<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS IN THE RLI CORP. FORM 10Q FOR THE PERIOD ENDED JUNE
30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               JUN-30-1996
<DEBT-HELD-FOR-SALE>                            44,133
<DEBT-CARRYING-VALUE>                          250,781
<DEBT-MARKET-VALUE>                            251,062
<EQUITIES>                                     167,737
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                                 476,956
<CASH>                                               0
<RECOVER-REINSURE>                              67,653
<DEFERRED-ACQUISITION>                          15,823
<TOTAL-ASSETS>                                 828,089
<POLICY-LOSSES>                                226,403
<UNEARNED-PREMIUMS>                            129,659
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                 46,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                         8,453
<OTHER-SE>                                     170,762
<TOTAL-LIABILITY-AND-EQUITY>                   828,089
<PREMIUMS>                                      64,557
<INVESTMENT-INCOME>                             11,819
<INVESTMENT-GAINS>                                 105
<OTHER-INCOME>                                  17,976
<BENEFITS>                                      34,938
<UNDERWRITING-AMORTIZATION>                     15,507
<UNDERWRITING-OTHER>                             7,198
<INCOME-PRETAX>                                 16,422
<INCOME-TAX>                                     4,526
<INCOME-CONTINUING>                             11,897
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    11,897
<EPS-PRIMARY>                                     1.50
<EPS-DILUTED>                                     1.32
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0