- Vanliner acquisition completed effective July 1, 2010 with successful ongoing integration
- Gross premiums up +67.5% for the 2010 third quarter and +19.1% for the 2010 first nine months
- Net income of $.46 per share for the 2010 third quarter and $1.40 year to date
- Annualized ROE of 12.5% for the 2010 first nine months
RICHFIELD, Ohio, Nov. 2, 2010 (GLOBE NEWSWIRE) -- National Interstate Corporation (Nasdaq:NATL) today reported net income of $8.9 million ($.46 per share) for the 2010 third quarter and $27.1 million ($1.40 per share) for the 2010 first nine months. Gross premiums written of $116.5 million for the 2010 third quarter and $333.1 million for the 2010 first nine months increased 67.5% and 19.1%, respectively, compared to the same periods in 2009. Gross premiums written and to a lesser extent, net income, for 2010 reflect a favorable impact from the acquisition of Vanliner Insurance Company which closed effective July 1, 2010.
The table below shows the Company's net income determined in accordance with U.S. generally accepted accounting principles (GAAP), reconciled between net after-tax earnings from operations, the change in the valuation allowance related to net capital losses and after-tax net realized gain from investments, all of which are non-GAAP financial measures. Also included in the table below is the estimated gain on bargain purchase of Vanliner, which has been recognized as a separate component of revenues for both the three and nine months ended September 30, 2010.
|Three Months Ended September 30,||Nine Months Ended September 30,|
|(In thousands, except per share data)||(In thousands, except per share data)|
|Net after-tax earnings from operations||$ 7,670||$ 5,869||$ 23,406||$ 29,324|
|Change in valuation allowance related to net capital losses||--||1,792||810||2,397|
|After-tax net realized gain from investments||639||495||2,297||1,190|
|Gain on bargain purchase of Vanliner||635||--||635||--|
|Net income||$ 8,944||$ 8,156||$ 27,148||$ 32,911|
|Net after-tax earnings from operations per share, diluted||$ 0.40||$ 0.30||$ 1.21||$ 1.51|
|Change in valuation allowance related to net capital losses per share, diluted||--||0.09||0.04||0.13|
|After-tax net realized gain from investments per share, diluted||0.03||0.03||0.12||0.06|
|Gain on bargain purchase of Vanliner per share, diluted||0.03||--||0.03||--|
|Net income per share, diluted||$ 0.46||$ 0.42||$ 1.40||$ 1.70|
Dave Michelson, President and Chief Executive Officer stated, "The Vanliner acquisition has met our expectations and then some. The transition has gone well and the business is performing as expected. We have quickly found ways to leverage the business including the introduction of a new group captive program in the 2010 fourth quarter for our moving and storage customers. The required accounting treatment of the purchase resulted in an estimated gain from the purchase of $.03 per share and variances in our 2010 third quarter underwriting expense ratio and loss and loss adjustment expense ratio. Although the components of operating earnings were impacted by the Vanliner results, the overall 2010 third quarter earnings from operations were not significantly affected."