United Fire Group, Inc · NASDAQ:UFCS
United Fire — Q3 2022 Earnings Presentation
8 slides from United Fire's earnings presentation, Nov 3, 2022
Slide 1: Third Quarter 2022 Results
THIRD QUARTER 2022 RESULTS NOVEMBER 3, 2022
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: Third quarter highlights
Third quarter highlights In the third quarter of 2022, United Fire Group, Inc. reported: ▪ Net Loss of $0.91 per Diluted Share and Non-GAAP Adjusted Operating Loss of $0.47 per Diluted Share ▪ Net premiums earned decreased 0.3% compared to the third quarter of 2021 ▪ Net premiums written(1) increase
Slide 4: Q3 2022 results: Consolidated financial results
Q3 2022 results Consolidated financial results ▪ Q3 results reflect industrywide events while year-to- date results reflect benefits of strategies to deliver profitable growth ▪ Growth momentum accelerating with Q3 net written premium +9% over prior year ▪ Underlying loss ratio continues to improve
Slide 5: P&C results
P&C results Results ▪ Written premium growth accelerated in Q3 ‘22, driven by specialized lines ▪ Elevated Q3 combined ratio driven by catastrophe losses and prior year reserve strengthening ▪ Underlying loss ratio continues to improve, total combined ratio 5 points lower than 2021 on a year-to-date
Slide 6: Commercial insurance production
Commercial insurance production New business & premium retention trend New Business ($M) Premium Retention ▪ Retention and new business trends stabilizing premium 77% $30 74% 75% 75% 80% 72% 73% 70% $17 $19 70% ▪ Retention improving while average renewal price change remains elevated $20 $15 $14 $14
Slide 7: Investment income
Investment income Results ▪ Net Investment income flat in Q3 ‘22 vs. prior year as increasing fixed income yields offset by declining limited partnership valuation ▪ Efforts to shorten fixed income duration paying off as we reinvest at higher yields ▪ Fixed income new money yields have increased fro
Slide 8: Investment portfolio
Investment portfolio Investment portfolio composition & quality Q3 Portfolio Composition Fixed Maturity Credit Rating ▪ Q3 Invested assets of $1.8B, with 85% of assets in fixed income Rating % of Portfolio securities Equity 8% Other & Long- AAA 35% ▪ High-quality portfolio with 82% of fixed maturity