United Fire Group Reports Significant Financial Improvements in Q3 and Nine Months of 2024

United Fire Group, Inc. (UFG) reported significant financial improvements for the third quarter and the first nine months of 2024, reflecting a robust recovery from previous losses. For the three months ended September 30, 2024, UFG achieved net premiums earned of $300.2 million, a 15.7% increase from $259.5 million in the same period of 2023. For the nine-month period, net premiums earned rose 12.8% to $868.6 million from $770.2 million year-over-year.

Total revenues for the third quarter reached $323.0 million, up 17.9% from $274.0 million in 2023. The nine-month total revenues also increased by 13.9% to $920.1 million from $808.1 million. UFG's net income for the third quarter was $19.7 million, a substantial increase of 209.5% compared to $6.4 million in the prior year. For the nine months, net income turned around to $30.5 million from a net loss of $49.3 million in 2023.

Investment income for the third quarter was reported at $24.5 million, a 48.6% increase from $16.5 million in 2023, while the nine-month investment income rose 45.2% to $58.8 million from $40.5 million. The company also noted a change in net unrealized gains on investments, reporting a gain of $51.7 million for the third quarter, compared to a loss of $43.2 million in 2023.

UFG's total assets increased to $3.5 billion as of September 30, 2024, up from $3.1 billion at the end of 2023. Total liabilities also rose to $2.8 billion from $2.4 billion, with long-term debt increasing significantly to $117.0 million from $50.0 million. Stockholders' equity improved to $785.8 million, up from $733.7 million at the end of 2023.

The company reported a GAAP combined ratio of 98.2% for the third quarter, an improvement from 102.0% in the same period last year, indicating better underwriting performance. The underlying loss ratio also improved, reflecting effective management of claims and reserves.

Strategically, UFG has focused on commercial lines of property and casualty insurance, with a notable withdrawal from personal lines initiated in 2020. The company continues to enhance its reserve review processes, which have contributed to favorable reserve developments in certain lines, despite some reserve strengthening in others due to economic and social inflation trends.

Overall, UFG's financial performance in 2024 demonstrates a strong recovery trajectory, driven by increased premiums, improved investment income, and effective cost management strategies.