RLI Corp.

RLI Corp. is a United States insurance company headquartered in Peoria, Illinois, with a business model centered on specialty property, casualty, and surety coverage. The company operates primarily through RLI Insurance Company, Mt. Hawley Insurance Company, RLI Indemnity Company, and Contractors Bonding and Insurance Company. Rather than presenting itself as a broad consumer insurer, RLI has historically built its business by identifying specialized risks and developing products for markets that may be underserved by standardized insurance providers. The company was founded in 1965 by Gerald D. Stephens under the name Replacement Lens, Inc. Its original business was contact-lens insurance, a highly focused product designed to protect policyholders against the cost of replacing expensive lenses. During the early years, RLI used loss statistics to assess the exposure associated with contact-lens ownership. The company became one of the leading insurers in that niche, but the economics of the market changed as disposable soft contact lenses became more affordable and reduced demand for dedicated lens insurance. RLI responded by broadening its underwriting activities. It expanded from its original vision-related product into commercial property and liability insurance and pursued additional specialty markets. The company administered pet insurance for an Arizona veterinarian in 1982, illustrating its willingness to work with niche distribution and risk arrangements. In 1994, RLI discontinued its founding contact-lens insurance product. In 1996, it sold its RLI Vision unit to Maui Jim, a luxury sunglasses manufacturer, while also purchasing the business of the Hawaii Property Insurance Association and entering the Hawaii homeowners market. RLI's Hawaii activities reflected another aspect of its specialty strategy: serving property markets with significant catastrophe exposure. The company developed business lines incorporating difference-in-conditions coverage, an approach intended to address gaps that can arise where conventional property insurance is difficult to obtain or insufficient for particular risks. Its wider portfolio has included property, casualty, and surety products, with the operating subsidiaries providing platforms for different underwriting and distribution activities. The company's corporate development also included substantial investment in its Peoria headquarters. RLI announced a $20 million renovation project in 2013 and a further $15 million addition in 2015. These projects represented continued investment in the company's home base rather than a change in its specialty-insurance identity. Leadership continuity has been an important feature of RLI's modern history. Jonathan E. Michael served as chief executive officer beginning in 2001 and became chairman of the board in 2011. He retired as chief executive officer on December 31, 2021. Craig W. Kliethermes, who had joined RLI in 2006 and had served as president and chief operating officer since 2016, became chief executive officer on January 1, 2022. RLI is listed on the New York Stock Exchange under the ticker symbol RLI. Its public identity remains associated with specialty insurance, disciplined niche underwriting, and the adaptation of a focused insurance business to changing customer needs and market conditions.

RLI Corp. began in 1965 as Replacement Lens, Inc., founded by Gerald D. Stephens to insure contact lenses. The original product addressed a specific economic problem: replacing a damaged or lost pair of lenses could be expensive, particularly for younger policyholders. RLI developed statistical methods for evaluating the frequency of lens losses and became a significant specialist in the contact-lens insurance market. The business environment eventually changed. Disposable soft lenses became more affordable and reduced the need for a separate insurance product covering replacement lenses. RLI therefore used the experience gained in a narrow insurance category as a foundation for a broader specialty-insurance strategy. It moved into commercial property and liability coverage and sought other markets where customized underwriting could provide value. One early example of this diversification came in 1982, when RLI administered pet insurance for an Arizona veterinarian. The arrangement demonstrated the company's willingness to support specialized insurance programs rather than rely only on conventional personal lines. In 1994, RLI retired its contact-lens insurance product as the original market contracted. Two years later, it sold the RLI Vision unit to Maui Jim, a manufacturer of luxury sunglasses, further separating the company from its original vision-related identity. RLI simultaneously expanded into property insurance markets with distinctive exposure characteristics. In 1996, it purchased the business of the Hawaii Property Insurance Association and entered the Hawaii homeowners market. Hawaii presented significant catastrophe-related challenges, and RLI developed business lines with difference-in-conditions coverage to address insurance gaps and risks that conventional carriers might not readily accept. This activity illustrated the company's broader approach: identify a difficult or specialized segment, understand its particular exposures, and construct a product suited to that segment. Over time, RLI's activities became organized primarily through four insurance subsidiaries: RLI Insurance Company, Mt. Hawley Insurance Company, RLI Indemnity Company, and Contractors Bonding and Insurance Company. Together, these operations support the company's focus on property, casualty, liability, and surety business. The company is headquartered in Peoria, Illinois, and has maintained the United States as its principal operating market. RLI also invested in its corporate base during the 2010s. It announced $20 million of renovations to its Peoria headquarters in 2013 and a $15 million addition in 2015. These projects marked continued physical and organizational investment while the company retained its specialty-insurance orientation. Leadership transitioned from Jonathan E. Michael to Craig W. Kliethermes at the start of 2022. Michael had served as CEO from 2001 and as board chairman from 2011, retiring as CEO on December 31, 2021. Kliethermes joined RLI in 2006, became president and chief operating officer in 2016, and assumed the chief executive role on January 1, 2022. RLI remains an active publicly listed insurer trading under the symbol RLI, with its corporate identity shaped by long-term movement from a single niche product toward a diversified specialty property and casualty platform.

1. 2022CEO succession

   Craig W. Kliethermes became chief executive officer on January 1, succeeding Jonathan E. Michael.

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2. 2015Headquarters addition announced

   RLI announced a $15 million addition as the next phase of its Peoria headquarters renovation.

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3. 2013Peoria headquarters renovation announced

   RLI announced a $20 million renovation project for its headquarters in Peoria, Illinois.

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4. 1996RLI enters Hawaii homeowners insurance

   RLI purchased the business of the Hawaii Property Insurance Association and entered Hawaii's homeowners market.

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5. 1996RLI Vision is sold to Maui Jim

   RLI sold its RLI Vision unit to Maui Jim, completing a further step away from its founding lens-insurance activities.

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6. 1994Contact-lens insurance is discontinued

   The company retired its original contact-lens insurance product as affordable disposable lenses reduced demand for the coverage.

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7. 1982Expansion into pet-insurance administration

   RLI administered pet insurance for an Arizona veterinarian, adding another specialized program to its portfolio.

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8. 1965Replacement Lens, Inc. is founded

   Gerald D. Stephens founded Replacement Lens, Inc., the company that became RLI Corp., as an insurer of contact lenses.

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A specialty insurer focused on niche property, casualty, liability, and surety risks that may require tailored underwriting rather than standardized mass-market coverage.

• Specialty property insuranceProperty insurance

  RLI's property business serves specialized and commercial property risks, including markets where catastrophe exposure or unusual coverage requirements make standardized insurance less suitable. Its historical activity in Hawaii included difference-in-conditions coverage, reflecting an emphasis on addressing gaps in conventional property protection.

• Casualty and liability insuranceCasualty insurance

  The company expanded into commercial property and liability insurance after demand for its original contact-lens product declined. These offerings form part of RLI's broader specialty platform and are aimed at risks requiring tailored underwriting and claims considerations.

• Surety and contractor bondingSurety insurance

  RLI conducts surety-related business through Contractors Bonding and Insurance Company. Surety products support contractual and commercial obligations, with the subsidiary providing a dedicated platform within RLI's specialty-insurance structure.

• Contact-lens insuranceHistorical specialty insurance1965

  RLI's founding product insured the cost of replacing contact lenses. It helped establish the company's original niche and supported its early growth, but was discontinued in 1994 after cheaper disposable lenses reduced the need for dedicated replacement coverage.

• Pet-insurance administrationHistorical program administration1982

  In 1982, RLI administered pet insurance for an Arizona veterinarian. The program is notable as an early example of RLI applying its specialty-market approach outside its original lens-insurance business.

• 2022Chief executive successionOther

  Jonathan E. Michael retired after serving as CEO from 2001 through the end of 2021. Craig W. Kliethermes had previously served as president and chief operating officer.

  What changed. Kliethermes became CEO on January 1, 2022.

  Aftermath. The transition preserved continuity from an established internal executive team.

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• 1996Purchase of Hawaii Property Insurance Association businessM&A

  RLI sought to expand its specialty property activities into Hawaii, a market with substantial catastrophe exposure and limited availability of conventional property insurance.

  What changed. RLI purchased the business of the Hawaii Property Insurance Association and entered the Hawaii homeowners market.

  Aftermath. The move expanded RLI's property-insurance presence in a difficult market and supported the development of difference-in-conditions coverage.

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• 1996Sale of RLI Vision to Maui JimM&A

  RLI was moving away from its original vision-related business as the contact-lens insurance market weakened.

  What changed. The company sold its RLI Vision unit to Maui Jim.

  Aftermath. The divestiture helped focus RLI on broader specialty property, casualty, and surety insurance activities.

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• 1994Discontinuation of contact-lens insuranceStrategy

  The company's founding market contracted as disposable soft contact lenses became more affordable and reduced the economic need for dedicated replacement insurance.

  What changed. RLI retired its original contact-lens insurance product and continued broadening into commercial property and liability insurance.

  Aftermath. The decision accelerated RLI's transition from a single-product insurer into a diversified specialty property and casualty company.

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• 2022Craig W. Kliethermes becomes RLI chief executive officer

  Craig W. Kliethermes became CEO on January 1, 2022, succeeding Jonathan E. Michael, who retired from the role at the end of 2021.

  Leadership change
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• 2015RLI announces second phase of headquarters expansion

  RLI announced a further headquarters addition following the earlier renovation project.

  Other
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• 2013RLI announces Peoria headquarters renovation

  RLI announced a major renovation of its Peoria headquarters as an investment in its corporate facilities.

  Other
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• 1996RLI sells RLI Vision unit to Maui Jim

  RLI sold its vision-related unit to Maui Jim as part of its transition away from its founding lens-insurance business.

  M&A
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• 1996RLI enters Hawaii homeowners insurance market

  RLI purchased the business of the Hawaii Property Insurance Association and entered the Hawaii homeowners market, including offerings designed for difficult catastrophe-exposed risks.

  M&AProduct launch
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• 1994RLI retires contact-lens insurance product

  RLI discontinued the product that had defined its original business as lower-cost disposable lenses reduced demand for dedicated contact-lens insurance.

  Product generation
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• 1982RLI enters pet-insurance administration

  RLI administered pet insurance for an Arizona veterinarian, extending its specialty-insurance activities beyond its original contact-lens business.

  Other
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1. RLI Corp.
2. RLI Corp. official website