United Fire Group reports Q1 EPS 56c, two estimates 47c

Reports Q1 revenue $296M, consensus $282.3M.I am pleased with our first quarter results as net income increased to $13.5 million driven by improved underwriting results and higher investment income,” said UFG President and CEO Kevin Leidwinger. “The momentum we established in 2023 carried into the first quarter of 2024 as net written premium grew 17.6% to $321.3 million, led by our core commercial and assumed reinsurance business units. Core commercial growth remained strong, fueled by average renewal premium increases of 10.9%, steady retention and attractive new business opportunities reflective of our continued focus on profitability. Rates increased 9.0% and remained above loss cost trends. “The first quarter GAAP combined ratio improved 4.5 points to 98.9% compared to the first quarter of 2023, representing its lowest mark in the last eight quarters. The underlying loss ratio improved to 59.4%, reflecting continued underwriting and pricing discipline across the portfolio. Catastrophe losses contributed 4.6% to the GAAP combined ratio in line with the same period last year and just below our five-year historical average. The expense ratio improved slightly to 34.9%. Prior period reserve development was neutral overall compared to the prior year period, with favorable emergence across several lines of business enabling us to further reinforce our position against the heightened inflationary uncertainty in some liability lines. “Net investment income increased 28.5% to $16.3 million as we continued to benefit from reinvesting at higher interest rates. In the first quarter of 2024, we completed the strategic reallocation of public equity assets into fixed maturities and transitioned management of our investment portfolio to New England Asset Management.