Core Viewpoint - United Fire Group, Inc. (UFG) is set to release its fourth quarter 2025 earnings results on February 10, 2026, with a subsequent earnings call scheduled for February 11, 2026, at 9 a.m. CT to discuss these results [1]. Group 1 - The earnings results will be announced after market close on February 10, 2026 [1]. - An earnings call will take place on February 11, 2026, at 9 a.m. CT for analysts and shareholders [1]. - The teleconference can be accessed via a toll-free number, and will be archived for replay until February 25, 2026 [2]. Group 2 - A webcast of the teleconference will be available on the company's investor relations website, with an archived audio version accessible for one year [3]. - A transcript of the teleconference will be published on the company's website shortly after the event [3]. Group 3 - United Fire Group, founded in 1946, operates in the property and casualty insurance sector and is licensed in all 50 states and the District of Columbia [4]. - The company is represented by approximately 850 independent agencies and has an "A-" (Excellent) rating from A.M. Best Company [4].

Company Performance - United Fire Group (UFCS) has seen a stock increase of 19.1% over the past month, reaching a new 52-week high of $36.7 [1] - Year-to-date, the stock has gained 27.5%, outperforming the Zacks Finance sector's 14.1% gain and the Zacks Insurance - Property and Casualty industry's 8.3% return [1] Earnings and Revenue - United Fire has consistently beaten earnings estimates, reporting an EPS of $1.5 against a consensus estimate of $0.69 in its last earnings report [2] - For the current fiscal year, the company is expected to post earnings of $3.93 per share on revenues of $1.38 billion, reflecting a 53.52% increase in EPS and a 10.04% increase in revenues [3] - For the next fiscal year, earnings are projected to decrease to $3.55 per share, while revenues are expected to rise to $1.52 billion, indicating a year-over-year change of -9.67% in EPS and 10.17% in revenues [3] Valuation Metrics - United Fire's stock trades at 9.2X current fiscal year EPS estimates, below the peer industry average of 10.9X, and at 11.9X trailing cash flow compared to the peer group's average of 12.8X, positioning it favorably for value investors [7] - The company has a Value Score of A, a Growth Score of D, and a Momentum Score of A, resulting in a VGM Score of B [6] Zacks Rank - United Fire holds a Zacks Rank of 1 (Strong Buy), supported by a solid earnings estimate revision trend [8] - The stock meets the criteria for selection, indicating potential for further gains in the near term [9] Industry Comparison - Universal Insurance Holdings Inc (UVE), a peer in the industry, also has a Zacks Rank of 1 (Strong Buy) and strong earnings expectations, with projected earnings of $3.34 per share on revenues of $1.57 billion for the current fiscal year [10][11] - The Insurance - Property and Casualty industry is performing well, ranking in the top 13% of all industries, suggesting favorable conditions for both UFCS and UVE [12]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling even higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps identify stocks with strong momentum characteristics, addressing the challenges in defining momentum [2] Group 2: United Fire Group (UFCS) Performance - United Fire Group currently holds a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance [3] - Over the past week, UFCS shares increased by 16.87%, significantly outperforming the Zacks Insurance - Property and Casualty industry, which rose by 4.15% [5] - In the last quarter, UFCS shares rose by 15.23%, and over the past year, they gained 45.15%, while the S&P 500 only increased by 6.44% and 13.97%, respectively [6] Group 3: Trading Volume and Earnings Outlook - The average 20-day trading volume for UFCS is 116,328 shares, which serves as a bullish indicator when combined with rising stock prices [7] - In terms of earnings estimates, UFCS has seen one upward revision in the past two months, increasing the consensus estimate from $3.03 to $3.93 for the full year [9] - The positive trends in both price changes and earnings estimate revisions contribute to UFCS's strong momentum profile [8][11]

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment Group 1: Company Earnings Estimates - Encore Capital Group, Inc. (ECPG) has seen its earnings estimate increase by 18.5% over the last 60 days [1] - PJT Partners Inc. (PJT) has experienced a 9.6% increase in its earnings estimate over the last 60 days [2] - Everus Construction Group, Inc. (ECG) has had its earnings estimate rise by 11.6% in the past 60 days [3] - United Fire Group, Inc. (UFCS) has seen a significant increase of 29.7% in its earnings estimate over the last 60 days [3] - BioLife Solutions, Inc. (BLFS) has experienced the largest increase, with a 40% rise in its earnings estimate over the last 60 days [4]

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Financial Performance - Net premiums earned for Q3 2025 were $328,431,000, an increase of 9.4% from $300,185,000 in Q3 2024[129]. - Total revenues for the nine months ended September 30, 2025, reached $1,020,606,000, up from $920,132,000 in the same period of 2024, reflecting an increase of 10.9%[129]. - For the nine-month period ended September 30, 2025, net income was $79,837,000, compared to $30,515,000 in the same period of 2024, representing a substantial increase of 161.5%[129]. - Direct written premium for the three months ended September 30, 2025, was $311,878,000, an increase of 5.5% compared to $295,729,000 in 2024, while for the nine months, it rose by 11.6% to $1,005,908,000 from $901,286,000[131]. - Net earned premium for the three months ended September 30, 2025, was $328,431,000, reflecting a 9.4% increase from $300,185,000 in 2024, and for the nine months, it increased by 9.6% to $951,644,000 from $868,613,000[133]. - For the nine months ended September 30, 2025, total net earned premium increased to $951.6 million, up from $868.6 million in the same period of 2024, representing an increase of 9.5%[168]. Loss Ratios and Underwriting Performance - The net loss ratio improved to 57.3% in Q3 2025 from 62.3% in Q3 2024, indicating better loss management[129]. - The combined ratio for Q3 2025 was 91.9%, a significant improvement from 98.2% in Q3 2024, demonstrating enhanced underwriting performance[129]. - The underlying loss ratio for Q3 2025 was 56.0%, down from 57.9% in Q3 2024, indicating improved operational efficiency[129]. - The net loss ratio for commercial lines in the three months ended September 30, 2025, was 56.7%, compared to 59.9% in 2024, indicating improved performance across major lines[148]. - The net loss ratio for commercial lines improved to 59.7% in the nine months ended September 30, 2025, compared to 66.1% in the same period of 2024, reflecting a 6.4 percentage point improvement[149]. - The net loss ratio for workers' compensation improved by 35.2 points in the third quarter of 2025 compared to the same period in 2024[156]. - The net loss ratio for fidelity and surety improved by 4.0 points in the third quarter of 2025 compared to the same period in 2024[157]. - The net loss ratio for reinsurance assumed improved by 18.3 points in the third quarter of 2025 compared to the same period in 2024[158]. Investment Performance - Net investment income increased to $25,992,000 in Q3 2025, compared to $24,459,000 in Q3 2024, marking a growth of 6.3%[129]. - Net investment income for the third quarter of 2025 was $26.0 million, an increase of $1.5 million compared to the same period in 2024, while for the nine-month period, it rose to $71.1 million, up by $12.3 million[137][138]. - The investment portfolio increased to $2.3 billion at September 30, 2025, up from $2.1 billion at December 31, 2024, marking a growth of $178 million[168]. - The carrying value of fixed maturity securities as of September 30, 2025, was $2,016.4 million, with AAA rated securities comprising 28.9% and AA rated securities 38.6%[171]. - The weighted average effective duration of the fixed maturity securities portfolio increased to 4.29 years as of September 30, 2025, from 4.22 years at December 31, 2024[174]. - Net unrealized investment losses improved to $28.5 million as of September 30, 2025, compared to $72.2 million at December 31, 2024, due to a decrease in bond market interest rates[175]. Operational Efficiency - The underwriting expense ratio decreased to 34.6% in the third quarter of 2025, down from 35.9% in the same period of 2024, indicating improved operational efficiency[160]. - The company reported a favorable reserve development of (0.5) for the nine months ended September 30, 2025, compared to no unfavorable development in the same period of 2024[129]. - The company experienced favorable reserve development of $0.1 million and $5.1 million for prior accident years during the three- and nine-month periods ended September 30, 2025, respectively[144]. Cash Flow and Equity - Cash provided by operating activities was $149.9 million for the nine-month period ended September 30, 2025, down from $184.0 million in the same period of 2024[186]. - Net cash flows used in investing activities were $133.6 million for the nine-month period ended September 30, 2025, compared to $143.1 million for the same period in 2024[189]. - Stockholders' equity increased to $898.7 million at September 30, 2025, from $781.5 million at December 31, 2024, with a book value per share of $35.22, reflecting a 14.4% increase[195]. - Dividends paid to shareholders remained consistent at $12.2 million for both the nine-month periods ended September 30, 2025, and 2024[192]. - The company anticipates sufficient cash flows to meet future liquidity needs, with cash and cash equivalents including $47.8 million in money market accounts as of September 30, 2025[185]. Strategic Changes - The company has discontinued exposure to direct personal lines of business as of September 30, 2025, following its strategic withdrawal in 2020[112]. - Approximately 48.9% of property and casualty premiums were written in Texas, California, Iowa, Missouri, and New Jersey for the nine-month period ended September 30, 2025[123]. - Assumed premiums decreased by $5.1 million and $5.4 million in the three- and nine-month periods ended September 30, 2025, respectively, due to targeted management actions[135]. - The company has a remaining potential contractual obligation of $17.7 million related to capital contributions for limited liability partnership investments as of September 30, 2025[194].

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Financial Data and Key Metrics Changes - The company's third-quarter net income increased to $39.2 million, nearly doubling from the prior year, marking the highest net income in a quarter in at least 20 years [7] - The combined ratio for the quarter was 91.9%, the best third-quarter underwriting result in nearly 20 years [7] - Return on equity for the first nine months of 2025 was 12.7%, the best year-to-date financial performance in nearly two decades [10] - Earnings per diluted share for the third quarter was $1.49, with non-GAAP adjusted operating income of $1.50 per diluted share [26] Business Line Data and Key Metrics Changes - The underlying loss ratio improved by 1.9 percentage points to 56% in the third quarter and by 2 percentage points to 56.7% year-to-date compared to the same periods last year [12] - Net written premium grew by 7% in the quarter, led by a 22% increase in the core commercial business [16] - Catastrophe loss ratio was 1.3%, significantly below expectations and historical averages [14] - Retention rate remained stable at 86% in the third quarter, consistent with the second quarter [17] Market Data and Key Metrics Changes - Specialty excess and surplus lines premiums were down slightly compared to the prior year, reflecting competitive pressure in the E&S market [21] - The company remains selective in its underwriting, choosing to non-renew a small number of treaties that no longer met profitability standards [23] Company Strategy and Development Direction - The company aims to deliver superior financial and operational performance while increasing relevance with distribution partners to access a wider range of business opportunities [33] - The strategic focus includes consistent profitability, diversifying growth, attracting talent, innovation, and expense management [34] - The company is evolving from a generalist to a specialist, enhancing underwriting expertise and aligning risk control capabilities [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the evolving market dynamics, supported by a portfolio that is well-positioned for consistent, profitable growth [38] - The company is prepared to adapt its strategy as it transitions into a moderating or softening market [32] Other Important Information - The company declared and paid a $0.16 per share cash dividend to shareholders [27] - The high-quality fixed income portfolio generated 17% more income than in the prior year, benefiting from extensive portfolio repositioning [24] Q&A Session Summary Question: Thoughts on adjusting strategy in a soft market - Management emphasized the importance of delivering superior financial performance and increasing relevance with distribution partners to access more business opportunities [32][36] Question: Changes in capital management philosophy - Management confirmed no changes in capital management approach, focusing on maintaining the right amount of capital for growth and continuing the dividend philosophy [40]

Financial Data and Key Metrics Changes - The company's third-quarter net income increased to $39.2 million, nearly doubling from the prior year, marking the highest net income in a quarter in at least 20 years [5] - The combined ratio for the quarter was 91.9%, the best third-quarter underwriting result in nearly 20 years [5] - Return on equity for the first nine months of 2025 reached 12.7%, the best year-to-date financial performance in nearly two decades [6][7] - The third-quarter net income per diluted share was $1.49, with non-GAAP adjusted operating income of $1.50 per diluted share [16] Business Line Data and Key Metrics Changes - The underlying loss ratio improved by 1.9 percentage points to 56% in the third quarter and by 2 percentage points to 56.7% year-to-date compared to the same periods last year [8] - Net written premium grew by 7% in the quarter, led by a 22% increase in the core commercial business [10] - Retention rate remained consistent at 86% in the third quarter, reflecting confidence in the portfolio [10] Market Data and Key Metrics Changes - Specialty excess and surplus lines premiums were down slightly compared to the prior year after strong growth in the first half of the year [12] - The construction industry remains strong, with ongoing vigilance regarding the impacts of tariffs, material cost inflation, and labor supply [13] Company Strategy and Development Direction - The company is focused on delivering superior financial and operational performance while increasing relevance with distribution partners to access a wider range of business opportunities [20][21] - The strategy includes diversifying growth across the portfolio, attracting and retaining talent, and maintaining expense management [21] - The company is evolving from a generalist to a specialist, enhancing underwriting expertise and aligning risk control capabilities [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the evolving market dynamics, emphasizing the importance of deep expertise and capability expansion [22] - The company is well-positioned to carry momentum through the end of the year and into 2026, marking its 80th year in business [8][29] Other Important Information - The company declared and paid a $0.16 per share cash dividend to shareholders of record as of August 29, 2025 [16] - The third-quarter expense ratio improved by 1.3 points from the prior year to 34.6% [15] Q&A Session Summary Question: Thoughts on adjusting strategy in a soft market - Management highlighted the focus on delivering superior financial performance and increasing relevance with distribution partners to access more business opportunities [20][21] Question: Changes in capital management philosophy - Management confirmed no changes in capital management approach, prioritizing the right amount of capital for growth and maintaining the dividend philosophy [25]

Financial Data and Key Metrics Changes - The company reported a net income of $39.2 million for Q3 2025, nearly doubling from the prior year and marking the highest quarterly net income in at least 20 years [5] - The combined ratio improved to 91.9%, representing the best third-quarter underwriting result in nearly 20 years [5] - Return on equity for the first nine months of 2025 reached 12.7%, the best year-to-date financial performance in nearly two decades [6] Business Line Data and Key Metrics Changes - Net written premium grew to a record $328 million in Q3 2025, reflecting a 7% increase, with core commercial business growing by 22% [5][10] - The underlying loss ratio improved by 1.9 percentage points to 56% in Q3, and by 2 percentage points to 56.7% year-to-date compared to the same periods last year [8] - Catastrophe loss ratio was exceptionally low at 1.3%, well below expectations and historical averages [9] Market Data and Key Metrics Changes - The company experienced a retention rate of 86% in Q3, consistent with the previous quarter [10] - Specialty excess and surplus lines premiums decreased slightly compared to the prior year, while competitive pressure persists in the E&S market [12] - Premium volume remained steady in Q3 compared to earlier quarters of 2025 but was down year-over-year due to selective non-renewals of treaties [13] Company Strategy and Development Direction - The company aims to deliver superior financial and operational performance while increasing relevance with distribution partners to access a wider range of business opportunities [19] - The strategic focus includes consistent profitability, diversifying growth, attracting talent, innovation, and expense management [20] - The company is evolving from a generalist to a specialist, enhancing underwriting expertise and aligning risk control capabilities [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the evolving market dynamics, supported by a portfolio where over 45% of the core commercial book was underwritten under tighter guidelines [23] - The company remains committed to maintaining its capital management philosophy, prioritizing growth and dividend consistency [25] Other Important Information - The company declared and paid a cash dividend of $0.16 per share to shareholders of record as of August 29, 2025 [15] Q&A Session Summary Question: Thoughts on adjusting strategy in a soft market - Management emphasized the importance of delivering superior financial performance and increasing relevance with distribution partners as the market softens [19][20] Question: Changes in capital management philosophy - Management confirmed no changes in capital management approach, focusing on maintaining the right amount of capital for growth and continuing the dividend philosophy [25]