Released on: Aug 5, 2025, 15:01 PM

Company Release - 8/5/2025 4:01 PM ET

Second quarter net income of $0.87 per diluted share and adjusted operating income of $0.90 per diluted share

Second quarter 2025 highlights compared to second quarter 2024, unless otherwise noted:(1)

• Net income increased $25.7 million to $22.9 million.
• Net investment income increased 20% to $21.7 million.
• Combined ratio improved 9.2 points to 96.4%; composed of an underlying loss ratio of 57.6%, catastrophe loss ratio of 5.5%, favorable prior year reserve development of 1.6%, and underwriting expense ratio of 34.9%.
• Underlying combined ratio improved 1.9 points to 92.5%.
• Net written premium(2) increased 14% to $372.9 million.
• Book value per share increased $2.38 to $33.18 as of June 30, 2025, compared to December 31, 2024.
• Adjusted book value per share increased $1.29 to $34.93 as of June 30, 2025, compared to December 31, 2024.
  

CEDAR RAPIDS, IOWA, August 5, 2025 — United Fire Group, Inc. (UFG) (Nasdaq: UFCS) today reported financial results for the three-month period ended June 30, 2025, with net income increasing $25.7 million over the prior year to $22.9 million ($0.87 per diluted share) and adjusted operating income increasing $25.5 million over the prior year to $23.7 million ($0.90 per diluted share).

In the second quarter, net written premium grew 14% to $372.9 million led by continued strong production in core commercial lines. Rates increased 7.6% and continued to exceed loss cost trends with retention and new business volume strongly above prior year levels.

The second quarter combined ratio improved 9.2 points to 96.4%. The underlying loss ratio improved 1.3 points to 57.6% reflecting the ongoing benefits of strong earned rate achievement and moderating loss trends from continued underwriting discipline. The catastrophe loss ratio improved 5.7 points to 5.5%, significantly outperforming the company's five- and 10-year historical averages as well as the quarterly plan of 8.9%.
Catastrophe management actions have improved modeled expectations relative to historical results and are reflected in the annual catastrophe loss ratio plan of 5.7%.

Prior year reserve development was favorable by 1.6% following our annual review of loss adjustment expenses. The underwriting expense ratio improved 0.6 points to 34.9%. Net investment income increased 20% to $21.7 million with a strong increase in fixed maturity income with positive limited partnership returns that were below prior year.

"UFG delivered its best second quarter profit in more than 10 years while growing net written premium to a record $373 million," said President and CEO Kevin Leidwinger. "The strategic steps we have taken to deepen our underwriting expertise, evolve our capabilities, better align with our distribution partners and improve our investment returns continue to materialize in our results. Our strong second quarter results contributed to achieving 10% return on equity through the first six months of 2025, another significant milestone in the company's transformation. While pleased with our results, our work is not done and we remain committed to executing our strategic business plan to achieve superior financial and operational performance."

View the full release here.