United Fire Group, Inc · NASDAQ:UFCS
United Fire — Q3 2020 Earnings Presentation
13 slides from United Fire's earnings presentation, Nov 4, 2020
Slide 1: 2020 Third Quarter Earnings Conference Call
2020 THIRD QUARTER EARNINGS CONFERENCE CALL NOVEMBER 4, 2020
Slide 2: Financial Highlights – 3Q 2020
2020 THIRD QUARTER EARNINGS CONFERENCE CALL Financial Highlights – 3Q 2020 3Q2020 3Q2019 YTD2020 YTD2019 Net income (loss) per diluted share $ (1.49) $ (0.09) $ (4.15) $ 1.48 After-tax net realized investment gains (losses) $ 0.48 $ 0.31 $ (1.97) $ 1.54 Goodwill impairment $ (0.60) $ 0.00 $ (0.60) $
Slide 3: Property and Casualty Business Highlights
2020 THIRD QUARTER EARNINGS CONFERENCE CALL Property and Casualty Business Highlights Q3 2020 Results $259.1M in net premiums earned in 3Q 2020– a decrease of 5.8% over 3Q 2019 primarily due to strategic plan in non-renewal of underperforming accounts in commercial auto line of business. We also
Slide 4: Property and Casualty Business 2020 Strategies
2020 THIRD QUARTER EARNINGS CONFERENCE CALL Property and Casualty Business 2020 Strategies Strategy to improve profitability includes underwriting initiatives, claims initiatives, analytics initiatives, portfolio management initiatives and innovation initiatives. Portfolio management initiatives
Slide 5: P & C Market Conditions
2020 THIRD QUARTER EARNINGS CONFERENCE CALL P & C Market Conditions Average renewal rates increases: Renewal rate increases led by commercial auto and commercial property Commercial auto average renewal rate increase remained in the low double-digits at 11.5% Commercial property average rene
Slide 6: Commercial Auto Moving Average Frequency and Exposure Units
2020 THIRD QUARTER EARNINGS CONFERENCE CALL Commercial Auto Moving Average Frequency and Exposure Units Frequency down 13% 6 Moving Average of Claims Frequency Moving Average of Exposure Units
Slide 7: Commercial Auto Exposure – by Quarter
2020 THIRD QUARTER EARNINGS CONFERENCE CALL Commercial Auto Exposure – by Quarter Exposure down 16% Note: Bars represent a rolling 12 month view of written exposure. 7
Slide 8: Core Loss Ratio vs. Catastrophe Losses
2020 THIRD QUARTER EARNINGS CONFERENCE CALL Core Loss Ratio vs. Catastrophe Losses 100.0% 90.0% 80.0% 21.4% 5.9% 7.0% 5.5% 15.3% 70.0% 6.5% 7.4% 4.5% 60.0% 3.8% 50.0% 70.5% 70.0% 69.2% 67.8% 40.0% 66.0% 65.4% 63.8% 63.2% 57.2% 30.0% 20.0% 10.0% 0.0% 2015 2016 2017 2018 2019 Q3 2019 YTD Q3 2020 YTD 2
Slide 9: 2020 THIRD QUARTER EARNINGS CONFERENCE CALL
2020 THIRD QUARTER EARNINGS CONFERENCE CALL 9 Source: Guy Carpenter
Slide 10: Adjusted Combined Ratio
2020 THIRD QUARTER EARNINGS CONFERENCE CALL Adjusted Combined Ratio Adjusted Combined Ratio 3Q2020 3Q2019 2020 YTD 2019 YTD P&C Loss Ratio (as reported) 90.6% 77.0% 79.1% 73.3% Impact of Catastrophes -21.4% -7.0% -15.3% -5.5% Loss Ratio Ex-Catastrophes 69.2% 70.0% 63.8% 67.8% Impact of Reserve Devel
Slide 11: UFCS Stock Price (09/30/18 – 09/30/20)
2020 THIRD QUARTER EARNINGS CONFERENCE CALL UFCS Stock Price (09/30/18 – 09/30/20) $60 $55 $50 $45 $40 $35 $30 $25 $20 $15 Stock Price Book Value Linear (Stock Price) 11 52 Week High: $47.06 --- 52 Week Low: $19.47
Slide 12: P & C Geographic Footprint
2020 THIRD QUARTER EARNINGS CONFERENCE CALL P & C Geographic Footprint Headquartered in Cedar Rapids, Iowa, we are Regional Underwriting Offices in Cedar Rapids, Iowa represented by independent agents throughout the (corporate headquarters); Denver, Colorado; Houston, country in 48 states, plus the
Slide 13: Recognition
2020 THIRD QUARTER EARNINGS CONFERENCE CALL Recognition Rated A (Excellent) by A.M. Best Company in December 2019 for the 26th consecutive year. United Fire & Casualty Co. has been named a Super Regional Property/Casualty Insurer™ every year since 2007 by Insurance Journal magazine. Placed on