United States

Profile: RLI Corp (RLI)

RLI on New York Consolidated

16 Mar 2018
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$0.60 (+0.95%)
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RLI Corp., incorporated on May 4, 1993, is a specialty insurance company. The Company underwrites selected property and casualty insurance through subsidiaries, as well as offers insurance coverages in both the specialty admitted, and excess and surplus markets. It operates through Casualty, Property and Surety segments. Its Casualty segment consists of commercial and personal umbrella, general liability, commercial transportation, professional services, small commercial, executive products, medical professional liability and other casualty businesses. Its property segment consists of commercial property, marine, specialty personal, property reinsurance and crop reinsurance businesses. Its surety segment consists of miscellaneous, commercial, contract and energy businesses. The Company conducts its operations principally through three insurance companies: RLI Insurance Company (RLI Ins.), Mt. Hawley Insurance Company (Mt. Hawley) and Contractors Bonding and Insurance Company (CBIC). RLI Ins., a subsidiary of RLI Corp., wrote multiple lines of insurance on an admitted basis in all 50 states, the District of Columbia, Puerto Rico, the Virgin Islands and Guam; Mt. Hawley, a subsidiary of RLI Ins., wrote excess and surplus lines insurance on a non-admitted basis in all 50 states, the District of Columbia, Puerto Rico, the Virgin Islands and Guam, and CBIC, a subsidiary of RLI Ins., wrote multiple lines of insurance on an admitted basis in all 50 states and the District of Columbia, as of December 31, 2016.

Casualty Segment

The Company's commercial umbrella coverage is principally written in excess of primary liability insurance provided by other carriers and in excess of primary liability written by the Company. The personal umbrella coverage is written in excess of the homeowners and automobile liability coverage provided by other carriers, except in Hawaii, where some underlying homeowner's coverage is written by the Company.

The Company's general liability business consists primarily of coverage for third-party liability of commercial insureds, including manufacturers, contractors, apartments, real estate investment trusts (REITs) and mercantile. In addition, the Company offers coverages in the specialized areas of onshore energy related businesses and environmental liability for underground storage tanks, contractors, and asbestos and environmental remediation specialists. The Company's commercial transportation business provides commercial automobile liability and physical damage insurance to local, intermediate and long haul truckers, public transportation entities and equipment dealers, along with other types of specialty commercial automobile risks. It also offers incidental, related insurance coverages, including general liability, excess liability and motor truck cargo.

The Company's professional services business offers professional liability coverages focused on providing errors and omission coverage to small-to-medium sized design, technical, computer and miscellaneous professionals. Its product suite for these customers also includes an array of multi-peril package products, including general liability, property, automobile, excess liability and worker's compensation coverages. This business primarily markets its products through specialty retail agents across the nation.

The Company's small commercial business offers property and casualty insurance coverages to small contractors and other small-to-medium sized retail businesses. The coverages included in these packages are predominantly general liability, but also have some inland marine coverages, as well as commercial automobile, property and umbrella coverage. These products are marketed through retail agents.

The Company's executive products business provides a suite of management liability coverages, such as directors and officers (D&O) liability insurance, fiduciary liability and fidelity coverages for a range of low to moderate classes of risks, including both public and private businesses. It offers medical professional liability insurance specializing in hard-to-place individuals and group physicians. Additionally, it offers representations and warranties coverage for companies involved in mergers and acquisitions.

The Company's medical professional liability business offers medical professional liability insurance specializing in hard-to-place individuals and group physicians. It also provides healthcare liability with a team focused on long-term care and hospital liability. This business is marketed through wholesale brokers in the excess and surplus lines space. Its other casualty business offers various other smaller products in its casualty segment, including coverage for security guards and home business insurance, which provides limited liability and property coverage, on and off-site, for various small business owners working from their own home.

The Company competes with Arch, Aspen, Baldwin & Lyons, Chubb, CNA, Endurance, Great American, Great West, Hartford, Lancer, Markel, Navigators, RSUI, USLI, Travelers and Zurich.

Property Segment

The Company's commercial property coverage consists primarily of excess and surplus lines and specialty insurance, such as fire, earthquake and difference in conditions (DIC). DIC includes earthquake, wind, and flood and collapse coverages. It also provides insurance for a range of commercial and industrial risks, such as office buildings, apartments, condominiums, builders' risks and certain industrial and mercantile structures.

The Company's marine coverages include cargo, hull, protection and indemnity (P&I), marine liability, as well as inland marine coverages, including builders' risks and contractors' equipment. Its specialty personal business offers specialized homeowners insurance in select locations, including homeowners' and dwelling fire insurance through retail agents in Hawaii and a limited amount of homeowners' insurance in Massachusetts and North Carolina. Additionally, it offers recreational vehicle insurance across the nation.

The Company's treaty division writes select specialty property treaties on a quota share or excess of loss basis targeting small, regional cedants and specialty risks. These treaties are portfolio underwritten using specialized actuarial models and cover primarily catastrophe-related perils.

The Company's crop reinsurance business offers quota share crop reinsurance for multi-peril crop and crop hail exposures for a single cedant. Crop insurance is purchased by agricultural producers for protection against crop-related losses due to natural disasters and other perils.

The Company competes with Arch, Aspen, Chubb, CNA, Crum & Forster, Endurance, Great American, Lexington and Travelers.

Surety Segment

The Company's miscellaneous business includes small bonds for businesses and individuals written through independent insurance agencies throughout the United States. Examples of these types of bonds are license and permit, notary and court bonds. These bonds are usually individually underwritten and utilize automation tools for the underwriting and bond delivery to its agents.

The Company's commercial business offers a range of commercial surety bonds for medium-to-large businesses across a spectrum of industries. These risks are underwritten on an account basis and coverage is marketed through a select number of regional and national brokers.

The Company's contract business offers bonds for small-to-medium sized contractors throughout the United States, underwritten on an account basis. Typically, these are performance and payment bonds for individual construction contracts. These bonds are marketed through a select number of insurance agencies that have surety and construction expertise. It also offers bonds for small and emerging contractors that are reinsured through the Federal Small Business Administration.

The Company's energy surety coverages provide commercial surety bonds for the energy, petrochemical and refining industries both on and off shore. These risks are primarily underwritten on an account basis and are primarily marketed through insurance producers with expertise in these industries.

The Company competes with AIG, Arch, Chubb, CNA, Endurance, Great American, HCC, Navigators, Travelers and XL.

Company Address

RLI Corp

PEORIA   IL   61615-1499
P: +1309.6921000
F: +1309.6921068

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