<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, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENT
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               MAR-31-1998
<DEBT-HELD-FOR-SALE>                            44,386
<DEBT-CARRYING-VALUE>                          288,553
<DEBT-MARKET-VALUE>                            294,882
<EQUITIES>                                     279,205
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                                 620,645
<CASH>                                               0
<RECOVER-REINSURE>                              38,253
<DEFERRED-ACQUISITION>                          20,984
<TOTAL-ASSETS>                                 932,969
<POLICY-LOSSES>                                238,280
<UNEARNED-PREMIUMS>                            123,286
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                 37,787
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        10,230
<OTHER-SE>                                     268,315
<TOTAL-LIABILITY-AND-EQUITY>                   932,969
<PREMIUMS>                                      34,915
<INVESTMENT-INCOME>                              5,945
<INVESTMENT-GAINS>                                 573
<OTHER-INCOME>                                     364
<BENEFITS>                                      12,423
<UNDERWRITING-AMORTIZATION>                     14,017
<UNDERWRITING-OTHER>                             4,363
<INCOME-PRETAX>                                  9,422
<INCOME-TAX>                                     2,446
<INCOME-CONTINUING>                              6,976
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     6,976
<EPS-PRIMARY>                                     0.82
<EPS-DILUTED>                                     0.81
<RESERVE-OPEN>                                 242,554
<PROVISION-CURRENT>                             13,982
<PROVISION-PRIOR>                              (1,559)
<PAYMENTS-CURRENT>                                 874
<PAYMENTS-PRIOR>                                15,823
<RESERVE-CLOSE>                                238,830
<CUMULATIVE-DEFICIENCY>                              0