Linked here is a PDF copy of my detailed analysis of RLI Corp (RLI) (alt.1, alt.2). Below are some highlights from the above linked analysis: Company Description: RLI Corp, based in Peoria, IL, provides selected property, casualty and surety insurance. Fair Value: I consider four calculations of fair value, see page 2 of the linked PDF for a detailed description: Avg. High Yield Price 20-Year DCF Price Avg. P/E Price Graham Number RLI is trading at a discount to 1.), 2.) and 4.) above. If I exclude the high and low valuations and average the remaining two, RLI is trading at a 7.1% discount. RLI earned a Star in this section since it is trading at a fair value. Dividend Analytical Data: In this section I consider five factors, see page 2 of the linked PDF for a detailed description: Rolling 4-yr Div. > 15% Dividend Growth Rate Years of Div. Growth 1-Yr. > 5-Yr Growth Payout 15% of avg. RLI earned three Stars in this section for 1.), 2.) and 3.) above. Rolling 4-yr Div. > 15% means that dividends grew on average in excess of 15% for each consecutive 4 year period over the last 10 years (1998-2001, 1999-2002, 2000-2003, etc.) I consider this a key metric since dividends will double every 5 years if they grow by 15%. RLI has paid a cash dividend to shareholders every year since 1976 and has increased its dividend payments for 34 consecutive years. Dividend Income vs.
