measured at Fair Value	'	'
Available-for-sale securities	1,997	10,298
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2) | Corporate	'	'
Assets measured at Fair Value	'	'
Available-for-sale securities	565,581	526,038
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed	'	'
Assets measured at Fair Value	'	'
Available-for-sale securities	239,148	244,416
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2) | ABS/CMBS	'	'
Assets measured at Fair Value	'	'
Available-for-sale securities	105,806	106,309
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	14,588	13,678
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2) | U.S. government	'	'
Assets measured at Fair Value	'	'
Available-for-sale securities	18,395	17,303
Fair value measured on recurring basis | Significant Other Observable Inputs (Level 2) | Municipal	'	'
Assets measured at Fair Value	'	'
Available-for-sale securities	521,767	522,010
Fair value measured on recurring basis | Total	'	'
Assets measured at Fair Value	'	'
Available-for-sale securities	1,893,962	1,858,706
Total assets at fair value	1,893,962	1,858,706
Fair value measured on recurring basis | Total | U.S. agency	'	'
Assets measured at Fair Value	'	'
Available-for-sale securities	1,997	10,298
Fair value measured on recurring basis | Total | Corporate	'	'
Assets measured at Fair Value	'	'
Available-for-sale securities	565,581	526,038
Fair value measured on recurring basis | Total | Mortgage-backed	'	'
Assets measured at Fair Value	'	'
Available-for-sale securities	239,148	244,416
Fair value measured on recurring basis | Total | ABS/CMBS	'	'
Assets measured at Fair Value	'	'
Available-for-sale securities	105,806	106,309
Fair value measured on recurring basis | Total | Non-U.S. govt. & agency	'	'
Assets measured at Fair Value	'	'
Available-for-sale securities	14,588	13,678
Fair value measured on recurring basis | Total | U.S. government	'	'
Assets measured at Fair Value	'	'
Available-for-sale securities	18,395	17,303
Fair value measured on recurring basis | Total | Municipal	'	'
Assets measured at Fair Value	'	'
Available-for-sale securities	521,767	522,010
Fair value measured on recurring basis | Total | Equity	'	'
Assets measured at Fair Value	'	'
Available-for-sale securities	$426,680	$418,654

STOCK_BASED_COMPENSATION_Detai

STOCK BASED COMPENSATION (Details) (USD $)	3 Months Ended					3 Months Ended	47 Months Ended	12 Months Ended	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2014	Dec. 31, 2005	Mar. 31, 2014	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014
			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	'	'	'	'	3,000,000	4,000,000	4,000,000	'	'
Stock options granted to date (in shares)	'	'	'	2,457,644	'	'	2,363,000	'	'
Award vesting period	'	'	'5 years	'	'	'	'	'	'
Term of options	'	'	'8 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)	2,595,084	2,945,204	'	'	'	'	'	'	'
Options granted (in shares)	50,500	59,000	'	'	'	50,500	'	'	'
Options exercised (in shares)	-4,700	-85,146	'	'	'	'	'	'	'
Options canceled/forfeited (in shares)	-740	-38,820	'	'	'	'	'	'	'
Outstanding options at the end of the period (in shares)	2,640,144	2,880,238	'	'	'	'	'	'	'
Exercisable options at the end of the period (in shares)	972,284	1,310,778	'	'	'	'	'	'	'
Weighted Average Exercise Price	'	'	'	'	'	'	'	'	'
Outstanding options at the beginning of the period (in dollars per share)	$26.04	$22.23	'	'	'	'	'	'	'
Options granted (in dollars per share)	$40.43	$34.74	'	'	'	'	'	'	'
Options exercised (in dollars per share)	$18.53	$18.05	'	'	'	'	'	'	'
Options canceled/forfeited (in dollars per share)	$16.51	$25.45	'	'	'	'	'	'	'
Outstanding options at the end of the period (in dollars per share)	$26.33	$22.56	'	'	'	'	'	'	'
Exercisable options at the end of the period (in dollars per share)	$20.66	$18.49	'	'	'	'	'	'	'
Weighted Average Remaining Contractual Life	'	'	'	'	'	'	'	'	'
Weighted-average remaining contractual term of options outstanding	'5 years 4 months 10 days	'5 years 3 months 11 days	'	'	'	'	'	'	'
Weighted-average remaining contractual term of exercisable options	'4 years 25 days	'4 years 1 month 6 days	'	'	'	'	'	'	'
Aggregate Intrinsic Value	'	'	'	'	'	'	'	'	'
Options exercised (in dollars)	$115,000	$1,408,000	'	'	'	'	'	'	'
Outstanding options at the end of the period (in dollars)	47,359,000	38,492,000	'	'	'	'	'	'	'
Exercisable options at the end of the period (in dollars)	22,927,000	22,857,000	'	'	'	'	'	'	'
Weighted average fair value of options granted (in dollars per share)	$8.14	$6.69	'	'	'	'	'	'	'
Stock-based compensation expenses (in dollars)	900,000	800,000	'	'	'	'	'	'	100,000
Income tax benefit from stock-based compensation (in dollars)	300,000	300,000	'	'	'	'	'	'	'
Unrecognized stock-based compensation expense (in dollars)	4,100,000	'	'	'	'	'	'	'	'
Weighted average grant date assumptions and weighted average fair value	'	'	'	'	'	'	'	'	'
Weighted average fair value of options granted (in dollars per share)	$8.14	$6.69	'	'	'	'	'	'	'
Risk-free interest rates (as a percent)	1.76%	1.14%	'	'	'	'	'	'	'
Dividend yield (as a percent)	1.92%	1.98%	'	'	'	'	'	'	'
Expected volatility (as a percent)	25.20%	25.52%	'	'	'	'	'	'	'
Expected option life	'5 years 7 months 28 days	'5 years 7 months 24 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	'	'	'	'	'	'	'	'	2,097

OPERATING_SEGMENT_INFORMATION_1

OPERATING SEGMENT INFORMATION (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
REVENUES	'	'
Net premiums earned	$161,132	$144,151
Net investment income	13,582	12,886
Net realized gains	6,501	3,684
Consolidated revenue	181,215	160,721
NET EARNINGS	'	'
Net underwriting income	22,532	19,798
Net investment income	13,582	12,886
Net realized gains	6,501	3,684
General corporate expense and interest on debt	-4,049	-3,898
Equity in earnings of unconsolidated investees	3,425	3,499
Earnings before income taxes	41,991	35,969
Income tax expense	13,022	11,122
Net earnings	28,969	24,847
Casualty	'	'
REVENUES	'	'
Net premiums earned	90,977	72,969
NET EARNINGS	'	'
Net underwriting income	6,078	4,104
Property	'	'
REVENUES	'	'
Net premiums earned	43,318	44,981
NET EARNINGS	'	'
Net underwriting income	9,678	10,924
Surety	'	'
REVENUES	'	'
Net premiums earned	26,837	26,201
NET EARNINGS	'	'
Net underwriting income	$6,776	$4,770

OPERATING_SEGMENT_INFORMATION_2

OPERATING SEGMENT INFORMATION (Details 2) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Revenue by major product	'	'
Net premiums earned	$161,132	$144,151
Casualty	'	'
Revenue by major product	'	'
Net premiums earned	90,977	72,969
Casualty | Commercial and personal umbrella	'	'
Revenue by major product	'	'
Net premiums earned	24,756	18,950
Casualty | General liability	'	'
Revenue by major product	'	'
Net premiums earned	19,932	20,777
Casualty | Commercial transportation	'	'
Revenue by major product	'	'
Net premiums earned	14,511	9,934
Casualty | Professional services	'	'
Revenue by major product	'	'
Net premiums earned	12,861	9,009
Casualty | P&C package business	'	'
Revenue by major product	'	'
Net premiums earned	8,283	7,421
Casualty | Executive products	'	'
Revenue by major product	'	'
Net premiums earned	4,684	4,716
Casualty | Medical professional liability	'	'
Revenue by major product	'	'
Net premiums earned	3,700	750
Casualty | Other casualty	'	'
Revenue by major product	'	'
Net premiums earned	2,250	1,412
Property	'	'
Revenue by major product	'	'
Net premiums earned	43,318	44,981
Property | Commercial property	'	'
Revenue by major product	'	'
Net premiums earned	20,433	19,616
Property | Marine	'	'
Revenue by major product	'	'
Net premiums earned	12,201	14,614
Property | Property reinsurance	'	'
Revenue by major product	'	'
Net premiums earned	3,361	5,272
Property | Crop reinsurance	'	'
Revenue by major product	'	'
Net premiums earned	1,186	1,267
Property | Other property	'	'
Revenue by major product	'	'
Net premiums earned	6,137	4,212
Surety	'	'
Revenue by major product	'	'
Net premiums earned	26,837	26,201
Surety | Miscellaneous	'	'
Revenue by major product	'	'
Net premiums earned	9,482	9,481
Surety | Contract	'	'
Revenue by major product	'	'
Net premiums earned	6,761	6,459
Surety | Commercial	'	'
Revenue by major product	'	'
Net premiums earned	6,134	5,711
Surety | Oil and Gas	'	'
Revenue by major product	'	'
Net premiums earned	$4,460	$4,550

ACQUISITION_Details

ACQUISITION (Details) (USD $)	3 Months Ended		0 Months Ended	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Feb. 05, 2014	Mar. 31, 2014
			Prime	Prime
				state
Acquisition	'	'	'	'
Amount of investment	$5,301,000	'	$5,300,000	'
Equity ownership interest (as a percent)	'	'	20.00%	'
Number of states in which the entity operates through a network of wholesale brokers and specializing in hard-to-place risks	'	'	'	49
Percentage of quota share treaty, effective January 1, 2014	'	'	'	25.00%
Equity in earnings of unconsolidated investees	3,425,000	3,499,000	'	100,000
Gross premiums assumed	'	'	'	$2,500,000