United Fire Group, Inc · NASDAQ:UFCS
United Fire — United Fire & Casualty — Shareholder Meeting (May 2011)
30 slides from United Fire's shareholder meeting presentation, May 19, 2011
Slide 1: protecting dreams
protecting dreams
Slide 2: Randy Ramlo, President & CEO
Randy Ramlo, President & CEO annual shareholders meeting 05.18.2011
Slide 3: Slide 3
Slide 4: 2010 vs. 2009 financial highlights
2010 vs. 2009 financial highlights annual shareholders meeting 05.18.2011 2010 2009 Losses 52.3% 65.5% ALAE 8.9% 10.0% ULAE 7.7% 8.4% U/W Expense 31.0% 30.3% Combined 99.9% 114.2% NUMBERS PRESENTED ON A STATUTORY BASIS
Slide 5: 2010 United Life Highlights
2010 United Life Highlights Net Income: $12,787,000 Dividend to United Fire: $15,000,000 Life premium growth 2010 over 2009 14.6% Named to Ward's 50 Life & Health Insurance Companies fifth consecutive year financial highlights annual shareholders meeting 05.18.2011 NUMBERS PRESENTED IN GAAP
Slide 6: Book Value Per Share
Book Value Per Share financial highlights annual shareholders meeting 05.18.2011 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 3.31.11 7.14 7.88 9.64 10.62 12.92 12.70 11.82 12.83 13.90 14.47 18.62 22.46 21.20 24.62 27.63 24.10 25.35 27.35 27.42 (Adjusted for Splits)
Slide 7: UFG Investment Portfolio
UFG Investment Portfolio financial highlights annual shareholders meeting 05.18.2011 as of 12/31/2010 NOTE: 93% of Municipal Bond Holdings rated "A" or better. (CHART)
Slide 8: First Quarter 2011 financial highlights
First Quarter 2011 financial highlights annual shareholders meeting 05.18.2011 Net Loss Ratio (including Loss Expenses) 58.2% Catastrophe Effect on Loss Ratio 12.2% Underwriting Expense Ratio 36.1% Combined Ratio 106.5% 03.31.11 NUMBERS PRESENTED IN GAAP
Slide 9: financial highlights
financial highlights annual shareholders meeting 05.18.2011 PHOTO By U.S. Navy photo by Mass Communication Specialist 1st Class Matthew M. Bradley [Public domain], via Wikimedia Commons
Slide 10: financial highlights
financial highlights annual shareholders meeting 05.18.2011 PHOTO By Greg O'Beirne via Wikimedia Commons
Slide 11: Building a Stronger Future
Building a Stronger Future stronger together annual shareholders meeting 05.18.2011
Slide 12: Expanded Geographic Footprint
Expanded Geographic Footprint P&C WV WA GA SC NC IL ID MT UT NM OK TN KY OH MI VA MD DE NY VT NH MA RI ME WY KS NE SD ND MN IA MO AR LA MS AL IN WI TX FL CO CT DC OR CA NV PA AZ NJ WV DIRECT WRITTEN PREMIUM 2009 TOP 18 UFG STATES UFG: INDIVIDUALLY <1%, >0.01% DWP TOP 6 MERCER STATES stronger togethe
Slide 13: Identical Business Mix: Personal vs. Commercial Lines
(CHART) (CHART) Commercial: 90% Personal: 10% Commercial: 91% Personal: 9% stronger together annual shareholders meeting 05.18.2011 Identical Business Mix: Personal vs. Commercial Lines 2009 Stand-Alone DPW Breakdowns MERCER INSURANCE UNITED FIRE Direct Written Premiums (2010): $148 million Direct W
Slide 14: Identical Business Mix: Property vs. Casualty
(CHART) stronger together annual shareholders meeting 05.18.2011 Identical Business Mix: Property vs. Casualty 2009 Stand-Alone DPW Breakdowns MERCER INSURANCE UNITED FIRE Casualty: 64% Property:36% (CHART) Casualty: 64% Property:36% (CHART) Direct Written Premiums (2010): $148 million Direct Writte
Slide 15: Acquisition Timeline
Acquisition Timeline November 30, 2010: Acquisition announced January 10, 2011: Federal Trade Commission approval March 1, 2011: Pennsylvania Department of Insurance approval March 7, 2011: California Department of Insurance approval March 8, 2011: New Jersey Department of Banking and Insurance appr
Slide 16: Funding the Acquisition
Funding the Acquisition $29.9 million borrowed from Federal Home Loan Bank $50 million borrowed against bank line of credit Provided $111 million internally Net debt to net capitalization ratio: 13.7% Anticipate replacing with long-term debt in 2011 stronger together annual shareholders meeting 05.1
Slide 17: Stronger Together
Stronger Together stronger together annual shareholders meeting 05.18.2011 WV Licensed in 43 States, District of Columbia More than 1,300 Independent Agencies 850 Employees $584.2 Million Direct Written Premium $62.2 Million Net Income
Slide 18: Goals & Strategies
Goals & Strategies Disciplined Underwriting Local Market Knowledge Strong Agent Relationships Targeted Potential Growth Markets Improve Agency Penetration Appoint New Agencies looking ahead annual shareholders meeting 05.18.2011
Slide 19: Make New Friends
Make New Friends looking ahead annual shareholders meeting 05.18.2011
Slide 20: Data Protection
Data Protection Real-time backup Protective systems and software Certified vendors Secure encryption Tracking, testing and reporting Continuous improvement looking ahead annual shareholders meeting 05.18.2011
Slide 21: Second Quarter
Second Quarter looking ahead annual shareholders meeting 05.18.2011 PHOTO COURTESY OF WIKIMEDIACOMMONS
Slide 22: Multi-State Storm Prediction Center Events
looking ahead annual shareholders meeting 05.18.2011 Multi-State Storm Prediction Center Events
Slide 23: Tuscaloosa Birmingham with policy overlay
looking ahead annual shareholders meeting 05.18.2011 Tuscaloosa Birmingham with policy overlay
Slide 24: how do we compare?
how do we compare? annual shareholders meeting 05.18.2011 COMPANY COMBINED RATIO COMPANY COMBINED RATIO Travelers 94% West Bend Mutual 106% Rural Mutual 96% Rockford Mutual 106% Indiana Farmers 97% Sentry Insurance 107% Pioneer State Mutual 98% Midwest Family 107% Ohio Mutual 98% Wolverine Mutual 10
Slide 25: Stock Price vs Book Value: Peer Comparison
Stock Price vs Book Value: Peer Comparison Cincinnati Financial Donegal Group EMC Erie Indemnity Co. Hallmark Financial Services Harleysville Group Inc. HCC Ins. Holdings Inc. Horace Mann Ed. Corp. Meadowbrook Ins. Group Inc. Old Republic Int'l Corp. ProAssurance Corp. Selective Ins. Group Inc. Stat
Slide 26: How do we compare?
How do we compare? Rated A (Excellent) by A.M. Best Company Top 10 Ease of Doing Business Performer Deep Customer Connections, Inc. Third consecutive year how do we compare? annual shareholders meeting 05.18.2011
Slide 27: How do we compare?
How do we compare? Most Trustworthy Publicly Traded Companies in America Forbes and Audit Integrity Less than 5% of entire U.S. stock market qualifies how do we compare? annual shareholders meeting 05.18.2011
Slide 28: Holding Company
Holding Company looking ahead annual shareholders meeting 05.18.2011 annual shareholders meeting 05.18.2011
Slide 29: Legal Disclaimer
Legal Disclaimer 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 Securities Exchange Act of 1934 for
Slide 30: thank you
thank you
United Fire & Casualty — Shareholder Meeting (May 2011) on 6ix