UPDATE: KBW Raises PT on RLI to $66

KBW is out with its report today on RLI (NYSE: RLI), raising its PT to $66.

In a note to clients, KBW writes, "Results beat on higher reserve releases, with underlying results generally in-line. Cat losses were above forecast, the ER ran higher, and investment income was weaker, offset by higher NWP and a better ex-cat AY LR. BV grew 5.4% sequentially to $41.02. We are raising 2011/2012 EPS and our PT to $66, but maintain a Market Perform."

Shares of RLI closed Wednesday at $61.96, down 0.29% from Tuesday's close.