United Fire Group, Inc · NASDAQ:UFCS
United Fire — Shareholder Meeting (May 2012)
25 slides from United Fire's shareholder meeting presentation, May 17, 2012
Slide 1: People Making a Difference: 2012 Annual Meeting of Shareholders
PEOPLE MAKING A DIFFERENCE 2012 annual meeting of shareholders
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Slide 5: 2010 vs. 2011 Loss and Combined Ratios
2010 vs. 2011 2010 2011 Losses 51.7% 61.5% ALAE 8.5% 6.2% ULAE 7.9% 8.8% U/W Expense 31.8% 32.1% Combined Ratio 99.9% 108.6% NUMBERS PRESENTED ON A STATUTORY BASIS:
Slide 6: Financial Highlights: 4Q 2011 vs. 1Q 2012
CO ivancAL HIGHLIGHTS 4Q 2011 vs. 1Q 2012 FOURTH FIRST QUARTER 2011 QUARTER 2012 Pure Loss Ratio Excluding Cats 43.4% 34.1% Loss Expense Ratio 11.0% 15.8% Catastrophe Effect on Loss Ratio 6.6% 9.6% Net Loss Ratio 61.0% 59.5% Underwriting Expense 33.0% 34.3% Combined Ratio 94.0% 93.8% NUMBERS PRESENT
Slide 7: Investment Yields
INVESTMENT YIELDS
Slide 8: Book Value
BOOK VALUE 28 $27.29 27 26 24 23 22 at 20 NUMBERS PRESENTED IN GAAP
Slide 9: Positive Results
OO rtvaniiat ictus POSITIVE RESULTS » Rate increases » Lower loss ratios » Decreased frequency and severity » Reduced legal expenses » Improved and tightened underwriting guidelines » Premium growth
Slide 10: Financial Highlights: Premium Growth
FINANCIAL HIGHLIGHTS PREMIUM GROWTH in millions of dollars $551.9 $414.9 2010 2011 NUMBERS PRESENTED IN GAAP
Slide 11: Capital Management
OO rtvaniiat ictus CAPITAL MANAGEMENT » Repurchased 700k shares for $12.4 million » KeyBank National Association: $100 million syndicated credit facility
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Slide 13: Capital Management
OO rtvaniiat ictus CAPITAL MANAGEMENT » Paid off Mercer Insurance Group’s existing debt » Debt to Equity Ratio of 7.3 percent * Only debt: $45 million line of credit » Annual Cash Dividend remains $0.60 per share » Average dividend yield: 3.49%
Slide 14: Mercer Insurance Group Integration
MERCER INSURANCE GROUP INTEGRATION annual shareholders meeting 2012
Slide 15: Integration Progress
INTEGRATION PROGRESS » Agents retained » Increased premium » Investment management brought in-house » Consolidated core and catastrophe reinsurance programs » Policy renewals integrated into UFG systems » Converting West Coast to UFG systems » Planning East Coast conversion well underway
Slide 16: United Life Insurance Company
UNITED LIFE INSURANCE COMPANY YEARS AND MOVING FORWARD
Slide 17: United Life Insurance Company: Moving Forward
Oo UniTED LIFE INSURANCE COMPANY 50 YEARS AND MOVING FORWARD » Consistent, stable income » Straightforward products » Excellent service » Simple Solutions for Complex Times » Maintains very strong surplus position
Slide 18: United Life Insurance Company
UNITED LIFE INSURANCE COMPANY annual shareholders meeting 2012
Slide 19: U*Quote
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Slide 20: United Fire Group, Inc.
UNITED FIRE GROUP, INC.
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Slide 24: Legal Disclaimer
LEGAL DISCLAIMER Thi it our operations, anticipated performance and other similar matters. The arate Securities Litigation Reform Act of 1995 provides a safe harbor under the Securities Act of 1933 and the Securities Exchange Act of 1934 for forward-looking statements. The forward- looking statement
Slide 25: Transcript of President/CEO Presentation at Annual Shareholder Meeting
Transcript of President/CEO Presentation at Annual Shareholder Meeting - May 16, 2012 SLIDE #1 Good morning everybody and welcome. I always feel like for those of you who are long-time shareholders, Scotty McIntyre always prided himself in getting this meeting done quickly. I feel that my part is wh