Piper Jaffray Maintains RLI Rating Upon Positive Earnings Report

RLI Corporation (NYSE: RLI) reported 3Q10 operating EPS of $1.19, above the consensus $0.96 estimate and PJC's $1.17. The upside, Piper Jaffray says, stemmed primarily from higher than forecasted favorable reserve development, bolstering bottom-line results.

Meanwhile, net investment income reported in line with our estimate at $16.8M.

“Net premiums written were $118.9M, lower than our $134.3M forecast as increased production from new underwriting teams likely offset continued pricing softness,” Piper Jaffray writes. “Overall, another positive performance from RLI with an ROBE of 12.41%. We maintain our Neutral rating on valuation.”

RLI Corporation closed Monday at $59.61.