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United Fire Group (Nasdaq: UFCS) nets $33.4M Q2 profit, ROE 13.2%

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

United Fire Group, Inc. reported strong second-quarter 2026 results, with net income of $33.4 million or $1.29 per diluted share, a 45% increase over the prior year. Adjusted operating income rose 42% to $33.7 million or $1.30 per diluted share. Net written premium grew 9% to $406.4 million, while net earned premium increased 12.5%.

The combined ratio improved 1.1 points year over year to 95.3%, including an underlying combined ratio of 92.6%, catastrophe loss ratio of 2.7%, and no prior-year reserve development. Net investment income increased 33% to $28.9 million. Book value per share rose $1.14 to $38.02 as of June 30, 2026, and adjusted book value per share increased $1.85 to $39.72. Return on equity was 13.2% for the first six months of 2026. Management highlighted these as record net income, record net written premium, and the best second-quarter combined ratio in more than 15 years. The company also declared and paid a $0.20 per share cash dividend during the quarter.

Positive

  • Q2 2026 net income grew by $10.4 million to $33.4 million (45% increase), with adjusted operating income reaching $33.7 million.
  • Combined ratio improved to 95.3%, with an underlying combined ratio of 92.6% and catastrophe loss ratio of only 2.7%, the best second-quarter underwriting performance in over 15 years.
  • Net written premium rose 9% to $406.4 million, supported by growth in core commercial business; net earned premium increased 12.5%.
  • Net investment income increased 33% to $28.9 million, contributing to a six-month return on equity of 13.2%, the strongest year-to-date performance in two decades.
  • Book value per share climbed to $38.02, up $1.14 since December 31, 2025, while adjusted book value per share rose to $39.72, up $1.85.

Negative

  • None.

Insights

Analyzing...

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net income Q2 2026 $33.4 million Net income for the quarter ended June 30, 2026
Adjusted operating income Q2 2026 $33.7 million Adjusted operating income for the quarter ended June 30, 2026
Net earned premium Q2 2026 $354,127 thousand Net earned premium for the three months ended June 30, 2026
Combined ratio Q2 2026 95.3 % Combined ratio for the three months ended June 30, 2026
Net written premium Q2 2026 $406,358 thousand Net written premium for the three months ended June 30, 2026
Net investment income Q2 2026 $28,928 thousand Net investment income for the three months ended June 30, 2026
Book value per share $38.02 Book value per share as of June 30, 2026
Return on equity 13.2 % ROE for the six months ended June 30, 2026
combined ratio financial
"Combined ratio improved 1.1 points to 95.3%, composed of an underlying loss ratio of 57.2%"
The combined ratio is a way insurance companies measure how well they are doing by adding up all their costs and claims and comparing them to the money they earn from premiums. If the ratio is below 100%, it means the company is making a profit; if it's above 100%, they are losing money. It helps see if an insurance company is financially healthy or not.
underlying loss ratio financial
"Combined ratio improved 1.1 points to 95.3%, composed of an underlying loss ratio of 57.2%"
Underlying loss ratio measures the core insurance losses for a period as a share of the premiums earned during that same period, while excluding one-off events like major disasters, large prior-year adjustments, or other unusual items. For investors it reveals the steady, day-to-day profitability of an insurer’s underwriting—like checking a car’s fuel efficiency after removing the effect of a single long trip—to see if the business is sustainably earning more in premiums than it pays out in claims.
adjusted operating income financial
"adjusted operating income increasing 42% over the prior year to $33.7 million"
Adjusted operating income is a company's profit from its main activities, excluding certain one-time or unusual costs and gains. It helps investors see how well the business is performing in its normal operations, without distractions from rare events or expenses. This way, they get a clearer picture of the company’s true profitability.
net written premium financial
"Net written premium increased 9% in the second quarter, led by growth in the company's core commercial business"
Net written premium is the total amount of new insurance coverage an insurer sells during a period after subtracting the portion it passes on to reinsurers. Think of it like a store’s sales minus the part it outsources to a wholesaler: it shows how much business the insurer actually keeps and is responsible for, so investors use it to gauge growth, risk exposure and the company’s potential revenue from underwriting.
catastrophe losses financial
"Catastrophe losses improved 2.8 points to 2.7%, below both the five-year and 10-year historical averages"
Catastrophe losses are large, unexpected insurance payouts that follow major disasters such as hurricanes, earthquakes, wildfires or pandemics. They matter to investors because they can sharply reduce an insurer’s profits, drain reserves and force special financing or rate increases — much like a sudden flood overwhelming a city’s budget — and can also ripple through markets by affecting reinsurers, bondholders and stock prices.
adjusted book value per share financial
"Adjusted book value per share increased $1.85 to $39.72 as of June 30, 2026"
Net income $33.4 million in Q2 2026 increased $10.4 million vs Q2 2025
Adjusted operating income $33.7 million in Q2 2026 increased 42% vs Q2 2025
Net earned premium $354.1 million in Q2 2026 increased 12.5% vs Q2 2025
Net written premium $406.4 million in Q2 2026 increased 9.0% vs Q2 2025
Combined ratio 95.3% in Q2 2026 improved 1.1 points vs Q2 2025
Net investment income $28.9 million in Q2 2026 increased 33% vs Q2 2025

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

How did United Fire Group (UFCS) perform financially in Q2 2026?
United Fire Group reported Q2 2026 net income of $33.4 million, or $1.29 per diluted share, a 45% increase. Adjusted operating income was $33.7 million, or $1.30 per diluted share, reflecting significantly improved profitability versus Q2 2025.

What was UFCS’s combined ratio and underwriting performance in Q2 2026?
UFCS posted a combined ratio of 95.3% in Q2 2026, an improvement of 1.1 points year over year. The result included an underlying combined ratio of 92.6%, a catastrophe loss ratio of 2.7%, and no prior-year reserve development.

How did premiums change for United Fire Group (UFCS) in Q2 2026?
In Q2 2026, UFCS’s net written premium increased 9.0% to $406.4 million and net earned premium rose 12.5%. Core commercial average renewal premium increased 4.6%, driven by 2.9% rate increases and 1.7% exposure growth.

What were UFCS’s investment results in Q2 2026?
UFCS generated net investment income of $28.9 million in Q2 2026, up 33%. Interest on fixed maturities rose to $26.3 million, and income on other long-term investments increased to $2.3 million, supported by portfolio growth and higher yields.

How did United Fire Group’s (UFCS) book value and ROE trend through June 30, 2026?
Book value per share reached $38.02 at June 30, 2026, up $1.14 since December 31, 2025. Adjusted book value per share rose to $39.72, and return on equity for the first six months of 2026 was 13.2%.

Did United Fire Group (UFCS) pay a dividend in the second quarter of 2026?
Yes. During Q2 2026, United Fire Group declared and paid a $0.20 per share cash dividend to shareholders of record as of June 5, 2026, reflecting ongoing capital management and shareholder return practices.
false000010119900001011992026-08-032026-08-03

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): August 3, 2026
ufglogo2017color600.gif

 United Fire Group Inc.
(Exact name of registrant as specified in its charter)
 
Iowa001-3425745-2302834
(State of incorporation)(Commission File Number)(I.R.S. Employer Identification No.)
118 Second Avenue SE
Cedar RapidsIowa52401
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (319) 399-5700
_______________________N/A________________________
(Former name or former address, if changed since last report)
  
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities Registered Pursuant to Section 12(b) of the Exchange Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $0.001 par valueUFCSThe NASDAQ Global Select Market
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02. Results of Operations and Financial Condition.
 
On August 3, 2026, United Fire Group, Inc. issued a press release announcing its financial results for the quarter ended June 30, 2026. The release is attached as Exhibit 99.1 hereto and is incorporated herein by reference. The information in this Current Report and the exhibit attached hereto are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits are furnished herewith:
Exhibit 99.1
Press release of United Fire Group, Inc. dated August 3, 2026
Exhibit 104
Cover Page Interactive Data File (embedded within the Inline XBRL document.)


Signatures
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
United Fire Group, Inc.
(Registrant)
Dated:8/3/2026/s/ Kevin Leidwinger
Kevin Leidwinger, Chief Executive Officer


Exhibit 99.1
ufglogo2017color600a.gif


United Fire Group, Inc. reports second quarter 2026 results

Second quarter net income of $1.29 per diluted share
and adjusted operating income of $1.30 per diluted share

Second quarter 2026 highlights compared to second quarter 2025, unless otherwise noted:(1)
•Net income increased $10.4 million to $33.4 million.
•Net investment income increased 33% to $28.9 million.
•Combined ratio improved 1.1 points to 95.3%, composed of an underlying loss ratio of 57.2%, catastrophe loss ratio of 2.7%, no prior year reserve development, and underwriting expense ratio of 35.4%.
•Underlying combined ratio increased 0.1 points to 92.6%.
•Net written premium(2) increased 9% to $406.4 million.
•Book value per share increased $1.14 to $38.02 as of June 30, 2026, compared to December 31, 2025.
•Adjusted book value per share increased $1.85 to $39.72 as of June 30, 2026, compared to December 31, 2025.
•Return on equity was 13.2% for the six months ended June 30, 2026.


CEDAR RAPIDS, IOWA, August 3, 2026 — United Fire Group, Inc. (UFG) (Nasdaq: UFCS) today reported financial results for the quarter ended June 30, 2026, with net income increasing 45% over the prior year to $33.4 million ($1.29 per diluted share) and adjusted operating income increasing 42% over the prior year to $33.7 million ($1.30 per diluted share).

Net written premium increased 9% in the second quarter, led by growth in the company's core commercial business. The second quarter combined ratio improved 1.1 points year-over-year to 95.3% primarily due to a decreased catastrophe loss ratio. Prior year reserve development remained neutral overall, and net investment income increased 33% to $28.9 million.

“UFG delivered another quarter of outstanding results, achieving our best second-quarter combined ratio in more than 15 years, record net income, record net written premium, and the highest investment income in over 10 years,” said President and CEO Kevin Leidwinger. “These results contributed to a 13.2% return on equity through the first six months of 2026, marking our strongest year-to-date financial performance in two decades.

“The momentum we are seeing reflects the benefits of the strategic actions we have taken to deepen underwriting expertise, evolve our capabilities, strengthen alignment with our distribution partners, and improve investment returns. The transformation of our business continues to generate meaningful financial and operational results, positioning UFG for long-term success.

“As we enter the second half of the year, we remain focused on leveraging our underwriting expertise and strong distribution relationships to pursue attractive growth opportunities. We are confident in our ability to navigate evolving market conditions as a disciplined, solution-oriented underwriting company while continuing to create value for our policyholders, distribution partners and shareholders.”




1

Earnings call access information

An earnings call will be held at 9:00 a.m. CT on Tuesday, August 4, 2026, to allow securities analysts, shareholders and other interested parties the opportunity to hear management discuss the company’s second quarter of 2026 results.

Teleconference: Dial-in information for the call is toll-free 1-844-492-3723 (international 1-412-542-4184). Participants should request to join the United Fire Group call. The event will be archived and available for digital replay through August 11, 2026. The replay access information is toll-free 1-855-669-9658 (international 1-412-317-0088); conference ID no. 2119197.

Webcast: An audio webcast of the teleconference can be accessed at the company’s investor relations page at https://ir.ufginsurance.com/events-and-presentations/ or https://event.choruscall.com/mediaframe/webcast.html?webcastid=sEg6VEdp. The archived audio webcast will be available for one year.

Transcript: A transcript of the teleconference will be available on the company’s website soon after the completion of the teleconference.



































(1) Underlying loss ratio, underlying combined ratio, adjusted book value per share and adjusted operating income are non-GAAP financial measures. See Definitions of non-GAAP information and reconciliations to comparable GAAP measures for additional information.
(2) Net written premium is a performance measure reflecting the amount charged for insurance policy contracts issued and recognized on an annualized basis at the effective date of the policy. See Certain performance measures for additional information.



2

Consolidated financial highlights:

Consolidated financial highlights(1)
(Unaudited)Three months ended June 30,Six months ended June 30,
(In thousands, except ratios and per share data)2026202520262025
Net earned premium$354,127$314,802$697,102$623,213
Net written premium406,358372,884783,285708,260
Combined ratio:
Net loss ratio
59.9 %61.5 %60.3 %61.5 %
Underwriting expense ratio
35.4 %34.9 %35.1 %36.4 %
Combined ratio
95.3 %96.4 %95.4 %97.9 %
Additional ratios:
Net loss ratio
59.9 %61.5 %60.3 %61.5 %
Catastrophes2.7 %5.5 %3.2 %5.3 %
Reserve development (favorable) unfavorable
— %(1.6)%— %(0.8)%
Underlying loss ratio
57.2 %57.6 %57.1 %57.0 %
Underwriting expense ratio35.4 %34.9 %35.1 %36.4 %
Underlying combined ratio92.6 %92.5 %92.2 %93.4 %
Net investment income$28,928$21,673$55,968$45,131
Net investment gains (losses)(428)(1,002)(682)(1,756)
Net income (loss)33,36522,94763,41740,647
Adjusted operating income (loss)33,70323,73963,95642,034
Net income (loss) per diluted share$1.29$0.87$2.45$1.54
Adjusted operating income (loss) per diluted share1.300.902.471.60
Return on equity(2)
13.2 %10.0 %

(1) Underlying loss ratio, underlying combined ratio and adjusted operating income (loss) are non-GAAP financial measures. See Definitions of non-GAAP information and reconciliations to comparable GAAP measures for additional information.
(2) Return on equity is calculated by dividing annualized net income by average stockholders’ equity, which is calculated using a simple average of the beginning and ending balances for the period.



3

Second quarter 2026 results:
(All comparisons vs. second quarter 2025, unless noted otherwise)

Net written premium and net earned premium increased by 9.0% and 12.5%, respectively. Core commercial average renewal premium increased 4.6% with rates increasing 2.9% and exposure changes of 1.7%. Excluding the workers' compensation line of business, the overall average increase in renewal premium was 5.0%, with 3.5% from rate increases and 1.5% from exposure changes.

The second quarter combined ratio improved 1.1 points to 95.3% compared to 96.4% in the prior year quarter, primarily driven by the following:
•The underlying loss ratio decreased 0.4 points to 57.2%, reflecting sustained lower frequency and earned rate achievement on core commercial lines.
•Catastrophe losses improved 2.8 points to 2.7%, below both the five-year and 10-year historical averages.
•The underwriting expense ratio of 35.4% increased 0.5 points partially driven by actions to reduce our real estate footprint and future expense ratio along with other normal variability.

Net investment income was $28.9 million for the second quarter of 2026, an increase of $7.3 million or 33%. Income from the fixed maturity portfolio increased by $5.0 million as a result of portfolio growth and reinvestment at higher yields. Income on other long-term investments increased $2.2 million during the second quarter of 2026 due to an increase in valuation of the underlying investments.

Investment results
(Unaudited)Three months ended June 30,Six months ended June 30,
(In thousands, except average yields)2026202520262025
Investment income:
Interest on fixed maturities$26,332 $21,302 $51,269 $42,426 
Income (loss) on other long-term investments2,316 136 3,584 1,929 
Other2,483 3,415 5,414 7,034 
Total investment income$31,131 $24,853 $60,267 $51,389 
Less investment expenses2,203 3,180 4,299 6,258 
Net investment income$28,928 $21,673 $55,968 $45,131 
Average yields on fixed income securities pre-tax(1)
4.57 %4.32 %4.50 %4.32 %
(1) Fixed income securities yield excluding net unrealized investment gains/losses and expenses.

Balance sheet
June 30, 2026December 31, 2025
(In thousands, except per share data)(unaudited)
Invested assets$2,534,974 $2,464,687 
Cash139,445 156,332 
Total assets4,014,366 3,840,789 
Losses and loss settlement expenses1,990,417 1,924,826 
Total liabilities3,037,029 2,899,619 
Net unrealized investment gains (losses), after-tax(43,668)(25,268)
Total stockholders’ equity977,337 941,170 
Book value per share$38.02 $36.88 
Adjusted book value per share(1)
39.72 37.87 
(1) Adjusted book value per share is a non-GAAP financial measure. See Definitions of non-GAAP information and reconciliations to comparable GAAP measures for additional information.

The company’s book value per share was $38.02, an increase of $1.14 per share, or 3.1%, from December 31, 2025. This increase is primarily related to an increase in net income, partially offset by an increase in unrealized investment losses on fixed maturity securities and shareholder dividends during the six-month period ended June 30, 2026.



4



Capital management

During the second quarter of 2026, the company declared and paid a $0.20 per share cash dividend to shareholders of record as of June 5, 2026.


About UFG

Founded in 1946 as United Fire & Casualty Company, UFG, through its insurance company subsidiaries, is engaged in the business of writing property and casualty insurance. The company is licensed as a property and casualty insurer in 50 states and the District of Columbia, and is represented by approximately 850 independent agencies. AM Best assigns a rating of “A-” (Excellent) for members of the United Fire & Casualty Group. For more information about UFG, visit www.ufginsurance.com.

Contact:

Investor relations
Email: ir@unitedfiregroup.com

Media inquiries
Email: news@unitedfiregroup.com


Disclosure of forward-looking statements

This release may contain forward-looking statements about our operations, anticipated performance and other similar matters. The Private 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 statements are not historical facts and involve risks and uncertainties that could cause actual results to differ from those expected and/or projected. Such forward-looking statements are based on current expectations, estimates, forecasts and projections about the company, the industry in which we operate, and beliefs and assumptions made by management. Words such as “expect(s),” “anticipate(s),” “intend(s),” “plan(s),” “believe(s),” “continue(s),” “seek(s),” “estimate(s),” “goal(s),” “remain(s) optimistic,” “target(s),” “forecast(s),” “project(s),” “predict(s),” “should,” “could,” “may,” “will,” “might,” “hope,” “can” and other words and terms of similar meaning or expression in connection with a discussion of future operations, financial performance or financial condition, are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed in such forward-looking statements. Information concerning factors that could cause actual outcomes and results to differ materially from those expressed in the forward-looking statements is contained in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Annual Report”), filed with the Securities and Exchange Commission (“SEC”) on February 26, 2026. The risks identified in our 2025 Annual Report and in our other SEC filings are representative of the risks, uncertainties, and assumptions that could cause actual outcomes and results to differ materially from what is expressed in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release or as of the date they are made. Except as required under the federal securities laws and the rules and regulations of the SEC, we do not have any intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. In addition, future dividend payments are within the discretion of our Board of Directors and will depend on numerous factors, including our financial condition, our capital requirements and other factors that our Board of Directors considers relevant.



5

Definitions of non-GAAP information and reconciliations to comparable GAAP measures

The company prepares its financial statements in conformity with generally accepted accounting principles (GAAP) in the United States of America. Management uses certain non-GAAP financial measures to evaluate its operations and profitability. Management also believes that disclosure of certain non-GAAP financial measures enhances investor understanding of our financial performance. Non-GAAP financial measures disclosed in this report include: adjusted operating income, underlying loss ratio, underlying combined ratio, and adjusted book value per share. The company has provided the following definitions and reconciliations of the non-GAAP financial measures:

Adjusted operating income: Adjusted operating income is calculated by excluding net investment gains and losses, after applicable federal and state income taxes from net income (loss). Management believes adjusted operating income is a meaningful measure for evaluating insurance company performance and a useful supplement to GAAP information because it better represents the normal, ongoing performance of our business. Investors and equity analysts who invest in and report on the insurance industry and the company generally focus on this metric in their analyses.

Net income reconciliation
(Unaudited)Three months ended June 30,Six months ended June 30,
(In thousands, except per share data)2026202520262025
Income statement data
Net income (loss)$33,365 $22,947 $63,417 $40,647 
Less: after-tax net investment gains (losses)(338)(792)(539)(1,387)
Adjusted operating income (loss)$33,703 $23,739 $63,956 $42,034 
Diluted earnings per share data
Net income (loss)$1.29 $0.87 $2.45 $1.54 
Less: after-tax net investment gains (losses)(0.01)(0.03)(0.02)(0.06)
Adjusted operating income (loss)$1.30 $0.90 $2.47 $1.60 

Underlying loss ratio and underlying combined ratio: Underlying loss ratio represents the net loss ratio less the impacts of catastrophes and non-catastrophe prior year reserve development. The underlying combined ratio represents the combined ratio less the impacts of catastrophes and non-catastrophe prior year reserve development. The company believes that the underlying loss ratio and underlying combined ratio are meaningful measures to understand the underlying trends in the core business in the current accident year, removing the volatility of catastrophes and prior year impacts. Management believes separate discussions on catastrophe losses and prior year reserve development are important to understanding how the company is managing catastrophe risk and identifying developments in longer-tailed business.

Prior year reserve development is the increase (unfavorable) or decrease (favorable) in incurred loss and loss adjustment expense at the valuation dates for losses which occurred in previous calendar years. This measure excludes development on catastrophe losses.

Catastrophe losses is an operational measure which utilizes the designations of the Insurance Services Office (“ISO”) and is reported with losses and loss adjustment expense amounts net of reinsurance recoverables, unless specified otherwise. In addition to ISO catastrophes, we also include as catastrophes those events, which may include U.S. or international losses, that we believe are, or will be, material to our operations, either in amount or in number of claims made. Catastrophes are not predictable and are unique in terms of timing and financial impact. While management estimates catastrophe losses as incurred, due to the inherently unique nature of catastrophe losses, the impact in a reporting period is inclusive of catastrophes that occurred in the reporting period, as well as development on catastrophes that have occurred in prior periods.

6

Adjusted book value per share: Adjusted book value per share is calculated by dividing shareholders' equity, excluding net unrealized investment gains and losses, net of tax, by the number of common shares outstanding. Management believes adjusted book value per share is a meaningful measure for evaluating the company's net worth that is primarily attributable to our business operations, because it removes the effect of changing prices on invested assets that can fluctuate from period to period. Book value per share is the most directly comparable GAAP measure.

Book value per share reconciliation
(Unaudited)
(In thousands, except per share data)June 30, 2026December 31, 2025
Shareholders' equity$977,337 $941,170 
Less: Net unrealized investment gains (losses), net of tax(43,668)(25,268)
Shareholders' equity, excluding net unrealized investment gains (losses), net of tax$1,021,005 $966,438 
Common shares outstanding (basic)25,704 25,522 
Book value per share$38.02 $36.88 
Adjusted book value per share39.72 37.87 

Certain performance measures

The company uses the following measure to evaluate its financial performance. Management believes a discussion of this measure provides financial statement users with a better understanding of the company’s results of operations. The company has provided the following definition:

Net written premium: Net written premium is frequently used by industry analysts and other recognized reporting sources to facilitate comparisons of the performance of insurance companies. Net written premium is the amount charged for insurance policy contracts issued and recognized on an annualized basis at the effective date of the policy. Management believes net written premium is a meaningful measure for evaluating insurance company sales performance and geographical expansion efforts. Net written premium for an insurance company consists of direct premiums written and premiums assumed, less premiums ceded. Net earned premium is calculated on a pro-rata basis over the terms of the respective policies. Unearned premium reserves are established for the portion of written premium applicable to the unexpired terms of the insurance policies in force. The difference between net earned premium and net written premium is the change in unearned premium and the change in prepaid reinsurance premiums.



7

Supplemental tables

Income statement
(Unaudited)Three months ended June 30,Six months ended June 30,
(In thousands)2026202520262025
Revenues
Net earned premium$354,127 $314,802 $697,102 $623,213 
Net investment income28,928 21,673 55,968 45,131 
Net investment gains (losses)(428)(1,002)(682)(1,756)
Other income (loss)1,099 — 780 — 
Total revenues$383,726 $335,473 $753,168 $666,588 
Benefits, losses and expenses
Losses and loss settlement expenses$212,274 $193,732 $420,399 $383,428 
Amortization of deferred policy acquisition costs84,041 74,413 166,082 151,767 
Other underwriting expenses41,158 35,307 78,725 74,893 
Interest expense3,186 2,484 6,369 4,967 
Other non-underwriting expenses1,123 335 1,637 477 
Total benefits, losses and expenses$341,782 $306,271 $673,212 $615,532 
Income (loss) before income taxes $41,944 $29,202 $79,956 $51,056 
Income tax expense (benefit)8,579 6,255 16,539 10,409 
Net income (loss)$33,365 $22,947 $63,417 $40,647 






8

Net written premium by line of business
(Unaudited)Three months ended June 30,Six months ended June 30,
(In thousands)2026202520262025
Net written premium(1)
Commercial lines:
Other liability(2)
$130,758 $116,784 $248,420 $216,136 
Fire and allied lines(3)
67,890 74,564 133,796 139,519 
Automobile97,712 86,707 185,023 165,637 
Workers’ compensation28,266 22,206 52,503 41,195 
Surety(4)
23,361 15,815 37,829 31,926 
Miscellaneous229 456 910 3,911 
Total commercial lines$348,216 $316,532 $658,481 $598,324 
Personal lines:
Fire and allied lines(5)
$5,439 $6,855 $11,819 $8,140 
Automobile(1)1 (1)419 
Total personal lines$5,438 $6,856 $11,818 $8,559 
Assumed reinsurance(6)
52,704 49,496 112,986 101,377 
Total$406,358 $372,884 $783,285 $708,260 
(1) Net written premium is a performance measure reflecting the amount charged for insurance policy contracts issued and recognized on an annualized basis at the effective date of the policy. See Certain performance measures for additional information.
(2) Commercial lines “Other liability” is business insurance covering bodily injury and property damage arising from general business operations, accidents on the insured’s premises and products manufactured or sold.
(3) Commercial lines “Fire and allied lines” includes fire, allied lines, commercial multiple peril and inland marine.
(4) Commercial lines “Surety” previously referred to as “Fidelity and surety.”
(5) Personal lines “Fire and allied lines” includes fire, allied lines, homeowners and inland marine.
(6) Assumed reinsurance includes Funds at Lloyd's.













9

Net earned premium, net losses and loss settlement expenses and net loss ratio by line of business
Three months ended June 30,20262025
Net lossesNet losses
and lossand loss
NetsettlementNetNetsettlementNet
(Unaudited)earnedexpenseslossearnedexpensesloss
(In thousands, except ratios)premiumincurredratiopremiumincurredratio
Commercial lines
Other liability$115,318 $75,756 65.7 %$93,118 $73,305 78.7 %
Fire and allied lines64,744 27,340 42.2 66,522 33,043 49.7 
Automobile77,967 51,076 65.5 69,147 40,024 57.9 
Workers’ compensation21,918 15,590 71.1 15,259 8,555 56.1 
Surety15,855 6,205 39.1 15,464 5,575 36.1 
Miscellaneous234 260 111.1 2,975 2,032 68.3 
Total commercial lines$296,036 $176,227 59.5 %$262,485 $162,534 61.9 %
Personal lines
Fire and allied lines$5,932 $2,229 37.6 %$3,405 $1,134 33.3 %
Automobile(1)(379)NM362 232 64.1 
Miscellaneous— 1 NM1 (8)NM
Total personal lines$5,931 $1,851 31.2 %$3,768 $1,358 36.0 %
Assumed reinsurance52,160 34,196 65.6 48,549 29,840 61.5 
Total$354,127 $212,274 59.9 %$314,802 $193,732 61.5 %
NM = Not meaningful






10

Net earned premium, net losses and loss settlement expenses and net loss ratio by line of business
Six months ended June 30,20262025
Net lossesNet losses
and lossand loss
NetsettlementNetNetsettlementNet
(Unaudited)earnedexpenseslossearnedexpensesloss
(In thousands, except ratios)premiumsincurredratiopremiumsincurredratio
Commercial lines
Other liability$222,657 $141,213 63.4 %$182,257 $133,548 73.3 %
Fire and allied lines129,483 62,120 48.0 128,942 65,063 50.5 
Automobile155,359 96,947 62.4 133,502 82,825 62.0 
Workers’ compensation41,595 29,417 70.7 29,416 18,312 62.3 
Surety31,392 13,086 41.7 31,195 9,950 31.9 
Miscellaneous1,054 920 87.3 6,395 4,092 64.0 
Total commercial lines$581,540 $343,703 59.1 %$511,707 $313,790 61.3 %
Personal lines
Fire and allied lines$11,620 $5,149 44.3 %$4,665 $1,903 40.8 %
Automobile(1)(534)NM1,158 740 63.9 
Miscellaneous— 7 NM2 (41)NM
Total personal lines$11,619 $4,622 39.8 %$5,825 $2,602 44.7 %
Assumed reinsurance103,943 72,074 69.3 105,681 67,036 63.4 
Total$697,102 $420,399 60.3 %$623,213 $383,428 61.5 %
NM = Not meaningful








11

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