United Fire Group, Inc · NASDAQ:UFCS

United Fire — Q2 2022 Earnings Presentation

13 slides from United Fire's earnings presentation, Aug 4, 2022

  1. Slide 1: 2022 Second Quarter Earnings Conference Call

    2022 SECOND QUARTER EARNINGS CONFERENCE CALL AUGUST 4, 2022

  2. Slide 2: Consolidated Financial Results – Highlights

    2022 SECOND QUARTER EARNINGS CONFERENCE CALL Consolidated Financial Results – Highlights 2Q2022 2Q2021 YTD2022 YTD2021 Net income (loss) per diluted share $ (0.42) $ 0.54 $ 0.70 $ 1.28 Net investment gains (losses) per diluted share $ (0.66) $ 0.19 $ (0.67) $ 0.95 Adjusted operating income per dilut

  3. Slide 3: Property and Casualty Business Highlights

    2022 SECOND QUARTER EARNINGS CONFERENCE CALL Property and Casualty Business Highlights  Q2 2022 Results  Combined ratio of 100.7% in Q2 2022 compared to 100.8% in Q2 2021  Core loss ratio improved 1.8 percentage points to 57.1% in Q2 2022 as compared to Q2 2021  Commercial auto loss ratio in Q2

  4. Slide 4: Property and Casualty Business: Strategic Plan

    2022 SECOND 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

  5. Slide 5: P & C Market Conditions

    2022 SECOND QUARTER EARNINGS CONFERENCE CALL P & C Market Conditions  Change in Renewal Premiums YTD 2022:  Overall change in renewal premiums 8.1% YTD  3.0% from exposure changes, 5.1% from rate increases  Excluding workers’ compensation, overall change in renewal premiums 9.3% YTD  3.0% from

  6. Slide 6: Direct New Business Premium Breakdown Jan-June

    2022 SECOND QUARTER EARNINGS CONFERENCE CALL Direct New Business Premium Breakdown Jan-June (Excluding Surety and Specialty) 25.9% 26.0% 22.3% 20.2% 19.1% 14.2% 14.3% 10.9% 9.5% 8.3% 7.6% 7.1% 5.6% 5.4% Auto GL Property Inland Marine Multi-peril Umbrella Work Comp 2020 2021 2022 6

  7. Slide 7: Portfolio Composition

    2022 SECOND QUARTER EARNINGS CONFERENCE CALL Portfolio Composition Commercial Auto 25.4% 21.7% General Liability 19.0% 17.5% Property 13.6% 12.7% Assumed Reinsurance 5.6% 11.9% Product Liability 7.7% 7.5% 2021 Q2 Other Specialty 6.5% 7.5% 2022 Q2 Workers Comp 6.5% 5.6% Inland Marine 5.6% 5.3% Surety

  8. Slide 8: Claim Counts of Major Commercial Casualty Lines

    2022 SECOND 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 19% YTD Claims down 23% YTD 1200 400 350 1000 300 800 250 600 200 150 400 100 200 50 0 0 8 2022 2021 2020 2019 2022 2021 2020 20

  9. Slide 9: Claim Counts of Major Commercial Casualty Lines

    2022 SECOND QUARTER EARNINGS CONFERENCE CALL Claim Counts of Major Commercial Casualty Lines BOP Liability Claims Counts Work Comp Claim Counts Claims down 26% YTD Claims down 31% YTD 80 300 60 250 200 40 150 100 20 50 0 0 2022 2021 2020 2019 9 2022 2021 2020 2019

  10. Slide 10: Net Loss Ratio Excluding Cats vs. Catastrophe Losses

    2022 SECOND QUARTER EARNINGS CONFERENCE CALL Net Loss Ratio Excluding Cats vs. Catastrophe Losses 90.0% 80.0% 13.5% 5.9% 70.0% 7.4% 4.5% 6.5% 10.2% 9.6% 60.0% 12.1% 50.0% 70.5% 40.0% 68.9% 66.0% 65.4% 63.2% 58.1% 57.5% 53.4% 30.0% 20.0% 10.0% 0.0% 2016 2017 2018 2019 2020 2021 Q2 2021 Q2 2022 Core L

  11. Slide 11: Core Loss Ratio

    2022 SECOND QUARTER EARNINGS CONFERENCE CALL Core Loss Ratio 2022 2021 2022 2021 Core Loss Ratio Q2 Q2 YTD YTD P&C Loss Ratio (as reported) 65.5% 67.7% 60.6% 74.1% Impact of Catastrophes -12.1% -9.6% -7.3% -10.5% Loss Ratio Ex-Catastrophes 53.4% 58.1% 53.3% 63.6% Impact of Reserve Development 3.7% 0

  12. Slide 12: P & C Geographic Footprint

    2022 SECOND 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, a

  13. Slide 13: Recognition

    2022 SECOND QUARTER EARNINGS CONFERENCE CALL Recognition  Rated A (Excellent) by A.M. Best Company in December 2021 for the 28th 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

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