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National Interstate Corporation Reports 2010 Fourth Quarter And Full Year Results

  • Gross premiums up +62% for the 2010 fourth quarter and +27% for the 2010 full year
  • Earnings from operations of $.36 per share for the 2010 fourth quarter and $1.58 full year
  • ROE of 13.6% and book value per share increased +13.7% for 2010

RICHFIELD, Ohio, Feb. 23, 2011 (GLOBE NEWSWIRE) -- National Interstate Corporation (Nasdaq:NATL) today reported 2010 fourth quarter and full year results. Gross premiums written of $105.6 million for the 2010 fourth quarter and $438.6 million for the 2010 full year both increased compared to the same 2009 periods primarily due to the acquisition of Vanliner Insurance Company that was effective July 1, 2010, as well as growth from existing businesses.

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, after-tax net realized gain from investments, the change in the valuation allowance related to net capital losses, and the after-tax impact from the balance sheet guarantee related to the Vanliner acquisition, all of which are non-GAAP financial measures. Also included is the gain on bargain purchase of Vanliner, which has been recognized as a separate component of revenues for the year ended December 31, 2010.

  Three Months Ended December 31,  Year Ended December 31, 
  2010 2009 2010 2009
  (In thousands, except per share data) (In thousands, except per share data)
Net after-tax earnings from operations  $ 7,110  $ 8,726  $ 30,516  $ 38,050
After-tax net realized gain from investments  514  475  2,811  1,664
Change in valuation allowance related to net capital losses  --  4,337  810  6,735
Gain on bargain purchase of Vanliner  --  --  7,453  --
After-tax impact from balance sheet guaranty for Vanliner  (2,081)  --  (2,081)  --
Net income  $ 5,543  $ 13,538  $ 39,509  $ 46,449
         
Net after-tax earnings from operations per share, diluted  $ 0.36  $ 0.45  $ 1.58  $ 1.96
After-tax net realized gain from investments per share, diluted  0.03 0.03 0.14  0.09
Change in valuation allowance related to net capital losses per share, diluted  --   0.22  0.04  0.35
Gain on bargain purchase of Vanliner per share, diluted  --   --  0.38  --
After-tax impact from balance sheet guaranty for Vanliner per share, diluted  (0.11)  --  (0.11)  --
Net income per share, diluted  $ 0.28  $ 0.70  $ 2.03  $ 2.40

Dave Michelson, President and Chief Executive Officer stated, "The big story for us in 2010 was the Vanliner acquisition, which has met our expectations in all regards. The moving and storage insurance business fits well with our existing operations and the business we have underwritten is poised to have a positive financial impact in 2011. However, the structure of the deal and the required accounting treatment has created some complexities when analyzing our results that will continue until the guaranteed business written prior to the acquisition runs off."

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