CEDAR RAPIDS, Iowa, Aug. 18, 2025 (GLOBE NEWSWIRE) -- United Fire Group, Inc. (UFG) (Nasdaq: UFCS) is pleased to announce the appointment of a new independent member to its board of directors, effective August 15, 2025. Gilda L. Spencer has been appointed as a Class A director and will serve on the board’s risk management and compensation and human capital committees. The board believes Spencer’s extensive legal expertise and deep understanding of the insurance industry will provide valuable guidance on reg ...

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling even higher [1] - The Zacks Momentum Style Score helps define momentum characteristics, with United Fire Group (UFCS) currently holding a Momentum Style Score of B [2] - The Zacks Rank system indicates that stocks rated 1 (Strong Buy) and 2 (Buy) with Style Scores of "A or B" tend to outperform the market [3] Group 2: United Fire Group Performance - UFCS shares have increased by 5.51% over the past week, outperforming the Zacks Insurance - Property and Casualty industry, which rose by 1.06% [5] - Over the last quarter, UFCS shares rose by 10.29%, and over the past year, they increased by 56.19%, compared to the S&P 500's gains of 9.33% and 17.71% respectively [6] - The average 20-day trading volume for UFCS is 143,170 shares, indicating a bullish sign if the stock continues to rise [7] Group 3: Earnings Outlook - In the past two months, one earnings estimate for UFCS has increased, raising the consensus estimate from $2.50 to $2.74 [9] - For the next fiscal year, one estimate has also moved upwards, with no downward revisions during the same period [9] Group 4: Conclusion - Given the positive performance metrics and earnings outlook, UFCS is classified as a 1 (Strong Buy) stock with a Momentum Score of B, making it a potential pick for investors [11]

Part I. Financial Information [Financial Statements and Supplementary Data](index=7&type=section&id=Item%201.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the unaudited consolidated financial statements for United Fire Group, Inc. as of June 30, 2025, and for the three and six-month periods then ended [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) Total assets reached **$3.66 billion**, liabilities **$2.82 billion**, and stockholders' equity **$845.7 million** as of June 30, 2025 Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Investments** | $2,199,897 | $2,093,094 | | **Total Assets** | $3,661,130 | $3,488,469 | | **Total Liabilities** | $2,815,462 | $2,706,938 | | **Total Stockholders' Equity** | $845,668 | $781,531 | [Consolidated Statements of Income](index=8&type=section&id=Consolidated%20Statements%20of%20Income) The company reported a significant turnaround in profitability, driven by higher net earned premiums and net investment income Income Statement Highlights (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Earned Premium | $314,802 | $287,569 | $623,213 | $568,428 | | Total Revenues | $335,473 | $301,169 | $666,588 | $597,168 | | Net Income (Loss) | $22,947 | $(2,735) | $40,647 | $10,767 | | Diluted EPS | $0.87 | $(0.11) | $1.54 | $0.42 | [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was **$89.1 million** in H1 2025, with significant cash used in investing and financing activities Six-Month Cash Flow Summary (in thousands) | Activity | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $89,064 | $127,507 | | Net Cash from Investing Activities | $(78,505) | $(134,604) | | Net Cash from Financing Activities | $(9,359) | $58,481 | | **Net Change in Cash** | **$1,200** | **$51,384** | [Notes to Unaudited Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Notes detail accounting policies, investments, and loss reserves, highlighting a **$30 million** debt offering and **$11.9 million** favorable reserve development - The company completed a private offering of **$30 million** in senior unsecured 9.0% Series B notes on July 10, 2025, with proceeds intended for growth and general corporate purposes[33](index=33&type=chunk) - For the six months ended June 30, 2025, the company experienced **$11.9 million** of favorable reserve development, driven by better-than-expected catastrophe experience and lower loss adjustment expense payments[82](index=82&type=chunk) - There have been no changes to significant accounting policies since the 2024 Annual Report on Form 10-K[31](index=31&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting significant net income growth, improved underwriting results, and a lower combined ratio [Results of Operations](index=55&type=section&id=Results%20of%20Operations) Operational results improved substantially in H1 2025, with net income rising to **$40.6 million** and the combined ratio improving to **97.9%** Key Performance Ratios | Ratio | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Loss Ratio | 61.5% | 67.0% | | Underwriting Expense Ratio | 36.4% | 35.2% | | **Combined Ratio** | **97.9%** | **102.2%** | | Underlying Loss Ratio (Non-GAAP) | 57.0% | 59.1% | | Underlying Combined Ratio (Non-GAAP) | 93.4% | 94.3% | - Net written premium increased by **9.4%** for the six months ended June 30, 2025, primarily due to growth in core commercial lines from new business and increased retention[151](index=151&type=chunk)[154](index=154&type=chunk) - Pre-tax catastrophe losses for H1 2025 were **$32.8 million**, a decrease of **$12.1 million** from H1 2024, adding **5.3 points** to the combined ratio, which is below the five-year historical average[168](index=168&type=chunk) [Net Loss Ratios by Line](index=63&type=section&id=Net%20Loss%20Ratios%20by%20Line) Commercial lines net loss ratio improved to **61.9%** in Q2 2025, with significant improvements in Commercial Automobile and Fire and Allied lines Net Loss Ratio by Commercial Line (Q2 2025 vs Q2 2024) | Line of Business | Q2 2025 Net Loss Ratio | Q2 2024 Net Loss Ratio | Point Change | | :--- | :--- | :--- | :--- | | Other liability | 78.7% | 83.3% | -4.6 | | Fire and allied lines | 49.7% | 61.9% | -12.2 | | Automobile | 57.9% | 77.6% | -19.7 | | Workers' compensation | 56.1% | 62.2% | -6.1 | | Fidelity and surety | 36.1% | 47.6% | -11.5 | [Investments](index=70&type=section&id=Investments) The investment portfolio grew to **$2.2 billion**, with net unrealized losses improving to **$44.7 million** due to falling interest rates - The investment portfolio increased by **$107 million** to **$2.2 billion** since December 31, 2024[194](index=194&type=chunk) - Net unrealized investment losses, after tax, decreased from **$72.2 million** at year-end 2024 to **$44.7 million** at June 30, 2025, primarily due to falling bond market interest rates[201](index=201&type=chunk) - The weighted average effective duration of the fixed maturity portfolio was **4.12 years** at June 30, 2025, slightly down from 4.22 years at December 31, 2024[200](index=200&type=chunk) [Liquidity and Capital Resources](index=74&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity, with **$89.1 million** in operating cash flow and stockholders' equity increasing to **$845.7 million** - Stockholders' equity increased to **$845.7 million** at June 30, 2025, from $781.5 million at December 31, 2024. Book value per share increased by **7.7%** to **$33.18**[223](index=223&type=chunk) - The company has access to a credit facility from FHLB Des Moines with a borrowing capacity of up to **$499.6 million**, with no outstanding balance as of June 30, 2025[107](index=107&type=chunk)[219](index=219&type=chunk) - The company has a remaining potential contractual obligation of **$21.1 million** through 2030 for capital contributions to its limited liability partnership investments[222](index=222&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=79&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in the company's market risk components during Q2 2025, as detailed in the 2024 Annual Report - There were no material changes in the company's market risk components for the three-month period ended June 30, 2025[225](index=225&type=chunk) [Controls and Procedures](index=79&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the reporting period[226](index=226&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[228](index=228&type=chunk) Part II. Other Information [Legal Proceedings](index=80&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings not expected to materially affect its financial condition or operations - Management believes all pending legal proceedings as of June 30, 2025, are ordinary and routine and are not expected to have a material adverse effect on the Company[230](index=230&type=chunk) [Risk Factors](index=80&type=page&id=Item%201A.%20Risk%20Factors) No material changes occurred to the risk factors previously disclosed in the 2024 Annual Report on Form 10-K - The company's business is subject to risks identified in its Annual Report on Form 10-K for the year ended December 31, 2024[231](index=231&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=80&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase common stock in Q2 2025, but remains authorized to purchase up to one million shares - The Company did not repurchase any shares of its common stock during the three-month period ended June 30, 2025[233](index=233&type=chunk) - As of June 30, 2025, the company is authorized to purchase up to **one million additional shares** of its common stock[233](index=233&type=chunk) [Other Information](index=80&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading plans during the second quarter of 2025 - During the second quarter of 2025, no directors or officers adopted or terminated Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements[236](index=236&type=chunk) [Exhibits](index=82&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including CEO/CFO certifications and Inline XBRL financial data files

Financial Data and Key Metrics Changes - UFG reported a record net written premium of $373 million in Q2 2025, with a 14% growth compared to the previous year [7][8] - The return on equity reached 10% through the first half of the year, marking a significant milestone in the company's transformation [8] - The combined ratio improved by 9.2 points to 96.4%, with all components contributing favorably [8] - Net investment income increased by 20% year-over-year, driven by sustainable improvements in fixed maturity income [11][22] - Net income for the quarter was $0.87 per diluted share, with adjusted operating income of $0.90 per diluted share [24] Business Line Data and Key Metrics Changes - Net written premium in the core commercial business grew by 20% in Q2 2025, with gross written premium exceeding $400 million for the first time [12][13] - Rate achievement for the second quarter was 7.6%, with retention improving almost five points to 86% [12][13] - New business production surpassed $100 million for the first time, with double-digit increases across all business units [15] Market Data and Key Metrics Changes - The catastrophe loss ratio for Q2 was 5.5%, significantly below historical averages and expectations [9][19] - The underlying loss ratio improved by 1.3 points to 57.6%, reflecting strong earned rate achievement and moderating loss trends [8][16] Company Strategy and Development Direction - UFG is committed to executing its strategic business plan to achieve superior financial and operational performance [11] - The company is focused on improving risk selection and pricing to enhance profitability and competitive positioning [14][35] - UFG has made significant improvements in its catastrophe management, leading to better risk profiles and lower loss ratios [20][38] Management's Comments on Operating Environment and Future Outlook - Management noted that while competition remains strong, they are confident in their ability to grow despite rate moderation in the market [34][35] - The company is optimistic about maintaining favorable trends in catastrophe loss ratios and overall performance [39] Other Important Information - UFG declared and paid a cash dividend of $0.16 per share to shareholders [24] - The company issued $30 million of Series B notes as part of its capital management strategy [24] Q&A Session Summary Question: Trajectory on improving expense ratios - Management acknowledged a decline in non-variable underwriting expenses and indicated a good run rate for the next few quarters [27][29] Question: Visibility into positive reserve development for the second half - Management stated they are not in a position to predict future reserve developments but hope trends will continue [30] Question: Competitive environment insights - Management noted a competitive market with some moderation in rates, but expressed confidence in their risk selection and pricing strategies [34][35] Question: Differences between reinsurance and primary business - Management indicated that the reinsurance business has seen some pricing deterioration and mentioned non-renewal of treaties that did not meet profit expectations [36] Question: Catastrophe management improvements - Management expressed confidence in their improved management of catastrophe exposures and the positive impact of recent underwriting guidelines [38][39]

Financial Performance - The company achieved a strong second quarter with net income of $23 million, or $0.87 per share, and adjusted operating income per share of $0.90[7] - Year-to-date Return on Equity (ROE) improved to 10%[7] - Net investment income increased 20% due to improved fixed maturity income[7] - Book value per share increased to $33.18, and adjusted book value per share increased to $34.93[7] Premium and Underwriting - Net written premium grew 14% to a record $373 million[7, 13] - The combined ratio was 96.4%, the best second quarter result in more than 10 years[7] - The underwriting expense ratio improved to a more normalized level of 34.9%[13] - Q2 catastrophe loss ratio of 5.5% outperformed historical averages and the quarterly plan of 8.9%[13] Portfolio and Investment - Invested assets totaled $2.2 billion, with 89% in fixed income securities[20] - Fixed maturity income increased 34% to $21 million due to portfolio management and reinvestment at higher yields[21, 24] - New purchase yield remained strong at 5.4%, supporting future shareholder returns[24]

Core Insights - United Fire Group (UFCS) reported quarterly earnings of $0.9 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, and showing a significant improvement from a loss of $0.07 per share a year ago, resulting in an earnings surprise of +57.89% [1] - The company posted revenues of $335.47 million for the quarter ended June 2025, which was slightly below the Zacks Consensus Estimate by 1.1%, but an increase from $301.17 million in the same quarter last year [2] - United Fire has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.77, with projected revenues of $347.3 million, while the estimate for the current fiscal year stands at $2.50 on revenues of $1.37 billion [7] - The company's earnings outlook will be influenced by management's commentary during the earnings call, which is crucial for understanding future stock performance [3][4] Industry Context - The Insurance - Property and Casualty industry, to which United Fire belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of United Fire's stock may be affected by the overall industry outlook, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

[United Fire Group, Inc. Q2 2025 Financial Results](index=1&type=section&id=United%20Fire%20Group%2C%20Inc.%20reports%20second%20quarter%202025%20results) United Fire Group, Inc. reports its most profitable second quarter in over a decade, driven by strong premium growth and improved underwriting [Executive Summary & Highlights](index=1&type=section&id=Second%20quarter%202025%20highlights) UFG reported its most profitable second quarter in over a decade, with net income reaching $22.9 million ($0.87 per diluted share) and adjusted operating income at $23.7 million ($0.90 per diluted share). This performance was driven by record net written premium growth of 14% to $372.9 million and a significant 9.2-point improvement in the combined ratio to 96.4%. The company's strategic initiatives in underwriting and investment management contributed to a 10% return on equity for the first half of 2025 Q2 2025 vs Q2 2024 Key Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income | $22.9 million | ($2.7 million) | +$25.7 million | | Adjusted Operating Income | $23.7 million | ($1.8 million) | +$25.5 million | | Net Income per Diluted Share | $0.87 | ($0.11) | +$0.98 | | Adjusted Operating Income per Diluted Share | $0.90 | ($0.07) | +$0.97 | | Net Written Premium | $372.9 million | $326.1 million | +14% | | Combined Ratio | 96.4% | 105.6% | -9.2 pts | | Net Investment Income | $21.7 million | $18.0 million | +20% | - CEO Kevin Leidwinger attributed the strong results to strategic steps taken to deepen underwriting expertise, evolve capabilities, and improve investment returns, noting that these actions are materializing in the company's performance[6](index=6&type=chunk)[7](index=7&type=chunk) - Book value per share increased by **7.7% to $33.18** as of June 30, 2025, compared to December 31, 2024[6](index=6&type=chunk)[16](index=16&type=chunk) [Consolidated Financial Performance](index=4&type=section&id=Consolidated%20financial%20highlights) For the six months ended June 30, 2025, UFG's net income surged to $40.6 million from $10.8 million in the prior-year period, with EPS increasing to $1.54 from $0.42. The combined ratio for the first half of the year improved to 97.9% from 102.2%, and the annualized return on equity reached 10.0%, a significant increase from 2.9% in the first half of 2024 Consolidated Financial Highlights (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net Earned Premium | $623.2M | $568.4M | | Net Written Premium | $708.3M | $647.4M | | Combined Ratio | 97.9% | 102.2% | | Underlying Combined Ratio (non-GAAP) | 93.4% | 94.3% | | Net Investment Income | $45.1M | $34.4M | | Net Income | $40.6M | $10.8M | | Net Income per Diluted Share | $1.54 | $0.42 | | Return on Equity | 10.0% | 2.9% | [Detailed Second Quarter Analysis](index=5&type=section&id=Second%20quarter%202025%20results%3A) This section provides a detailed breakdown of Q2 2025 performance across premium growth, underwriting, and investment results [Premium Growth](index=5&type=section&id=Premium%20Growth) In Q2 2025, net written premium grew by 14% and net earned premium by 9%. This was primarily driven by a 20% increase in core commercial lines net written premium, supported by strong pricing, improved retention, and higher new business volume. Overall renewal premiums saw a 9.4% average increase - Core commercial lines net written premium increased by **20%**[11](index=11&type=chunk) - Overall average renewal premiums increased by **9.4%**, composed of a **7.6% rate increase** and a **1.7% exposure change**[11](index=11&type=chunk) - Excluding workers' compensation, the average renewal premium increase was even higher at **10.3%**[11](index=11&type=chunk) [Underwriting Performance (Combined Ratio)](index=5&type=section&id=Underwriting%20Performance) The combined ratio significantly improved by 9.2 points to 96.4% in Q2 2025. This was driven by a 1.3-point improvement in the underlying loss ratio, a 5.7-point reduction in catastrophe losses, 1.6 points of favorable prior year reserve development, and a 0.6-point improvement in the expense ratio Q2 Combined Ratio Breakdown | Component | Q2 2025 | Change from Q2 2024 | | :--- | :--- | :--- | | Underlying Loss Ratio | 57.6% | -1.3 pts | | Catastrophe Loss Ratio | 5.5% | -5.7 pts | | Prior Year Reserve Development | (1.6)% | Favorable | | Underwriting Expense Ratio | 34.9% | -0.6 pts | | **Combined Ratio** | **96.4%** | **-9.2 pts** | - The catastrophe loss ratio of **5.5%** was significantly below the company's quarterly plan of **8.9%** and historical averages[4](index=4&type=chunk) [Investment Results](index=5&type=section&id=Investment%20Results) Net investment income for Q2 2025 increased by 20.2% to $21.7 million. The growth was primarily due to a $5.4 million increase in income from the fixed maturity portfolio, resulting from strategic portfolio management actions. The pre-tax average yield on fixed income securities rose to 4.32% from 3.62% in the prior-year quarter - Net investment income increased by **$3.6 million (20.2%)** year-over-year[12](index=12&type=chunk) - Income from the fixed maturity portfolio grew by **$5.4 million**, driven by portfolio management actions taken during the year-ended December 31, 2024[12](index=12&type=chunk) Investment Income Breakdown (Q2, in thousands) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Interest on fixed maturities | $21,302 | $15,947 | | Income on other long-term investments | $136 | $623 | | **Net investment income** | **$21,673** | **$18,029** | [Financial Position and Capital Management](index=6&type=section&id=Financial%20Position%20and%20Capital%20Management) This section details the company's balance sheet strength and capital allocation strategies, including dividend payments [Balance Sheet](index=6&type=section&id=Balance%20sheet) As of June 30, 2025, total assets grew to $3.66 billion and total stockholders' equity increased to $845.7 million. Book value per share rose 7.7% to $33.18 from year-end 2024, primarily due to net income and a decrease in unrealized investment losses on fixed maturity securities Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $3,661,130 | $3,488,469 | | Total Liabilities | $2,815,462 | $2,706,938 | | Total Stockholders' Equity | $845,668 | $781,531 | | Book Value Per Share | $33.18 | $30.80 | - The increase in book value per share was mainly driven by net income and a decrease in unrealized investment losses, partially offset by shareholder dividends[16](index=16&type=chunk) [Capital Management](index=6&type=section&id=Capital%20management) UFG maintained its long-standing practice of returning capital to shareholders, declaring and paying a $0.16 per share cash dividend in the second quarter of 2025. The company has consistently paid a quarterly dividend since March 1968 - A cash dividend of **$0.16 per share** was paid during the second quarter of 2025[17](index=17&type=chunk) - UFG has an uninterrupted history of paying quarterly dividends since **March 1968**[17](index=17&type=chunk) [Supplemental Information](index=8&type=section&id=Supplemental%20Information) This section provides detailed non-GAAP reconciliations and additional financial tables for comprehensive analysis [Non-GAAP Reconciliations](index=8&type=section&id=Definitions%20of%20non-GAAP%20information%20and%20reconciliations%20to%20comparable%20GAAP%20measures) This section provides definitions and reconciliations for non-GAAP measures used by management, including adjusted operating income, underlying loss/combined ratios, and adjusted book value per share. These measures are intended to enhance investor understanding by isolating core business performance from the volatility of investment gains/losses, catastrophes, and prior-year reserve development Reconciliation of Net Income to Adjusted Operating Income (Q2, in thousands) | Line Item | 2025 | 2024 | | :--- | :--- | :--- | | Net income (loss) | $22,947 | $(2,735) | | Less: after-tax net investment gains (losses) | $(792) | $(971) | | **Adjusted operating income (loss)** | **$23,739** | **$(1,764)** | Reconciliation of Book Value to Adjusted Book Value per Share | Line Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Shareholders' equity | $845,668K | $781,531K | | Less: Net unrealized investment gains (losses), net of tax | $(44,737)K | $(72,241)K | | **Shareholders' equity, excluding net unrealized gains/losses** | **$890,405K** | **$853,772K** | | Book value per share | $33.18 | $30.80 | | **Adjusted book value per share** | **$34.93** | **$33.64** | [Supplemental Financial Tables](index=10&type=section&id=Supplemental%20tables) The supplemental tables offer a more detailed view of the company's financials. This includes a full income statement, a breakdown of net written premiums by line of business, and net loss ratios by business line. In Q2 2025, commercial lines continued to dominate, with net written premiums of $316.5 million, a significant increase from $269.0 million in Q2 2024 Net Written Premium by Line of Business (Q2, in thousands) | Line of Business | 2025 | 2024 | | :--- | :--- | :--- | | Total Commercial Lines | $316,532 | $269,005 | | Total Personal Lines | $6,856 | $3,791 | | Assumed Reinsurance | $49,496 | $53,323 | | **Total** | **$372,884** | **$326,119** | Net Loss Ratio by Line of Business (Q2) | Line of Business | 2025 | 2024 | | :--- | :--- | :--- | | Total Commercial Lines | 61.9% | 72.4% | | Total Personal Lines | 36.0% | 43.3% | | Assumed Reinsurance | 61.5% | 59.9% | | **Total** | **61.5%** | **70.1%** |

Core Financial Performance - The company reported a net income of $22.9 million for Q2 2025, an increase of $25.7 million compared to the prior year, resulting in earnings of $0.87 per diluted share [1][8] - Adjusted operating income for the same period was $23.7 million, up $25.5 million year-over-year, translating to $0.90 per diluted share [1][8] - Net written premium grew by 14% to $372.9 million, driven by strong production in core commercial lines [2][11] Underwriting and Loss Ratios - The combined ratio improved by 9.2 points to 96.4%, with the underlying loss ratio improving by 1.3 points to 57.6% [3][12] - Catastrophe loss ratio decreased by 5.7 points to 5.5%, outperforming historical averages [3][12] - The underwriting expense ratio improved by 0.6 points to 34.9%, reflecting benefits from growth [4][12] Investment Performance - Net investment income increased by 20% to $21.7 million, attributed to strong fixed maturity income [4][13] - The average yield on fixed income securities rose to 4.32% from 3.62% year-over-year [14] Balance Sheet and Equity - Book value per share increased by $2.38 to $33.18 as of June 30, 2025, a 7.7% rise from December 31, 2024 [16][30] - Total stockholders' equity reached $845.7 million, up from $781.5 million at the end of 2024 [15][30] Strategic Outlook - The company aims to continue executing its strategic business plan to enhance financial and operational performance, achieving a 10% return on equity through the first half of 2025 [5][10]

Core Points - United Fire Group, Inc. (UFG) will release its second quarter 2025 earnings results after market close on August 5, 2025 [1] - An earnings call is scheduled for August 6, 2025, at 9 a.m. CT for analysts, shareholders, and interested parties [1] - UFG is engaged in property and casualty insurance, licensed in all 50 states and the District of Columbia [4] Earnings Call Details - Dial-in information for the earnings call includes a toll-free number 1-844-492-3723 and an international number 1-412-542-4184 [2] - The event will be archived for digital replay until August 13, 2025, with replay access at toll-free 1-877-344-7529 [2] - A webcast of the teleconference can be accessed online, and an archived audio version will be available for one year [3] Company Overview - Founded in 1946, UFG operates through its insurance company subsidiaries and is represented by approximately 1,000 independent agencies [4] - A.M. Best Company assigns a rating of "A-" (Excellent) to UFG members [4] - More information about UFG can be found on their official website [4]

Core Viewpoint - United Fire Group, Inc. has successfully completed a private offering of $30 million in senior unsecured notes to support growth and general corporate purposes [1] Group 1: Offering Details - The company issued $30 million aggregate principal senior unsecured 9.0% Series B notes due May 31, 2039 [1] - Proceeds from the offering will be utilized for anticipated growth and general corporate purposes [1] - Stonybrook Capital, LLC acted as the exclusive financial advisor for the offering [2] Group 2: Regulatory Information - The notes were sold in a transaction exempt from the registration requirements of the U.S. Securities Act of 1933, specifically to qualified institutional buyers under Rule 144A and to certain non-U.S. persons under Regulation S [3] Group 3: Company Background - United Fire Group, Inc. was founded in 1946 and operates as a property and casualty insurance holding company [5] - The company is licensed in all 50 states and the District of Columbia, represented by approximately 1,000 independent agencies [5] - AM Best assigns a rating of "A-" (Excellent) to members of the United Fire & Casualty Group [5]