<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS IN THE RLI CORP. FORM 10Q FOR THE PERIOD ENDED SEPTEMBER
30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-END>                               SEP-30-1995
<DEBT-HELD-FOR-SALE>                            12,125
<DEBT-CARRYING-VALUE>                          287,683
<DEBT-MARKET-VALUE>                            288,326
<EQUITIES>                                     154,832
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                                 454,641
<CASH>                                           (656)
<RECOVER-REINSURE>                              46,380
<DEFERRED-ACQUISITION>                          16,418
<TOTAL-ASSETS>                                 799,129
<POLICY-LOSSES>                                221,917
<UNEARNED-PREMIUMS>                            125,476
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                 52,255
<COMMON>                                         8,453
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<OTHER-SE>                                     138,226
<TOTAL-LIABILITY-AND-EQUITY>                   799,129
<PREMIUMS>                                     100,960
<INVESTMENT-INCOME>                             16,241
<INVESTMENT-GAINS>                                 118
<OTHER-INCOME>                                  26,709
<BENEFITS>                                      71,981
<UNDERWRITING-AMORTIZATION>                     33,255
<UNDERWRITING-OTHER>                            10,111
<INCOME-PRETAX>                                  (891)
<INCOME-TAX>                                   (2,147)
<INCOME-CONTINUING>                              1,256
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     1,256
<EPS-PRIMARY>                                      .16
<EPS-DILUTED>                                      .16
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0