United Fire Group Inc Stock Price, News & Analysis

AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a-" (Excellent) for the property/casualty subsidiaries of United Fire Group, Inc. (UFG) [NASDAQ: UFCS]. The outlook for these ratings is stable. The ratings reflect United Fire & Casualty Group's very strong balance sheet strength, marginal operating performance, neutral business profile, and appropriate enterprise risk management.

The stable outlook is based on AM Best's expectation of stabilization in the group's operating performance and balance sheet strength. The group benefits from a well-established position in core markets, offering diversified commercial lines products. However, it remains exposed to potential catastrophe and weather-related losses.

United Fire Group (UFCS) reported a net loss of $2.7 million ($0.11 loss per diluted share) for Q2 2024. Key highlights include:

- Net premiums written increased 9.0% to $326.1 million
- Net investment income rose 59.2% to $18.0 million
- GAAP combined ratio improved 27.4 points to 105.6%
- Underlying combined ratio improved 4.8 points to 94.4%

The company faced challenges, including a $3.2 million pre-tax charge for an estimated contingent liability related to rating errors. Despite this, UFG saw improvements in underlying profitability and continued premium growth. The company remains focused on executing its strategic business plan to drive further performance improvements.

UFCU (University Federal Credit Union) has launched its innovative Mobile Branch, the first of its kind in Central Texas, aimed at enhancing financial inclusion and access to services for underbanked communities. The mobile branch will provide financial products, services, education, and community support directly to areas with banking presence. This initiative addresses the needs of an estimated 24% of Texas households that are unbanked or underbanked.

The UFCU Mobile Branch offers a wide range of services, including ATM access, account set-up, instant-issue debit cards, loan applications, and educational seminars. By partnering with community organizations, UFCU aims to better understand and serve the unique needs of these communities. The mobile branch will also support disaster recovery efforts and participate in community events, demonstrating UFCU's commitment to fostering strong relationships with its members and partners.

United Fire Group (UFG) (Nasdaq: UFCS) has announced its upcoming 2024 second quarter earnings call. The company will release its Q2 2024 earnings results after market close on Tuesday, August 6, 2024. The earnings call is scheduled for Wednesday, August 7, 2024, at 9:00 a.m. central time.

Interested parties can join the teleconference using the toll-free number 1-844-492-3723 (international: 1-412-542-4184). A digital replay will be available until August 14, 2024. The call will also be webcast and archived on UFG's investor relations page. UFG, founded in 1946, is a property and casualty insurer licensed in 50 states and the District of Columbia, with an A.M. Best rating of 'A-' (Excellent).

AM Best has assigned a Long-Term Issue Credit Rating of “bbb-” (Good) to United Fire Group's (UFG) $70 million senior unsecured notes, due May 31, 2039, with a 9% interest rate. The outlook is stable. The rating agency also withdrew the indicative rating on previously forthcoming debt following issuance confirmation. UFG's current ratings and those of its subsidiaries remain unchanged. Financial leverage and EBIT coverage are within acceptable ranges, with expectations for stable cash flow, capitalization, and operating results in the near term.

United Fire Group (UFG) (NASDAQ: UFCS), a property and casualty insurance holding company, announced the completion of a $70 million senior unsecured notes placement. The 9.0% notes, due May 31, 2039, were issued in a private offering led by Ares Management Credit funds. The proceeds will support UFG's anticipated growth and general corporate purposes. UFG President and CEO Kevin Leidwinger expressed satisfaction with the capital raise, emphasizing its alignment with the company's long-term growth strategies. Stonybrook Capital served as UFG's exclusive financial advisor for the offering.

Jeff Hughes from Ares Credit Group highlighted the investment's fit within their focus on creative and flexible private credit solutions. The Ares Alternative Credit strategy, managing approximately $36.5 billion in assets, focuses on various asset-based credit investments.

United Fire Group (Nasdaq: UFCS) announced the election of four Class C Directors at its Annual Meeting of Shareholders on May 15, 2024. The newly elected directors are Mark A. Green, Christopher R. Drahozal, Lura E. McBride, and George D. Milligan, each to serve a three-year term expiring in 2027. Additionally, shareholders ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2024 and approved the compensation of the company's named executive officers.

United Fire Group (Nasdaq: UFCS) announced a quarterly cash dividend of $0.16 per share. This dividend will be payable on June 14, 2024, to shareholders of record as of May 31, 2024. UFG has a notable history of paying quarterly dividends, with this announcement marking the 225th consecutive quarterly dividend since March 1968.

United Fire Group, Inc. reported a net income of $13.5 million ($0.52 per diluted share) and adjusted operating income of $0.56 per diluted share for the first quarter of 2024. The company saw growth in net premiums written, with a 17.6% increase compared to the first quarter of 2023. Additionally, the GAAP combined ratio improved to 98.9%, with a loss ratio of 64.0% and an underwriting expense ratio of 34.9%. Net investment income increased by 28.5% to $16.3 million. Book value per common share increased to $29.13 as of March 31, 2024.