UFG(US:UFCS)2024-05-11 06:23Financial Data and Key Metrics Changes - Net income increased to $13.5 million, driven by improved underwriting results and higher investment income [9] - Net written premium grew 17.6% to $321 million, led by core commercial and assumed reinsurance business [9] - The first quarter combined ratio improved 4 points to 98.9%, the lowest over the past 8 quarters [10] - Underlying loss ratio improved to 59.4%, reflecting continued underwriting and pricing discipline [10] - Investment income increased 28.5% to $16.3 million, benefiting from reinvesting at higher interest rates [11] Business Line Data and Key Metrics Changes - Net written premium in core commercial business grew 12% to $223 million [12] - Renewal premium change in core commercial business was 10.9%, with rates up 9% [12] - Specialty excess and surplus lines net written premiums declined approximately $1 million as the portfolio is repositioned for sustainable profitability [14] - Commercial property premium change exceeded 20% with rate achievement at 16.5% [28] - Surety net written premium declined slightly as the company reinforced underwriting discipline [30] Market Data and Key Metrics Changes - The expense ratio improved to 34.9%, reflecting diligent cost management [26] - Catastrophe losses contributed 4.6% to the combined ratio, in line with the same period last year [26] - Retention in small business remained consistent at 80% [29] Company Strategy and Development Direction - The company completed a strategic reallocation of public equity assets into fixed maturities [27] - Focus on profitability through an average renewal premium increase and attractive new business opportunities [25] - Emphasis on price adequacy across the portfolio, particularly in general liability due to inflationary pressures [28] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the first quarter results and the momentum carried from 2023 [9] - The company is well positioned to deliver improved long-term performance through strategic initiatives [27] - Management noted that favorable development in property, workers' compensation, and surety will strengthen reserve positions [32] Other Important Information - Total invested assets and cash ended the first quarter at $1.9 billion [33] - Net income per diluted share was $0.52, with non-GAAP adjusted operating income of $0.56 [34] - A cash dividend of $0.16 per share was declared and paid, continuing a 56-year history of dividend payments [34] Q&A Session Summary - There were no questions during the Q&A session, and the conference concluded without further inquiries [19]