Exhibit 99.1

NEWS RELEASE

9025 N. Lindbergh Drive | Peoria, IL  61615-1431
P: 309-692-1000 | F: 309-692-1068 | www.rlicorp.com

FOR IMMEDIATE RELEASE CONTACT: John Robison
(309) 693-5846
John_Robison@rlicorp.com
www.rlicorp.com

RLI reports first quarter earnings

PEORIA, ILLINOIS, April 15, 2008 — RLI Corp. (NYSE: RLI) — RLI Corp. reported first quarter 2008 net earnings of $25.5 million ($1.14 per share). Results for the first quarter of 2007, which included $12.3 million ($0.32 per share) of favorable development in prior years’ casualty loss reserves, were $32.5 million ($1.32 per share).

Earnings Per Diluted Share	2008		2007
Net earnings	$	1.14	$	1.32
Operating earnings	$	1.03	$	1.20

Highlights for the quarter included:

·  Operating earnings of $23.0 million ($1.03 per share).

·  Combined ratio of 89.2.

·  Book value per share of $34.57.

·  Net operating cash flow of $48.1 million.

“This was an excellent quarterly result in this marketplace,” said RLI Corp. President & CEO Jonathan E. Michael. “We know how to manage our business when prices are soft, and we’ll continue to be disciplined underwriters. In challenging marketplaces like the current one, we focus on building the people, products and processes we want to have in place when conditions improve. Companies that wait to react until after the marketplace turns will be too late.”

Underwriting profits continue

RLI achieved $14.7 million of underwriting income in the first quarter of 2008 on an 89.2 combined ratio, compared to $25.6 million of underwriting income on an 81.4 combined ratio in the same quarter for 2007.

Underwriting Income	First Quarter						First Quarter
(in millions)	2008			2007		Combined Ratio	2008	2007
Casualty	$	(0.6	)	$	18.6	Casualty	100.7	78.8
Property	12.4			4.0		Property	67.3	88.6
Surety	2.9			3.0		Surety	81.9	80.3
Total	$	14.7		$	25.6	Total	89.2	81.4

Other income

For the quarter, investment income grew 1.4% to $19.3 million. The investment portfolio’s total return was -0.1%. The bond portfolio gained 1.7% and the equity portfolio’s return was -7.2%.

Comprehensive earnings, which include after-tax unrealized gains/losses from the investment portfolio, were $6.6 million for the quarter ($0.30 per share) compared to $33.1 million ($1.34 per share) for the same quarter in 2007.

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DIFFERENT WORKS

Other news

In the first quarter of 2008, we repurchased 556,600 of our shares at an average cost of $53.37 ($29.7 million). As of March 31, 2008, we have $56.0 million of remaining capacity from the $200 million repurchase program approved in 2007. 

The company paid a first quarter cash dividend of $0.23 per share on April 15, 2008, the same as in the prior quarter. RLI’s cumulative dividends, including this recent payment, are more than $160 million paid in 127 consecutive quarterly dividends. The company’s dividend yield would be 1.8%, based on the $0.92 annualized dividend and today’s closing stock price of $50.42.

At 10 a.m. CDT tomorrow, April 16, 2008, RLI management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion through the Internet at RLI’s website, www.rlicorp.com.

Underwriting income, operating earnings, earnings per share (EPS) from operations and other per share items are non-GAAP financial measures, and we believe that investors’ understanding of RLI’s core operating performance is enhanced by our disclosure of these financial measures. Underwriting income or profit represents the pretax profitability of our insurance operations and is derived by subtracting losses and settlement expenses, policy acquisition costs, and insurance operating expenses from net premium earned.  Operating earnings and EPS from operations consist of our net earnings reduced by net realized investment gains and taxes related to net realized gains. Our definitions of these items may not be comparable to the definitions used by other companies. Net earnings and net earnings per share are the GAAP financial measures that are most directly comparable to operating earnings and EPS from operations. All earnings per share data are calculated using fully diluted shares. Combined ratio refers to a GAAP combined ratio.

Except for historical information, this news release may include forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) including, without limitation, statements reflecting our current expectations about the future performance of our company or our business segments or about future market conditions. These statements are subject to certain risk factors that could cause actual results to differ materially. Various risk factors that could affect future results are listed in the company’s filings with the Securities and Exchange Commission, including the Form 10-K Annual Report for the year ended December 31, 2007.

RLI, a specialty insurance company, offers a diversified portfolio of property and casualty coverages and surety bonds serving “niche” or underserved markets. RLI operates in all 50 states from office locations across the country. The company’s talented associates have delivered underwriting profits in 27 of the last 31 years, including the last 12. RLI’s insurance subsidiaries — RLI Insurance Company, Mt. Hawley Insurance Company and RLI Indemnity Company — are rated A+ “Superior” by A.M. Best Company and A+ “Strong” by Standard & Poor’s.

For additional information, contact Treasurer John Robison at (309) 693-5846 or at john_robison@rlicorp.com or visit our website at www.rlicorp.com.

Supplemental disclosure regarding the earnings impact of specific items

	Operating Earnings Per Share
	2008		2007
	1st Qtr		1st Qtr
Operating Earnings Per Share	$	1.03	$	1.20
Specific items included in operating earnings per share: (1) (2)
·  Favorable development from prior years’ casualty reserves	—		$	0.32

(1) Includes bonus- and profit sharing-related impacts which affected other insurance and general corporate expenses.

(2) Favorable developments reflect revisions for previously estimated losses.

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RLI CORP.

2008 FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

	Three Months Ended March 31
	2008			2007			% Change
SUMMARIZED INCOME STATEMENT DATA:
Net premiums earned	$	135,965		$	137,977			-1.5	%
Net investment income	19,258			18,990			1.4		%
Net realized investment gains	3,741			4,625			-19.1		%
Consolidated revenue	158,964			161,592			-1.6		%
Loss and settlement expenses	69,265			63,060			9.8		%
Policy acquisition costs	41,746			39,764			5.0		%
Other insurance expenses	10,290			9,556			7.7		%
Interest expense on debt	1,827			1,510			21.0		%
General corporate expenses	2,104			1,877			12.1		%
Total expenses	125,232			115,767			8.2		%
Equity in earnings of unconsolidated investees	2,229			1,313			69.8		%
Earnings before income taxes	35,961			47,138			-23.7		%
Income tax expense	10,502			14,621			-28.2		%
Net Earnings	$	25,459		$	32,517			-21.7	%
Other comprehensive earnings (loss), net of tax	(18,826		)	600
Comprehensive earnings	$	6,633		$	33,117			-80.0	%
Operating Earnings:(1)
Net Earnings	$	25,459		$	32,517			-21.7	%
Less: Realized investment gains, net of tax	2,432			3,006			-19.1		%
Operating earnings	$	23,027		$	29,511			-22.0	%
Return on Equity:
Net earnings (trailing four quarters)	21.7		%	19.9		%
Comprehensive earnings (trailing four quarters)	18.0		%	23.7		%
Per Share Data
Diluted:
Weighted average shares outstanding (in 000’s)	22,281			24,702
EPS from operations (1)	$	1.03		$	1.20			-14.2	%
Realized gains, net of tax	0.11			0.12			-8.3		%
Net earnings per share	$	1.14		$	1.32			-13.6	%
Comprehensive earnings per share	$	0.30		$	1.34			-77.6	%
Cash dividends per share	$	0.23		$	0.20			15.0	%
Net Cash Flow from Operations	$	48,085		$	25,310			90.0	%

(1) See discussion of use of non-GAAP financial measures on page 2.

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RLI CORP.

2008 FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

	March 31,		December 31,
	2008		2007		% Change
SUMMARIZED BALANCE SHEET DATA:
Fixed income and short-term investments	$	1,470,563	$	1,446,097		1.7	%
(amortized cost – $1,456,604 at 3/31/08)
(amortized cost – $1,437,463 at 12/31/07)
Equity securities	320,926		359,513		-10.7		%
(cost – $213,642 at 3/31/08)
(cost – $216,465 at 12/31/07)
Preferred stock	43,978		34,167		28.7		%
(cost – $47,485 at 3/31/08)
(cost – $39,133 at 12/31/07)
Total investments	1,835,467		1,839,777		-0.2		%
Premiums and reinsurance balances receivable	88,158		105,937		-16.8		%
Ceded unearned premiums	64,354		71,021		-9.4		%
Reinsurance recoverable on unpaid losses	431,910		417,250		3.5		%
Deferred acquisition costs	77,192		78,882		-2.1		%
Property and equipment	19,941		20,050		-0.5		%
Investment in unconsolidated investees	40,445		38,162		6.0		%
Goodwill	26,214		26,214		—
Other assets	25,846		29,230		-11.6		%
Total assets	$	2,609,527	$	2,626,523		-0.6	%
Unpaid losses and settlement expenses	$	1,234,342	$	1,192,178	3.5		%
Unearned premiums	333,778		355,522		-6.1		%
Reinsurance balances payable	34,379		38,273		-10.2		%
Short-term debt	28,148		27,975		0.6		%
Long-term debt – bonds payable	100,000		100,000		—
Income taxes – deferred	15,368		25,042		-38.6		%
Accrued expenses	30,320		39,303		-22.9		%
Other liabilities	85,622		73,808		16.0		%
Total liabilities	1,861,957		1,852,101		0.5		%
Shareholders’ equity	747,570		774,422		-3.5		%
Total liabilities & shareholders’ equity	$	2,609,527	$	2,626,523		-0.6	%
OTHER DATA
Common shares outstanding (in 000’s)	21,624		22,155
Book Value per share	$	34.57	$	34.95		-1.1	%
Closing stock price per share	$	49.57	$	56.79		-12.7	%
Statutory Surplus	$	705,278	$	752,004		-6.2	%

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RLI CORP.

2008 FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

Three Months Ended March 31
				GAAP				GAAP				GAAP				GAAP
	Casualty			Ratios		Property		Ratios		Surety		Ratios		Total		Ratios
2008
Gross premiums written	$	101,016				$	41,993			$	18,014			$	161,023
Net premiums written	75,893					28,177				16,819				120,889
Net premiums earned	82,000					37,786				16,179				135,965
Net loss & settlement expenses	57,098			69.6	%	9,506		25.2	%	2,661		16.4	%	69,265		50.9	%
Net operating expenses	25,537			31.1	%	15,901		42.1	%	10,598		65.5	%	52,036		38.3	%
Underwriting income (loss)	$	(635	)	100.7	%	$	12,379	67.3	%	$	2,920	81.9	%	$	14,664	89.2	%
2007
Gross premiums written	$	111,357				$	42,152			$	17,807			$	171,316
Net premiums written	79,694					23,140				16,666				119,500
Net premiums earned	88,015					34,609				15,353				137,977
Net loss & settlement expenses	42,782			48.6	%	17,550		50.7	%	2,728		17.8	%	63,060		45.7	%
Net operating expenses	26,616			30.2	%	13,110		37.9	%	9,594		62.5	%	49,320		35.7	%
Underwriting income	$	18,617		78.8	%	$	3,949	88.6	%	$	3,031	80.3	%	$	25,597	81.4	%

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