United Fire Group, Inc · NASDAQ:UFCS
United Fire — Q2 2020 Earnings Presentation
13 slides from United Fire's earnings presentation, Aug 5, 2020
Slide 1: 2020 Second Quarter Earnings Conference Call
2020 SECOND QUARTER EARNINGS CONFERENCE CALL AUGUST 5, 2020
Slide 2: Financial Highlights – 2Q 2020
2020 SECOND QUARTER EARNINGS CONFERENCE CALL Financial Highlights – 2Q 2020 2Q2020 2Q2019 YTD2020 YTD2019 Net income (loss) per diluted share $ 0.24 $ (0.17) $ (2.66) $ 1.57 After-tax net realized investment gains (losses) $ 0.50 $ 0.42 $ (2.45) $ 1.24 Adjusted operating income (loss) per share $ (0
Slide 3: Property and Casualty Business Highlights
2020 SECOND QUARTER EARNINGS CONFERENCE CALL Property and Casualty Business Highlights Q2 2020 Results $263.6M in net premiums earned in 2Q 2020– a decrease of 4.7% over 2Q 2019 primarily due to strategic plan in non-renewal of underperforming accounts in commercial auto line of business. Cata
Slide 4: Property and Casualty Business 2020 Strategies
2020 SECOND QUARTER EARNINGS CONFERENCE CALL Property and Casualty Business 2020 Strategies Strategy to improve profitability includes underwriting initiatives, claims initiatives, analytics initiatives, portfolio management initiatives and innovation initiatives. Portfolio management initiative
Slide 5: P & C Market Conditions
2020 SECOND 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 and commercial property Commercial auto effective rate change averaged in the low double-digits Personal l
Slide 6: Q2 2020 P & C Written Premium Change & Retention
2020 SECOND QUARTER EARNINGS CONFERENCE CALL Q2 2020 P & C Written Premium Change & Retention P & C Written premium change › Commercial lines (3.4%) › Personal lines (7.7%) › Group (all lines) (3.6%) P & C Retention › Premium retention 80.0% › Policy retention 80.5% 6
Slide 7: Commercial Auto Moving Average Frequency and Exposure Units
2020 SECOND QUARTER EARNINGS CONFERENCE CALL Commercial Auto Moving Average Frequency and Exposure Units Frequency down 8% 7 Moving Average of Claims Frequency Moving Average of Exposure Units
Slide 8: Commercial Auto Exposure – by Quarter
2020 SECOND QUARTER EARNINGS CONFERENCE CALL Commercial Auto Exposure – by Quarter 300000 287K Exposure down 14% 290000 280000 270000 260000 250000 245K 240000 230000 220000 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Earned Comm Auto Exposure Units Note: Bars represent a rolling 12 month view of writte
Slide 9: Core Loss Ratio vs. Catastrophe Losses
2020 SECOND QUARTER EARNINGS CONFERENCE CALL Core Loss Ratio vs. Catastrophe Losses 80.0% 5.9% 8.0% 70.0% 7.4% 4.5% 4.8% 19.2% 12.4% 6.5% 60.0% 3.8% 50.0% 71.6% 70.5% 40.0% 66.5% 66.0% 65.4% 63.2% 61.1% 58.6% 57.2% 30.0% 20.0% 10.0% 0.0% 2015 2016 2017 2018 2019 Q2 2019 YTD Q2 2020 YTD 2019 2020 Cor
Slide 10: Adjusted Combined Ratio
2020 SECOND QUARTER EARNINGS CONFERENCE CALL Adjusted Combined Ratio Adjusted Combined Ratio 2Q2020 2Q2019 2020 YTD 2019 YTD P&C Loss Ratio (as reported) 77.8% 79.6% 73.5% 71.3% Impact of Catastrophes -19.2% -8.0% -12.4% -4.8% Loss Ratio Ex-Catastrophes 58.6% 71.6% 61.1% 66.5% Impact of Reserve Deve
Slide 11: UFCS Stock Price (06/30/18 – 06/30/20)
2020 SECOND QUARTER EARNINGS CONFERENCE CALL UFCS Stock Price (06/30/18 – 06/30/20) $65 $60 $55 $50 $45 $40 $35 $30 $25 $20 $15 Stock Price Book Value Linear (Stock Price) 11 52 Week High: $53.68 --- 52 Week Low: $22.08
Slide 12: P & C Geographic Footprint
2020 SECOND 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 12 Texas; Pe
Slide 13: Recognition
2020 SECOND 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