Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Iowa 45-2302834 118 Second Avenue SE Cedar Rapids Iowa 52401 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2024 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Sec ...

United Fire Group, Inc. (NASDAQ:UFCS) Q4 2024 Earnings Conference Call February 12, 2025 10:00 AM ET Company Participants Timothy Borst - Director of Investor Relations and Corporate Development Kevin Leidwinger - President and Chief Executive Officer Julie Stephenson - Executive Vice President and Chief Operating Officer Eric Martin - Executive Vice President and Chief Financial Officer Conference Call Participants Paul Newsome - Piper Sandler Operator Good day, and welcome to the United Fire Group, Inc. 2 ...

Financial Performance - Full year net income was $62 million, with ROE exceeding 8%[6] - Record annual net written premium exceeded $12 billion, driven by a 13% growth in the quarter[6] - The fourth quarter underlying combined ratio improved 16 points from the prior year to 928%, and the full year underlying combined ratio improved 33 points to 938%[6] - Q4 net investment income of $23 million is 21% above prior year[27] Underwriting and Losses - Underwriting profit was achieved for both the fourth quarter and the full year, benefiting from continued underlying margin improvement, neutral prior year reserve development, and below-average catastrophe losses[6] - The 2024 fourth quarter combined ratio of 944% was the best in 11 quarters, and the full year combined ratio of 992% was the best since 2015[10] - Catastrophe loss ratio was below five- and ten-year historical averages for both the fourth quarter and the full year[6] Portfolio and Investments - Book value per common share increased to $3080, and adjusted book value per share improved $195 from 2023 to $3364[6] - Invested assets totaled $21 billion in Q4, with 89% allocated to fixed income securities[24] - The fixed maturity yield was 42%, up approximately 80 basis points over the prior year[27] Premium Growth - Core Commercial growth in the fourth quarter and full year remained steady at +13% over prior year[16]

Group 1: Earnings Performance - United Fire Group (UFCS) reported quarterly earnings of $1.25 per share, exceeding the Zacks Consensus Estimate of $0.66 per share, and up from $0.65 per share a year ago, representing an earnings surprise of 89.39% [1] - The company posted revenues of $333.18 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.67%, compared to year-ago revenues of $287.32 million [2] - Over the last four quarters, United Fire has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - United Fire shares have declined approximately 12.9% since the beginning of the year, while the S&P 500 has gained 3.1% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at $0.78 on revenues of $335.1 million, and $2.20 on revenues of $1.39 billion for the current fiscal year [7] - The Zacks Rank for United Fire is currently 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Group 3: Industry Context - The Insurance - Property and Casualty industry is currently in the top 33% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Fourth quarter net income increased to $31.4 million, or $1.21 per diluted share, compared to $19.6 million, or $0.77 per diluted share in the same quarter of 2023[1][13] - Full year net written premiums reached $1.2 billion, a 15% increase from $1.06 billion in 2023, marking the highest level in the company's history[3][5] - The combined ratio for the fourth quarter improved to 94.4%, a 4.8-point decrease from 99.2% in the previous year, while the full year combined ratio improved by 10.1 points to 99.2%[6][18] - The company reported a return on equity of 8.2% for the full year, a significant improvement from a loss of 4.0% in 2023[14] - Net income for Q4 2024 was $31,442,000, compared to $19,608,000 in Q4 2023, representing a 60.5% increase[34] - Adjusted operating income for the twelve months ended December 31, 2024, was $66,246,000, significantly improved from a loss of $30,706,000 in 2023[34] Investment Income - Net investment income for the fourth quarter was $23.2 million, a 21.2% increase from $19.1 million in the same quarter of 2023, and for the full year, it rose to $82.0 million, up 37.5% from $59.6 million[8][20] - Total investment income for Q4 2024 was $25,719,000, an increase of 20.6% from $21,448,000 in Q4 2023[21] - Net investment income for the twelve months ended December 31, 2024, was $81,987,000, up 37.5% from $59,606,000 in 2023[21] - Average yields on fixed income securities pre-tax improved to 4.15% in Q4 2024 from 3.39% in Q4 2023[21] Premiums and Underwriting - Average renewal premiums increased by 11.9% in the fourth quarter, contributing to the growth in net written premiums[15] - Net earned premiums for Q4 2024 reached $308,137, an increase of 16.5% from $264,366 in Q4 2023[41] - The company’s net written premiums for commercial lines totaled $225,712 in Q4 2024, an increase of 11.9% from $201,652 in Q4 2023[45] - The underlying loss ratio improved to 55.7% for the fourth quarter and 57.9% for the full year, reflecting better underwriting discipline and favorable claim frequency[6][18] - The net loss ratio for total commercial lines improved to 54.5% in Q4 2024 from 65.7% in Q4 2023[46] Assets and Equity - Invested assets increased to $2,093,094,000 as of December 31, 2024, up from $1,886,494,000 in 2023, reflecting a growth of 11%[22] - Total assets reached $3,488,469,000, an increase of 10.9% from $3,144,190,000 in the previous year[22] - Total stockholders' equity rose to $781,531,000, up from $733,745,000, marking a 6.5% increase[22] - Book value per share increased by $1.76 to $30.80 as of December 31, 2024, compared to the previous year[4] - Book value per share increased to $30.80, a rise of $1.76 per share or 6.1% from $29.04 as of December 31, 2023[23] Dividends and Expenses - The company declared a cash dividend of $0.16 per share during Q4 2024, continuing a quarterly dividend since March 1968[24] - Total benefits, losses, and expenses for the twelve months ended December 31, 2024, were $1,176,273, compared to $1,135,188 in 2023, reflecting a rise of 3.6%[41] - The company’s federal income tax expense for the twelve months ended December 31, 2024, was $15,077, compared to a benefit of $(10,021) in 2023[41] - The loss settlement expenses for Q4 2024 were $176,486, slightly up from $171,289 in Q4 2023[41] Future Outlook - The company plans to implement a new policy administration system in 2025, which is expected to enhance operational efficiency[7] - The estimated losses from the recent wildfires in Southern California are projected to be between $7 million and $10 million[12]

Fourth quarter net income of $1.21 per diluted share and adjusted operating income of $1.25 per diluted share; full year net income of $2.39 per diluted share and adjusted operating income of $2.56 per diluted share Fourth quarter 2024 highlights compared to fourth quarter 2023:(1) Net income increased from $19.6 million to $31.4 million.Net investment income increased 21.2% to $23.2 million.Combined ratio improved 4.8 points to 94.4%; composed of an underlying loss ratio of 55.7%, catastrophe loss ratio of ...

CEDAR RAPIDS, Iowa, Jan. 29, 2025 (GLOBE NEWSWIRE) -- United Fire Group, Inc. (Nasdaq: UFCS) (the "Company", "UFG", "we", or "our") announced today that its 2024 fourth quarter earnings results will be released after the market closes on Tuesday, February 11, 2025. An earnings call will be held on Wednesday, February 12, 2025 at 9:00 a.m. central time to allow securities analysts, shareholders and other interested parties the opportunity to hear management discuss the Company's 2024 fourth quarter results. ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, inc ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they beli ...

After reaching an important support level, United Fire Group, Inc (UFCS) could be a good stock pick from a technical perspective. UFCS recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common m ...