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OPERATING EARNINGS CONTINUE TO ADVANCE DESPITE CATASTROPHES

 OPERATING EARNINGS CONTINUE TO ADVANCE DESPITE CATASTROPHES
 PEORIA, Ill., July 30 /PRNewswire/ -- RLI Corp. (NYSE: RLI) today reported consolidated net income for the second quarter 1992 of $3.2 million ($.57 per share) on gross sales (consisting of gross premiums written, non-insurance sales revenue and net investment income) or $59.4 million. For the same period in 1991, net income was $3.0 million ($.52 per share) on gross sales of $56.1 million. Operating earnings, excluding realized capital gains, advanced to $.57 per share in contrast to $.51 per share earned during the second quarter last year.
 For the first six months of 1992, consolidated net income was $6.2 million ($1.09 per share) on gross sales of $115.2 million. For the same period in 1991, net income was $5.5 million ($.97 per share) on gross sales of $107.9 million. Operating earnings, excluding realized capital gains, totalled $1.07 per share for the first six months 1992, contrasted to $.89 per share reported for the same period in 1991.
 Second quarter 1992 earnings were adversely impacted by catastrophe losses that include three California earthquakes, the Chicago flooding and riots in Los Angeles. The cumulative effect of these events was a lose of approximately $1 million, or $.12 per share after tax.
 Net investment income for the second quarter totalled $3.2 million, increasing slightly over the $3.1 million reported in the second quarter of 1991. For the first six months 1992, net investment income reached $6.3 million, a 5.6 percent increase over the $5.9 million reported during the first six months 1991.
 Commenting in the quarter's results, Gerald D. Stephens, president and chief executive officer remarked, "As a growing participant in the insurance industry, RLI is not immune to our country's catastrophes. Our earnings may fluctuate as catastrophic events occur. Fortunately, RLI's splendid underwriters have been able to mitigate our losses through careful monitoring of catastrophe exposure and careful planning or reinsurance protection."
 Other financial highlights for the second quarter include:
 -- Gross sales grew 5.8 percent to $59.4 million from 56.1 million reported in the same quarter the year before. Gross insurance premiums written expanded 5.5 percent to $52.6 million from $49.8 million. Net premiums written increased 35.1 percent to $29.0 million from $21.4 million, in accordance with the plan to rely less upon purchased reinsurance.
 -- Realized investment gains during the second quarter were $56,000 (less than $.01 per share after tax) compared with $103,000 ($.01 per share after tax) posted in the second quarter last year.
 -- The insurance operations combined ratio rose to 95.8 percent for the first six months of 1992 compared to 91.6 percent reported for the year 1991. The 1992 loss ratio increased to 58.6 percent from 56.8 percent at year-end 1991, and the expense ratio also increased to 37.2 percent from 34.8 percent during the same period.
 -- At June 30, 1992, shareholders' equity climbed to $99.7 million ($17.38 per share) up 7.4 percent compared to year-end 1991. During the same period the company paid $.24 per share in dividends.
 RLI Corp. underwrites selected property and casualty insurance products, and markets practice automation systems, contact lenses and related products to the ophthalmic industry.
 RLI CORP.
 Percent
 Six months ended June 30 1992 1991 Change
 Gross sales $115,151,377 $107,929,794 7
 Total revenue 60,010,024 49,566,342 21
 Total earnings 6,203,506 5,508,439 13
 Net earnings per share 1.09 0.97 12
 Average shares 5,698,216 5,658,974
 Percent
 Second quarter ended June 30 1992 1991 Change
 Gross sales $59,384,632 $56,117,262 6
 Total revenue 31,917,547 23,702,094 35
 Total earnings 3,247,205 2,973,895 9
 Net earnings per share 0.57 0.52 10
 Average shares 5,717,193 5,658,974
 -0- 7/30/92
 /CONTACT: James E. Zogby, treasurer of RLI, 309-693-5880/
 (RLI) CO: RLI Corp. ST: Illinois IN: INS SU: ERN


TS-SM -- NY018 -- 4988 07/30/92 10:10 EDT
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Date:Jul 30, 1992
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