National Interstate Corporation reported net income for the third quarter ended September 30, 2005 of $8.2 million ($.43 per share diluted), compared to $4.7 million ($.31 per share diluted) for the third quarter of 2004. The 74.7 percent increase in net earnings for the third quarter of 2005 reflects a 28.7 percent increase in earned premium, a 4.6 point improvement in the GAAP combined ratio, and a 35.1 percent increase in net investment income. Net income for the first nine months of 2005 increased by $6.2 million to $22.4 million ($1.18 per share diluted), compared to $16.1 million ($1.05 per share diluted) for the same period of 2004. The per-share comparisons for both periods are affected by the increase in shares outstanding in 2005 resulting from the Initial Public Offering completed in February 2005.
During the third quarter of 2005, the company incurred losses of approximately $1.3 million related to Hurricanes Katrina and Rita. These losses are reflected in the Company’s September 30, 2005 financial statements. Since September 30, 2005, the Company has incurred additional hurricane-related losses, primarily from Hurricane Wilma. Total estimated losses from all hurricanes that have occurred thus far in 2005 are not expected to exceed $3 million. Hurricane losses in 2005 are comparable to hurricane losses recorded in the third and fourth quarters of 2004.
National Interstate Corporation, based in Richfield, Ohio, is a specialty property and casualty insurance company with a niche orientation and focus on the transportation industry.
Topics Profit Loss Hurricane
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