<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS IN THE RLI CORP. FORM 10Q FOR THE PERIOD ENDED MARCH
31, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               MAR-31-1996
<DEBT-HELD-FOR-SALE>                            44,821
<DEBT-CARRYING-VALUE>                          248,249
<DEBT-MARKET-VALUE>                            250,719
<EQUITIES>                                     162,362
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                                 455,431
<CASH>                                           5,268
<RECOVER-REINSURE>                              66,870
<DEFERRED-ACQUISITION>                          15,199
<TOTAL-ASSETS>                                 813,679
<POLICY-LOSSES>                                225,135
<UNEARNED-PREMIUMS>                            122,572
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                 46,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                         8,453
<OTHER-SE>                                     161,270
<TOTAL-LIABILITY-AND-EQUITY>                   813,679
<PREMIUMS>                                      32,167
<INVESTMENT-INCOME>                              5,727
<INVESTMENT-GAINS>                                 141
<OTHER-INCOME>                                   8,823
<BENEFITS>                                      18,031
<UNDERWRITING-AMORTIZATION>                      8,001
<UNDERWRITING-OTHER>                             3,336
<INCOME-PRETAX>                                  7,416
<INCOME-TAX>                                     1,900
<INCOME-CONTINUING>                              5,516
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     5,516
<EPS-PRIMARY>                                      .70
<EPS-DILUTED>                                      .62
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0