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FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 23, 2016 08:14 AM (EDT)
A.M. Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa” of the members of RLI Group (RLI): RLI Insurance Company, Contractors Bonding and Insurance Company (CBIC) and Mt. Hawley Insurance Company (Mt. Hawley). In addition, A.M. Best has affirmed the Long-Term ICR of “a” of RLI’s publicly traded parent holding company, RLI Corp. (RLI Corp) [NYSE: RLI]. A.M. Best has also affirmed the Long-Term Issue Credit Rating of “a” on $150 million 4.875% senior unsecured notes due 2023 of RLI Corp. The outlook of these Credit Ratings (ratings) is stable. All companies are domiciled in Peoria, IL.
The rating affirmations take into consideration RLI Corp.’s solid 2015 financial results and favorable earnings in the first half of 2016. The ratings also reflect RLI’s superior capitalization, sustained long-term operating profitability and excellent business profile as one of the leading specialty property/casualty (P/C) insurance organizations in the United States. RLI has been able to maintain its focus in disciplined niche underwriting by concentrating on markets that are often underserved, which helps to somewhat insulate it from the various stages of the traditional P/C market cycle. The ratings acknowledge the strong financial flexibility afforded by RLI Corp., as evidenced by its modest financial leverage and strong fixed-charge coverage.
A.M. Best believes that RLI is well-positioned at its current rating level. Key rating drivers that could lead to downward rating pressure are a significant deterioration in RLI’s underwriting performance and a significant decline in its risk-adjusted capitalization.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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