Episode 64: Gerald D. Stephens and Jonathan E. Michael

Host Ed Sutkowski talks with Jerry Stephens, founder and chairman of the board, and Jon Michael, president and chief executive officer of RLI Corp., a specialty insurance company.

Gerald D. Stephens, founder and now chairman of the board of RLI Corp., a New York Stock Exchange corporation, began RLI Corp. in 1965. He graduated from the University of Wisconsin and began his business career in association with his father, H.O. Stephens as a property and casualty insurance agent. Initially, RLI and its subsidiaries were engaged in the business of marketing contact lens insurance. In 1969, RLI "went public" and raised $880,000 by selling 110,000 of its shares at $8.00 per share. Its net income before extraordinary items rose from $41,323 in 1968 to $136,698 in 1969. At the end of year 2003, the market cap of RLI shares exceeded $1 billion and its earnings for calendar year for 2003 exceeded $71 million.

Jonathan E. Michael is president and chief executive officer of RLI Corp., a Peoria-based New York Stock Exchange company with assets exceeding $2.2 billion, insurance premiums in excess of $750 million and market capitalization of approximately $1 billion. Prior to joining RLI as a chief accountant in 1982, Jon was associated with Coopers & Lybrand; he was named to his current position in 2001. Jon is a graduate of Ohio Dominican College in Columbus, Ohio. He is a member of the Boards of RLI Corp.; Maui Jim, Inc., a distributor of sunglasses; Fieldstone Investment Corporation, a mortgage investment and banking company; and Peoria-based First Capital Bank. In addition, he is a member of the American Institute of Certified Public Accountants, the Insurance Accounting Systems association and the National Association of Independent Insurers Federal and State Tax Committee.