RLI Corp. downgraded to Underperform from Buy at Jefferies

Jefferies downgraded RLI Corp. (RLI) to Underperform from Buy with a price target of $61, down from $95, post the Q4 report. The firm estimates growing competition in specialty lines, lighter premium growth ahead and continued loss trend inflation will result in multiple contraction for the shares. The analyst underestimated how quickly RLI’s property growth would decelerate and how conservative management would be in booking new casualty business.