RLI (RLI) 10-Q 27 Oct 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Oct. 13, 2014
Document and Entity Information	'	'
Entity Registrant Name	'RLI CORP	'
Entity Central Index Key	'0000084246	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-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	'	43,027,044
Document Fiscal Year Focus	'2014	'
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, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Condensed Consolidated Statements of Earnings and Comprehensive Earnings	'	'	'	'
Net premiums earned	$177,747	$163,702	$507,483	$462,406
Net investment income	14,200	13,598	41,764	39,331
Net realized investment gains	5,708	10,999	22,640	18,425
Consolidated revenue	197,655	188,299	571,887	520,162
Losses and settlement expenses	76,019	64,246	220,380	191,301
Policy acquisition costs	58,180	54,176	168,387	156,014
Insurance operating expenses	13,120	13,462	39,187	37,916
Interest expense on debt	1,857	1,513	5,582	4,538
General corporate expenses	2,800	2,157	7,547	6,235
Total expenses	151,976	135,554	441,083	396,004
Equity in earnings of unconsolidated investee	2,915	2,564	12,204	10,696
Earnings before income taxes	48,594	55,309	143,008	134,854
Income tax expense	15,340	17,662	45,060	42,458
Net earnings	33,254	37,647	97,948	92,396
Other comprehensive earnings (loss)	-12,353	-1,946	25,318	-17,874
Comprehensive earnings	$20,901	$35,701	$123,266	$74,522
Basic:	'	'	'	'
Basic net earnings per share (in dollars per share)	$0.77	$0.88	$2.28	$2.17
Basic comprehensive earnings per share (in dollars per share)	$0.49	$0.83	$2.87	$1.75
Diluted:	'	'	'	'
Diluted net earnings per share (in dollars per share)	$0.76	$0.86	$2.24	$2.13
Diluted comprehensive earnings per share (in dollars per share)	$0.48	$0.82	$2.82	$1.72
Weighted average number of common shares outstanding	'	'	'	'
Basic (in shares)	43,026	42,843	43,004	42,673
Diluted (in shares)	43,712	43,546	43,692	43,330
Cash dividends paid per common share (in dollars per share)	$0.18	$0.17	$0.53	$0.50

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Fixed income:	'	'
Available-for-sale, at fair value	$1,545,530	$1,440,052
Held-to-maturity, at amortized cost	650	651
Equity securities, at fair value	419,022	418,654
Short-term investments, at cost	10,063	23,232
Other Investments	11,688	'
Cash	77,037	39,469
Total investments and cash	2,063,990	1,922,058
Accrued investment income	13,595	15,710
Premiums and reinsurance balances receivable	175,293	152,509
Ceded unearned premium	62,646	60,407
Reinsurance balances recoverable on unpaid losses	353,228	354,924
Deferred policy acquisition costs	68,372	61,508
Property and equipment	42,400	40,261
Investment in unconsolidated investee	67,250	49,793
Goodwill and intangibles	74,172	74,876
Other assets	12,537	8,264
TOTAL ASSETS	2,933,483	2,740,310
Liabilities:	'	'
Unpaid losses and settlement expenses	1,152,413	1,129,433
Unearned premiums	429,867	392,081
Reinsurance balances payable	37,683	47,334
Funds held	53,834	61,656
Income taxes - deferred	77,086	57,801
Bonds payable, long-term debt	149,615	149,582
Accrued expenses	52,392	59,596
Other liabilities	47,080	13,861
TOTAL LIABILITIES	1,999,970	1,911,344
Shareholders' Equity	'	'
Common stock ($1 par value, 100,000,000 shares authorized) (65,957,258 shares issued, 43,027,044 shares outstanding at 9/30/14) (65,912,638 shares issued, 42,982,424 shares outstanding at 12/31/13)	65,957	65,913
Paid-in capital	212,733	208,705
Accumulated other comprehensive earnings	161,345	136,027
Retained earnings	886,477	811,320
Deferred compensation	11,687	11,562
Less: Treasury shares at cost (22,930,214 shares at 9/30/14 and 12/31/13)	-404,686	-404,561
TOTAL SHAREHOLDERS' EQUITY	933,513	828,966
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$2,933,483	$2,740,310

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 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)	65,957,258	65,912,638
Common stock, shares outstanding (in shares)	43,027,044	42,982,424
Treasury stock, shares (in shares)	22,930,214	22,930,214

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Condensed Consolidated Statements of Cash Flows	'	'
Net cash provided by operating activities	$85,894	$81,736
Cash Flows from Investing Activities	'	'
Investments purchased	-422,287	-358,510
Investments sold	285,886	221,133
Investments called or matured	77,611	114,929
Net change in short-term investments	40,027	10,869
Net property and equipment purchased	-5,543	-10,766
Investment in equity method investee	-5,301	'
Net cash used in investing activities	-29,607	-22,345
Cash Flows from Financing Activities	'	'
Cash dividends paid	-22,791	-21,354
Stock plan share issuance	3,672	159
Excess tax benefit from exercise of stock options	400	4,888
Net cash used in financing activities	-18,719	-16,307
Net increase in cash	37,568	43,084
Cash at the beginning of the period	39,469	44,314
Cash at September 30	$77,037	$87,398

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 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 September 30, 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
	ASU 2014-01, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects
	This ASU permits an entity to account for investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met.  The proportional amortization method requires an entity to amortize the initial cost of the investment in proportion to the amount of tax credits and other tax benefits received and recognizes the net investment performance as a component of income tax expense.
	We elected to early adopt this ASU during the third quarter of 2014 in conjunction with our investment in Federal Low Income Housing Tax Credits.  A discussion of our investment and the required disclosures of this accounting standards update are included in Note 2 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, 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 $74.2 million at September 30, 2014.
	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 Contractors Bonding and Insurance Company (CBIC) acquisition in April 2011 totaled $32.0 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 2014. Based upon these reviews, none of the assets were impaired. In addition, as of September 30, 2014, 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 $2.8 million, net of amortization, as of September 30, 2014.
	The remaining $16.0 million of goodwill and intangibles relates to our purchase of Rockbridge Underwriting Agency (Rockbridge) in November 2012. Of this amount, $12.4 million is recorded as goodwill attributable to our casualty segment. The remaining $3.6 million relates to definite-lived intangible assets, net of amortization, as of September 30, 2014. Impairment testing was performed on this goodwill asset during the third quarter of 2014 as actual premium production has fallen below levels anticipated at acquisition. We used a quantitative analysis to determine the impact of the difference and concluded that the asset was not impaired.
	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 third quarter of 2014, and $0.7 million for the nine months ended September 30, 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 September 30,  2014							Ended September 30,  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	$	33,254	43,026		$	0.77		$	37,647		42,843		$	0.88
	Effect of Dilutive Securities
	Stock options		-	686						-		703
	Diluted EPS
	Income available to common shareholders	$	33,254	43,712		$	0.76		$	37,647		43,546		$	0.86
		For the Nine-Month Period							For the Nine-Month Period
		Ended September 30,  2014							Ended September 30,  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	$	97,948	43,004		$	2.28		$	92,396		42,673		$	2.17
	Effect of Dilutive Securities
	Stock options		-	688						-		657
	Diluted EPS
	Income available to common shareholders	$	97,948	43,692		$	2.24		$	92,396		43,330		$	2.13
	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 the federal statutory tax rate of 35 percent. 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					For the Nine-Month Periods
		Ended September 30,					Ended September 30,
	(in thousands)	2014		2013			2014			2013
	Unrealized Gains/Losses on Available-for-Sale Securities
	Beginning balance	$	173,698	$	127,242		$	136,027		$	143,170
	Other comprehensive earnings before reclassifications		-8,642		5,203			40,032			-5,354
	Amounts reclassified from accumulated other comprehensive earnings		-3,711		-7,149			-14,714			-12,520
	Net current-period other comprehensive earnings	$	-12,353	$	-1,946		$	25,318		$	-17,874
	Ending balance	$	161,345	$	125,296		$	161,345		$	125,296
	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
	Component of Accumulated	Periods Ended September 30,					Periods Ended September 30,						Affected line item in the
	Other Comprehensive Earnings	2014		2013			2014			2013			Statement of Earnings
	Unrealized gains and losses on available-for-sale securities	$	5,709	$	10,998		$	22,637		$	19,261		Net realized investment gains
			-		-			-			-		Other-than-temporary impairment (OTTI) losses on investments
		$	5,709	$	10,998		$	22,637		$	19,261		Earnings before income taxes
			-1,998		-3,849			-7,923			-6,741		Income tax expense
		$	3,711	$	7,149		$	14,714		$	12,520		Net earnings

INVESTMENTS

INVESTMENTS	9 Months Ended
	Sep. 30, 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 September 30, 2014 and December 31, 2013 were as follows:
	Available-for-sale
	(in thousands)
		9/30/14
		Cost or			Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
	Asset Class	Cost			Gains			Losses			Value
	U.S. agency	$	6,383		$	147		$	-14		$	6,516
	Corporate		563,120			23,639			-2,603			584,156
	Mtge/ABS/CMBS*		392,687			9,627			-3,294			399,020
	Non-U.S. govt. & agency		9,861			696			-			10,557
	U.S. government		32,082			120			-39			32,163
	Municipal		498,371			15,392			-645			513,118
	Total Fixed Income	$	1,502,504		$	49,621		$	-6,595		$	1,545,530
	Equity	$	214,239		$	205,253		$	-470		$	419,022
	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 September 30, 2014:
		9/30/14
	AFS	Amortized			Fair
	(in thousands)	Cost			Value
	Due in one year or less	$	17,680		$	17,855
	Due after one year through five years		242,863			253,882
	Due after five years through 10 years		594,841			612,167
	Due after 10 years		254,433			262,606
	Mtge/ABS/CMBS*		392,687			399,020
	Total available-for-sale	$	1,502,504		$	1,545,530
	*Mortgage-backed, asset-backed and commercial mortgage-backed
	Held-to-Maturity Debt Securities
	The carrying value and fair value of held-to-maturity securities was $0.7 million at September 30, 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 September 30, 2014 and December 31, 2013. As of September 30, 2014, the carrying value and fair value of all debt securities held-to-maturity had a contractual maturity date of less than one year.
	Unrealized Losses
	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, 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 September 30, 2014 unrealized losses, as shown in the following tables, were 0.3 percent of total invested assets. Unrealized losses decreased in 2014, as interest rates declined during the first three quarters of the year.
		September 30,  2014									December 31,  2013
	(in thousands)	< 12 Mos.			12 Mos. &			Total			< 12 Mos.			12 Mos. &			Total
					Greater									Greater
	U.S. Government
	Fair value	$	18,556		$	—		$	18,556		$	—		$	—		$	—
	Cost or amortized cost		18,595			—			18,595			—			—			—
	Unrealized Loss	$	-39		$	—		$	-39		$	—		$	—		$	—
	U.S. Agency
	Fair value	$	1,871		$	—		$	1,871		$	5,760		$	—		$	5,760
	Cost or amortized cost		1,885			—			1,885			5,997			—			5,997
	Unrealized Loss	$	-14		$	—		$	-14		$	-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	$	27,741		$	70,754		$	98,495		$	118,283		$	—		$	118,283
Cost or amortized cost		27,848			73,223			101,071			124,034			—			124,034
Unrealized Loss	$	-107		$	-2,469		$	-2,576		$	-5,751		$	—		$	-5,751
ABS/CMBS*
Fair value	$	46,758		$	19,100		$	65,858		$	54,115		$	—		$	54,115
Cost or amortized cost		47,038			19,538			66,576			56,014			—			56,014
Unrealized Loss	$	-280		$	-438		$	-718		$	-1,899		$	—		$	-1,899
Corporate
Fair value	$	157,718		$	22,591		$	180,309		$	190,470		$	2,245		$	192,715
Cost or amortized cost		159,729			23,183			182,912			198,250			2,477			200,727
Unrealized Loss	$	-2,011		$	-592		$	-2,603		$	-7,780		$	-232		$	-8,012
Municipal
Fair value	$	30,321		$	49,615		$	79,936		$	309,407		$	943		$	310,350
Cost or amortized cost		30,378			50,203			80,581			322,095			949			323,044
Unrealized Loss	$	-57		$	-588		$	-645		$	-12,688		$	-6		$	-12,694
Subtotal, fixed income
Fair value	$	282,965		$	162,060		$	445,025		$	679,860		$	3,188		$	683,048
Cost or amortized cost		285,473			166,147			451,620			708,280			3,426			711,706
Unrealized Loss	$	-2,508		$	-4,087		$	-6,595		$	-28,420		$	-238		$	-28,658
Equity securities
Fair value	$	11,635		$	—		$	11,635		$	2,394		$	—		$	2,394
Cost or amortized cost		12,105			—			12,105			2,669			—			2,669
Unrealized Loss	$	-470		$	—		$	-470		$	-275		$	—		$	-275
Total
Fair value	$	294,600		$	162,060		$	456,660		$	682,254		$	3,188		$	685,442
Cost or amortized cost		297,578			166,147			463,725			710,949			3,426			714,375
Unrealized Loss	$	-2,978		$	-4,087		$	-7,065		$	-28,695		$	-238		$	-28,933
* Asset-backed and commercial mortgage-backed
The following table shows the composition of the fixed income securities in unrealized loss positions at September 30, 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		$	354,379		$	349,481		$	-4,898		74.3	%
2	BBB		Baa			37,566			37,081			-485		7.4	%
3	BB		Ba			35,807			35,139			-668		10.1	%
4	B		B			22,598			22,120			-478		7.2	%
5	CCC or lower		Caa or lower			1,270			1,204			-66		1.0	%
6						—			—			—		—
			Total		$	451,620		$	445,025		$	-6,595		100.0	%
Other Invested Assets
Other invested assets shown on the balance sheet as of September 30, 2014 include an investment in a low income housing tax credit partnership as well as membership in the Federal Home Loan Bank Chicago (FHLBC).  During the third quarter of 2014, we recorded an interest in a low income housing tax credit partnership totaling $10.0 million.  The interest had a balance of $9.9 million at September 30, 2014 and recognized a total tax benefit of $0.1 million during the quarter.  Our investment in FHLBC stock totaled $1.8 million at the end of the third quarter.
Cash and Short-term Investments
Cash consists of uninvested balances in bank accounts. We had a cash balance of $77.0 million at the end of the third 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 September 30, 2014 was $10.1 million compared to $23.2 million at December 31, 2013.
Evaluating Investments for OTTI
The fixed income portfolio contained 290 securities in an unrealized loss position as of September 30, 2014. The $6.6 million in associated unrealized losses for these 290 securities represents 0.4 percent of the fixed income portfolio’s cost basis. Of these 290 securities, 74 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 September 30, 2014, we held three common stock securities that were in an unrealized loss position. The unrealized loss on these securities was $0.5 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	9 Months Ended
	Sep. 30, 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.
	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 September 30,  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	$	—	$	6,516	$	—	$	6,516
	Corporate		—		584,156		—		584,156
	Mortgage-backed		—		260,902		—		260,902
	ABS/CMBS*		—		138,118		—		138,118
	Non-U.S. govt. & agency		—		10,557		—		10,557
	U.S. government		—		32,163		—		32,163
	Municipal		—		513,118		—		513,118
	Equity		419,022		—		—		419,022
	Total available-for-sale securities	$	419,022	$	1,545,530	$	—	$	1,964,552
	Total	$	419,022	$	1,545,530	$	—	$	1,964,552
	*Asset-backed and 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 and 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 nine-month period ended September 30, 2014.

STOCK_BASED_COMPENSATION

STOCK BASED COMPENSATION	9 Months Ended
	Sep. 30, 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 equity-based compensation, including stock options, up to a maximum of 3,000,000 shares of common stock (subject to adjustment for changes in our capitalization and other events). Between 2005 and 2010, 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 provides for equity-based compensation and 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 maximum number of shares of common stock available for distribution under the LTIP is 4,000,000 shares (subject to adjustment for changes in our capitalization and other events). Since 2010, we have granted 2,777,000 stock options under the LTIP, including 464,500 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 September 30, 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	464,500		$	42.90
	Options exercised	-47,412		$	17.95				$	1,250
	Options canceled/forfeited	-740		$	16.51
	Outstanding options at September 30,  2014	3,011,432		$	28.77		5.25		$	43,850
	Exercisable options at September 30,  2014	1,351,312		$	22.29		3.99		$	28,382
							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	582,200		$	36.31
	Options exercised	-761,362		$	17.18				$	17,211
	Options canceled/forfeited	-44,880		$	25.93
	Outstanding options at September 30,  2013	2,721,162		$	26.59		5.65		$	46,590
	Exercisable options at September 30,  2013	1,060,662		$	21.09		4.35		$	23,995
	The majority of our stock 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 stock option 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, 464,500 stock options were granted with a weighted average exercise price of $42.90 and a weighted average fair value of $7.76. We recognized $0.9 million of expense in the third quarter of 2014, and $2.9 million in the first nine months of 2014, related to options vesting. Since options granted under our LTIP are non-qualified, we recorded a tax benefit of $0.3 million in the third quarter of 2014, and $1.0 million in the first nine months of 2014, related to this compensation expense. Total unrecognized compensation expense relating to outstanding and unvested options was $5.2 million, which will be recognized over the remainder of the vesting period. Comparatively, we recognized $1.0 million of expense in the third quarter of 2013, and $2.8 million of expense in the first nine months of 2013. 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.
	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:
		2014				2013
	Weighted-average fair value of grants	$	7.76			$	6.58
	Risk-free interest rates		1.70	%			0.80	%
	Dividend yield		1.94	%			2.00	%
	Expected volatility		23.19	%			25.41	%
	Expected option life		5.17	years			5.23	years
	The risk-free rate was determined based on U.S. treasury yields that most closely approximated the option’s expected life. The dividend yield was calculated based on the average annualized dividends paid during the most recent five-year period. It excluded the special dividends paid in the fourth quarters of 2013 and prior years. The expected volatility was calculated based on the median of the rolling volatilities for the expected life of the options. In previous years, expected volatility was calculated based on the mean reversion of RLI’s stock. The expected option life was 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 and 2014, each outside director received $10,000 worth of restricted common shares as part of annual director compensation. The shares were issued annually from the LTIP during the first quarter of each year.  The shares were directly owned by each director on the date of issuance and included 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. This restricted share program has been terminated and no further restricted shares will be issued going forward.

OPERATING_SEGMENT_INFORMATION

OPERATING SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 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				For the Nine-Month Periods
		Ended September 30,				Ended September 30,
		REVENUES				REVENUES
		2014		2013		2014		2013
	Net premiums earned:
	Casualty	$	96,181	$	83,966	$	281,518	$	235,307
	Property		54,143		52,705		146,252		147,305
	Surety		27,423		27,031		79,713		79,794
	Segment totals before income taxes	$	177,747	$	163,702	$	507,483	$	462,406
	Net investment income		14,200		13,598		41,764		39,331
	Net realized gains		5,708		10,999		22,640		18,425
	Total consolidated revenue	$	197,655	$	188,299	$	571,887	$	520,162
		NET EARNINGS				NET EARNINGS
		2014		2013		2014		2013
	Casualty	$	13,786	$	20,799	$	36,331	$	39,517
	Property		7,498		6,468		19,469		19,614
	Surety		9,144		4,551		23,729		18,044
	Net underwriting income	$	30,428	$	31,818	$	79,529	$	77,175
	Net investment income		14,200		13,598		41,764		39,331
	Net realized gains		5,708		10,999		22,640		18,425
	General corporate expense and interest on debt		-4,657		-3,670		-13,129		-10,773
	Equity in earnings of unconsolidated investees		2,915		2,564		12,204		10,696
	Total earnings before income taxes	$	48,594	$	55,309	$	143,008	$	134,854
	Income tax expense		15,340		17,662		45,060		42,458
	Total net earnings	$	33,254	$	37,647	$	97,948	$	92,396
	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)	2014		2013		2014		2013
	Casualty
	Commercial and personal umbrella	$	25,256	$	22,247	$	75,036	$	61,803
	General liability		20,095		20,342		60,550		61,139
	Commercial transportation		14,677		13,463		44,193		35,594
	Professional services		15,227		11,021		41,927		30,092
	P&C package business		8,969		7,643		25,747		22,671
	Executive products		4,760		4,933		14,165		14,300
	Medical professional liability		3,546		2,674		10,970		5,136
	Other casualty		3,651		1,643		8,930		4,572
	Total	$	96,181	$	83,966	$	281,518	$	235,307
	Property
	Commercial property	$	20,188	$	18,938	$	60,675	$	57,813
	Marine		12,115		14,242		37,278		43,898
	Crop reinsurance		11,802		11,846		18,671		19,501
	Property reinsurance		2,997		2,848		9,745		12,503
	Other property		7,041		4,831		19,883		13,590
	Total	$	54,143	$	52,705	$	146,252	$	147,305
	Surety
	Miscellaneous	$	9,868	$	9,590	$	28,948	$	28,559
	Contract		6,879		7,025		19,896		20,137
	Commercial		6,521		5,857		18,968		17,285
	Oil and Gas		4,155		4,559		11,901		13,813
	Total	$	27,423	$	27,031	$	79,713	$	79,794
	Grand Total	$	177,747	$	163,702	$	507,483	$	462,406

ACQUISITION

ACQUISITION	9 Months Ended
	Sep. 30, 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. Our share of Prime’s earnings amounted to $0.1 million in the third quarter of 2014 and $0.4 million in the first nine months of 2014.
	Additionally, we entered into a 25 percent quota share reinsurance treaty with Prime, effective January 1, 2014. We assumed gross premiums of $2.4 million related to this quota share agreement in the third quarter of 2014 and $7.4 million in the first nine months of 2014.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 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 September 30, 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 $74.2 million at September 30, 2014.
	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 Contractors Bonding and Insurance Company (CBIC) acquisition in April 2011 totaled $32.0 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 2014. Based upon these reviews, none of the assets were impaired. In addition, as of September 30, 2014, 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 $2.8 million, net of amortization, as of September 30, 2014.
	The remaining $16.0 million of goodwill and intangibles relates to our purchase of Rockbridge Underwriting Agency (Rockbridge) in November 2012. Of this amount, $12.4 million is recorded as goodwill attributable to our casualty segment. The remaining $3.6 million relates to definite-lived intangible assets, net of amortization, as of September 30, 2014. Impairment testing was performed on this goodwill asset during the third quarter of 2014 as actual premium production has fallen below levels anticipated at acquisition. We used a quantitative analysis to determine the impact of the difference and concluded that the asset was not impaired.
	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 third quarter of 2014, and $0.7 million for the nine months ended September 30, 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 September 30,  2014							Ended September 30,  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	$	33,254	43,026		$	0.77		$	37,647		42,843		$	0.88
	Effect of Dilutive Securities
	Stock options		-	686						-		703
	Diluted EPS
	Income available to common shareholders	$	33,254	43,712		$	0.76		$	37,647		43,546		$	0.86
		For the Nine-Month Period							For the Nine-Month Period
		Ended September 30,  2014							Ended September 30,  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	$	97,948	43,004		$	2.28		$	92,396		42,673		$	2.17
	Effect of Dilutive Securities
	Stock options		-	688						-		657
	Diluted EPS
	Income available to common shareholders	$	97,948	43,692		$	2.24		$	92,396		43,330		$	2.13
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 the federal statutory tax rate of 35 percent. 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					For the Nine-Month Periods
		Ended September 30,					Ended September 30,
	(in thousands)	2014		2013			2014			2013
	Unrealized Gains/Losses on Available-for-Sale Securities
	Beginning balance	$	173,698	$	127,242		$	136,027		$	143,170
	Other comprehensive earnings before reclassifications		-8,642		5,203			40,032			-5,354
	Amounts reclassified from accumulated other comprehensive earnings		-3,711		-7,149			-14,714			-12,520
	Net current-period other comprehensive earnings	$	-12,353	$	-1,946		$	25,318		$	-17,874
	Ending balance	$	161,345	$	125,296		$	161,345		$	125,296
	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
	Component of Accumulated	Periods Ended September 30,					Periods Ended September 30,						Affected line item in the
	Other Comprehensive Earnings	2014		2013			2014			2013			Statement of Earnings
	Unrealized gains and losses on available-for-sale securities	$	5,709	$	10,998		$	22,637		$	19,261		Net realized investment gains
			-		-			-			-		Other-than-temporary impairment (OTTI) losses on investments
		$	5,709	$	10,998		$	22,637		$	19,261		Earnings before income taxes
			-1,998		-3,849			-7,923			-6,741		Income tax expense
		$	3,711	$	7,149		$	14,714		$	12,520		Net earnings

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 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 September 30,  2014							Ended September 30,  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	$	33,254	43,026		$	0.77		$	37,647		42,843		$	0.88
	Effect of Dilutive Securities
	Stock options		-	686						-		703
	Diluted EPS
	Income available to common shareholders	$	33,254	43,712		$	0.76		$	37,647		43,546		$	0.86
		For the Nine-Month Period							For the Nine-Month Period
		Ended September 30,  2014							Ended September 30,  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	$	97,948	43,004		$	2.28		$	92,396		42,673		$	2.17
	Effect of Dilutive Securities
	Stock options		-	688						-		657
	Diluted EPS
	Income available to common shareholders	$	97,948	43,692		$	2.24		$	92,396		43,330		$	2.13
Schedule of changes in the balance of each component of accumulated other comprehensive earnings	'
		For the Three-Month Periods					For the Nine-Month Periods
		Ended September 30,					Ended September 30,
	(in thousands)	2014		2013			2014			2013
	Unrealized Gains/Losses on Available-for-Sale Securities
	Beginning balance	$	173,698	$	127,242		$	136,027		$	143,170
	Other comprehensive earnings before reclassifications		-8,642		5,203			40,032			-5,354
	Amounts reclassified from accumulated other comprehensive earnings		-3,711		-7,149			-14,714			-12,520
	Net current-period other comprehensive earnings	$	-12,353	$	-1,946		$	25,318		$	-17,874
	Ending balance	$	161,345	$	125,296		$	161,345		$	125,296
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
	Component of Accumulated	Periods Ended September 30,					Periods Ended September 30,						Affected line item in the
	Other Comprehensive Earnings	2014		2013			2014			2013			Statement of Earnings
	Unrealized gains and losses on available-for-sale securities	$	5,709	$	10,998		$	22,637		$	19,261		Net realized investment gains
			-		-			-			-		Other-than-temporary impairment (OTTI) losses on investments
		$	5,709	$	10,998		$	22,637		$	19,261		Earnings before income taxes
			-1,998		-3,849			-7,923			-6,741		Income tax expense
		$	3,711	$	7,149		$	14,714		$	12,520		Net earnings

INVESTMENTS_Tables

INVESTMENTS (Tables)	9 Months Ended
	Sep. 30, 2014
INVESTMENTS	'
Schedule of securities in an unrealized loss position segregated by type and length of time in an unrealized loss position	'
		September 30,  2014									December 31,  2013
	(in thousands)	< 12 Mos.			12 Mos. &			Total			< 12 Mos.			12 Mos. &			Total
					Greater									Greater
	U.S. Government
	Fair value	$	18,556		$	—		$	18,556		$	—		$	—		$	—
	Cost or amortized cost		18,595			—			18,595			—			—			—
	Unrealized Loss	$	-39		$	—		$	-39		$	—		$	—		$	—
	U.S. Agency
	Fair value	$	1,871		$	—		$	1,871		$	5,760		$	—		$	5,760
	Cost or amortized cost		1,885			—			1,885			5,997			—			5,997
	Unrealized Loss	$	-14		$	—		$	-14		$	-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	$	27,741		$	70,754		$	98,495		$	118,283		$	—		$	118,283
	Cost or amortized cost		27,848			73,223			101,071			124,034			—			124,034
	Unrealized Loss	$	-107		$	-2,469		$	-2,576		$	-5,751		$	—		$	-5,751
	ABS/CMBS*
	Fair value	$	46,758		$	19,100		$	65,858		$	54,115		$	—		$	54,115
	Cost or amortized cost		47,038			19,538			66,576			56,014			—			56,014
	Unrealized Loss	$	-280		$	-438		$	-718		$	-1,899		$	—		$	-1,899
	Corporate
	Fair value	$	157,718		$	22,591		$	180,309		$	190,470		$	2,245		$	192,715
	Cost or amortized cost		159,729			23,183			182,912			198,250			2,477			200,727
	Unrealized Loss	$	-2,011		$	-592		$	-2,603		$	-7,780		$	-232		$	-8,012
	Municipal
	Fair value	$	30,321		$	49,615		$	79,936		$	309,407		$	943		$	310,350
	Cost or amortized cost		30,378			50,203			80,581			322,095			949			323,044
	Unrealized Loss	$	-57		$	-588		$	-645		$	-12,688		$	-6		$	-12,694
	Subtotal, fixed income
	Fair value	$	282,965		$	162,060		$	445,025		$	679,860		$	3,188		$	683,048
	Cost or amortized cost		285,473			166,147			451,620			708,280			3,426			711,706
	Unrealized Loss	$	-2,508		$	-4,087		$	-6,595		$	-28,420		$	-238		$	-28,658
	Equity securities
	Fair value	$	11,635		$	—		$	11,635		$	2,394		$	—		$	2,394
	Cost or amortized cost		12,105			—			12,105			2,669			—			2,669
	Unrealized Loss	$	-470		$	—		$	-470		$	-275		$	—		$	-275
	Total
	Fair value	$	294,600		$	162,060		$	456,660		$	682,254		$	3,188		$	685,442
	Cost or amortized cost		297,578			166,147			463,725			710,949			3,426			714,375
	Unrealized Loss	$	-2,978		$	-4,087		$	-7,065		$	-28,695		$	-238		$	-28,933
	* Asset-backed and 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		$	354,379		$	349,481		$	-4,898		74.3	%
	2	BBB		Baa			37,566			37,081			-485		7.4	%
	3	BB		Ba			35,807			35,139			-668		10.1	%
	4	B		B			22,598			22,120			-478		7.2	%
	5	CCC or lower		Caa or lower			1,270			1,204			-66		1.0	%
	6						—			—			—		—
				Total		$	451,620		$	445,025		$	-6,595		100.0	%
Available for sale securities	'
INVESTMENTS	'
Schedule of amortized cost and fair value of available-for-sale securities	'
	Available-for-sale
	(in thousands)
		9/30/14
		Cost or			Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
	Asset Class	Cost			Gains			Losses			Value
	U.S. agency	$	6,383		$	147		$	-14		$	6,516
	Corporate		563,120			23,639			-2,603			584,156
	Mtge/ABS/CMBS*		392,687			9,627			-3,294			399,020
	Non-U.S. govt. & agency		9,861			696			-			10,557
	U.S. government		32,082			120			-39			32,163
	Municipal		498,371			15,392			-645			513,118
	Total Fixed Income	$	1,502,504		$	49,621		$	-6,595		$	1,545,530
	Equity	$	214,239		$	205,253		$	-470		$	419,022
	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 contractual maturity of securities	'
		9/30/14
	AFS	Amortized			Fair
	(in thousands)	Cost			Value
	Due in one year or less	$	17,680		$	17,855
	Due after one year through five years		242,863			253,882
	Due after five years through 10 years		594,841			612,167
	Due after 10 years		254,433			262,606
	Mtge/ABS/CMBS*		392,687			399,020
	Total available-for-sale	$	1,502,504		$	1,545,530
	*Mortgage-backed, asset-backed and commercial mortgage-backed

FAIR_VALUE_MEASUREMENTS_Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2014
FAIR VALUE MEASUREMENTS	'
Schedule of assets measured at fair value on recurring basis	'
		As of September 30,  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	$	—	$	6,516	$	—	$	6,516
	Corporate		—		584,156		—		584,156
	Mortgage-backed		—		260,902		—		260,902
	ABS/CMBS*		—		138,118		—		138,118
	Non-U.S. govt. & agency		—		10,557		—		10,557
	U.S. government		—		32,163		—		32,163
	Municipal		—		513,118		—		513,118
	Equity		419,022		—		—		419,022
	Total available-for-sale securities	$	419,022	$	1,545,530	$	—	$	1,964,552
	Total	$	419,022	$	1,545,530	$	—	$	1,964,552
	*Asset-backed and 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 and commercial mortgage-backed

STOCK_BASED_COMPENSATION_Table

STOCK BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 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	464,500		$	42.90
	Options exercised	-47,412		$	17.95				$	1,250
	Options canceled/forfeited	-740		$	16.51
	Outstanding options at September 30,  2014	3,011,432		$	28.77		5.25		$	43,850
	Exercisable options at September 30,  2014	1,351,312		$	22.29		3.99		$	28,382
							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	582,200		$	36.31
	Options exercised	-761,362		$	17.18				$	17,211
	Options canceled/forfeited	-44,880		$	25.93
	Outstanding options at September 30,  2013	2,721,162		$	26.59		5.65		$	46,590
	Exercisable options at September 30,  2013	1,060,662		$	21.09		4.35		$	23,995
Schedule of stock option assumptions for fair value estimate	'
		2014				2013
	Weighted-average fair value of grants	$	7.76			$	6.58
	Risk-free interest rates		1.70	%			0.80	%
	Dividend yield		1.94	%			2.00	%
	Expected volatility		23.19	%			25.41	%
	Expected option life		5.17	years			5.23	years

OPERATING_SEGMENT_INFORMATION_

OPERATING SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2014
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
		2014		2013		2014		2013
	Net premiums earned:
	Casualty	$	96,181	$	83,966	$	281,518	$	235,307
	Property		54,143		52,705		146,252		147,305
	Surety		27,423		27,031		79,713		79,794
	Segment totals before income taxes	$	177,747	$	163,702	$	507,483	$	462,406
	Net investment income		14,200		13,598		41,764		39,331
	Net realized gains		5,708		10,999		22,640		18,425
	Total consolidated revenue	$	197,655	$	188,299	$	571,887	$	520,162
		NET EARNINGS				NET EARNINGS
		2014		2013		2014		2013
	Casualty	$	13,786	$	20,799	$	36,331	$	39,517
	Property		7,498		6,468		19,469		19,614
	Surety		9,144		4,551		23,729		18,044
	Net underwriting income	$	30,428	$	31,818	$	79,529	$	77,175
	Net investment income		14,200		13,598		41,764		39,331
	Net realized gains		5,708		10,999		22,640		18,425
	General corporate expense and interest on debt		-4,657		-3,670		-13,129		-10,773
	Equity in earnings of unconsolidated investees		2,915		2,564		12,204		10,696
	Total earnings before income taxes	$	48,594	$	55,309	$	143,008	$	134,854
	Income tax expense		15,340		17,662		45,060		42,458
	Total net earnings	$	33,254	$	37,647	$	97,948	$	92,396
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)	2014		2013		2014		2013
	Casualty
	Commercial and personal umbrella	$	25,256	$	22,247	$	75,036	$	61,803
	General liability		20,095		20,342		60,550		61,139
	Commercial transportation		14,677		13,463		44,193		35,594
	Professional services		15,227		11,021		41,927		30,092
	P&C package business		8,969		7,643		25,747		22,671
	Executive products		4,760		4,933		14,165		14,300
	Medical professional liability		3,546		2,674		10,970		5,136
	Other casualty		3,651		1,643		8,930		4,572
	Total	$	96,181	$	83,966	$	281,518	$	235,307
	Property
	Commercial property	$	20,188	$	18,938	$	60,675	$	57,813
	Marine		12,115		14,242		37,278		43,898
	Crop reinsurance		11,802		11,846		18,671		19,501
	Property reinsurance		2,997		2,848		9,745		12,503
	Other property		7,041		4,831		19,883		13,590
	Total	$	54,143	$	52,705	$	146,252	$	147,305
	Surety
	Miscellaneous	$	9,868	$	9,590	$	28,948	$	28,559
	Contract		6,879		7,025		19,896		20,137
	Commercial		6,521		5,857		18,968		17,285
	Oil and Gas		4,155		4,559		11,901		13,813
	Total	$	27,423	$	27,031	$	79,713	$	79,794
	Grand Total	$	177,747	$	163,702	$	507,483	$	462,406

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

3 Months Ended

9 Months Ended

1 Months Ended

9 Months Ended

Share data in Thousands, except Per Share data, unless otherwise specified

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Dec. 31, 2013

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Apr. 30, 2011

Apr. 30, 2011

Sep. 30, 2014

Sep. 30, 2014

Apr. 30, 2011

Sep. 30, 2013

Sep. 30, 2014

CBIC and Rockbridge

CBIC and Rockbridge

Surety segment

Surety segment

Casualty and Surety segment

Casualty and Surety segment

Casualty and Surety segment

Casualty segment

Casualty segment

Casualty segment

Acquisitions prior to 2011

Contractors Bonding and Insurance Company

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

$74,172,000

'

$74,172,000

'

$74,876,000

'

'

'

'

'

$32,000,000

$32,000,000

'

'

$16,000,000

Goodwill

'

'

'

'

'

'

'

26,200,000

'

'

'

'

'

'

12,400,000

Goodwill acquired

'

'

'

'

'

'

'

'

15,100,000

'

'

'

5,300,000

'

'

Indefinite Lived Intangible Assets Acquired

'

'

'

'

'

'

'

'

'

8,800,000

'

'

'

'

'

Goodwill, Impairment Loss

'

'

'

'

'

'

'

'

'

'

0

0

'

0

'

Impairment of indefinite-lived intangible assets

'

'

'

'

'

'

'

'

'

'

0

0

'

'

'

Definite-lived intangible assets, net of amortization

'

'

'

'

'

'

'

'

'

'

2,800,000

2,800,000

'

'

3,600,000

Amortization of intangible assets

'

'

'

'

'

200,000

700,000

'

'

'

'

'

'

'

'

Basic EPS, Income (Numerator)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Income available to common shareholders

33,254,000

37,647,000

97,948,000

92,396,000

'

'

'

'

'

'

'

'

'

'

'

Diluted EPS, Income (Numerator)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Income available to common shareholders

$33,254,000

$37,647,000

$97,948,000

$92,396,000

'

'

'

'

'

'

'

'

'

'

'

Basic EPS, Weighted Average Shares (Denominator)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of shares outstanding

43,026

42,843

43,004

42,673

'

'

'

'

'

'

'

'

'

'

'

Effect of Dilutive Securities, Shares (Denominator)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Stock options (in shares)

686

703

688

657

'

'

'

'

'

'

'

'

'

'

'

Diluted EPS, Weighted Average Shares (Denominator)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of shares outstanding

43,712

43,546

43,692

43,330

'

'

'

'

'

'

'

'

'

'

'

Basic EPS, Per Share Amount

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Basic net earnings per share (in dollars per share)

$0.77

$0.88

$2.28

$2.17

'

'

'

'

'

'

'

'

'

'

'

Diluted EPS, Per Share Amount

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Diluted earnings per share (in dollars per share)

$0.76

$0.86

$2.24

$2.13

'

'

'

'

'

'

'

'

'

'

'

SUMMARY_OF_SIGNIFICANT_ACCOUNT4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Unrealized Gains and Losses (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Changes in the balance of each component of accumulated other comprehensive earnings	'	'	'	'
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)	-12,353	-1,946	25,318	-17,874
Ending balance	161,345	'	161,345	'
Unrealized Gains and Losses on Available-for-Sale Securities	'	'	'	'
Changes in the balance of each component of accumulated other comprehensive earnings	'	'	'	'
Beginning balance	173,698	127,242	136,027	143,170
Other comprehensive earnings before reclassifications	-8,642	5,203	40,032	-5,354
Amounts reclassified from accumulated other comprehensive earnings	-3,711	-7,149	-14,714	-12,520
Net current-period other comprehensive earnings (loss)	-12,353	-1,946	25,318	-17,874
Ending balance	$161,345	$125,296	$161,345	$125,296

SUMMARY_OF_SIGNIFICANT_ACCOUNT5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reclassification (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Amount Reclassified from Accumulated Other Comprehensive Earnings	'	'	'	'
Net realized investment gains	$5,708	$10,999	$22,640	$18,425
Earnings before income taxes	48,594	55,309	143,008	134,854
Income tax expense	-15,340	-17,662	-45,060	-42,458
Net earnings	33,254	37,647	97,948	92,396
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	5,709	10,998	22,637	19,261
Earnings before income taxes	5,709	10,998	22,637	19,261
Income tax expense	-1,998	-3,849	-7,923	-6,741
Net earnings	$3,711	$7,149	$14,714	$12,520

INVESTMENTS_Details

INVESTMENTS (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Amortized Cost	'	'
Due in one year or less	$17,680	'
Due after one year through five years	242,863	'
Due after five years through 10 years	594,841	'
Due after 10 years	254,433	'
Total	1,502,504	'
Fair Value	'	'
Due in one year or less	17,855	'
Due after one year through five years	253,882	'
Due after five years through 10 years	612,167	'
Due after 10 years	262,606	'
Total	1,545,530	1,440,052
Fair value measured on recurring basis | Significant Unobservable Inputs (Level 3)	'	'
INVESTMENTS	'	'
Total assets at fair value	0	'
Debt securities	'	'
Available-for-sale	'	'
Available-for-sale Securities, Amortized Cost Basis, Total	1,502,504	1,431,049
Gross Unrealized Gains	49,621	37,661
Gross Unrealized Losses	-6,595	-28,658
Fair Value	1,545,530	1,440,052
U.S. Agency	'	'
Available-for-sale	'	'
Available-for-sale Securities, Amortized Cost Basis, Total	6,383	10,513
Gross Unrealized Gains	147	22
Gross Unrealized Losses	-14	-237
Fair Value	6,516	10,298
Corporate Debt	'	'
Available-for-sale	'	'
Available-for-sale Securities, Amortized Cost Basis, Total	563,120	511,748
Gross Unrealized Gains	23,639	22,302
Gross Unrealized Losses	-2,603	-8,012
Fair Value	584,156	526,038
Mtge/ABS/CMBS	'	'
Available-for-sale	'	'
Available-for-sale Securities, Amortized Cost Basis, Total	392,687	350,187
Gross Unrealized Gains	9,627	8,188
Gross Unrealized Losses	-3,294	-7,650
Fair Value	399,020	350,725
Non-U.S. govt. & agency	'	'
Available-for-sale	'	'
Available-for-sale Securities, Amortized Cost Basis, Total	9,861	13,306
Gross Unrealized Gains	696	437
Gross Unrealized Losses	'	-65
Fair Value	10,557	13,678
U.S. government	'	'
Available-for-sale	'	'
Available-for-sale Securities, Amortized Cost Basis, Total	32,082	17,086
Gross Unrealized Gains	120	217
Gross Unrealized Losses	-39	'
Fair Value	32,163	17,303
Municipal	'	'
Available-for-sale	'	'
Available-for-sale Securities, Amortized Cost Basis, Total	498,371	528,209
Gross Unrealized Gains	15,392	6,495
Gross Unrealized Losses	-645	-12,694
Fair Value	513,118	522,010
Equity securities	'	'
Available-for-sale	'	'
Available-for-sale Securities, Amortized Cost Basis, Total	214,239	218,848
Gross Unrealized Gains	205,253	200,081
Gross Unrealized Losses	-470	-275
Fair Value	$419,022	$418,654

INVESTMENTS_Held_to_Maturity_D

INVESTMENTS Held to Maturity (Details) (USD $)	Sep. 30, 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_Unrealized_Losses_

INVESTMENTS Unrealized Losses (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Investment positions with unrealized losses	'	'	'	'
Unrealized losses relative to total invested assets (as a percent)	0.30%	'	'	'
Fair value	'	'	'	'
Less than 12 months	$294,600	$682,254	'	'
12 Months and Greater	162,060	3,188	'	'
Total Fair value	456,660	685,442	'	'
Cost or amortized Cost	'	'	'	'
Less than 12 months	297,578	710,949	'	'
12 months and greater	166,147	3,426	'	'
Total Cost or Amortized Cost	463,725	714,375	'	'
Unrealized Loss	'	'	'	'
Less than 12 months	-2,978	-28,695	'	'
12 Months and Greater	-4,087	-238	'	'
Total Unrealized Loss	-7,065	-28,933	'	'
Cash and Short-term Investments	'	'	'	'
Cash	77,037	39,469	87,398	44,314
Short-term investments, at cost which approximates fair value	10,063	23,232	'	'
Debt securities	'	'	'	'
Fair value	'	'	'	'
Less than 12 months	282,965	679,860	'	'
12 Months and Greater	162,060	3,188	'	'
Total Fair value	445,025	683,048	'	'
Cost or amortized Cost	'	'	'	'
Less than 12 months	285,473	708,280	'	'
12 months and greater	166,147	3,426	'	'
Total Cost or Amortized Cost	451,620	711,706	'	'
Unrealized Loss	'	'	'	'
Less than 12 months	-2,508	-28,420	'	'
12 Months and Greater	-4,087	-238	'	'
Total Unrealized Loss	-6,595	-28,658	'	'
Percent to Total	100.00%	'	'	'
Debt securities | NAIC Rating 1 | AAA/AA/A | Aaa/Aa/A	'	'	'	'
Fair value	'	'	'	'
Total Fair value	349,481	'	'	'
Cost or amortized Cost	'	'	'	'
Total Cost or Amortized Cost	354,379	'	'	'
Unrealized Loss	'	'	'	'
Total Unrealized Loss	-4,898	'	'	'
Percent to Total	74.30%	'	'	'
Debt securities | NAIC Rating 2 | BBB | Baa	'	'	'	'
Fair value	'	'	'	'
Total Fair value	37,081	'	'	'
Cost or amortized Cost	'	'	'	'
Total Cost or Amortized Cost	37,566	'	'	'
Unrealized Loss	'	'	'	'
Total Unrealized Loss	-485	'	'	'
Percent to Total	7.40%	'	'	'
Debt securities | NAIC Rating 3 | BB | Ba	'	'	'	'
Fair value	'	'	'	'
Total Fair value	35,139	'	'	'
Cost or amortized Cost	'	'	'	'
Total Cost or Amortized Cost	35,807	'	'	'
Unrealized Loss	'	'	'	'
Total Unrealized Loss	-668	'	'	'
Percent to Total	10.10%	'	'	'
Debt securities | NAIC Rating 4 | B	'	'	'	'
Fair value	'	'	'	'
Total Fair value	22,120	'	'	'
Cost or amortized Cost	'	'	'	'
Total Cost or Amortized Cost	22,598	'	'	'
Unrealized Loss	'	'	'	'
Total Unrealized Loss	-478	'	'	'
Percent to Total	7.20%	'	'	'
Debt securities | NAIC Rating 5 | CCC or lower	'	'	'	'
Fair value	'	'	'	'
Total Fair value	1,204	'	'	'
Cost or amortized Cost	'	'	'	'
Total Cost or Amortized Cost	1,270	'	'	'
Unrealized Loss	'	'	'	'
Total Unrealized Loss	-66	'	'	'
Percent to Total	1.00%	'	'	'
U.S. government	'	'	'	'
Fair value	'	'	'	'
Less than 12 months	18,556	'	'	'
Total Fair value	18,556	'	'	'
Cost or amortized Cost	'	'	'	'
Less than 12 months	18,595	'	'	'
Total Cost or Amortized Cost	18,595	'	'	'
Unrealized Loss	'	'	'	'
Less than 12 months	-39	'	'	'
Total Unrealized Loss	-39	'	'	'
U.S. Agency	'	'	'	'
Fair value	'	'	'	'
Less than 12 months	1,871	5,760	'	'
Total Fair value	1,871	5,760	'	'
Cost or amortized Cost	'	'	'	'
Less than 12 months	1,885	5,997	'	'
Total Cost or Amortized Cost	1,885	5,997	'	'
Unrealized Loss	'	'	'	'
Less than 12 months	-14	-237	'	'
Total Unrealized Loss	-14	-237	'	'
Non-U.S. govt. & agency	'	'	'	'
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	27,741	118,283	'	'
12 Months and Greater	70,754	'	'	'
Total Fair value	98,495	118,283	'	'
Cost or amortized Cost	'	'	'	'
Less than 12 months	27,848	124,034	'	'
12 months and greater	73,223	'	'	'
Total Cost or Amortized Cost	101,071	124,034	'	'
Unrealized Loss	'	'	'	'
Less than 12 months	-107	-5,751	'	'
12 Months and Greater	-2,469	'	'	'
Total Unrealized Loss	-2,576	-5,751	'	'
ABS/CMBS	'	'	'	'
Fair value	'	'	'	'
Less than 12 months	46,758	54,115	'	'
12 Months and Greater	19,100	'	'	'
Total Fair value	65,858	54,115	'	'
Cost or amortized Cost	'	'	'	'
Less than 12 months	47,038	56,014	'	'
12 months and greater	19,538	'	'	'
Total Cost or Amortized Cost	66,576	56,014	'	'
Unrealized Loss	'	'	'	'
Less than 12 months	-280	-1,899	'	'
12 Months and Greater	-438	'	'	'
Total Unrealized Loss	-718	-1,899	'	'
Corporate Debt	'	'	'	'
Fair value	'	'	'	'
Less than 12 months	157,718	190,470	'	'
12 Months and Greater	22,591	2,245	'	'
Total Fair value	180,309	192,715	'	'
Cost or amortized Cost	'	'	'	'
Less than 12 months	159,729	198,250	'	'
12 months and greater	23,183	2,477	'	'
Total Cost or Amortized Cost	182,912	200,727	'	'
Unrealized Loss	'	'	'	'
Less than 12 months	-2,011	-7,780	'	'
12 Months and Greater	-592	-232	'	'
Total Unrealized Loss	-2,603	-8,012	'	'
Municipal	'	'	'	'
Fair value	'	'	'	'
Less than 12 months	30,321	309,407	'	'
12 Months and Greater	49,615	943	'	'
Total Fair value	79,936	310,350	'	'
Cost or amortized Cost	'	'	'	'
Less than 12 months	30,378	322,095	'	'
12 months and greater	50,203	949	'	'
Total Cost or Amortized Cost	80,581	323,044	'	'
Unrealized Loss	'	'	'	'
Less than 12 months	-57	-12,688	'	'
12 Months and Greater	-588	-6	'	'
Total Unrealized Loss	-645	-12,694	'	'
Equity securities	'	'	'	'
Fair value	'	'	'	'
Less than 12 months	11,635	2,394	'	'
Total Fair value	11,635	2,394	'	'
Cost or amortized Cost	'	'	'	'
Less than 12 months	12,105	2,669	'	'
Total Cost or Amortized Cost	12,105	2,669	'	'
Unrealized Loss	'	'	'	'
Less than 12 months	-470	-275	'	'
Total Unrealized Loss	($470)	($275)	'	'

INVESTMENTS_Debt_and_Common_St

INVESTMENTS Debt and Common Stock Securities (Details) (USD $)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Fixed income securities in unrealized loss positions	'	'
Investment in low income housing tax credit partnership	$10,000,000	'
Other Investments	11,688,000	'
Total tax benefit on investments in housing tax credit partnership	100,000	'
Investment in FHLBC	1,800,000	'
Unrealized Loss	7,065,000	28,933,000
Other-than-temporary impairment (OTTI) losses recognized in net earnings or other comprehensive earnings	0	'
Debt securities	'	'
Fixed income securities in unrealized loss positions	'	'
Number of unrealized loss positions	290	'
Unrealized Loss	6,600,000	'
Unrealized losses as percentage of fixed income portfolio cost basis	0.40%	'
Number of securities in unrealized loss positions for 12 months or longer	74	'
Common stock security	'	'
Fixed income securities in unrealized loss positions	'	'
Number of unrealized loss positions	3	'
Number of securities in unrealized loss positions for 12 months or longer	0	'
Common stock security | Maximum	'	'
Fixed income securities in unrealized loss positions	'	'
Unrealized Loss	500,000	'
Investment In Low Income Housing Tax Credit Partnership Net Of Amortization Member	'	'
Fixed income securities in unrealized loss positions	'	'
Other Investments	$9,900,000	'

FAIR_VALUE_MEASUREMENTS_Detail

FAIR VALUE MEASUREMENTS (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Transfers in (out of) level 1	$0	'
Transfers in (out of) level 2	0	'
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value measured on recurring basis	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Available-for-sale Securities	419,022	418,654
Total assets at fair value	419,022	418,654
Significant Other Observable Inputs (Level 2) | Fair value measured on recurring basis	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Available-for-sale Securities	1,545,530	1,440,052
Total assets at fair value	1,545,530	1,440,052
Significant Unobservable Inputs (Level 3) | Fair value measured on recurring basis	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Total assets at fair value	0	'
Total | Fair value measured on recurring basis	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Available-for-sale Securities	1,964,552	1,858,706
Total assets at fair value	1,964,552	1,858,706
U.S. Agency | Significant Other Observable Inputs (Level 2) | Fair value measured on recurring basis	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Available-for-sale Securities	6,516	10,298
U.S. Agency | Total | Fair value measured on recurring basis	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Available-for-sale Securities	6,516	10,298
Corporate Bond Securities [Member] | Significant Other Observable Inputs (Level 2) | Fair value measured on recurring basis	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Available-for-sale Securities	584,156	526,038
Corporate Bond Securities [Member] | Total | Fair value measured on recurring basis	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Available-for-sale Securities	584,156	526,038
Mortgage-backed | Significant Other Observable Inputs (Level 2) | Fair value measured on recurring basis	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Available-for-sale Securities	260,902	244,416
Mortgage-backed | Total | Fair value measured on recurring basis	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Available-for-sale Securities	260,902	244,416
ABS/CMBS | Significant Other Observable Inputs (Level 2) | Fair value measured on recurring basis	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Available-for-sale Securities	138,118	106,309
ABS/CMBS | Total | Fair value measured on recurring basis	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Available-for-sale Securities	138,118	106,309
Non-U.S. govt. & agency | Significant Other Observable Inputs (Level 2) | Fair value measured on recurring basis	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Available-for-sale Securities	10,557	13,678
Non-U.S. govt. & agency | Total | Fair value measured on recurring basis	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Available-for-sale Securities	10,557	13,678
U.S. government | Significant Other Observable Inputs (Level 2) | Fair value measured on recurring basis	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Available-for-sale Securities	32,163	17,303
U.S. government | Total | Fair value measured on recurring basis	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Available-for-sale Securities	32,163	17,303
Municipal | Significant Other Observable Inputs (Level 2) | Fair value measured on recurring basis	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Available-for-sale Securities	513,118	522,010
Municipal | Total | Fair value measured on recurring basis	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Available-for-sale Securities	513,118	522,010
Equity securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value measured on recurring basis	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Available-for-sale Securities	419,022	418,654
Equity securities | Total | Fair value measured on recurring basis	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Available-for-sale Securities	$419,022	$418,654

STOCK_BASED_COMPENSATION_Detai

STOCK BASED COMPENSATION (Details) (USD $)

3 Months Ended

9 Months Ended

9 Months Ended

3 Months Ended

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2014

Dec. 31, 2005

Sep. 30, 2014

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

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 Directors' Stock Option Plan (the director's plan)

Outside director

Outside director

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

Shares authorized for grant

'

'

'

'

'

'

3,000,000

4,000,000

'

'

'

'

Stock options granted to date (in shares)

'

'

'

'

'

2,457,644

'

2,777,000

'

'

'

'

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)

'

'

464,500

582,200

'

'

'

464,500

'

'

'

'

Options exercised (in shares)

'

'

-47,412

-761,362

'

'

'

'

'

'

'

'

Options canceled/forfeited (in shares)

'

'

-740

-44,880

'

'

'

'

'

'

'

'

Outstanding options at the end of the period (in shares)

3,011,432

2,721,162

3,011,432

2,721,162

'

'

'

'

'

'

'

'

Exercisable options at the end of the period (in shares)

1,351,312

1,060,662

1,351,312

1,060,662

'

'

'

'

'

'

'

'

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)

'

'

$42.90

$36.31

'

'

'

'

'

'

'

'

Options exercised (in dollars per share)

'

'

$17.95

$17.18

'

'

'

'

'

'

'

'

Options canceled/forfeited (in dollars per share)

'

'

$16.51

$25.93

'

'

'

'

'

'

'

'

Outstanding options at the end of the period (in dollars per share)

$28.77

$26.59

$28.77

$26.59

'

'

'

'

'

'

'

'

Exercisable options at the end of the period (in dollars per share)

$22.29

$21.09

$22.29

$21.09

'

'

'

'

'

'

'

'

Weighted Average Remaining Contractual Life

'

'

'

'

'

'

'

'

'

'

'

'

Weighted-average remaining contractual term of options outstanding

'

'

'5 years 3 months

'5 years 7 months 24 days

'

'

'

'

'

'

'

'

Weighted-average remaining contractual term of exercisable options

'

'

'3 years 11 months 27 days

'4 years 4 months 6 days

'

'

'

'

'

'

'

'

Aggregate Intrinsic Value

'

'

'

'

'

'

'

'

'

'

'

'

Options exercised (in dollars)

'

'

$1,250,000

$17,211,000

'

'

'

'

'

'

'

'

Outstanding options at the end of the period (in dollars)

43,850,000

46,590,000

43,850,000

46,590,000

'

'

'

'

'

'

'

'

Exercisable options at the end of the period (in dollars)

28,382,000

23,995,000

28,382,000

23,995,000

'

'

'

'

'

'

'

'

Weighted-average fair value of grants (in dollars per share)

'

'

$7.76

$6.58

'

'

'

'

'

'

'

'

Stock-based compensation expenses (in dollars)

900,000

1,000,000

2,900,000

2,800,000

'

'

'

'

'

'

100,000

'

Income tax benefit from stock-based compensation (in dollars)

300,000

300,000

1,000,000

1,000,000

'

'

'

'

'

'

'

'

Unrecognized stock-based compensation expense (in dollars)

5,200,000

'

5,200,000

'

'

'

'

'

'

'

'

'

Weighted average grant date assumptions and weighted average fair value

'

'

'

'

'

'

'

'

'

'

'

'

Weighted-average fair value of grants (in dollars per share)

'

'

$7.76

$6.58

'

'

'

'

'

'

'

'

Risk-free interest rates (as a percent)

'

'

1.70%

0.80%

'

'

'

'

'

'

'

'

Dividend yield (as a percent)

'

'

1.94%

2.00%

'

'

'

'

'

'

'

'

Expected volatility (as a percent)

'

'

23.19%

25.41%

'

'

'

'

'

'

'

'

Expected option life

'

'

'5 years 2 months 1 day

'5 years 2 months 23 days

'

'

'

'

'

'

'

'

Period for which annualized dividends is considered to calculate dividend yield

'

'

'5 years

'

'

'

'

'

'

'

'

'

Restricted shares issued per recipient (in dollars)

'

'

'

'

'

'

'

'

$10,000

$10,000

'

'

Restriction period

'

'

'

'

'

'

'

'

'

'

'1 year

'1 year

Restricted shares issued

'

'

'

'

'

'

'

'

'

'

2,097

'

OPERATING_SEGMENT_INFORMATION_1

OPERATING SEGMENT INFORMATION (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
REVENUES	'	'	'	'
Segment totals before income taxes	$177,747	$163,702	$507,483	$462,406
Net investment income	14,200	13,598	41,764	39,331
Net realized gains	5,708	10,999	22,640	18,425
Consolidated revenue	197,655	188,299	571,887	520,162
NET EARNINGS (LOSSES)	'	'	'	'
Net underwriting income	30,428	31,818	79,529	77,175
Net investment income	14,200	13,598	41,764	39,331
Net realized gains	5,708	10,999	22,640	18,425
General corporate expense and interest on debt	-4,657	-3,670	-13,129	-10,773
Equity in earnings of unconsolidated investee	2,915	2,564	12,204	10,696
Earnings before income taxes	48,594	55,309	143,008	134,854
Income tax expense	15,340	17,662	45,060	42,458
Net earnings	33,254	37,647	97,948	92,396
Casualty segment	'	'	'	'
REVENUES	'	'	'	'
Segment totals before income taxes	96,181	83,966	281,518	235,307
NET EARNINGS (LOSSES)	'	'	'	'
Net underwriting income	13,786	20,799	36,331	39,517
Property segment	'	'	'	'
REVENUES	'	'	'	'
Segment totals before income taxes	54,143	52,705	146,252	147,305
NET EARNINGS (LOSSES)	'	'	'	'
Net underwriting income	7,498	6,468	19,469	19,614
Surety segment	'	'	'	'
REVENUES	'	'	'	'
Segment totals before income taxes	27,423	27,031	79,713	79,794
NET EARNINGS (LOSSES)	'	'	'	'
Net underwriting income	$9,144	$4,551	$23,729	$18,044

OPERATING_SEGMENT_INFORMATION_2

OPERATING SEGMENT INFORMATION Major Products (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenue by major product	'	'	'	'
Net premiums earned	$177,747	$163,702	$507,483	$462,406
Casualty segment	'	'	'	'
Revenue by major product	'	'	'	'
Net premiums earned	96,181	83,966	281,518	235,307
Casualty segment | Commercial and personal umbrella	'	'	'	'
Revenue by major product	'	'	'	'
Net premiums earned	25,256	22,247	75,036	61,803
Casualty segment | General liability	'	'	'	'
Revenue by major product	'	'	'	'
Net premiums earned	20,095	20,342	60,550	61,139
Casualty segment | Commercial transportation	'	'	'	'
Revenue by major product	'	'	'	'
Net premiums earned	14,677	13,463	44,193	35,594
Casualty segment | P&C package business	'	'	'	'
Revenue by major product	'	'	'	'
Net premiums earned	8,969	7,643	25,747	22,671
Casualty segment | Executive products	'	'	'	'
Revenue by major product	'	'	'	'
Net premiums earned	4,760	4,933	14,165	14,300
Casualty segment | Professional services	'	'	'	'
Revenue by major product	'	'	'	'
Net premiums earned	15,227	11,021	41,927	30,092
Casualty segment | Medical professional liability	'	'	'	'
Revenue by major product	'	'	'	'
Net premiums earned	3,546	2,674	10,970	5,136
Casualty segment | Other casualty	'	'	'	'
Revenue by major product	'	'	'	'
Net premiums earned	3,651	1,643	8,930	4,572
Property segment	'	'	'	'
Revenue by major product	'	'	'	'
Net premiums earned	54,143	52,705	146,252	147,305
Property segment | Commercial products	'	'	'	'
Revenue by major product	'	'	'	'
Net premiums earned	20,188	18,938	60,675	57,813
Property segment | Marine	'	'	'	'
Revenue by major product	'	'	'	'
Net premiums earned	12,115	14,242	37,278	43,898
Property segment | Crop reinsurance business	'	'	'	'
Revenue by major product	'	'	'	'
Net premiums earned	11,802	11,846	18,671	19,501
Property segment | Property reinsurance	'	'	'	'
Revenue by major product	'	'	'	'
Net premiums earned	2,997	2,848	9,745	12,503
Property segment | Other property	'	'	'	'
Revenue by major product	'	'	'	'
Net premiums earned	7,041	4,831	19,883	13,590
Surety segment	'	'	'	'
Revenue by major product	'	'	'	'
Net premiums earned	27,423	27,031	79,713	79,794
Surety segment | Miscellaneous	'	'	'	'
Revenue by major product	'	'	'	'
Net premiums earned	9,868	9,590	28,948	28,559
Surety segment | Contract	'	'	'	'
Revenue by major product	'	'	'	'
Net premiums earned	6,879	7,025	19,896	20,137
Surety segment | Commercial	'	'	'	'
Revenue by major product	'	'	'	'
Net premiums earned	6,521	5,857	18,968	17,285
Surety segment | Oil and Gas	'	'	'	'
Revenue by major product	'	'	'	'
Net premiums earned	$4,155	$4,559	$11,901	$13,813

ACQUISITION_Details

ACQUISITION (Details) (USD $)	3 Months Ended		9 Months Ended		0 Months Ended	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Feb. 05, 2014	Sep. 30, 2014	Sep. 30, 2014
					Prime Holdings Insurance Services, Inc. (Prime) [Member]	Prime Holdings Insurance Services, Inc. (Prime) [Member]	Prime Holdings Insurance Services, Inc. (Prime) [Member]
						state	state
Business acquisition	'	'	'	'	'	'	'
Amount of investment	'	'	$5,301,000	'	$5,300,000	'	'
Equity ownership interest (as a percent)	'	'	'	'	20.00%	'	'
Number of states in which entity operates	'	'	'	'	'	49	49
Percentage of quota share reinsurance treaty, effective January 1, 2014	'	'	'	'	'	'	25.00%
Equity in earnings of unconsolidated investee	2,915,000	2,564,000	12,204,000	10,696,000	'	100,000	400,000
Reinsurance assumed	'	'	'	'	'	$2,400,000	$7,400,000