United Fire Group, Inc · NASDAQ:UFCS
United Fire — Q1 2020 Earnings Presentation
12 slides from United Fire's earnings presentation, May 6, 2020
Slide 1: 2020 First Quarter Earnings Conference Call
2020 FIRST QUARTER EARNINGS CONFERENCE CALL MAY 6, 2020
Slide 2: Financial Highlights – 1Q 2020
2020 FIRST QUARTER EARNINGS CONFERENCE CALL Financial Highlights – 1Q 2020 1Q2020 1Q2019 Net income (loss) per diluted share $ (2.90) $ 1.74 After-tax net realized investment gains(losses)per share $ (2.95) $ 0.83 Adjusted operating income per share $ 0.05 $ 0.91 Catastrophe losses per share $ 0.48
Slide 3: Property and Casualty Business Highlights
2020 FIRST QUARTER EARNINGS CONFERENCE CALL Property and Casualty Business Highlights Q1 2020 Results $268.8M in net premiums earned in 1Q 2020– an increase of 2.5% over 1Q 2019 primarily due to rate increases Catastrophe losses added 5.7 percentage points to the combined ratio; higher than ou
Slide 4: P & C Market Conditions
2020 FIRST QUARTER 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 effective rate change averaged in the low double-digits Personal lines renewal rate increas
Slide 5: Q1 2020 P & C Written Premium Change & Retention
2020 FIRST QUARTER EARNINGS CONFERENCE CALL Q1 2020 P & C Written Premium Change & Retention P & C Written premium change › Commercial lines 1.2% › Personal lines (4.2%) › Group (all lines) 1.2% P & C Retention › Premium retention 81.9% › Policy retention 80.6% 5
Slide 6: Commercial Auto Moving Average Frequency and Exposure Units
2020 FIRST QUARTER EARNINGS CONFERENCE CALL Commercial Auto Moving Average Frequency and Exposure Units 6 Moving Average of Claims Frequency Moving Average of Exposure Units
Slide 7: Core Loss Ratio vs. Catastrophe Losses
2020 FIRST QUARTER EARNINGS CONFERENCE CALL Core Loss Ratio vs. Catastrophe Losses 80.0% 5.9% 70.0% 7.4% 4.5% 5.7% 6.5% 1.4% 60.0% 3.8% 50.0% 70.5% 40.0% 66.0% 65.4% 63.7% 63.2% 61.2% 57.2% 30.0% 20.0% 10.0% 0.0% 2015 2016 2017 2018 2019 Q1 2019 Q1 2020 Core Losses Cat Losses 7 Cat losses in Q1 2020
Slide 8: Adjusted Combined Ratio
2020 FIRST QUARTER EARNINGS CONFERENCE CALL Adjusted Combined Ratio Adjusted Combined Ratio 1Q2020 1Q2019 P&C Loss Ratio (as reported) 69.4% 62.6% Impact of Catastrophes -5.7% -1.4% Loss Ratio Ex-Catastrophes 63.7% 61.2% Impact of Reserve Development 5.1% 1.8% Loss Ratio Ex - CAT and Ex-Development
Slide 9: Consolidated Income Yield
2020 FIRST QUARTER EARNINGS CONFERENCE CALL Consolidated Income Yield 5.00% 4.50% 4.00% 3.50% 3.2% 3.3% 3.0% 3.00% 2.7% 2.8% 2.50% 2.2% 2.00% 1.50% 1.00% 0.50% 0.00% 2015 2016 2017 2018 2019 2020 Q1 9 NOTE: Total Invested Assets excludes Cash & Cash Equivalents
Slide 10: UFCS Stock Price (03/31/18 – 03/31/20)
2020 FIRST QUARTER EARNINGS CONFERENCE CALL UFCS Stock Price (03/31/18 – 03/31/20) $65 $60 $55 $50 $45 $40 $35 $30 $25 $20 $15 Stock Price Book Value Linear (Stock Price) 10 52 Week High: $53.68 --- 52 Week Low: $25.00
Slide 11: P & C Geographic Footprint
2020 FIRST QUARTER 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 11 Texas; Pen
Slide 12: Recognition
2020 FIRST 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 2006 by Insurance Journal magazine. Placed on