<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