<ARTICLE> 5
<LEGEND>
THIS FINANCIAL DATA SCHEDULE CONTAINS THE CONSOLIDATED FINANCIAL STATEMENTS IN
THE RLI CORP. ANNUAL REPORT TO SHAREHOLDERS FOR THE PERIOD ENDED DECEMBER 31,
1998, ATTACHED AS EXHIBIT 13 TO RLI CORP.'S FORM 10K AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED> 
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               DEC-31-1998
<CASH>                                               0
<SECURITIES>                                   677,294
<RECEIVABLES>                                  221,385
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                             1,000,485
<PP&E>                                          20,954
<DEPRECIATION>                                 (8,754)
<TOTAL-ASSETS>                               1,012,685
<CURRENT-LIABILITIES>                          670,305
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        12,790
<OTHER-SE>                                     281,169
<TOTAL-LIABILITY-AND-EQUITY>                 1,012,685
<SALES>                                              0
<TOTAL-REVENUES>                               168,114
<CGS>                                                0
<TOTAL-COSTS>                                  125,535
<OTHER-EXPENSES>                                 3,915
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               2,280
<INCOME-PRETAX>                                 37,721
<INCOME-TAX>                                     9,482
<INCOME-CONTINUING>                             28,239
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    28,239
<EPS-PRIMARY>                                     2.69
<EPS-DILUTED>                                     2.65