United Fire Group, Inc · NASDAQ:UFCS
United Fire — Q4 2023 Earnings Presentation
9 slides from United Fire's earnings presentation, Feb 14, 2024
Slide 1: Fourth Quarter & Full Year 2023 Results
FOURTH QUARTER & FULL YEAR 2023 RESULTS FEBRUARY 14, 2024
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: Highlights
Highlights Fourth quarter 2023 ▪ Net income of $19.6 million driven by increased underwriting income and higher investment income ▪ Net premiums written(1) of $246.8 million increased 5.2% compared to the fourth quarter of 2022 ▪ GAAP combined ratio of 99.2%, including a loss ratio of 64.8% and unde
Slide 4: Financial results
Financial results Consolidated financial results ▪ Net written premium growth continued in Q4 with full year premium exceeding $1 billion ▪ Q4 2023 combined ratio below prior year due to lower catastrophe losses and reserve development while 2022 expense ratio benefitted from one-time items ▪ Q4 res
Slide 5: P&C results
P&C results Results ▪ Fourth quarter and annual net written premium growth supported by Core Commercial and Alternative Distribution ▪ Q4 2023 combined ratio below prior year due to lower catastrophe losses and reserve development while 2022 expense ratio benefitted from one-time items ▪ Full year c
Slide 6: P&C portfolio production
P&C portfolio production Core Commercial Net written premium ($M) Alternative Distribution Specialty Surety ▪ Net written premium growth supported by Core Commercial and Alternative Distribution $299 $300,000 $273 $10 – Core commercial growing with all production metrics improved $261 $25 $241 $247
Slide 7: Core commercial lines production detail
Core commercial lines production detail New business & premium retention trend New Business ($M) Premium Retention ▪ Core Commercial new business and premium retention above prior $60 90% 84% year Millions 83% 81% 80% $40 76% 77% 76% 80% 74% $38 $39 $20 $27 $28 70% $22 $19 $13 $15 $0 60% Q1 Q2 Q3 Q4
Slide 8: Investment portfolio
Investment portfolio Investment portfolio composition & quality Portfolio Composition Fixed Maturity Credit Rating ▪ Q4 invested assets of $1.9B, with 89% of assets in fixed Rating % of Portfolio income securities Equity 3% Other & Long- AAA 38% Term Partnerships 8% AA 27% ▪ High-quality portfolio w
Slide 9: Investment income
Investment income Results ▪ Q4 Net investment income increased vs. prior year on higher fixed maturity yields and improved LP valuation ▪ Fixed maturity new money yields increased to 6.3% in Q4 2023 Net investment income trend ($M) Fixed Maturity Equity Inv. Expense Other & Long-Term Investments $25