United Fire Group, Inc · NASDAQ:UFCS
United Fire — Q1 2024 Earnings Presentation
9 slides from United Fire's earnings presentation, May 8, 2024
Slide 1: First Quarter 2024 Results
FIRST QUARTER 2024 RESULTS MAY 8, 2024
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: First quarter 2024
Highlights First quarter 2024 ▪ Net income of $13.5 million driven by increased underwriting income and higher investment income ▪ Net premiums written(1) of $321.3 million increased 17.6% compared to the first quarter of 2023 ▪ GAAP combined ratio of 98.9%, including a loss ratio of 64.0% and under
Slide 4: Consolidated financial results
Financial results Consolidated financial results ▪ Net written premium growth continued in Q1, with strong rate in commercial lines and growth in alternative distribution ▪ Combined ratio improved 4.5 points vs. prior year driven by improvement in underlying combined ratio ▪ Q1 catastrophe loss rati
Slide 5: P&C results
P&C results Results ▪ First quarter net written premium growth driven by Core Commercial and Alternative Distribution ▪ Combined ratio improved 4.5 points vs. prior year ▪ Underlying combined ratio continues to improve as underwriting and expense management strategies impact results ▪ Q1 catastrophe
Slide 6: P&C portfolio production
P&C portfolio production Core Commercial Net written premium ($M) Alternative Distribution Specialty Surety ▪ First quarter net written premium growth driven by Core Commercial and $400,000 Alternative Distribution $350,000 $321 – Core Commercial growth fueled by rate increases $299 $300,000 $273 $1
Slide 7: Core commercial lines production detail
Core commercial lines production detail New business & premium retention trend New Business ($M) Premium Retention ▪ Steady Core Commercial retention and new business reflect $60 84% 88% 82% continued focus on profitability Millions 81% 80% 79% $40 78% $41 $40 $36 $20 $26 $27 68% $0 58% Q1 Q2 Q3 Q4
Slide 8: Investment portfolio composition & quality
Investment portfolio Investment portfolio composition & quality Portfolio Composition Fixed Maturity Credit Rating ▪ Q1 invested assets and cash equivalents of $1.9B, with 92% Rating % of Portfolio of invested assets in fixed income securities Other & Long-Term AAA 41% Partnerships 8% AA 28% ▪ High-
Slide 9: Investment income
Investment income Results ▪ Q1 net investment income increased +28% vs. prior year as fixed maturity income continues to grow ▪ Fixed maturity new money yield of 5.5% continues to outpace portfolio yield, increasing future earnings Net investment income trend ($M) Fixed Maturity Equity Inv. Expense