<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FIANACIAL INFORMATION EXTRACTED FROM
THE FINANCIAL STATEMENTS IN THE RLI CORP. FORM 10Q FOR THE PERIOD
ENDED JUNE 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-END>                               JUN-30-1997
<DEBT-HELD-FOR-SALE>                            42,213
<DEBT-CARRYING-VALUE>                          271,852
<DEBT-MARKET-VALUE>                            273,591
<EQUITIES>                                     220,430
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                                 551,137
<CASH>                                               0
<RECOVER-REINSURE>                              56,229
<DEFERRED-ACQUISITION>                          24,485
<TOTAL-ASSETS>                                 890,633
<POLICY-LOSSES>                                243,939
<UNEARNED-PREMIUMS>                            135,436
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                 46,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                         8,454
<OTHER-SE>                                     228,440
<TOTAL-LIABILITY-AND-EQUITY>                   890,633
<PREMIUMS>                                      69,040
<INVESTMENT-INCOME>                             12,021
<INVESTMENT-GAINS>                               2,294
<OTHER-INCOME>                                     540
<BENEFITS>                                      31,354
<UNDERWRITING-AMORTIZATION>                     20,894
<UNDERWRITING-OTHER>                             8,546
<INCOME-PRETAX>                                 19,876
<INCOME-TAX>                                     5,336
<INCOME-CONTINUING>                             14,540
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    14,540
<EPS-PRIMARY>                                     1.90
<EPS-DILUTED>                                     1.64
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0