Group 1 - United Fire Group, Inc. (UFG) announced the election of three Class B directors to its board at the 2025 annual meeting, with terms expiring in 2028 [1] - UFG is engaged in writing property and casualty insurance and is licensed in all 50 states and the District of Columbia [2] - The company has approximately 1,000 independent agencies representing its insurance products [2] Group 2 - AM Best assigns a rating of "A-" (Excellent) to members of the United Fire & Casualty Group [2] - The appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025 was ratified [3] - Shareholders approved, on an advisory basis, the compensation of the company's named executive officers [3]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-34257 ________________________ UNITED FIRE GROUP, INC. (Exact name of registrant as specified in its charter) Iowa 45-2302834 (State of incorporation) (I.R ...

Financial Data and Key Metrics Changes - Net written premium grew 4% to $335.4 million, although growth was impacted by unusual ceded reinsurance premium adjustments [8] - First quarter combined ratio was 99.4%, a 0.5 point increase from Q1 2024, while the underlying loss ratio improved 2.9 points to 56.5% [8][18] - Net investment income improved to $23.5 million, primarily due to an increase in fixed maturity income [10][21] - Reported book value per share improved to $32.13, with adjusted book value per share growing to $34.16 [11][24] Business Line Data and Key Metrics Changes - Net written premium in Core Commercial businesses grew 6% year-over-year, with renewal premium change remaining strong at 11.7% [14] - Rate achievement for general liability exceeded 9%, while automobile and umbrella lines produced double-digit rate changes [14][15] - Specialty and surety businesses performed in line with expectations, contributing to overall growth [16] Market Data and Key Metrics Changes - Catastrophe losses contributed five points to the combined ratio, including $8.2 million from California wildfires [10][19] - The company experienced a strong underwriting profit despite elevated industry catastrophe losses [20] Company Strategy and Development Direction - The company is in the final stages of developing a new policy administration system, which is expected to improve process efficiency and product management [12] - Focus remains on disciplined pricing, stable retention, and increased new business production across the portfolio [8][13] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to manage potential impacts from material and labor cost inflation through disciplined pricing and regular trend evaluations [26][27] - The company anticipates that the impact of additional ceded premium will diminish in the remaining quarters [13] Other Important Information - The first quarter expense ratio increased by three points to 37.9%, influenced by costs associated with the new policy administration system and elevated performance-based compensation for agents [10][23] - The company declared and paid a $0.16 per share cash dividend to shareholders [24] Q&A Session Summary Question: Current pricing power and ability to counter potential greater loss expenses - Management is closely monitoring the situation and believes that current rates exceed net loss trends, allowing for a cushion in estimates [26][27] Question: Underwriting expense ratio and levers to bring it down - The expense ratio was elevated due to one-time costs related to the new policy administration system, which is expected to normalize over time as the system is fully deployed [29][30][32] Question: Expectations for normalization of costs as the company grows - Management indicated that fixed costs provide leverage with premium growth, and the expense ratio is expected to normalize as agent performance returns to historical averages [33]

Financial Data and Key Metrics Changes - Net written premium grew 4% to $335.4 million, although growth was impacted by unusual ceded reinsurance premium adjustments [7] - The first quarter combined ratio was 99.4%, a 0.5 point increase from Q1 2024, while the underlying loss ratio improved by 2.9 points to 56.5% [7][18] - Net investment income increased to $23.5 million, primarily due to a rise in fixed maturity income [10][21] - Reported book value per share improved to $32.13, with adjusted book value per share growing to $34.16 [11][24] Business Line Data and Key Metrics Changes - Core Commercial businesses saw net written premium growth of 6%, with renewal premium change remaining strong at 11.7% [14] - Rate changes for general liability exceeded 9%, while automobile and umbrella lines produced double-digit rate changes [14][15] - Specialty and surety businesses performed in line with expectations, contributing to overall growth [16] Market Data and Key Metrics Changes - Catastrophe losses contributed five points to the combined ratio, with $8.2 million attributed to California wildfires [10][19] - The company experienced a strong underwriting profit despite elevated industry catastrophe losses [20] Company Strategy and Development Direction - The company is in the final stages of developing a new policy administration system, which is expected to improve process efficiency and product management [12] - Focus remains on disciplined pricing, stable retention, and increased new business production across the portfolio [7][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to manage potential impacts from material and labor cost inflation through disciplined pricing and regular trend evaluations [26][27] - The company anticipates that the elevated underwriting expense ratio will normalize over time as new systems and personnel are fully integrated [30][33] Other Important Information - The company declared and paid a cash dividend of $0.16 per share to shareholders [24] - The investment portfolio is well-positioned against market uncertainties, with a focus on improving credit quality and diversification [21][22] Q&A Session Summary Question: Current pricing power and impact of material and labor cost inflation - Management is closely monitoring the situation and believes that current rates exceed net loss trends, allowing for a cushion in estimates [26][27] Question: Underwriting expense ratio and potential levers to reduce it - The elevated expense ratio is partly due to one-time costs associated with the new policy administration system, which is expected to decrease over time [29][30] Question: Expectations for expense ratio normalization as the company grows - Management indicated that fixed costs provide leverage with premium growth, and the expense ratio is expected to normalize as new agents reach historical production averages [33]

Financial Performance - Net written premium increased by 4% from $321 million to $335 million[5] - Net earned premium increased by 10% from $281 million to $308 million[5] - Net income increased by 31% and adjusted operating income increased by 27% compared to the prior year[7] - Net investment income increased by 44% to $23 million due to strong improvement in fixed maturity income[7, 5] Ratios and Book Value - The net loss ratio decreased by 2.5 points from 64% to 61.5%[5] - The underwriting expense ratio increased by 3 points from 34.9% to 37.9%[5, 13] - The underlying loss ratio improved by 2.9 points to 56.5%[7, 5, 13] - Book value per common share increased to $32.13 and adjusted book value per share increased to $34.16[7] P&C Trends - Core commercial net written premium grew 6% in Q1[13] - The catastrophe loss ratio was 5%, including 2.6 points for California wildfires[13] Investment Portfolio - Invested assets totaled $2.2 billion, with 89% in fixed income securities[20] - Fixed maturity income grew 39% due to portfolio management and reinvestment at higher yields[24, 21]

United Fire Group (UFCS) came out with quarterly earnings of $0.70 per share, beating the Zacks Consensus Estimate of $0.62 per share. This compares to earnings of $0.56 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 12.90%. A quarter ago, it was expected that this property and casualty insurance company would post earnings of $0.66 per share when it actually produced earnings of $1.25, delivering a surprise of 89.39%.Over th ...

Financial Performance - Net income for Q1 2025 increased by 31% to $17.7 million, or $0.67 per diluted share, compared to Q1 2024[2] - Adjusted operating income rose by 27% to $18.3 million, or $0.70 per diluted share, compared to the same period last year[2] - Net income for Q1 2025 was $17,700,000, an increase of 31.5% compared to $13,502,000 in Q1 2024[26] - Adjusted operating income for Q1 2025 was $18,296,000, up 26.5% from $14,452,000 in Q1 2024[26] - Total revenues for Q1 2025 were $331,115,000, reflecting a 12.0% increase from $295,999,000 in Q1 2024[33] Premiums and Underwriting - Net written premium grew by 4% to a record $335.4 million, despite unusual ceded reinsurance premium adjustments reducing growth by 3 points[3][6] - Net written premium for Q1 2025 was $335,376,000, an increase of 4.4% compared to $321,271,000 in Q1 2024[34] - Net earned premium increased to $308,411,000 in Q1 2025, a rise of 9.8% from $280,859,000 in Q1 2024[33] - Core commercial renewal premiums increased by 11.7%, with rates rising by 9.7%[4][12] Investment Income - Net investment income surged by 44% to $23.5 million, attributed to strong fixed maturity income and improved limited partnership valuations[3][13] - The company reported net investment income of $23,458,000 in Q1 2025, up 43.3% from $16,342,000 in Q1 2024[33] Loss Ratios and Expenses - The combined ratio for Q1 2025 was 99.4%, an increase of 0.5 points from 98.9%, driven by a catastrophe loss ratio of 5.0%[3][15] - The underlying loss ratio improved by 2.9 points to 56.5%, reflecting favorable rate achievement and lower frequency[15] - The underlying loss ratio for Q1 2025 was 61.5%, compared to 64.0% in Q1 2024, indicating improved operational efficiency[38] - Losses and loss settlement expenses totaled $189,696,000 in Q1 2025, compared to $179,646,000 in Q1 2024[33] - The underwriting expense ratio increased by 3.0 points to 37.9%, mainly due to non-recurring expenses related to a new policy administration system[15] Shareholder Equity and Book Value - Book value per share increased by $1.33 to $32.13 as of March 31, 2025, representing a 4.3% increase from the end of 2024[17] - Adjusted book value per share rose to $34.16 as of March 31, 2025, from $33.64 as of December 31, 2024[30] - The company’s shareholders' equity increased to $817,662,000 as of March 31, 2025, from $781,531,000 as of December 31, 2024[30] Dividends - The company declared a cash dividend of $0.16 per share, continuing its quarterly dividend payments since March 1968[18]

First quarter net income of $0.67 per diluted share and adjusted operating income of $0.70 per diluted share First quarter 2025 highlights compared to first quarter 2024, unless otherwise noted:(1) CEDAR RAPIDS, Iowa, May 06, 2025 (GLOBE NEWSWIRE) -- United Fire Group, Inc. (UFG) (Nasdaq: UFCS) today reported financial results for the three-month period ended March 31, 2025, with net income increasing 31% over the prior year to $17.7 million ($0.67 per diluted share) and adjusted operating income increasing ...

CEDAR RAPIDS, Iowa, April 23, 2025 (GLOBE NEWSWIRE) -- United Fire Group, Inc. (NASDAQ:UFCS) (UFG) announced today that its first quarter 2025 earnings results will be released after the market closes on Tuesday, May 6, 2025. An earnings call will be held on Wednesday, May 7, 2025, at 10 a.m. CT to allow securities analysts, shareholders and other interested parties the opportunity to hear management discuss the company's first quarter 2025 results. Teleconference: Dial-in information for the call is toll-f ...

Three major U.S. indexes the Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average closed deeply in red by 9.89%, 9.58% and 8.78% respectively, last week. The stocks have taken a beating after the implementation of President Donald Trump’s reciprocal tariff policies with major trading partners on April 2, 2025. Uncertainty over the impact of such policies on the U.S. economy has stoked fear of a near-term recession among market participants.Analysts are expecting a slowdown in economic growth a ...