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United Fire Group, Inc. Reports First Quarter 2024 Results

Released on: May 7, 2024, 15:01 PM
CEDAR RAPIDS, Iowa - (GLOBE NEWSWIRE) - United Fire Group, Inc. (Nasdaq: UFCS), May 7, 2024 - FOR IMMEDIATE RELEASE

First Quarter Net Income of $0.52 per Diluted Share and Adjusted Operating Income of $0.56 per Diluted Share

First quarter 2024 highlights:

  • Net income of $13.5 million increased compared to the first quarter of 2023, driven by underwriting income and higher investment income. 
  • Net premiums written(1) of $321.3 million increased 17.6% compared to the first quarter of 2023. 
  • GAAP combined ratio of 98.9%, including a loss ratio of 64.0% and underwriting expense ratio of 34.9%, improved 4.5 points compared to the first quarter of 2023. Underlying combined ratio is 94.3%(2).
  • Loss ratio components include underlying loss ratio(3) of 59.4% and catastrophe loss ratio of 4.6%, with no prior year reserve development.  
  • Net investment income of $16.3 million increased 28.5% compared to the first quarter of 2023.
  • Book value per common share increased $0.09 to $29.13 as of March 31, 2024, compared to December 31, 2023.
United Fire Group, Inc. (the “Company” or “UFG”) (Nasdaq: UFCS) today reported financial results for the three-month period ended March 31, 2024 (the “first quarter of 2024”) with a consolidated net income of $13.5 million ($0.52 per diluted share) and consolidated adjusted operating income of $0.56 per diluted share. 

“I am pleased with our first quarter results as net income increased to $13.5 million driven by improved underwriting results and higher investment income,” said UFG President and CEO Kevin Leidwinger. 
“The momentum we established in 2023 carried into the first quarter of 2024 as net written premium grew 17.6% to $321.3 million, led by our core commercial and assumed reinsurance business units. Core commercial growth remained strong, fueled by average renewal premium increases of 10.9%, steady retention and attractive new business opportunities reflective of our continued focus on profitability. Rates increased 9.0% and remained above loss cost trends. 

“The first quarter GAAP combined ratio improved 4.5 points to 98.9% compared to the first quarter of 2023, representing its lowest mark in the last eight quarters. The underlying loss ratio improved to 59.4%, reflecting continued underwriting and pricing discipline across the portfolio. Catastrophe losses contributed 4.6% to the GAAP combined ratio in line with the same period last year and just below our five-year historical average. The expense ratio improved slightly to 34.9%. Prior period reserve development was neutral overall compared to the prior year period, with favorable emergence across several lines of business enabling us to further reinforce our position against the heightened inflationary uncertainty in some liability lines.
“Net investment income increased 28.5% to $16.3 million as we continued to benefit from reinvesting at higher interest rates. In the first quarter of 2024, we completed the strategic reallocation of public equity assets into fixed maturities and transitioned management of our investment portfolio to New England Asset Management.

“Throughout 2024, we will continue to focus on the strategic execution of our business plan to drive continued improvement in performance.” 
View the full press release here