<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