Business
United Fire Group, Inc. reports first quarter 2025 results
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
About this update from United Fire Group, Inc
[{"type":"text","content":"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) Net income increased 31% to $17.7 million.Net investment income increased 44% to $23.5 million.Combined ratio increased 0.5 points to 99.4%; composed of an underlying loss ratio of 56.5%, catastrophe loss ratio of 5.0%, no prior year reserve development, and underwriting expense ratio of 37.9%.Underlying combined ratio increased 0.1 points to 94.4%.Net written premium(2) increased 4% to $335.4 million.Book value per share increased $1.33 to $32.13 as of March 31, 2025, compared to December 31, 2024.Adjusted book value per share increased $0.52 to $34.16 as of March 31, 2025, compared to December 31, 2024. 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 27% over the prior year to $18.3 million ($0.70 per diluted share). In the first quarter, net written premium grew 4% to a record $335.4 million. The combined ratio increased 0.5 points to 99.4% compared to the prior year. The underlying loss ratio improved 2.9 points over the prior year to 56.5%. The catastrophe loss ratio increased 0.4 points to 5.0% and included 2.6 points of impact from the California wildfires. The underwriting expense ratio increased 3 points to 37.9% and included additional costs associated with the final stages of development of a new policy administration system. Net investment income increased 44% to $23 million with a strong increase in fixed maturity income and improved limited partnership valuations. Core commercial renewal premiums increased 11.7% in the first quarter. Rates increased 9.7% and continued to exceed loss cost trends. Momentum continued to build in general liability and umbrella lines with some moderation in property and automobile compared to prior quarter. “Overall, I am pleased with our performance in the first quarter as we delivered our third consecutive quarterly underwriting profit despite elevated industry catastrophe losses and an increased expense ratio,” said UFG Preside...