Consolidated revenues also rose both for the quarter and the year, thanks to increased net premiums earned. The fourth-quarter revenue was up 21 percent year-over-year to $121.9 million, while the annual revenue rose 33 percent to reach $463.6 million. Gross premiums written likewise rose, by 7 percent for the quarter, to $184.4 million, and by 5 percent for the year, to a company record $742.5 million.

"We found 2003's insurance marketplace to be as expected, with excellent opportunities for profitable writings in property lines and growth potential in casualty writings," said RLI Chief Executive Jonathan Michael. He said RLI's property segment delivered solid results all year long in 2003, topping the year with its lowest quarterly loss ratio.

Additionally, the insurer's casualty operations were profitable all year because of the strong rate environment. Mr. Michael forecast this rate environment is likely to persist well into 2004.

RLI's net investment income for the fourth quarter came in at $11.4 million, a 19 percent improvement from 2002 fourth quarter. The annual net investment income improved by 17 percent, year-over-year, to reach $44.2 million.

RLI mainly offers specialty p-c coverage for niche markets. The company's RLI Insurance unit offers commercial insurance in all 50 states. P-C lines for RLI include commercial and personal liability, commercial property, directors and officers liability, general liability, and surety. Other lines include transportation, employer's excess indemnity and residential property.