Governance
RLI has always believed that good corporate governance plays a crucial role in achieving business success. Our Board of Directors adheres to best practices in corporate governance to fulfill its responsibilities to shareholders and oversee management and the company’s business results.
RLI and its Board of Directors are committed to maintaining sound corporate governance. We invite you to review our corporate governance principles, practices and other corporate governance information provided in the Committee Charters and Corporate Policies sections on this page.
Governance Practices
Ethical Business Conduct
Our Code of Conduct, which applies to all employees and Directors, provides guidance on ethical business behavior to support our strong reputation as a leading specialty property and casualty insurance company. Annually, employees and Directors are asked to confirm they have complied with the Code in the last year. No waiver of the Code has been made for any executive or Director. We also maintain a Third Party Code of Conduct for our suppliers, vendors, consultants and business partners to communicate ethical business standards under which third parties are expected to operate when providing goods and services to RLI.
Investments
Our entire externally managed fixed income portfolio is currently managed by United Nations Principles for Responsible Investment (UN PRI) signatories, and both managers received an 'A+' score from the UN PRI for their approach to ESG Strategy and Governance. UN PRI signatories are committed to incorporating ESG issues into their investment analysis, decision-making, policies and practices. Approximately 72 percent of our equity portfolio is managed by UN PRI signatory firms.
Political Contributions
As outlined in our Code of Conduct, RLI prohibits contributions or gifts on behalf of the company to be made to government personnel or regulators. All contributions to lobbyists, PACs or political candidates on behalf of the company must be approved in advance by our Chief Executive Officer and Chief Legal Officer.
RLI is a member of the American Property Casualty Insurance Association (APCIA), the primary national trade association for home, auto, and business insurers. APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers. APCIA works with several political action committees (PACs) to support their advocacy efforts on behalf of the insurance industry. A portion of our annual membership dues to APCIA are allocated by the organization to lobbying and other political activities, including political contributions. With the exception of these amounts, we do not generally contribute to lobbyists or political candidates. In 2020, we made an additional contribution of $1,000 to an insurance-related PAC.
