United Fire Group, Inc · NASDAQ:UFCS
United Fire — Q1 2021 Earnings Presentation
15 slides from United Fire's earnings presentation, May 5, 2021
Slide 1: 2021 First Quarter Earnings Conference Call
2021 FIRST QUARTER EARNINGS CONFERENCE CALL MAY 5, 2021
Slide 2: Financial Highlights – 1Q 2021
2021 FIRST QUARTER EARNINGS CONFERENCE CALL Financial Highlights – 1Q 2021 1Q2021 1Q2020 Net income (loss) per diluted share $ 0.74 $ (2.90) After-tax net realized investment gains (losses) $ 0.77 $ (2.95) Adjusted operating income (loss) per share $ (0.03) $ 0.05 Catastrophe losses per share $ 0.91
Slide 3: Property and Casualty Business Highlights
2021 FIRST QUARTER EARNINGS CONFERENCE CALL Property and Casualty Business Highlights Q1 2021 Results $259.2M in net premiums earned in Q1 2021– a decrease of 3.6% over 1Q 2020 primarily due to strategic plan in non-renewal of underperforming accounts in commercial auto line of business. Catas
Slide 4: Property and Casualty Business
2021 FIRST QUARTER EARNINGS CONFERENCE CALL Property and Casualty Business Strategic Plan: "One UFG boldly forward" Several initiatives aimed at long-term profitability, diversification and growth in profitable lines, and innovation. Portfolio management initiatives include diversifying our book
Slide 5: P & C Market Conditions
2021 FIRST QUARTER EARNINGS CONFERENCE CALL P & C Market Conditions Average renewal rates increases in Q1: Renewal rate increases led by commercial auto and commercial property Commercial auto average renewal rate increase remained in the low double-digits at 10.8% Commercial property averag
Slide 6: 2021 First Quarter Earnings Conference Call
2021 FIRST QUARTER EARNINGS CONFERENCE CALL 6
Slide 7: Commercial Auto Moving Average Frequency and Exposure Units
2021 FIRST QUARTER EARNINGS CONFERENCE CALL Commercial Auto Moving Average Frequency and Exposure Units Frequency down 13%, Exposure down 23% 265K 203K 7 Moving Average of Claims Frequency Moving Average of Exposure Units
Slide 8: Commercial Auto Exposure – by Quarter
2021 FIRST QUARTER EARNINGS CONFERENCE CALL Commercial Auto Exposure – by Quarter 300000 278K 250000 203K 200000 150000 100000 50000 0 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Earned Comm Auto Exposure Units Note: Bars represent a rolling 12 month view of written exposure. 8
Slide 9: Claim Counts of Major Commercial Casualty Lines
2021 FIRST QUARTER EARNINGS CONFERENCE CALL Claim Counts of Major Commercial Casualty Lines CA BI+PD Liability Claims Counts CGL BI+PD Liability Claims Counts Claims down 33% Mar YTD 2021 vs Mar YTD 2020 Claims down 9% Mar YTD 2021 vs Mar YTD 2020 1200 400 1000 350 300 800 250 600 200 400 150 200 10
Slide 10: Claim Counts of Major Commercial Casualty Lines
2021 FIRST QUARTER EARNINGS CONFERENCE CALL Claim Counts of Major Commercial Casualty Lines BOP Liability Claims Counts Work Comp Claim Counts Claims down 29% Mar YTD 2021 vs Mar YTD 2020 Claims down 22% Mar YTD 2021 vs Mar YTD 2020 80 300 60 250 200 40 150 20 100 50 0 0 10 2021 2020 2019 2021 2020
Slide 11: Core Loss Ratio vs. Catastrophe Losses
2021 FIRST QUARTER EARNINGS CONFERENCE CALL Core Loss Ratio vs. Catastrophe Losses 90.0% 80.0% 13.5% 5.9% 11.3% 70.0% 7.4% 4.5% 5.7% 6.5% 60.0% 3.8% 50.0% 70.5% 40.0% 68.9% 68.3% 66.0% 65.4% 63.7% 63.2% 57.2% 30.0% 20.0% 10.0% 0.0% 2015 2016 2017 2018 2019 2020 Q1 2020 Q1 2021 Core Losses Cat Losses
Slide 12: Adjusted Combined Ratio
2021 FIRST QUARTER EARNINGS CONFERENCE CALL Adjusted Combined Ratio Adjusted Combined Ratio 1Q2021 1Q2020 P&C Loss Ratio (as reported) 79.6% 69.4% Impact of Catastrophes -11.3% -5.7% Loss Ratio Ex-Catastrophes 68.3% 63.7% Impact of Reserve Development 5.1% 5.1% Loss Ratio Ex - CAT and Ex-Development
Slide 13: UFCS Stock Price (03/31/19 – 03/31/21)
2021 FIRST QUARTER EARNINGS CONFERENCE CALL UFCS Stock Price (03/31/19 – 03/31/21) $55 $50 $45 $40 $35 $30 $25 $20 $15 Stock Price Book Value Linear (Stock Price) 13 52 Week High: $36.40 --- 52 Week Low: $18.83
Slide 14: P & C Geographic Footprint
2021 FIRST QUARTER EARNINGS CONFERENCE CALL P & C Geographic Footprint Headquartered in Cedar Rapids, Iowa, UFG is represented by Regional Underwriting Offices in Cedar Rapids, Iowa independent agents throughout the country. UFG is licensed and (corporate headquarters); Denver, Colorado; Houston, ac
Slide 15: Recognition
2021 FIRST QUARTER EARNINGS CONFERENCE CALL Recognition Rated A (Excellent) by A.M. Best Company in December 2020 for the 27th 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