AM Best upgraded RLI Corp. and its three insurance subsidiaries—RLI Insurance Company, Mt. Hawley Insurance Company, and Contractors Bonding and Insurance Company—to the highest financial‑strength rating of A++ (Superior) and to a+ (Excellent) for the issuer’s long‑term credit rating. The subsidiaries received the same A++ rating for financial strength and aa+ (Superior) for long‑term credit.
Prior to the upgrade, RLI Corp. held an A+ (Superior) financial‑strength rating and an a (Excellent) long‑term credit rating, while its subsidiaries were rated A+ and aa, respectively. The jump to A++ and aa+ reflects a significant improvement in the company’s credit profile.
AM Best cited a very strong balance sheet, a debt‑to‑equity ratio of 0.06, and a Best Capital Adequacy Ratio (BCAR) at the strongest level as key drivers. The company has maintained underwriting profits for 30 consecutive years and has increased its dividend for 50 consecutive years, underscoring disciplined capital management. Over the past five years, RLI’s debt‑to‑equity ratio has fallen from 13.2% to 5.6%, further reducing financial leverage.
The agency’s outlook was revised to stable from positive, indicating confidence that RLI will continue to sustain its financial strength and credit quality in the foreseeable future.
The upgrade positions RLI favorably for future capital needs and may enhance its competitive standing in specialty property, casualty, and surety markets.
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