RLI Now Has ‘A++’ Rating From AM Best

Why It Matters

The upgraded ratings reinforce RLI’s market credibility, lowering financing costs and attracting capital, while the AI partnership positions the group at the forefront of technology‑enabled catastrophe underwriting.

Key Takeaways

• RLI upgraded to A++ and aa+ credit ratings.
• Policyholder surplus reached $1.9 billion.
• 30 consecutive years of underwriting profit.
• New AI partnership targets wildfire coverage in CA, NV.
• Strong balance sheet supports capital returns and growth.

Pulse Analysis

The A++ rating from AM Best signals RLI’s exceptional financial resilience, a rare accolade that can translate into lower reinsurance costs and greater confidence among investors and policyholders. By moving from A+ to the top tier, RLI joins a select group of insurers whose capital adequacy and liquidity metrics surpass industry benchmarks, a competitive edge in a market where rating agencies heavily influence pricing and placement decisions. This upgrade also stabilizes RLI’s outlook, suggesting sustained performance despite macro‑economic headwinds.

RLI’s underwriting discipline underpins its rating ascent. Reporting $264.2 million in underwriting income and an 83.6 combined ratio for 2025, the group has delivered profit for three decades straight—a testament to rigorous pricing, diversified risk portfolios, and robust reserve development. The firm’s internal capital generation has funded both capital expansion and sizable shareholder dividends, reinforcing a virtuous cycle of profitability and capital strength. Moreover, its enterprise risk management framework, highlighted by a strong BCAR, safeguards the balance sheet against catastrophic exposures, including notable earthquake risk.

Strategically, RLI’s alliance with Kettle injects AI‑driven analytics into its commercial‑property line, addressing the growing demand for wildfire coverage in California and Nevada. The partnership leverages Kettle’s proprietary risk modeling to underwrite multi‑peril policies that traditional carriers have struggled to price effectively. RLI’s equity stake signals confidence in the technology and aligns incentives for innovation. This move reflects a broader industry shift toward data‑centric underwriting, positioning RLI to capture market share in underserved, high‑risk segments while enhancing its risk‑adjusted returns.