RLI Corp. Ascends to A++ Superior Rating, Joining Elite Insurance Ranks

PEORIA, IL – February 20, 2026 – Specialty insurer RLI Corp. has achieved the highest possible financial strength rating from the industry’s leading rating agency, AM Best. The upgrade to A++ (Superior) for its core insurance subsidiaries places the Peoria-based company into an exclusive circle of the world's most financially secure insurers, a move that validates decades of disciplined underwriting and consistent performance.

In a comprehensive review, AM Best upgraded the Financial Strength Rating (FSR) for RLI Insurance Company, Mt. Hawley Insurance Company, and Contractors Bonding and Insurance Company to A++ (Superior). Concurrently, the Long-Term Issuer Credit Ratings (ICR) for these subsidiaries were elevated to “aa+” (Superior), and the parent holding company, RLI Corp., saw its ICR upgraded to “a+” (Excellent). The outlook for all ratings was revised to stable, reflecting confidence in the company's continued robust health.

AM Best, a global credit rating agency specializing in the insurance industry, stated the ratings reflect RLI’s “balance sheet strength, strong operating performance, favorable business profile and very strong enterprise risk management.”

The Pinnacle of Financial Strength

The A++ (Superior) designation is more than just a top letter grade; it represents the pinnacle of an insurer's ability to meet its ongoing obligations to policyholders. It is the highest rating awarded by AM Best and is reserved for companies demonstrating exceptional balance sheet strength, consistent and superior operating performance, and a highly effective enterprise risk management framework. Achieving this status is a rare feat in the insurance industry, signaling to the market that an insurer is exceptionally well-positioned to fulfill its commitments, even under the most adverse economic conditions.

This upgrade places RLI among a small, elite group of global insurance giants that hold the A++ rating, including household names like Chubb and Berkshire Hathaway Homestate Companies (BHHC). For a specialty insurer focused on niche markets, joining this cohort is a powerful testament to its financial fortitude and strategic acumen. The rating is the result of a rigorous evaluation of capital adequacy, liquidity, asset quality, and the adequacy of reserves set aside to pay future claims—all areas where RLI has demonstrated superior management.

A Legacy of Discipline and Profitability

RLI's ascent to the industry's summit is not a sudden development but the culmination of a multi-decade journey marked by remarkable consistency. The company’s long-term strategy, focused on disciplined underwriting in niche markets, has built a financial foundation that is the envy of many competitors. This discipline is evident in two standout achievements.

First, RLI has paid and increased its regular dividend for 50 consecutive years. This milestone, achieved earlier this year, earned it the coveted title of “Dividend King,” a designation held by only a handful of public companies across all industries. Such a record is a clear indicator of a robust, sustainable business model capable of generating consistent returns for shareholders through various economic cycles.

Second, the company recently marked its 30th consecutive year of underwriting profits. In the insurance world, this is measured by the combined ratio, which compares claims and expenses to earned premiums. A ratio below 100% indicates a profit. RLI reported an impressive 83.6 combined ratio for the full year 2025, underscoring its ability to accurately price risk and manage expenses effectively. This consistent profitability, a rarity in the often-volatile insurance sector, forms the bedrock of the balance sheet strength that AM Best cited as a key factor in its decision.

Competitive Edge in a Dynamic Market

In the highly competitive and rapidly evolving specialty insurance market, the A++ rating provides RLI with a significant competitive advantage. The sector is currently experiencing robust growth, with projections showing the market nearly doubling in size by 2031, fueled by demand for coverage against emerging risks like cyber threats, climate-related events, and liabilities from new technologies.

While many of RLI’s respected peers, such as Arch Capital and American Financial Group, hold strong A+ (Superior) ratings, the upgrade to A++ provides a clear point of differentiation. It serves as an unambiguous signal of superior financial security. For insurance brokers and risk managers tasked with placing complex, high-value risks, the financial strength of an insurer is a paramount concern. The A++ rating simplifies that decision, providing unparalleled confidence in RLI's long-term viability.

This top-tier rating can also translate into a lower cost of capital, potentially giving RLI more favorable terms for financing and investment, further strengthening its competitive position. As the specialty market grapples with challenges like talent shortages for specialized underwriters and the complexity of modeling new risks, RLI's proven track record and fortified financial standing allow it to attract top talent and invest in the necessary analytics to navigate this landscape successfully.

Building Trust with Policyholders and Partners

Ultimately, an insurance company’s greatest asset is the trust it builds with its clients and partners. The AM Best upgrade has a direct and positive impact on this trust, offering tangible benefits across RLI's entire ecosystem of stakeholders.

For policyholders—from small businesses to large commercial enterprises—the A++ rating provides the ultimate peace of mind. It is an independent, expert validation that RLI has the superior financial capacity to pay claims, not just today, but for decades to come. This is particularly crucial in long-tail liability lines where claims may not emerge for many years.

For the brokers and agents who partner with RLI, the rating enhances their own credibility. Recommending an A++ rated carrier assures their clients they are being placed with one of the most secure insurers in the world. This can be a deciding factor in winning and retaining business, especially when insuring critical assets and operations.

As the specialty insurance sector continues to navigate a landscape of growing complexity and emerging risks, RLI's newly minted A++ rating serves as a powerful statement of its resilience and reliability. The upgrade solidifies its reputation not just as a profitable insurer, but as a fortress of financial stability, well-equipped to honor its promises to clients and partners for the foreseeable future.