Business
United Fire Group, Inc. Reports Second Quarter 2023 Results
Second Quarter Net Loss of $2.23 per Diluted Share and Adjusted Operating Loss of $2.27 per Diluted Share; Net Premiums Written Increased 14.6% Over Prior
About this update from United Fire Group, Inc
[{"type":"text","content":"Second Quarter Net Loss of $2.23 per Diluted Share and Adjusted Operating Loss of $2.27 per Diluted Share; Net Premiums Written Increased 14.6% Over Prior Year Quarter\nSecond quarter 2023 highlights: Net loss of $56.4 million driven by prior period loss reserve strengthening and elevated catastrophe losses.Net premiums written(1) of $299.1 million increased 14.6% compared to the second quarter of 2022, representing five consecutive quarters of growth. Core commercial lines growth remained strong, up 10.1% supported by increasing levels of rate, retention and new business.GAAP combined ratio of 132.9%, including an underlying loss ratio(2) of 64.6%, catastrophe loss ratio of 13.0%, and prior period reserve strengthening of 20.8%. Expense ratio was 34.5%.Underlying combined ratio of 99.1%.Net investment income of $11.3 million increased 23.4% compared to the second quarter of 2022.Book value per common share decreased 8.8% to $26.77 as of June 30, 2023, compared to December 31, 2022. CEDAR RAPIDS, Iowa , Aug. 07, 2023 (GLOBE NEWSWIRE) -- United Fire Group, Inc. (the “Company” or “UFG”) (Nasdaq: UFCS) today reported financial results for the three- month period ended June 30, 2023 (the “second quarter of 2023”) with a consolidated net loss of $56.4 million ($2.23 per diluted share) and consolidated adjusted operating loss of $2.27 per diluted share. “Our second quarter results were impacted by reserve strengthening and seasonally elevated catastrophe losses,” said UFG President and CEO Kevin Leidwinger. “The reserve strengthening is a result of enhanced actuarial processes within our Company that have increased the depth of analysis and improved alignment with our unique product exposures. These enhancements in our actuarial processes foster greater confidence in our ability to estimate ultimate losses and provide more actionable feedback that aligns with the increasing levels of specialization being developed in the underwriting and claims organizations. While the adjustments coming out of these enhancements negatively impacted results in the short term, they position us to more effectively manage our portfolio going forward. “In addition, the industry dealt with a historic level of catastrophe losses in the second quarter of 2023, with UFG experiencing catastrophe losses from 18 separate weather events that resulted in losses sl...