<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, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               JUN-30-1998
<DEBT-HELD-FOR-SALE>                            43,162
<DEBT-CARRYING-VALUE>                          293,878
<DEBT-MARKET-VALUE>                            300,802
<EQUITIES>                                     279,812
<MORTGAGE>                                           0
<REAL-ESTATE>                                        0
<TOTAL-INVEST>                                 630,271
<CASH>                                               0
<RECOVER-REINSURE>                              53,253
<DEFERRED-ACQUISITION>                          21,939
<TOTAL-ASSETS>                                 967,527
<POLICY-LOSSES>                                239,115
<UNEARNED-PREMIUMS>                            132,655
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                 38,370
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        12,789
<OTHER-SE>                                     271,923
<TOTAL-LIABILITY-AND-EQUITY>                   967,527
<PREMIUMS>                                      70,000
<INVESTMENT-INCOME>                             11,686
<INVESTMENT-GAINS>                                 639
<OTHER-INCOME>                                     937
<BENEFITS>                                      27,563
<UNDERWRITING-AMORTIZATION>                     23,898
<UNDERWRITING-OTHER>                             8,823
<INCOME-PRETAX>                                 19,815
<INCOME-TAX>                                     5,214
<INCOME-CONTINUING>                             14,601
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    14,601
<EPS-PRIMARY>                                     0.82
<EPS-DILUTED>                                     0.81
<RESERVE-OPEN>                                 242,554
<PROVISION-CURRENT>                             31,713
<PROVISION-PRIOR>                              (4,150)
<PAYMENTS-CURRENT>                               3,987
<PAYMENTS-PRIOR>                                27,015
<RESERVE-CLOSE>                                239,115
<CUMULATIVE-DEFICIENCY>                              0