) from Sell to Hold. In the report, BGB Securities commented, "RLI continues to put up enviable results. Despite a higher 1Q12 combined ratio of 89.1% vs. 83.6% the prior year, the company continues to have favorable reserve development, strong premium growth, and improving opportunities as competition becomes less fierce. While RLI appears to have built one of the better P&C operations, they are not immune to natural business developments. Lower premium rates in prior years are leading to smaller reserve redundancies. Investment income continues to decline as investment yields remain weak. RLI appears to be in a stronger position to absorb these fundamental changes, and use it as a leaping point to take advantage of a hardening P&C market." RLI closed Friday at $67.95.