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United Fire Group (UFCS)
NASDAQ:UFCS
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United Fire Group
(NASDAQ:UFCS)
Rating:76Outperform
Price Target:
$32.00
▲(10.19% Upside)
United Fire Group (UFCS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$682.08M
Dividend Yield2.45%
Average Volume (3M)124.76K
Price to Earnings (P/E)7.6
Beta (1Y)0.60
Revenue Growth14.28%
EPS Growth148.61%
CountryUS
Employees877
SectorFinancial
Sector Strength67
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.90
Shares Outstanding25,450,872
10 Day Avg. Volume126,834
30 Day Avg. Volume124,763
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)0.92
Price to Sales (P/S)8.33
P/FCF Ratio2.19
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue1.22
Enterprise Value/Gross Profit7.48
Enterprise Value/Ebitda8.84
Forecast
1Y Price Target
$29.00Price Target Upside-0.14% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering0
United Fire Group Business Overview & Revenue Model
Company DescriptionUnited Fire Group (UFCS) is a publicly-traded insurance company based in Cedar Rapids, Iowa. The company operates primarily in the property and casualty insurance sector, offering a wide range of insurance products, including commercial insurance, personal insurance, and surety bonds. UFCS provides tailored insurance solutions to businesses, families, and individuals across the United States, supporting them with comprehensive coverage and claims services.
How the Company Makes MoneyUnited Fire Group makes money primarily through underwriting and investment activities. The company's revenue model relies on collecting premiums from policyholders in exchange for insurance coverage. These premiums constitute the core revenue stream. UFCS also generates income by investing the premiums it collects in a diversified portfolio of financial assets, including bonds, equities, and real estate. The returns from these investments contribute significantly to the company's earnings. Additionally, UFCS may engage in partnerships with other insurers or reinsurers to manage risk and enhance underwriting capacity, though specific partnerships are not disclosed in this context.
United Fire Group Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: 8.36%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong financial performance with record net written premiums, improved underwriting profits, and significant return on equity. Despite some moderation in rate achievement and challenges in alternative distribution, the overall trajectory is positive with a focus on strategic growth and disciplined management.Q2-2025 Updates
Positive Updates
Record Net Written Premium
Net written premium grew to a record $373 million, with a growth of 14% driven by improved retention, record new business production, and rate increases.
Improved Underwriting Profit and Combined Ratio
UFG achieved the highest second quarter underwriting profit in over 10 years, with the combined ratio improving by 9.2 points to 96.4%.
Strong Investment Income Growth
Net investment income increased by 20% from the prior year, with fixed maturity income showing sustainable improvement.
Significant Return on Equity
The company achieved a 10% return on equity through the first half of the year, marking a significant milestone in its transformation efforts.
Improved Loss Ratio and Catastrophe Loss Ratio
The underlying loss ratio improved by 1.3 points to 57.6%, and the catastrophe loss ratio was 5.5%, considerably below historical averages.
Negative Updates
Moderation in Rate Achievement
Second quarter rate achievement of 7.6% moderated from the first quarter, indicating some pressure on maintaining rate levels.
Limited Growth in Alternative Distribution
Growth in alternative distribution was modest due to non-renewal of treaties and turnover in program business that did not meet profitability standards.
Volatility in Limited Partnership Investments
Investments in limited partnerships generated a lower return than in recent quarters due to market volatility.
Company Guidance
During the UFG Insurance Second Quarter 2025 Conference Call, the company reported a record net written premium of $373 million, marking a 14% growth from the previous year. The combined ratio improved by 9.2 points to 96.4%, with a notable improvement in the underlying loss ratio by 1.3 points to 57.6%. UFG achieved a return on equity of 10% for the first half of the year. The catastrophe loss ratio was significantly lower than historical averages, sitting at 5.5% for the quarter, while the underwriting expense ratio improved slightly to 34.9%. Net investment income saw a 20% increase, driven by higher yields in the fixed maturity income portfolio. The company also reported a modest favorable prior year reserve development of $5 million. Overall, UFG expressed confidence in their strategic actions and their impact on financial performance and profitability.United Fire Group Financial Statement Overview
Summary
United Fire Group demonstrates robust financial performance with strong revenue growth and a significant improvement in net profit margin to 4.9% in 2024. The balance sheet shows no debt and improved return on equity. Cash flow is strong, with a free cash flow growth of 104.2% from 2023 to 2024.Income Statement
United Fire Group has shown a strong revenue growth of 14.4% from 2023 to 2024. The gross profit margin remains consistent at 100%, as expected in the insurance industry. The net profit margin improved significantly from a negative position in 2023 to 4.9% in 2024, indicating a turnaround in profitability. However, the absence of positive EBIT and EBITDA margins in the latest reports suggests operational challenges.72
Positive
Balance Sheet
The company has a solid equity position with a debt-to-equity ratio of 0, indicating no debt burden in 2024. The return on equity improved significantly to 7.9% in 2024 from a negative in the previous year, showing efficient use of equity. The equity ratio stands at 22.4%, reflecting a stable financial structure with a significant portion of assets financed by equity.80
Positive
Cash Flow
United Fire Group's free cash flow grew by 104.2% from 2023 to 2024, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 5.5, indicating robust cash flow relative to net earnings. The free cash flow to net income ratio is exceptionally strong at 5.3, further supporting the company's cash flow strength.88
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 715.88M | 86.48M | 1.10B | 980.29M | 1.07B | 1.07B |
| Gross Profit | 116.86M | 79.20M | 1.10B | 980.29M | 1.07B | 1.07B |
| EBITDA | 98.92M | 84.31M | -25.95M | 22.93M | 106.60M | -162.73M |
| Net Income | 91.84M | 61.96M | -29.70M | 15.03M | 80.59M | -112.71M |
Balance Sheet | ||||||
| Total Assets | 3.66B | 3.49B | 3.14B | 2.88B | 3.01B | 3.07B |
| Cash, Cash Equivalents and Short-Term Investments | 202.40M | 201.05M | 102.15M | 96.92M | 132.38M | 88.12M |
| Total Debt | 0.00 | 117.06M | 50.00M | 50.00M | 50.00M | 50.00M |
| Total Liabilities | 2.82B | 2.71B | 2.41B | 2.14B | 2.13B | 2.24B |
| Stockholders Equity | 845.67M | 781.53M | 733.75M | 740.11M | 879.12M | 825.15M |
Cash Flow | ||||||
| Free Cash Flow | 291.61M | 328.43M | 160.85M | -3.39M | 15.94M | 22.57M |
| Operating Cash Flow | 301.88M | 340.30M | 171.74M | -1.25M | 29.92M | 41.44M |
| Investing Cash Flow | -236.39M | -292.49M | -149.89M | -19.17M | 31.73M | -92.87M |
| Financing Cash Flow | -16.77M | 51.09M | -16.45M | -15.03M | -17.49M | 18.66M |
United Fire Group Technical Analysis
Positive
29.04
Price Trends
27.84
Positive
27.86
Positive
27.04
Positive
Market Momentum
-0.02
Negative
62.80
Neutral
65.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UFCS, the sentiment is Positive. The current price of 29.04 is above the 20-day moving average (MA) of 27.26, above the 50-day MA of 27.84, and above the 200-day MA of 27.04, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 62.80 is Neutral, neither overbought nor oversold. The STOCH value of 65.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UFCS.
United Fire Group Risk Analysis
United Fire Group disclosed 20 risk factors in its most recent earnings report. United Fire Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
United Fire Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $682.08M | 7.62 | 11.68% | 2.45% | 14.28% | 148.61% | |
76 Outperform | $671.31M | 5.49 | 33.49% | ― | 9.35% | 77.04% | |
71 Outperform | $598.14M | 7.14 | 15.20% | 4.21% | 3.40% | 978.24% | |
70 Neutral | $665.77M | 10.30 | 15.60% | 3.30% | 5.64% | -17.95% | |
67 Neutral | ¥764.29B | 11.15 | 7.42% | 3.20% | 7.66% | 14.08% | |
65 Neutral | $428.24M | 15.14 | 4.13% | 5.00% | -3.71% | -21.68% | |
63 Neutral | $496.11M | 6.72 | 31.54% | ― | 12.19% | 5.12% |
* Financial Sector Average
Performance Comparison
UFCS
United Fire Group
29.04
10.96
60.62%
DGICA
Donegal Group
16.86
3.38
25.07%
GBLI
Global Indemnity
28.00
-2.81
-9.12%
UVE
Universal Insurance Holdings
23.30
5.18
28.59%
ACIC
American Coastal Insurance
10.71
-0.14
-1.29%
HRTG
Heritage Insurance Holdings
20.66
12.50
153.19%
United Fire Group Corporate Events
Financial Disclosures
United Fire Group to Announce Q2 2025 Earnings
Neutral
Jul 23, 2025
United Fire Group, Inc. announced that it will release its second quarter 2025 earnings results after the market closes on August 5, 2025. An earnings call is scheduled for August 6, 2025, providing an opportunity for stakeholders to hear management discuss the results, which could impact the company’s market positioning and stakeholder interests.
The most recent analyst rating on (UFCS) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on United Fire Group stock, see the UFCS Stock Forecast page.
Private Placements and Financing
United Fire Group Completes $30 Million Note Placement
Positive
Jul 10, 2025
On July 10, 2025, United Fire Group, Inc. announced the successful completion of a $30 million private placement of senior unsecured 9.0% Series B notes due May 31, 2039. The proceeds from this offering, led by Ares Alternative Credit funds, will be used to support the company’s anticipated growth and general corporate purposes, enhancing its financial position in the insurance industry.
The most recent analyst rating on (UFCS) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on United Fire Group stock, see the UFCS Stock Forecast page.
Dividends
United Fire Group Declares Quarterly Dividend
Positive
May 21, 2025
On May 21, 2025, United Fire Group, Inc. declared a quarterly cash dividend of $0.16 per share, payable on June 20, 2025, to shareholders of record as of June 6, 2025. This marks the 229th consecutive quarterly dividend since March 1968, underscoring UFG’s commitment to shareholder returns and its stable financial practices.
The most recent analyst rating on (UFCS) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on United Fire Group stock, see the UFCS Stock Forecast page.
Executive/Board ChangesShareholder Meetings
United Fire Group Holds Annual Shareholders Meeting
Neutral
May 21, 2025
On May 21, 2025, United Fire Group, Inc. held its Annual Meeting of Shareholders, where three Class B directors were elected to serve three-year terms expiring in 2028. The shareholders also ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025 and approved the compensation of the company’s named executive officers.
The most recent analyst rating on (UFCS) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on United Fire Group stock, see the UFCS Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.