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United Fire Group, Inc. Reports First Quarter 2020 Results

Released on: May 6, 2020, 08:00 AM
United Fire Group, Inc. (the "Company" or "UFG") (Nasdaq: UFCS) today reported consolidated net loss, including net realized investment gains and losses and changes in the fair value of equity securities, of $72.5 million ($2.90 per diluted share) for the three-month period ended March 31, 2020 (the "first quarter of 2020"), compared to consolidated net income of $44.5 million ($1.74 per diluted share) for the same period in 2019.

The Company reported consolidated adjusted operating income of $0.05 per diluted share for the first quarter of 2020, compared to consolidated adjusted operating income of $0.91 per diluted share for the same period in 2019.

"The net loss reported in the first quarter 2020 was driven primarily by the decrease in the value of our investments in equity securities, an increase in severity of catastrophe and non-catastrophe losses and a decrease in net investment income," stated Randy A. Ramlo, President and Chief Executive Officer. "During the first quarter, our higher catastrophe loss results stemmed from two events: a large explosion in January at a manufacturing business in Houston, Texas, classified as a catastrophe by the Insurance Services Office, and a hail storm in Jefferson City, Missouri, during the last week of March. We also experienced an increase in severity in our other liability, commercial fire and allied and workers' compensation lines of business. We continue to make progress in our commercial auto line of business, reporting an improvement in our commercial auto loss ratio of 10.1 points with a decrease in the frequency of commercial auto claims and a reduction in commercial auto exposure units for the first quarter of 2020. Although we saw improvement, our loss ratio for commercial auto remains at a higher than acceptable level. The decline in equity markets also drove a decrease in the quarterly net investment income derived from our investments in limited liability partnerships."

View the full press release here