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8-K - FORM 8-K - National Interstate CORP | l40162e8vk.htm |
EX-10.1 - EX-10.1 - National Interstate CORP | l40162exv10w1.htm |
Exhibit 99.1
National Interstate Completes Acquisition of Vanliner Insurance Company
Richfield, Ohio, July 1, 2010 National Interstate Corporation (Nasdaq: NATL) announced
today that its principal insurance subsidiary, National Interstate Insurance Company, completed its
previously announced acquisition of Vanliner Insurance Company from UniGroup, Inc. Vanliner is a
market leader in providing insurance for the moving and storage industry.
The purchase price of $128 million, paid in cash from available funds, represents Vanliners
estimated tangible book value at closing, as well as the value of certain named information
technology assets. As previously discussed, the purchase price may be adjusted after closing based
on Vanliners final closing date balance sheet and certain financial guarantees. UniGroup has
agreed to provide National Interstate with comprehensive financial guarantees related to the runoff
of Vanliners balance sheet following the close whereby both favorable and unfavorable balance
sheet development inures to UniGroup. National Interstate does not expect the transaction to have a
material effect on 2010 earnings. Beginning in 2011, the acquisition is expected to be accretive to
earnings and return on shareholders equity. Vanliner wrote approximately $104 million of gross
moving and storage premiums in 2009, representing approximately 58% of its total business.
In conjunction with the acquisition, National Interstate and UniGroup entered into a five-year
agreement under which Vanliner remains the exclusively endorsed insurance provider for UniGroups
affiliated Mayflower Transit and United Van Lines moving and storage agents. Vanliner will continue
to operate from its current offices in Fenton, Missouri, offering insurance solutions to the entire
moving and storage industry.
Dave Michelson, President and Chief Executive Officer of National Interstate commented, National
Interstate and Vanliner have a lot in common which was confirmed by the very smooth process from
signing the Purchase Agreement to the closing. Vanliner is an obvious extension of our successful
specialty niche business model and we anticipate a quick transition into our business. Our moving
and storage customers and business partners will continue to receive uninterrupted, excellent
service that they have come to expect from Vanliner over the years.
Stifel, Nicolaus & Company, Inc. acted as financial advisor to National Interstate and Thompson
Hine LLP provided legal services.
About National Interstate Corporation
National Interstate Corporation (Nasdaq: NATL), founded in 1989, is a specialty property and
casualty insurance holding company with a niche orientation and focus on the transportation
industry. We differentiate ourselves by offering insurance products and services designed to meet
the unique needs of targeted insurance buyers. Our products include insurance for transportation
companies, alternative risk transfer, or captive insurance programs for commercial risks, specialty
personal lines consisting of insurance products focused primarily on recreational vehicle owners
and small commercial vehicle accounts, and transportation and general commercial insurance in
Hawaii and Alaska. We offer our insurance products through multiple distribution channels including
independent agents and brokers, affiliated agencies and agent Internet initiatives. Our insurance
subsidiaries are rated A (Excellent) by A.M. Best Company. Headquartered in Richfield, Ohio,
National Interstate is an independently operated subsidiary of Great American Insurance Company, a
property and casualty subsidiary of American Financial Group, Inc. (NYSE/Nasdaq: AFG).
About Vanliner Insurance Company
Headquartered in the St. Louis suburb of Fenton, Missouri and licensed in all 50 states, Vanliner
was formed in 1978 to provide an insurance solution to affiliated moving and storage agents of its
then parent. In the mid 1990s, Vanliner began offering coverages to non- affiliated agents and
today is one of the premier providers of insurance products for the moving and storage industry.
Forward-Looking Statements
This document, including any information incorporated by reference, contains forward-looking
statements (within the meaning of the Private Securities Litigation Reform Act of 1995). All
statements, trend analyses and other information contained in this press release relative to
markets for our products and trends in our operations or financial results, as well
as other statements including words such as may, target, anticipate, believe, plan,
estimate, expect, intend, project, and other similar expressions, constitute
forward-looking statements. We made these statements based on our plans and current analyses of our
business and the insurance industry as a whole. We caution that these statements may and often do
vary from actual results and the differences between these statements and actual results can be
material. Factors that could contribute to these differences include, among other things: general
economic conditions, any weaknesses in the financial markets and other factors, including
prevailing interest rate levels and stock and credit market performance which may affect or
continue to affect (among other things) our ability to sell our products and to collect amounts due
to us, our ability to access capital resources and the costs associated with such access to capital
and the market value of our investments; customer response to new products and marketing
initiatives; tax law changes; increasing competition in the sale of our insurance products and
services and the retention of existing customers; changes in legal environment; regulatory changes
or actions, including those relating to regulation of the sale, underwriting and pricing of
insurance products and services and capital requirements; levels of natural catastrophes, terrorist
events, incidents of war and other major losses; adequacy of insurance reserves; and availability
of reinsurance and ability of reinsurers to pay their obligations. The forward-looking statements
herein are made only as of the date of this document. The Company assumes no obligation to publicly
update any forward-looking statements.
Contact:
Tanya Inama
National Interstate Corporation
877-837-0339
investorrelations@nationalinterstate.com
www.natl.com
National Interstate Corporation
877-837-0339
investorrelations@nationalinterstate.com
www.natl.com