This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

National Interstate Corporation Reports 2013 First Quarter Results

  • Gross premiums written up 17%
  • Net income per share of $.41

RICHFIELD, Ohio, April 30, 2013 (GLOBE NEWSWIRE) -- National Interstate Corporation (Nasdaq:NATL) today reported 2013 first quarter gross premiums written of $151.9 million and net income of $8.0 million or $.41 per share. Gross premiums written increased 17% compared to the 2012 first quarter reflecting growth in the alternative risk transfer (ART) and transportation components. Net income for the 2013 first quarter decreased 18% as both underwriting profits and net investment income trailed the 2012 first quarter.

Earnings

The table below shows the Company's net income per share determined in accordance with U.S. generally accepted accounting principles (GAAP), reconciled between after-tax earnings from operations and realized gains from investments, both of which are non-GAAP financial measures. Net after-tax earnings from operations include underwriting income and net investment income.

  Three Months Ended March 31,
  2013 2012
  (In thousands, except per share data)
Net after-tax earnings from operations $  7,012 $ 8,614
After-tax net realized gains from investments  1,005  1,132
     
 Net income $ 8,017 $   9,746
     
Net after-tax earnings from operations per share, diluted $ 0.36 $ 0.44
After-tax net realized gains from investments per share, diluted  0.05   0.06
     
 Net income per share, diluted $ 0.41 $ 0.50
     

Underwriting Results:

  Three Months Ended March 31,
  2013 2012
Losses and loss adjustment expense ratio 76.1% 73.1%
Underwriting expense ratio 21.7% 23.3%
Combined ratio 97.8% 96.4%

Claims: The loss and loss adjustment expense (LAE) ratio for the 2013 first quarter of 76.1% was 3.0 percentage points higher than 2012 first quarter and flat compared to the fourth quarter of 2012. The Company had improvement in a few of its traditionally well-performing products including Hawaii and Alaska and recreational vehicle but continued to experience elevated claims costs in several of its ART products. In addition, development from prior year claims added 1.9 percentage points to the 2013 first quarter loss and LAE ratio which was slightly higher than the prior year claims development of 1.8 percentage points incurred in the 2012 first quarter.

The Company's loss and LAE ratio has drifted up over the past several years primarily as a result of the soft commercial insurance market which contributed to rates that did not keep up with loss cost inflation. The Company's loss and LAE ratio as measured on an accident year basis has been elevated based on its historical results but very consistent since 2010. The market conditions have gradually improved over the past several quarters and the Company is currently averaging high single digit and in some products double digit rate increases on policies written.

1 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7870 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs