RLI Corp. Founder and Chairman Announces Retirement

Gerald D. Stephens, founder and chairman of the board of Peoria, Ill.-based RLI Corp., announced that he intends to retire from the RLI board of directors effective May 5, 2011, after the annual shareholders’ meeting.

RLI President and CEO Jonathan E. Michael was appointed to serve as chairman of the board, in addition to his other responsibilities, following Stephens’ retirement.

Stephens founded RLI in 1961 in Peoria and since its inception the specialty insurance company has been known for its innovative business model. Under Stephens’ leadership, RLI was able to identify underserved opportunities in the insurance market and profitably covered difficult risks typically eschewed by larger multi-line insurers. He was instrumental in the company’s growth, and as a result, RLI now offers a multitude of property and casualty and surety bond coverages. RLI’s employee stock ownership plan was also a result of Stephens’ vision for creating an ownership culture with shared rewards.

Over the past 50 years, Stephens also served in leadership roles within many insurance industry organizations, such as the Property Casualty Insurers Association of America and the American Institute of Chartered Property Casualty Underwriters.

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. RLI’s insurance subsidiaries – RLI Insurance Co., Mt. Hawley Insurance Co. and RLI Indemnity Co. – are rated A+ “Superior” by A.M. Best Company and A+ “Strong” by Standard & Poor’s.