United Fire Group, Inc. reports second quarter 2025 results

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]