United Fire Group, Inc · NASDAQ:UFCS
United Fire — Q4 2021 Earnings Presentation
15 slides from United Fire's earnings presentation, Feb 15, 2022
Slide 1: 2021 Fourth Quarter and Year-End Earnings Conference Call
2021 FOURTH QUARTER AND YEAR-END EARNINGS CONFERENCE CALL FEBRUARY 15, 2022
Slide 2: Consolidated Financial Results – Highlights
2021 FOURTH QUARTER EARNINGS CONFERENCE CALL Consolidated Financial Results – Highlights Quarter Ended December 31, 2021 2020 Year Ended December 31, 2021 2020 Net income (loss) per diluted share $ 2.28 $ (0.36) Net income (loss) per diluted share $ 3.16 $ (4.50) Net realized investment gains per di
Slide 3: Property and Casualty Business Highlights
2021 FOURTH QUARTER EARNINGS CONFERENCE CALL Property and Casualty Business Highlights Q4 2021 Results Combined ratio of 83.1% is the lowest quarterly combined ratio in over 14 years Core loss ratio improved 24.5 pts in Q4 2021 as compared to Q4 2020. Commercial auto loss ratio in Q4 2021 im
Slide 4: Property and Casualty Business
2021 FOURTH QUARTER EARNINGS CONFERENCE CALL Property and Casualty Business Strategic Plan: "One UFG boldly forward" Several initiatives aimed at long-term profitability, diversified growth, and continuous innovation. Portfolio management initiatives include diversifying our book of business and
Slide 5: P & C Market Conditions
2021 FOURTH QUARTER EARNINGS CONFERENCE CALL P & C Market Conditions Renewal rates increases Full Year 2021: Overall rate increase of 6.4% YTD, increase of 7.7% YTD excluding workers’ compensation. Rate increases led by commercial auto and commercial property Commercial auto average increase
Slide 6: 2021 Fourth Quarter Earnings Conference Call
2021 FOURTH QUARTER EARNINGS CONFERENCE CALL 6
Slide 7: 2021 Fourth Quarter Earnings Conference Call
2021 FOURTH QUARTER EARNINGS CONFERENCE CALL 7
Slide 8: Commercial Auto Moving Average Frequency and Exposure Units
2021 FOURTH QUARTER EARNINGS CONFERENCE CALL Commercial Auto Moving Average Frequency and Exposure Units Frequency down 1%, Exposure down 24% 221K 168k 8 Moving Average of Claims Frequency Moving Average of Exposure Units
Slide 9: Commercial Auto Exposure – by Quarter
2021 FOURTH QUARTER EARNINGS CONFERENCE CALL Commercial Auto Exposure – by Quarter 250000 221K 200000 168K 150000 100000 50000 0 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Earned Comm Auto Exposure Units Note: Bars represent a rolling 12 month view of written exposure. 9
Slide 10: Claim Counts of Major Commercial Casualty Lines
2021 FOURTH 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 21% FY 2021 vs FY 2020 Claims down 13% FY 2021 vs FY 2020 1200 400 1000 350 300 800 250 600 200 400 150 200 100 50 0 0 2021 2020
Slide 11: Claim Counts of Major Commercial Casualty Lines
2021 FOURTH QUARTER EARNINGS CONFERENCE CALL Claim Counts of Major Commercial Casualty Lines BOP Liability Claims Counts Work Comp Claim Counts Claims down 9% FY 2021 vs FY 2020 Claims down 17% FY 2021 vs FY 2020 80 300 60 250 200 40 150 20 100 50 0 0 11 2021 2020 2019 2021 2020 2019
Slide 12: Core Loss Ratio vs. Catastrophe Losses
2021 FOURTH QUARTER EARNINGS CONFERENCE CALL Core Loss Ratio vs. Catastrophe Losses 100.0% 90.0% 7.9% 80.0% 13.5% 13.5% 5.9% 70.0% 6.5% 7.4% 4.5% 10.2% 60.0% 50.0% 3.5% 84.4% 70.5% 68.9% 68.9% 40.0% 66.0% 65.4% 63.2% 57.5% 30.0% 45.7% 20.0% 10.0% 0.0% 2016 2017 2018 2019 2020 Q4 2020 2020 Q4 2021 20
Slide 13: Adjusted Loss Ratio
2021 FOURTH QUARTER EARNINGS CONFERENCE CALL Adjusted Loss Ratio 13
Slide 14: P & C Geographic Footprint
2021 FOURTH 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, a
Slide 15: Recognition
2021 FOURTH QUARTER EARNINGS CONFERENCE CALL Recognition Rated A (Excellent) by A.M. Best Company in December 2021 for the 28th 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