<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS IN THE RLI CORP. ANNUAL REPORT TO
SHAREHOLDERS FOR THE PERIOD ENDED DECEMBER 31, 1997, ATTACHED AS EXHIBIT 13 TO
RLI CORP.'S FORM 10-K AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH 
FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED> 
<MULTIPLIER> 1,000
       
                                                  
<PERIOD-TYPE>                   YEAR                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1996             DEC-31-1995
<PERIOD-END>                               DEC-31-1996             DEC-31-1995
<DEBT-HELD-FOR-SALE>                            44,904                  45,120
<DEBT-CARRYING-VALUE>                          263,282                 251,638
<DEBT-MARKET-VALUE>                            266,025                 260,958
<EQUITIES>                                     188,935                 153,958
<MORTGAGE>                                           0                       0
<REAL-ESTATE>                                        0                       0
<TOTAL-INVEST>                                 537,946                 471,599
<CASH>                                               0                       0
<RECOVER-REINSURE>                              37,167                  36,447
<DEFERRED-ACQUISITION>                          16,664                  15,807
<TOTAL-ASSETS>                                 845,474                 810,200
<POLICY-LOSSES>                                240,784                 221,649
<UNEARNED-PREMIUMS>                            129,782                 126,014
<POLICY-OTHER>                                       0                       0
<POLICY-HOLDER-FUNDS>                                0                       0
<NOTES-PAYABLE>                                 46,000                  48,800
<PREFERRED-MANDATORY>                                0                       0
<PREFERRED>                                          0                       0
<COMMON>                                         8,453                   8,453
<OTHER-SE>                                     191,586                 150,155
<TOTAL-LIABILITY-AND-EQUITY>                   845,474                 810,200
<PREMIUMS>                                     130,656                 133,468
<INVESTMENT-INCOME>                             23,681                  22,029
<INVESTMENT-GAINS>                               1,018                     457
<OTHER-INCOME>                                     231                     715
<BENEFITS>                                      68,261                  85,890
<UNDERWRITING-AMORTIZATION>                     29,556                  43,042
<UNDERWRITING-OTHER>                            16,441                  14,470
<INCOME-PRETAX>                                 35,240                   7,826
<INCOME-TAX>                                     9,544                   (123)
<INCOME-CONTINUING>                             25,696                   7,950
<DISCONTINUED>                                       0                       0
<EXTRAORDINARY>                                      0                       0
<CHANGES>                                            0                       0
<NET-INCOME>                                    25,696                   7,950
<EPS-PRIMARY>                                     3.25                    1.01
<EPS-DILUTED>                                     2.85                    1.01
<RESERVE-OPEN>                                 221,648                 195,229
<PROVISION-CURRENT>                             69,724                  62,619
<PROVISION-PRIOR>                              (1,463)                  23,271
<PAYMENTS-CURRENT>                              11,026                  10,586
<PAYMENTS-PRIOR>                                37,505                  48,023
<RESERVE-CLOSE>                                240,784                 221,784
<CUMULATIVE-DEFICIENCY>                              0                       0