/C O R R E C T I O N -- RLI Corp./

In the news release, RLI Second Quarter Sets Earnings Record, issued earlier today by RLI Corp. over PR Newswire, the final set of tables "UNDERWRITING SEGMENT DATA" contained column headings that were incorrectly transmitted by PR Newswire. In the second and fourth groupings of tables, the headings should read:

                                              GAAP                   GAAP
                                   Surety    Ratios      Total      Ratios

  rather than:

                                              GAAP                   GAAP
                                 Casualty    Ratios     Property    Ratios

  Complete, corrected "UNDERWRITING SEGMENT DATA" tables follow:


                                RLI CORP.
                        2007 FINANCIAL HIGHLIGHTS
                        UNDERWRITING SEGMENT DATA
                               (Unaudited)
             (Dollars in thousands, except per share amounts)


  Three Months Ended June 30,
                                              GAAP                   GAAP
                                 Casualty    Ratios     Property    Ratios
            2007
  Gross premiums written         $127,250               $66,256
  Net premiums written             91,112                48,352
  Net premiums earned              87,784                34,486
  Net loss & settlement
   expenses                        36,701     41.8%      14,399      41.8%
  Net operating expenses           25,815     29.4%      11,296      32.8%
    Underwriting income           $25,268     71.2%      $8,791      74.6%


             2006
  Gross premiums written         $134,938               $77,203
  Net premiums written             95,140                49,688
  Net premiums earned              85,815                25,370
  Net loss & settlement
   expenses                        54,700     63.7%      16,793      66.2%
  Net operating expenses           24,480     28.5%      10,351      40.8%
    Underwriting income (loss)     $6,635     92.2%     $(1,774)    107.0%



  Three Months Ended June 30,
                                              GAAP                   GAAP
                                   Surety    Ratios      Total      Ratios
         2007
  Gross premiums written          $18,585              $212,091
  Net premiums written             17,341               156,805
  Net premiums earned              15,218               137,488
  Net loss & settlement
   expenses                           472      3.1%      51,572      37.5%
  Net operating expenses            9,704     63.8%      46,815      34.1%
    Underwriting income            $5,042     66.9%     $39,101      71.6%


             2006
  Gross premiums written          $16,549              $228,690
  Net premiums written             15,845               160,673
  Net premiums earned              14,682               125,867
  Net loss & settlement
   expenses                         3,473     23.7%      74,966      59.6%
  Net operating expenses            9,112     62.1%      43,943      34.9%
    Underwriting income (loss)     $2,097     85.8%      $6,958      94.5%



  Six Months Ended June 30,
                                              GAAP                   GAAP
                                 Casualty    Ratios     Property    Ratios
         2007
  Gross premiums written         $238,607              $108,408
  Net premiums written            170,806                71,492
  Net premiums earned             175,799                69,095
  Net loss & settlement
   expenses                        79,483     45.2%      31,949      46.2%
  Net operating expenses           52,431     29.8%      24,406      35.3%
    Underwriting income           $43,885     75.0%     $12,740      81.5%


             2006
  Gross premiums written         $250,094              $120,095
  Net premiums written            175,644                74,391
  Net premiums earned             173,081                50,992
  Net loss & settlement
   expenses                       108,391     62.6%      26,467      51.9%
  Net operating expenses           49,169     28.4%      21,221      41.6%
    Underwriting income           $15,521     91.0%      $3,304      93.5%



  Six Months Ended June 30,
                                              GAAP                   GAAP
                                   Surety    Ratios      Total      Ratios
         2007
  Gross premiums written          $36,392              $383,407
  Net premiums written             34,007               276,305
  Net premiums earned              30,571               275,465
  Net loss & settlement
   expenses                         3,200     10.5%     114,632      41.6%
  Net operating expenses           19,298     63.1%      96,135      34.9%
    Underwriting income            $8,073     73.6%     $64,698      76.5%


             2006
  Gross premiums written          $33,654              $403,843
  Net premiums written             31,806               281,841
  Net premiums earned              29,181               253,254
  Net loss & settlement
   expenses                         6,785     23.3%     141,643      55.9%
  Net operating expenses           18,353     62.9%      88,743      35.0%
    Underwriting income            $4,043     86.2%     $22,868      90.9%


DATASOURCE: RLI Corp.



Web site:  http://www.rlicorp.com/ 

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