* To buy Vanliner for between $125 mln-$135 mln
* Deal not to affect '10 profits, to add to '11 earnings
April 26 National Interstate Corp NATL.O said
its principal insurance subsidiary, National Interstate
Insurance Co, agreed to buy Vanliner Insurance Co, for which it
will pay between $125 million and $135 million in cash.
National Interstate does not expect the transaction to have
a material effect on profits in 2010, but sees the deal adding
to earnings beginning in 2011, the company said in a statement.
The deal value of $125 million to $135 million represents
Vanliner's -- a unit of UniGroup Inc -- tangible book value at
closing and the final value may be adjusted after closing based
on Vanliner's closing date balance sheet, the company said.
UniGroup has agreed to provide National Interstate with
comprehensive financial guarantees related to the runoff of
Vanliner's balance sheet following the close, the company said.
The acquisition is expected to close in the second quarter.
National Interstate Corp is a unit of Great American
Insurance Co, a property and casualty subsidiary of American
Financial Group Inc (AFG.N).
National Interstate's shares closed at $20.48 Monday on
(Reporting by Brenton Cordeiro in Bangalore; Editing by