United Fire Group, Inc · NASDAQ:UFCS
United Fire — Q3 2021 Earnings Presentation
15 slides from United Fire's earnings presentation, Nov 4, 2021
Slide 1: 2021 Third Quarter Earnings Conference Call
2021 THIRD QUARTER EARNINGS CONFERENCE CALL NOVEMBER 4, 2021
Slide 2: Financial Highlights – 3Q 2021
2021 THIRD QUARTER EARNINGS CONFERENCE CALL Financial Highlights – 3Q 2021 3Q2021 3Q2020 YTD2021 YTD2020 Net income (loss) per diluted share $ (0.38) $ (1.49) $ 0.90 $ (4.15) After-tax net realized investment gains (losses) $ (0.07) $ 0.48 $ 0.88 $ (1.97) Adjusted operating income (loss) per share $
Slide 3: Property and Casualty Business Highlights
2021 THIRD QUARTER EARNINGS CONFERENCE CALL Property and Casualty Business Highlights Q3 2021 Results $238.9M in net premiums earned in Q3 2021– a decrease of 7.8% over Q3 2020 primarily due to our strategic plan in non-renewal of underperforming accounts in commercial auto line of business and
Slide 4: Property and Casualty Business: Strategic Plan
2021 THIRD QUARTER EARNINGS CONFERENCE CALL Property and Casualty Business Strategic Plan: "One UFG boldly forward" Several initiatives aimed at long-term profitability, diversified growth, and continuous innovation. Portfolio management initiatives include diversifying our book of business and
Slide 5: P & C Market Conditions
2021 THIRD QUARTER EARNINGS CONFERENCE CALL P & C Market Conditions Renewal rates increases YTD (January 1 – September 30): Overall rate increase of 6.3% YTD, increase of 7.6% YTD excluding workers’ compensation. Rate increases led by commercial auto and commercial property Commercial auto a
Slide 6: 2021 Third Quarter Earnings Conference Call
2021 THIRD QUARTER EARNINGS CONFERENCE CALL 6
Slide 7: 2021 Third Quarter Earnings Conference Call
2021 THIRD QUARTER EARNINGS CONFERENCE CALL 7
Slide 8: Commercial Auto Moving Average Frequency and Exposure Units
2021 THIRD QUARTER EARNINGS CONFERENCE CALL Commercial Auto Moving Average Frequency and Exposure Units Frequency down 8%, Exposure down 24% 235K 179K 8 Moving Average of Claims Frequency Moving Average of Exposure Units
Slide 9: Commercial Auto Exposure – by Quarter
2021 THIRD QUARTER EARNINGS CONFERENCE CALL Commercial Auto Exposure – by Quarter 250000 235K 200000 179K 150000 100000 50000 0 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Earned Comm Auto Exposure Units Note: Bars represent a rolling 12 month view of written exposure. 9
Slide 10: Claim Counts of Major Commercial Casualty Lines
2021 THIRD QUARTER EARNINGS CONFERENCE CALL Claim Counts of Major Commercial Casualty Lines CA BI+PD Liability Claims Counts CGL BI+PD Liability Claims Counts Claims down 22% Sep YTD 2021 vs Sep YTD 2020 Claims down 11% Sep YTD 2021 vs Sep YTD 2020 1200 400 1000 350 300 800 250 600 200 400 150 200 1
Slide 11: Claim Counts of Major Commercial Casualty Lines
2021 THIRD QUARTER EARNINGS CONFERENCE CALL Claim Counts of Major Commercial Casualty Lines BOP Liability Claims Counts Work Comp Claim Counts Claims down 9% Sep YTD 2021 vs Sep YTD 2020 Claims down 16% Sep YTD 2021 vs Sep YTD 2020 80 300 60 250 200 40 150 20 100 50 0 0 11 2021 2020 2019 2021 2020 2
Slide 12: Core Loss Ratio vs. Catastrophe Losses
2021 THIRD QUARTER EARNINGS CONFERENCE CALL Core Loss Ratio vs. Catastrophe Losses 100.0% 90.0% 80.0% 21.4% 5.9% 13.5% 15.3% 70.0% 6.5% 7.4% 4.5% 12.5% 16.5% 60.0% 50.0% 70.5% 69.2% 68.9% 40.0% 66.0% 65.4% 63.8% 63.2% 61.4% 56.9% 30.0% 20.0% 10.0% 0.0% 2016 2017 2018 2019 2020 Q3 2020 YTD Q3 2021 YT
Slide 13: Adjusted Loss Ratio
2021 THIRD QUARTER EARNINGS CONFERENCE CALL Adjusted Loss Ratio 2021 2020 2021 2020 Adjusted Loss Ratio Q3 Q3 FY FY P&C Loss Ratio (as reported) 73.4% 90.6% 73.9% 79.1% Impact of Catastrophes -16.5% -21.4% -12.5% -15.3% Loss Ratio Ex-Catastrophes 56.9% 69.2% 61.4% 63.8% Impact of Reserve Development
Slide 14: P & C Geographic Footprint
2021 THIRD QUARTER EARNINGS CONFERENCE CALL P & C Geographic Footprint Headquartered in Cedar Rapids, Iowa, UFG is represented by Regional Underwriting Offices in Cedar Rapids, Iowa independent agents throughout the country. UFG is licensed and (corporate headquarters); Denver, Colorado; Houston, ac
Slide 15: Recognition
2021 THIRD QUARTER EARNINGS CONFERENCE CALL Recognition Rated A (Excellent) by A.M. Best Company in December 2020 for the 27th consecutive year. United Fire & Casualty Co. has been named a Super Regional Property/Casualty Insurer™ every year since 2006 by Insurance Journal magazine. Placed on