<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, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-END>                               SEP-30-1997
<DEBT-HELD-FOR-SALE>                            47,301
<DEBT-CARRYING-VALUE>                          286,558
<DEBT-MARKET-VALUE>                            291,161
<EQUITIES>                                     233,780
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                                 572,223
<CASH>                                               0
<RECOVER-REINSURE>                              43,060
<DEFERRED-ACQUISITION>                          22,831
<TOTAL-ASSETS>                                 898,496
<POLICY-LOSSES>                                245,660
<UNEARNED-PREMIUMS>                            129,964
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                      0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        10,224
<OTHER-SE>                                     286,707
<TOTAL-LIABILITY-AND-EQUITY>                   898,496
<PREMIUMS>                                     104,935
<INVESTMENT-INCOME>                             18,268
<INVESTMENT-GAINS>                               2,839
<OTHER-INCOME>                                     860
<BENEFITS>                                      46,578
<UNDERWRITING-AMORTIZATION>                     32,213
<UNDERWRITING-OTHER>                            13,069
<INCOME-PRETAX>                                 30,724
<INCOME-TAX>                                     8,288
<INCOME-CONTINUING>                             22,436
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    22,436
<EPS-PRIMARY>                                     2.77
<EPS-DILUTED>                                     2.49
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
<CUMULATIVE-DEFICIENCY>                              0