United Fire Group, Inc · NASDAQ:UFCS
United Fire — Q4 2024 Earnings Presentation
8 slides from United Fire's earnings presentation, Feb 12, 2025
Slide 1: Fourth Quarter 2024 Results
FOURTH QUARTER 2024 RESULTS FEBRUARY 12, 2025
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: Financial highlights
Financial highlights Consolidated financial results ▪ Full year net income of $62M with ROE exceeding 8% ▪ Net written premium growth of 13% in the quarter resulted in record annual net written premium exceeding $1.2B ▪ Achieved underwriting profit for the fourth quarter and full year on continued u
Slide 4: Combined ratio trend
Combined ratio trend Recent quarterly trend ▪ 2024 fourth quarter combined ratio of 94.4% best in 11 quarters; full year Underlying Loss Ratio Expense Ratio Catastrophe Losses Reserve Development combined ratio of 99.2% best since 2015 133% 103% 21% 102% 99% 99% 106% 98% ▪ 2024 underlying loss ratio
Slide 5: P&C portfolio production
P&C portfolio production Net written premium ($M) ▪ Net written premium grew over prior year in each quarter of 2024, making Core Commercial Alternative Distribution Specialty Surety for three consecutive years of annual net written premium growth $350,000 $321 $326 $300,000 $273 $299 $10 $14 $7 $12
Slide 6: Core Commercial lines production detail
Core Commercial lines production detail New business ($M) ▪ Core Commercial new business significantly increased over prior year $60 $50 ▪ Retention stable reflecting continued focus on profitability $49 $40 $41 $40 $40 $43 ▪ Total Q4 renewal premium change strong at 11.9%, excluding workers’ $30 $3
Slide 7: Investment portfolio
Investment portfolio Investment portfolio composition & quality Portfolio Composition Fixed Maturity Credit Rating ▪ Q4 invested assets of $2.1B, with 89% of invested assets in fixed Other & Long- Rating % of Portfolio income securities Term AAA 54% Partnerships 11% AA 13% ▪ High-quality portfolio w
Slide 8: Investment income
Investment income Results ▪ Q4 net investment income of $23M is 21% above prior year, supported by continued improvement in fixed maturity portfolio economics ▪ Q4 fixed maturity yield of 4.2% up ~80 basis points over prior year driven by ongoing reinvestment and portfolio management actions ▪ Curre