UFG(US:UFCS) Globenewswire·2026-02-10 21:01Core 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].