Leidwinger also emphasized reserve positioning, saying consistent execution of the company’s reserving philosophy allowed UFG to move “to a more conservative position” within its actuarial estimates. He said return on equity reached 13.7% in 2025, which he characterized as the company’s best in nearly two decades.For the full year, net written premium grew 9% to more than $1.3 billion, aided by record new business production, strong retention in core commercial lines, and continued renewal premium increases ...

Financial Performance - Fourth quarter net income increased by $6.9 million to $38.4 million, or $1.45 per diluted share, while adjusted operating income rose by $7.2 million to $39.7 million, or $1.50 per diluted share [2][4]. - Full year net income increased by $56.2 million to $118.2 million, or $4.48 per diluted share, with adjusted operating income rising to $121.2 million, or $4.60 per diluted share [4][5]. - Net income for the fourth quarter of 2025 was $38.354 million, compared to $31.442 million in the same quarter of 2024, representing a year-over-year increase of 22.5% [30]. - Adjusted operating income for the twelve months ended December 31, 2025, was $121.210 million, up from $66.246 million in 2024, reflecting an increase of 83.2% [30]. - Total revenues for the twelve months ended December 31, 2025, reached $1.386 billion, compared to $1.253 billion in 2024, indicating a growth of 10.6% [37]. Premium Growth - Net written premium for the fourth quarter grew by 11% to $309.7 million, while full year net written premium increased by 9% to $1.3 billion [3][5]. - Net written premium for the fourth quarter of 2025 was $309.747 million, an increase from $278.529 million in the same quarter of 2024, marking a growth of 11.2% [39]. - Total net earned premium for the twelve months ended December 31, 2025, was $1,292.7 million, an increase from $1,176.8 million in 2024, reflecting a growth of 9.9% [44]. Investment Income - Net investment income for the fourth quarter was $26.4 million, a 14% increase, while full year net investment income reached $97.5 million, up 19% [3][19]. - The company reported net investment income of $26.415 million for the fourth quarter of 2025, an increase from $23.156 million in the same quarter of 2024 [37]. Underwriting Performance - The combined ratio improved by 2.1 points to 92.3% in the fourth quarter and by 4.4 points to 94.8% for the full year, reflecting better underwriting performance [4][17]. - The underlying loss ratio improved to 55.4% in the fourth quarter and 56.3% for the full year, indicating sustained lower frequency and favorable large loss experience [20][21]. - The total net loss ratio for commercial lines improved to 58.9% in 2025 from 63.1% in 2024, indicating better loss management [44]. - The other liability segment in commercial lines had a net loss ratio of 72.9% in 2025, down from 82.5% in 2024, indicating improved performance [44]. - The fire and allied lines in commercial lines reported a net loss ratio of 42.5% in 2025, an improvement from 49.9% in 2024 [44]. - The assumed reinsurance segment had a net loss ratio of 61.8% in 2025, down from 64.6% in 2024, reflecting better underwriting results [44]. - The miscellaneous segment in commercial lines showed a net loss ratio of 56.1% in 2025, slightly down from 58.6% in 2024 [44]. Shareholder Returns - The board of directors declared a 25% increase in the quarterly dividend to $0.20 per share, up from $0.16 [2][8]. - For the fourth quarter of 2025, the company declared a cash dividend of $0.16 per share, with a subsequent increase to $0.20 per share for the first quarter of 2026 [25]. Equity and Book Value - Book value per share increased to $36.88 as of December 31, 2025, compared to $30.80 a year earlier [23]. - The company's book value per share increased to $36.88, up by $6.08 per share or 19.7% from December 31, 2024 [24]. - Shareholders' equity increased to $941.170 million as of December 31, 2025, up from $781.531 million a year earlier [34]. Strategic Outlook - The company achieved record levels of gross written premium, net written premium, and new business production in 2025, marking the best annual underwriting profit and return on equity in over a decade [6][8]. - The company remains focused on strategic execution and is well-positioned for continued profitable growth in the evolving market [7][8]. - The underlying loss ratio and underlying combined ratio are key metrics for evaluating the company's core business performance, excluding the impacts of catastrophes and prior year reserve development [29]. Ratings - The company maintains an "A-" (Excellent) rating from AM Best, reflecting its strong financial stability and operational performance [26].

Financial Data and Key Metrics Changes - In 2025, the company achieved record underwriting profit of $67 million, up from $9 million in 2024, and net investment income increased by nearly 20% [6][7] - Full-year operating earnings per share improved by 80%, reaching $4.60, while book value per share grew by more than $6 to $36.88 [6][10] - The annual combined ratio improved to 94.8%, reflecting ongoing improvements in the underlying loss ratio, catastrophe loss ratio, and expense ratio [7][10] Business Line Data and Key Metrics Changes - The core commercial business, including small business, middle market, and construction, saw the strongest growth, contributing to a 9% increase in net written premium to over $1.3 billion [7][12] - Specialty E&S net written premium grew at a double-digit pace, while the surety business also delivered double-digit growth for the quarter and full year [15][16] - Rate increases moderated to 4.8% for the quarter, indicating a more competitive environment, particularly in property lines [13] Market Data and Key Metrics Changes - The company experienced a competitive market environment, particularly in property, but maintained a disciplined approach to underwriting and pricing [13][26] - The renewal of reinsurance treaties was successful, resulting in lower ceded margins and improved terms, despite exposure-adjusted rate decreases in major programs [19] Company Strategy and Development Direction - The company is focused on disciplined, solution-oriented underwriting, aiming for continued profitable growth and improved operational efficiency through strategic investments in technology [8][11] - The board of directors declared a 25% increase in the quarterly cash dividend, reflecting confidence in future financial performance and commitment to shareholder value [11][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning for 2026, emphasizing the successful transformation since late 2022 and the potential for sustainable growth [9][42] - The company is committed to maintaining a conservative posture with reserves to protect the balance sheet and is confident in achieving mid-teens return on equity targets [10][26] Other Important Information - The company reported a fourth-quarter net income of $1.45 per diluted share, with adjusted operating income of $1.50 per diluted share [21] - The expense ratio improved to 35.7%, with expectations for gradual reduction over time as growth continues [21][30] Q&A Session Summary Question: Current pricing expectations in a competitive market - Management acknowledged increased competition but maintained that pricing remains rational and attractive, with a focus on disciplined risk selection [25][26] Question: Long-term target for underwriting expense ratio - The company targets a run rate of about 35% for the expense ratio, with expectations for gradual reduction as growth continues [29][30] Question: Dynamics affecting profitability in the student insurance business - Management noted increased competition affecting rates and terms but emphasized disciplined underwriting and long-term commitments to maintain profitability [34][35] Question: Profitability issues in the other liability line - Management identified pressure on profitability in the umbrella line due to large losses but is taking a conservative approach to pricing and reserves [36][37] Question: Impact of nuclear verdicts on umbrella profitability - Management clarified that while social inflation impacts the portfolio, they have not seen significant nuclear verdicts affecting their business [38][39]

Financial Data and Key Metrics Changes - Underwriting profit increased from $9 million in 2024 to $67 million in 2025, marking a significant improvement [6] - Net investment income grew by nearly 20%, contributing to the overall financial performance [6] - Full-year operating earnings per share improved by 80%, reaching $4.60, while book value per share increased by more than $6 [6][10] - Full-year net written premium rose by 9% to over $1.3 billion, driven by record new business production and strong retention [7] - The annual combined ratio improved to 94.8%, reflecting ongoing enhancements in the underlying loss ratio and expense ratio [7] Business Line Data and Key Metrics Changes - Growth in net written premium was strongest in the core commercial business, which includes small business, middle market, and construction [12] - Specialty E&S net written premium experienced double-digit growth in both the fourth quarter and full year [15] - The surety business also delivered double-digit net written premium growth for the quarter and full year [15] Market Data and Key Metrics Changes - Rate increases moderated to 4.8% for the quarter, indicating a more competitive environment, particularly in property lines [13] - Casualty lines experienced modest impacts, with umbrella lines returning to double-digit increases [13] Company Strategy and Development Direction - The company has focused on deepening underwriting expertise and enhancing actuarial insights to attract a broader customer base [5] - Strategic investments in technology are aimed at improving operational efficiency and expanding underwriting capabilities [8] - The company is positioned to deliver continued profitable growth as a disciplined, solution-oriented underwriting company [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of improved profitability and the ability to navigate competitive market dynamics [26] - The company anticipates continued attractive business opportunities despite increased competition [35] - Management highlighted the importance of disciplined underwriting and maintaining a conservative reserve posture to protect the balance sheet [17] Other Important Information - The board of directors declared a 25% increase in the quarterly cash dividend from $0.16 to $0.20 per share [11] - The company reported a strong capital position, allowing for flexibility in capital management and shareholder returns [22] Q&A Session Summary Question: Current pricing expectations in a competitive market - Management noted that while the market is more competitive, they are still achieving positive rates and will maintain disciplined risk selection to navigate the environment [26] Question: Long-term target for underwriting expense ratio - The target run rate for the expense ratio is around 35%, with expectations for gradual reduction over time as growth continues [30][31] Question: Margin compression in the assumed insurance business - Management acknowledged increased competition affecting rates and terms but emphasized their commitment to disciplined underwriting and long-term relationships [34] Question: Profitability dynamics in the other liability line - Management indicated pressure on profitability in the umbrella line due to large losses but is taking a conservative approach to pricing and reserves [36][39]

Financial Data and Key Metrics Changes - Underwriting profit increased significantly from $9 million in 2024 to $67 million in 2025, marking a substantial improvement in financial performance [6] - Net investment income grew by nearly 20%, contributing to the overall financial health of the company [6] - Full-year operating earnings per share improved by 80%, reaching $4.60, while book value per share increased by over $6 to $36.88 [10] - The annual combined ratio improved to 94.8%, reflecting ongoing enhancements in the underlying loss ratio, catastrophe loss ratio, and expense ratio [6][10] Business Line Data and Key Metrics Changes - The core commercial business, which includes small business, middle market, and construction, experienced the strongest growth, with record new business production of $247 million [12][13] - Specialty E&S net written premium grew at a double-digit pace for both the fourth quarter and the full year, despite emerging competitive pressures [14] - The surety business also delivered double-digit net written premium growth for the quarter and full year, indicating strong momentum [15] Market Data and Key Metrics Changes - Rate increases moderated to 4.8% for the quarter, primarily in the property segment, while casualty lines experienced more modest impacts [13] - The underlying loss ratio improved to 55.4% in the fourth quarter, reflecting the quality of the portfolio developed over the last three years [16] - The fourth quarter catastrophe loss ratio was 1.2%, and the full year catastrophe loss ratio of 3.2% outperformed expectations [18] Company Strategy and Development Direction - The company has undergone significant transformation since late 2022, focusing on deepening underwriting expertise and enhancing actuarial insights [5] - Strategic investments in technology are aimed at improving operational efficiency and expanding underwriting capabilities, which are expected to generate significant operational efficiencies [8] - The company is committed to maintaining a conservative posture with reserves to protect its balance sheet and ensure long-term stability [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a more competitive market while maintaining disciplined underwriting practices [27] - The company anticipates continued profitable growth in 2026, supported by a strong capital position and improved profitability metrics [11][24] - Management highlighted the importance of maintaining strong relationships with distribution partners and emphasized the ongoing commitment to long-term value creation for shareholders [11] Other Important Information - The board of directors declared a 25% increase in the quarterly cash dividend from $0.16 per share to $0.20 per share, reflecting confidence in the company's financial performance [11][23] - The company reported a strong return on equity of 13.7%, the best in nearly two decades, indicating robust financial health [7][10] Q&A Session Summary Question: Current pricing expectations in a competitive market - Management acknowledged increased competition but emphasized that pricing remains rational and attractive, with a focus on disciplined risk selection [27] Question: Long-term target for underwriting expense ratio - The company targets a run rate of about 35% for the expense ratio, with expectations for gradual reduction over time as growth continues [30][31] Question: Dynamics affecting profitability in the other liability line - Management noted pressure on profitability in the umbrella line due to large losses but is taking a conservative approach to pricing and reserves [36][37] Question: Impact of social inflation on umbrella line - Management indicated that while they have not seen significant nuclear verdicts, they are guarding against social inflation through careful pricing and reserve management [39]

FOURTH QUARTER 2025 RESULTS February 11, 2026 SAFE HARBOR STATEMENT AND NON-GAAP MEASURES This presentation may contain forward-looking statements about our operations, anticipated performance and other similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor under the Securities Act of 1933 and the Securities Exchange Act of 1934 for forward-looking statements. The forward-looking statements are not historical facts and involve risks and uncertainties that could cause ac ...

分组1 - United Fire Group (UFCS) reported quarterly earnings of $1.5 per share, exceeding the Zacks Consensus Estimate of $0.9 per share, and showing an increase from $1.25 per share a year ago, resulting in an earnings surprise of +66.67% [1] - The company achieved revenues of $365.81 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.04%, and up from $333.17 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] 分组2 - The stock has underperformed the market, losing about 0.8% since the beginning of the year, while the S&P 500 has gained 1.7% [3] - The current consensus EPS estimate for the upcoming quarter is $1.02 on revenues of $366.4 million, and for the current fiscal year, it is $3.55 on revenues of $1.52 billion [7] - The Zacks Industry Rank for Insurance - Property and Casualty is currently in the bottom 38% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Core Insights - United Fire Group, Inc. (UFG) reported a strong financial performance for the fourth quarter and full year of 2025, with significant increases in net income and adjusted operating income compared to the previous year [2][5][6]. Financial Performance - Fourth quarter net income increased by $6.9 million to $38.4 million, translating to $1.45 per diluted share, while adjusted operating income rose by $7.2 million to $39.7 million, or $1.50 per diluted share [2][14]. - For the full year, net income reached $118.2 million, up $56.2 million from the previous year, resulting in $4.48 per diluted share, with adjusted operating income at $121.2 million, or $4.60 per diluted share [14][24]. Premium Growth - In the fourth quarter, net written premium grew by 11% to $309.7 million, with retention and new business exceeding the prior year, and an average renewal premium increase of 6.3% [3][16]. - For the full year, net written premium increased by 9% to $1.3 billion, supported by strong retention and new business, with an average renewal premium increase of 8.7% [4][17]. Combined Ratio Improvement - The fourth quarter combined ratio improved by 2.1 points to 92.3%, driven by enhancements in the underlying loss ratio, expense ratio, and catastrophe losses [3][18]. - The full year combined ratio improved by 4.4 points to 94.8%, reflecting improvements across all components, including a favorable underlying loss ratio of 56.3% [4][19]. Investment Income - Net investment income for the fourth quarter was $26.4 million, a 14% increase from the prior year, while for the full year, it reached $97.5 million, up 19% [20][21]. - The increase in investment income was attributed to portfolio growth and reinvestment at higher yields [20]. Dividend Announcement - The board of directors declared a 25% increase in the quarterly dividend to $0.20 per share, reflecting confidence in the company's financial performance and commitment to shareholder value [8][25]. Book Value Growth - The company's book value per share increased by $6.08 to $36.88 as of December 31, 2025, representing a 19.7% increase from the previous year, primarily due to higher net income and reduced unrealized investment losses [24][23]. Strategic Positioning - UFG's management emphasized the company's transformation efforts over the past years, which have significantly improved operational performance and positioned the company for continued profitable growth [5][7].

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]