{"id":938735,"date":"2026-02-20T14:04:05","date_gmt":"2026-02-20T19:04:05","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-upgrades-credit-ratings-for-rli-corp-and-its-subsidiaries\/"},"modified":"2026-02-20T14:04:05","modified_gmt":"2026-02-20T19:04:05","slug":"am-best-upgrades-credit-ratings-for-rli-corp-and-its-subsidiaries","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-upgrades-credit-ratings-for-rli-corp-and-its-subsidiaries\/","title":{"rendered":"AM Best Upgrades Credit Ratings for RLI Corp. and Its Subsidiaries"},"content":{"rendered":"

<\/p>\n

AM Best Upgrades Credit Ratings for RLI Corp. and Its Subsidiaries<\/b><\/p>\n

OLDWICK, N.J.–(BUSINESS WIRE<\/a>)–AM Best <\/b>has upgraded the Financial Strength Rating (FSR) to A++ (Superior) from A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to \u201caa+\u201d (Superior) from \u201caa\u201d (Superior) for the members of RLI Group (RLI). In addition, AM Best has upgraded the Long-Term ICR to \u201ca+\u201d (Excellent) from \u201ca\u201d (Excellent) of RLI\u2019s publicly traded parent holding company, RLI Corp. [NYSE: RLI]. The outlook of these Credit Ratings (ratings) has been revised to stable from positive. All companies are headquartered in Peoria, IL. (See below for a detailed listing of the companies and ratings.)<\/p>\n

\nThe ratings reflect RLI\u2019s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and very strong enterprise risk management.<\/p>\n

\nThe rating upgrades reflect RLI\u2019s exceptional balance sheet strength fundamentals, buttressed by the group\u2019s effective capital management strategies, historically positive reserve development, strong underwriting controls and RLI\u2019s quality reinsurance program. RLI\u2019s overall liquidity ratios outperform the industry benchmarks, despite the group\u2019s elevated level of common stock leverage and significant earthquake exposure. AM Best expects that RLI\u2019s risk-adjusted capitalization, as measured by Best\u2019s Capital Adequacy Ratio (BCAR), will remain at the strongest level, with favorable operating performance trends benefiting from management\u2019s niche specialty market expertise and robust risk management program, which places an ardent emphasis on safeguarding the balance sheet from capital risks and meeting corporate profitability goals.<\/p>\n

\nThe consistency in the group\u2019s underwriting results is driven by rigorous pricing discipline and diversification, augmented by solid investment returns. Perpetual internal capital generation has enabled RLI to grow its capital size over the past five years (albeit the return of substantial capital in the form of stockholder dividends to RLI Corp.), with policyholder surplus reaching $1.9 billion as of the third quarter of 2025. Further supporting the ratings is the strong financial flexibility afforded by RLI Corp., as demonstrated by its modest financial leverage and very strong fixed-charge coverage.<\/p>\n

\nThe stable outlooks reflect AM Best\u2019s expectation that RLI will maintain strong underwriting and operating profitability, a favorable business profile along with an overall balance sheet strength assessment that is comparable to other companies in the composite assessed at strongest.<\/p>\n

\nThe FSR has been upgraded to A++ (Superior) from A+ (Superior) and the Long-Term ICRs to \u201caa+\u201d (Superior) from \u201caa\u201d (Superior), with the outlooks revised to stable from positive for the members of RLI Group:<\/p>\n