United Fire Group, Inc · NASDAQ:UFCS
United Fire — Q4 2022 Earnings Presentation
8 slides from United Fire's earnings presentation, Feb 16, 2023
Slide 1: Fourth Quarter & Full Year 2022 Results
FOURTH QUARTER & FULL YEAR 2022 RESULTS FEBRUARY 16, 2023
Slide 2: Safe harbor statement and non-GAAP measures
Safe harbor statement and non-GAAP measures This presentation may contain forward-looking statements about our operations, anticipated performance and other similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor under the Securities Act of 1933 and the Securitie
Slide 3: Highlights
Highlights Fourth quarter 2022 ▪ Net premiums written increased 6.3% compared to the fourth quarter of 2021. ▪ GAAP combined ratio of 103.6% including an underlying loss ratio of 60.0%, catastrophe loss ratio of 4.9%, and unfavorable non-catastrophe prior period reserve development of 4.9%. Expense
Slide 4: Financial results
Financial results Consolidated financial results ▪ Third consecutive quarter of net written premium growth ▪ Underlying loss ratio and underlying combined ratio continue to improve on a full year basis ▪ Q4 combined ratio impacted by elevated catastrophe losses and prior period reserve actions ▪ Ful
Slide 5: P&C results
P&C results Results ▪ Q4 written premium growth driven by Specialty, Surety, and Assumed Reinsurance ▪ Q4 ‘22 combined ratio impacted by catastrophe losses and prior period reserve development ▪ Full year underlying loss ratio and underlying combined ratio continue to improve Premium trend ($M) Comb
Slide 6: Commercial insurance production
Commercial insurance production New business & premium retention trend New Business ($M) Premium Retention 77% 77% ▪ Q4 new business increased 55% vs. 2021, retention increased 7 76% $30 72% 74% 73% 75% 80% points vs. 2021 70% $22 $19 70% $20 $17 $14 $15 $14 $13 $15 ▪ Retention improving while avera
Slide 7: Investment income
Investment income Results ▪ Q4 net investment income flat vs. prior year as increasing fixed maturity yields offset by lower long-term investment income ▪ Fixed maturity income increasing with higher new investment yields ▪ Q4 fixed maturity new money yields increased to 5.3% from 1.8% in Q4 2021 ▪
Slide 8: Investment portfolio
Investment portfolio Investment portfolio composition & quality Q3 Portfolio Composition Fixed Maturity Credit Rating ▪ Q4 Invested assets of $1.8B, with 84% of assets in fixed Equity Rating % of Portfolio income securities 9% Other & Long- AAA 35% Term Partnerships 7% AA 31% ▪ High-quality portfoli