Slide 1: 2019 Fourth Quarter & Year End Earnings Conference Call
2019 FOURTH QUARTER & YEAR END EARNINGS CONFERENCE CALL FEBRUARY 18, 2020
Slide 2: Financial Highlights – 4Q 2019 & Year End 2019
2019 FOURTH QUARTER & YEAR END EARNINGS CONFERENCE CALL Financial Highlights – 4Q 2019 & Year End 2019 4Q2019 4Q2018 2019 2018 Net income (loss) per diluted share $ (0.93) $ (1.17) $ 0.58 $ 1.08 Gain on sale of discontinued operations, net of tax $ - $ - $ - $ 1.07 After-tax net realized investment
Slide 3: Property and Casualty Business Highlights
2019 FOURTH QUARTER & YEAR END EARNINGS CONFERENCE CALL Property and Casualty Business Highlights Q4 2019 Results $273M in net premiums earned in 4Q 2019 – an increase of 0.9% over 4Q 2018 primarily due to rate increases Catastrophe losses added 7.1 percentage points to the combined ratio; hig
Slide 4: P & C Market Conditions
2019 FOURTH QUARTER & YEAR END EARNINGS CONFERENCE CALL P & C Market Conditions Commercial lines renewal rates increases averaged in mid-single digits Renewal rate increases led by commercial auto Commercial auto filed rate increases averaged in the high-single digits Commercial auto effecti
Slide 5: P & C Geographic Footprint
2019 FOURTH QUARTER & YEAR END EARNINGS CONFERENCE CALL P & C Geographic Footprint Regional Underwriting Offices in Cedar Rapids, Iowa Currently licensed and actively writing P & C and Surety (corporate headquarters); Denver, Colorado; Houston, Bonds in the 33 states shaded dark blue. The 9 states 5
Slide 6: Consolidated GAAP ROE
2019 FOURTH QUARTER & YEAR END EARNINGS CONFERENCE CALL Consolidated GAAP ROE 12.0% 10.5% 10.0% 8.0% 7.4% 6.0% 5.5% 5.3% 4.0% 3.0% 2.0% 1.6% 0.0% 2014 2015 2016 2017 2018 2019 6
Slide 7: Q4 2019 P & C Written Premium Change & Retention
2019 FOURTH QUARTER & YEAR END EARNINGS CONFERENCE CALL Q4 2019 P & C Written Premium Change & Retention P & C Written premium change › Commercial lines 3.1% › Personal lines (0.4%) › Group (all lines) 2.7% P & C Retention › Premium retention 83.7% › Policy retention 80.9% 7
Slide 8: Core Loss Ratio vs. Catastrophe Losses
2019 FOURTH QUARTER & YEAR END EARNINGS CONFERENCE CALL Core Loss Ratio vs. Catastrophe Losses 90.0% 7.1% 80.0% 5.9% 5.9% 70.0% 7.4% 4.5% 6.5% 6.5% 60.0% 3.8% 50.0% 78.6% 70.5% 69.5% 66.0% 40.0% 65.4% 63.2% 60.0% 57.2% 30.0% 20.0% 10.0% 0.0% 2014 2015 2016 2017 2018 2019 Q4 2018 Q4 2019 Core Losses
Slide 9: Adjusted Combined Ratio
2019 FOURTH QUARTER & YEAR END EARNINGS CONFERENCE CALL Adjusted Combined Ratio Adjusted Combined Ratio 4Q2019 4Q2018 2019 2018 P&C Loss Ratio (as reported) 85.7% 75.4% 76.4% 70.5% Impact of Catastrophes -7.1% -5.9% -5.9% -4.5% Loss Ratio Ex-Catastrophes 78.6% 69.5% 70.5% 66.0% Impact of Reserve Dev
Slide 10: Consolidated Income Yield
2019 FOURTH QUARTER & YEAR END EARNINGS CONFERENCE CALL Consolidated Income Yield 5.00% 4.50% 4.00% 3.50% 3.3% 3.2% 3.3% 3.0% 3.00% 2.7% 2.8% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2014 2015 2016 2017 2018 2019 10 NOTE: Total Invested Assets excludes Cash & Cash Equivalents
Slide 11: UFCS Stock Price (12/31/17 – 12/31/19)
2019 FOURTH QUARTER & YEAR END EARNINGS CONFERENCE CALL UFCS Stock Price (12/31/17 – 12/31/19) $65 $60 $55 $50 $45 $40 $35 $30 $25 $20 $15 Stock Price Book Value Linear (Stock Price) 11 52 Week High: $56.21 --- 52 Week Low: $40.86
Slide 12: Recognition
2019 FOURTH QUARTER & YEAR END 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 2006 by Insurance Journal magazine.