United Fire Group, Inc · NASDAQ:UFCS
United Fire — Q4 2020 Earnings Presentation
14 slides from United Fire's earnings presentation, Feb 17, 2021
Slide 1: 2020 Fourth Quarter Earnings Conference Call
2020 FOURTH QUARTER EARNINGS CONFERENCE CALL FEBRUARY 17, 2021
Slide 2: Financial Highlights – 4Q 2020
2020 FOURTH QUARTER EARNINGS CONFERENCE CALL Financial Highlights – 4Q 2020 4Q2020 4Q2019 YTD2020 YTD2019 Net income (loss) per diluted share $ (0.36) $ (0.93) $ (4.50) $ 0.58 After-tax net realized investment gains (losses) $ 0.94 $ 0.11 $ (1.02) $ 1.66 Goodwill impairment $ 0.00 $ 0.00 $ (0.60) $
Slide 3: Property and Casualty Business Highlights
2020 FOURTH QUARTER EARNINGS CONFERENCE CALL Property and Casualty Business Highlights Q4 2020 Results $263.6M in net premiums earned in 4Q 2020– a decrease of 3.5% over 4Q 2019 primarily due to strategic plan in non-renewal of underperforming accounts in commercial auto line of business. We als
Slide 4: Property and Casualty Business
2020 FOURTH 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 boo
Slide 5: P & C Market Conditions
2020 FOURTH QUARTER EARNINGS CONFERENCE CALL P & C Market Conditions Average renewal rates increases in Q4: Renewal rate increases led by commercial auto and commercial property Commercial auto average renewal rate increase remained in the low double-digits at 10.5% Commercial property avera
Slide 6: Commercial Lines New Business Premium Breakdown
2020 FOURTH QUARTER EARNINGS CONFERENCE CALL Commercial Lines New Business Premium Breakdown Auto 32% 24% 2019 23% 2020 Liability 24% Property 13% 17% Inland Marine 9% 12% Work Comp 8% 8% BOP 7% 8% Umbrella 7% 7% 6
Slide 7: Commercial Auto Moving Average Frequency and Exposure Units
Q4 2020 FOURTH QUARTER EARNINGS CONFERENCE CALL Commercial Auto Moving Average Frequency and Exposure Units Frequency down 17%, Exposure down 19% 273K 222K 7 Moving Average of Claims Frequency Moving Average of Exposure Units
Slide 8: Commercial Auto Exposure – by Quarter
Q4 2020 FOURTH QUARTER EARNINGS CONFERENCE CALL Commercial Auto Exposure – by Quarter 300000 273K Exposure down 19% 250000 222K 200000 150000 100000 50000 0 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Earned Comm Auto Exposure Units Note: Bars represent a rolling 12 month view of written exposure. 8
Slide 9: Core Loss Ratio vs. Catastrophe Losses
2020 FOURTH QUARTER EARNINGS CONFERENCE CALL Core Loss Ratio vs. Catastrophe Losses 100.0% 90.0% 7.9% 7.1% 80.0% 13.5% 5.9% 70.0% 6.5% 7.4% 4.5% 60.0% 3.8% 50.0% 84.4% 78.6% 70.5% 68.9% 40.0% 66.0% 65.4% 63.2% 57.2% 30.0% 20.0% 10.0% 0.0% 2015 2016 2017 2018 2019 2020 Q4 2019 Q4 2020 Core Losses Cat
Slide 10: Adjusted Combined Ratio
2020 FOURTH QUARTER EARNINGS CONFERENCE CALL Adjusted Combined Ratio Adjusted Combined Ratio 4Q2020 4Q2019 2020 YTD 2019 YTD P&C Loss Ratio (as reported) 92.3% 85.7% 82.4% 76.4% Impact of Catastrophes -7.9% -7.1% -13.5% -5.9% Loss Ratio Ex-Catastrophes 84.4% 78.6% 68.9% 70.5% Impact of Reserve Devel
Slide 11: Loss Ratio Excluding Personal Lines
2020 FOURTH QUARTER EARNINGS CONFERENCE CALL Loss Ratio Excluding Personal Lines 2018 2019 2020 Loss Ratio Excluding Personal Lines FY FY FY Total impact from Personal P&C Loss Ratio (as reported) 70.5% 76.4% 82.4% Lines on Reported Loss Ratio Impact of Personal Lines Non-CAT -4.5% -4.7% -4.5% 2020
Slide 12: UFCS Stock Price (12/31/18 – 12/31/20)
2020 FOURTH QUARTER EARNINGS CONFERENCE CALL UFCS Stock Price (12/31/18 – 12/31/20) $60 $55 $50 $45 $40 $35 $30 $25 $20 $15 Stock Price Book Value Linear (Stock Price) 12 52 Week High: $47.52 --- 52 Week Low: $18.83
Slide 13: P & C Geographic Footprint
2020 FOURTH QUARTER EARNINGS CONFERENCE CALL P & C Geographic Footprint Headquartered in Cedar Rapids, Iowa, we are Regional Underwriting Offices in Cedar Rapids, Iowa represented by independent agents throughout the (corporate headquarters); Denver, Colorado; Houston, country in 49 states, plus the
Slide 14: Recognition
2020 FOURTH 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 2007 by Insurance Journal magazine. Placed on