United Fire Group, Inc · NASDAQ:UFCS
United Fire — Shareholder Meeting (May 2013)
20 slides from United Fire's shareholder meeting presentation, May 16, 2013
Slide 1: 2013 Annual Meeting
2013 ANNUAL MEETING (@,74 Loe ) RANDY RAMLO CHIEF EXECUTIVE OFFICER MAY 15, 2013
Slide 2: 2012 Highlights
2012 Highlights 5 GAAP combined ratio improved to 101% from 112% P&C statutory capital increased from $566 million to $586 million Book value grew 6% to $28.90 GAAP expense ratio improved 4.2% to 31.5% Pure loss ratio improved in both commercial lines and personal lines Policy retention remained hig
Slide 3: Combined Ratio
Combined Ratio Losses ALAE ULAE U/W Expense Combined Ratio CS
Slide 4: Organic Growth in 2012
Organic Growth in 2012 CS Growth Components Rate Increases.................0ec0ee New Business... 2... Exposure Increases Overall organic growth............ 12.5%
Slide 5: Statutory Improvement
Statutory Improvement OS % Change Premium PH Combined Written Surplus Ratio United Fire Group LS 3.6 101.8 Top 25 Writers 35) 6.6 102.8 Top 100 Writers 41 6.4 103.1 P/C Industry 44 6.1 103.2 Source: AM Best Research, Best's Statistical Study, U.S. P/C - 2012 Financial Results, March 2013
Slide 6: Rate Improvement
Rate Improvement CS Rate Change Comparison = Al. 4.00% | = NS : Oe 12.00% Nod -16,00% 3 oF ol 051 oo p05 oP 0 1 0 oo so) 5? 0? —vUFG ——MarketScout —CIAB CLIPS
Slide 7: Investment Yield
Investment Yield we ) ae 55% 4.9% a 4.6% 45% 4.0% 3.7% 40% 3.0% 2.0% 10% 0.0% 2007 2008 2009 2010 2011 2012
Slide 8: Premium Growth
Premium Growth CS Net Written Premiums
Slide 9: Catastrophes
Catastrophes CS Catastrophe Loss Contribution (Sin millions, net of reinsurance) (Combined Ratio) Average CAT $46 milli CAT
Slide 10: Branson, Missouri Tornado
Branson, Missouri Tornado We began 2012 with unusual February tornadoes. We incurred $11.9 million in losses after reinsurance. The next two quarters were relatively calm until...
Slide 11: Super Storm Sandy
Super Storm Sandy On October 29, 2012: Super Storm Sandy hit Atlantic City, NJ with a vengeance killing 125 people. Estimated economic damage was $50 billion; estimated industry insure losses were $25 billion. UFCS frat losses of approximately $25 million. By the time Congress authorized funds for d
Slide 12: Top Eight States
Top Eight States (@a74 Le) Texas 88.0 129) lowa 83.9 23} California 79.5 11.6 New Jersey 47.9 7.0 Missouri 44.7 6.6 Lousiana 38.5 56 Illinois 2) 2 Colorado 31.8 4.7 All Other States 232.8 34.1
Slide 13: Capital Management
Capital Management CS During 2012, United Fire paid an annual cash dividend of $0.60 per share We repurchased 340,159 shares of common stock at an average price of $21.46 We are authorized by the Board of Directors to purchase an additional 1,129,720 shares of common stock (expires August 2014) We r
Slide 14: Stock Price Improvement
Stock Price Improvement (@_Z4 a i y FP SP ° PSM SG GG www GG ww www? GW” FS SPP LLG I PSP SGI SII ILS 52-week high $29.59; low $16.50; current $29.00
Slide 15: 2013 Objectives
2013 Objectives OS Continued rate improvement in commercial and personal lines Continued expansion/improvement of our BOP product Increase our workers’ compensation business Market to larger accounts (over $100,000) Appoint new agents in cities where we are under-represented Capital management - org
Slide 16: Life Company Initiatives for 2013
Life Company Initiatives for 2013 LS Geographic expansion - eight new states Life / Annuity mix - goal is 50/50 in order to reduce exposure to interest sensitive products Qualified care rider a huge success so continue Lapse ratio under 5% Automation commitment (ease of doing business)
Slide 17: Economy/Market Conditions
Economy/ Market Conditions (Expectations for 2013) CS Positive rate environment for six quarters Rate increases are expected through 2013 Positive audit premium for the first time since 2008 Our insureds are adding exposures again at renewal Policy count growth opportunities
Slide 18: 1Q13 Highlights
1013 Highlights CS Operating income per diluted share Book value per share Combined ratio Catastrophes impact on combined ratio Return on equity (ROE) $ 0.84 $30.01 90.3% 2.8% 12.0%
Slide 19: Forward-Looking Statements
_ Forward-Looking Statements This may contain f d-looki bout 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 forward-looking sta
Slide 20: United Fire Group, Inc.
United Fire Group, Inc. (a4 A United Fire & Casualty Company United Life Insurance Company Addison Insurance Company Financial Pacific Insurance Company Franklin Insurance Company Lafayette Insurance Company Mercer Insurance Company Mercer Insurance Company of New Jersey, Inc. Texas General Indemnit