United Fire Group, Inc. Reports Fourth Quarter and Year End 2021 Results
United Fire Group (Nasdaq: UFCS) reported strong financial results for Q4 and the full year 2021. Net income for Q4 reached $57.7 million ($2.28 per share), recovering from a loss of $8.9 million in Q4 2020. For the full year, net income was $80.6 million ($3.16 per share), compared to a significant loss of $112.7 million in 2020. The combined ratio improved to 83.1% in Q4, marking the lowest in over 14 years. Despite a strategic focus leading to an 8.9% decrease in net premiums earned, the company achieved an average renewal pricing increase of 6.4% for the year. Overall, UFG saw positive trends in profitability and reserve development.
- Q4 net income rose to $57.7 million, reversing a loss of $8.9 million in 2020.
- Full year net income increased to $80.6 million from a loss of $112.7 million in 2020.
- Q4 combined ratio improved to 83.1%, lowest in over 14 years.
- Core loss ratio improved significantly by 24.5 percentage points in Q4 2021.
- Favorable reserve development of $22.8 million in Q4 2021 compared to unfavorable development in 2020.
- Average renewal pricing increased by 6.4% for the year, with commercial auto showing a 9.5% increase.
- Net premiums earned decreased by 8.9% in Q4 2021 compared to Q4 2020.
- Full year net premiums earned dropped 8.7% from 2020.
- Decrease in net unrealized investment gains of $33.3 million from December 2020 to December 2021.
- Q4 expense ratio increased to 33.9%, a rise from 30.8% in Q4 2020.
CEDAR RAPIDS, Iowa, Feb. 15, 2022 (GLOBE NEWSWIRE) -- United Fire Group, Inc. (Nasdaq: UFCS),
Consolidated Financial Results - Highlights(1):
| Three Months Ended December 31, 2021 | Year Ended December 31, 2021 | |||||||
| Net income per diluted share | $ | 2.28 | Net income per diluted share | $ | 3.16 | |||
| Adjusted operating income(2) per diluted share | $ | 1.69 | Adjusted operating income(2) per diluted share | $ | 1.69 | |||
| Net investment gains per share | $ | 0.59 | Net investment gains per share | $ | 1.47 | |||
| GAAP combined ratio | 83.1 | % | GAAP combined ratio | 100.3 | % | |||
| Book value per share | $ | 35.05 | ||||||
| Return on equity(3) | 9.5 | % | ||||||
United Fire Group, Inc. (the “Company” or "UFG") (Nasdaq: UFCS) today reported consolidated net income, including net investment gains, of
The Company reported consolidated adjusted operating income of
"I am extremely pleased to report strong fourth quarter results. The fourth quarter combined ratio at
"The trend of quarterly core loss ratio improvement, which began in the second quarter of 2021, is the direct result of our strategic initiatives. We are very pleased with the progress we have made with our strategic initiatives to improve profitability."
__________________
(1) Per share amounts are after tax.
(2) Adjusted operating income (loss) is a non-GAAP financial measure of net income excluding net investment gains and losses, changes in the fair value of equity securities and related federal income taxes, and goodwill impairment. Management evaluates this measure and ratios derived from this measure and the Company provides this information to investors because we believe it better represents the normal, ongoing performance of our business. See Definitions of Non-GAAP Information and Reconciliations to Comparable GAAP Measures for a reconciliation of adjusted operating income (loss) to net income (loss).
(3) Return on equity is calculated by dividing annualized net income (loss) by average year-to-date stockholders' equity.
"The line of business with the most significant loss ratio improvement was commercial auto, which improved 68.1 percentage points in the fourth quarter and 25.1 percentage points for the full year of 2021 as compared to the same periods of 2020. The improvement in profitability in our commercial auto line of business was from a combination of a decrease in frequency and severity of losses and an increase in favorable prior accident year reserve development."
Financial Highlights
Net income including net investment gains and losses, totaled
For the full year of 2021, net income totaled
Net premiums earned decreased 8.9 percent to
For the full year of 2021, the overall average renewal pricing increase was 6.4 percent. Excluding the workers' compensation line of business, the overall average renewal pricing increase was 7.7 percent. The increase in pricing was driven by our commercial auto and commercial property lines of business. For the full year of 2021, the commercial auto average renewal rate increase was 9.5 percent. The commercial property average renewal rate increase was 8.7 percent.
Net investment income was
The Company recognized net investment gains of
Losses and loss settlement expenses decreased by 51.4 percentage points and by 25.0 percentage points during the three- and twelve-month periods ended December 31, 2021, respectively, compared to the same periods of 2020. The decrease in losses and loss settlement expenses was primarily due to comparatively lower catastrophe losses and a decrease in frequency and severity of commercial auto liability losses.
Consolidated net unrealized investment gains, net of tax, totaled
Total consolidated assets as of December 31, 2021 were
Reserve Development
We experienced favorable reserve development of
GAAP Combined Ratio
The GAAP combined ratio decreased 40.0 percentage points to 83.1 percent for the fourth quarter 2021, compared to 123.1 percent for the fourth quarter of 2020. For the year ended December 31, 2021, the combined ratio decreased 15.6 percentage points to 100.3 percent as compared to 2020. The decrease in both the three- and twelve-month periods ended December 31, 2021, respectively, as compared to the same periods of 2020 was primarily due to comparatively lower catastrophe losses and a decrease in the frequency and severity of commercial auto liability losses.
Pre-tax catastrophe losses totaled
Underwriting Expense Ratio
The expense ratio for the fourth quarter of 2021 was 33.9 percent, compared to 30.8 percent for the fourth quarter of 2020. For the full year of 2021, the expense ratio was 32.6 percent, compared to 33.5 percent for 2020. For the fourth quarter of 2021, we did see an increase in the expense ratio of 3.1 points as compared to the fourth quarter of 2020 primarily due to improved performance in our book of business resulting in additions to profit sharing for our agents, employees, and program business. The decrease in the underwriting expense ratio for the full year of 2021 as compared to 2020 was primarily due to the change in the design of our employee post-retirement benefit plans and a decrease in the acceleration of the amortization of our deferred acquisition costs due to improved profitability in our commercial auto line of business.
Capital Management
During the fourth quarter, we declared and paid a
During the fourth quarter, we did not repurchase any shares of our common stock. In the year ended December 31, 2021, we purchased 67,651 shares of our common stock for
Earnings Call Access Information
An earnings call will be held at 9:00 a.m. Central Time on February 15, 2022 to allow securities analysts, shareholders and other interested parties the opportunity to hear management discuss the Company's fourth quarter and full year 2021 results.
Teleconference: Dial-in information for the call is toll-free 1-844-492-3723. The event will be archived and available for digital replay through March 1, 2022. The replay access information is toll-free 1-877-344-7529; conference ID no. 3405159.
Webcast: An audio webcast of the teleconference can be accessed at the Company's investor relations page at http://ir.ufginsurance.com/event or https://services.choruscall.com/links/ufcs220215. The archived audio webcast will be available until March 1, 2022.
Transcript: A transcript of the teleconference will be available on the Company's website soon after the completion of the teleconference.
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.
Through our subsidiaries, we are licensed as a property and casualty insurer in 50 states, plus the District of Columbia, and we are represented by approximately 1,000 independent agencies. A.M. Best Company assigns a rating of "A" (Excellent) for members of the United Fire & Casualty Group.
For more information about United Fire Group, Inc. visit www.ufginsurance.com or contact:
Randy Patten, AVP and Interim Co-Chief Financial Officer, 319-286-2537 or IR@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, 2020, filed with the Securities and Exchange Commission ("SEC") on February 26, 2021. The risks identified in our Annual Report on Form 10-K (as updated) 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.
Definitions of Non-GAAP Information and Reconciliations to Comparable GAAP Measures
The Company prepares its public financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP"). Management also uses certain non-GAAP measures to evaluate its operations and profitability. As further explained below, management 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 (loss) and net premiums written. The Company has provided the following definitions and reconciliations of the non-GAAP financial measures:
Adjusted operating income (loss): Adjusted operating income (loss) is a non-GAAP measure of net income excluding net investment gains and losses, changes in the fair value of equity securities and related federal income taxes, and goodwill impairment. Management believes adjusted operating income (loss) 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 and report on the insurance industry and the Company generally focus on this metric in their analyses.
| Net Income Reconciliation | |||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||
| (In Thousands, Except Per Share Data) | 2021 | 2020 | Change % | 2021 | 2020 | Change % | |||||||||||
| Income Statement Data | |||||||||||||||||
| Net income (loss) | $ | 57,735 | $ | (8,891 | ) | NM | $ | 80,594 | $ | (112,706 | ) | 171.5 | % | ||||
| Less: after-tax net investment gains (losses) | 15,121 | 23,717 | (36.2 | )% | 37,433 | (25,592 | ) | 246.3 | % | ||||||||
| Less: goodwill impairment | — | — | — | % | — | (15,091 | ) | 100.0 | % | ||||||||
| Adjusted operating income (loss) | $ | 42,614 | $ | (32,608 | ) | 230.7 | % | $ | 43,161 | $ | (72,023 | ) | 159.9 | % | |||
| Diluted Earnings Per Share Data | |||||||||||||||||
| Net income (loss) | $ | 2.28 | $ | (0.36 | ) | NM | $ | 3.16 | $ | (4.50 | ) | 170.2 | % | ||||
| Less: after-tax net investment gains (losses) | 0.59 | 0.94 | (37.2 | )% | 1.47 | (1.02 | ) | 244.1 | % | ||||||||
| Less: goodwill impairment | — | — | — | % | — | (0.60 | ) | 100.0 | % | ||||||||
| Adjusted operating income (loss) | $ | 1.69 | $ | (1.30 | ) | 230.0 | % | $ | 1.69 | $ | (2.88 | ) | 158.7 | % | |||
NM=Not meaningful
Net premiums written: While not a substitute for any GAAP measure of performance, net premiums written is frequently used by industry analysts and other recognized reporting sources to facilitate comparisons of the performance of insurance companies. Net premiums written are the amount charged for insurance policy contracts issued and recognized on an annualized basis at the effective date of the policy. Management believes net premiums written are a meaningful measure for evaluating insurance company sales performance and geographical expansion efforts. Net premiums written for an insurance company consists of direct premiums written and reinsurance assumed, less reinsurance ceded. Net premiums earned is calculated on a pro rata basis over the terms of the respective policies. Unearned premium reserves are established for the portion of premiums written applicable to the unexpired term of insurance policy in force. The difference between net premiums earned and net premiums written is the change in unearned premiums and change in prepaid reinsurance premiums.
| Net Premiums Earned Reconciliation | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| (In Thousands) | 2021 | 2020 | Change % | 2021 | 2020 | Change % | ||||||||||
| Premiums: | ||||||||||||||||
| Net premiums earned | $ | 239,986 | $ | 263,563 | (8.9) | % | $ | 962,823 | $ | 1,055,082 | (8.7) | % | ||||
| Less: change in unearned premiums | 19,198 | 34,884 | (45.0) | % | 25,112 | 40,317 | (37.7) | % | ||||||||
| Less: change in prepaid reinsurance premiums | 15 | 681 | (97.8) | % | (3,637 | ) | 3,415 | (206.5) | % | |||||||
| Net premiums written | $ | 220,773 | $ | 227,998 | (3.2) | % | $ | 941,348 | $ | 1,011,350 | (6.9) | % | ||||
Supplemental Tables
| Consolidated Financial Highlights | |||||||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||
| (In Thousands Except Shares and Per Share Data and Ratios) | 2021 | 2020 | Change % | 2021 | 2020 | Change % | |||||||||||||
| Revenue Highlights | |||||||||||||||||||
| Net premiums earned | $ | 239,986 | $ | 263,563 | (8.9 | )% | $ | 962,823 | $ | 1,055,082 | (8.7 | )% | |||||||
| Net investment income | 13,331 | 17,367 | (23.2 | )% | 55,778 | 39,670 | 40.6 | % | |||||||||||
| Net investment gains (losses) | 19,140 | 30,021 | (36.2 | )% | 47,383 | (32,395 | ) | 246.3 | % | ||||||||||
| Other income (loss) | 44 | (53 | ) | 183.0 | % | 207 | 6,270 | (96.7 | )% | ||||||||||
| Total revenues | 272,501 | 310,898 | (12.4 | )% | 1,066,191 | 1,068,627 | (0.2 | )% | |||||||||||
| Income Statement Data | |||||||||||||||||||
| Net income (loss) | $ | 57,735 | $ | (8,891 | ) | NM | $ | 80,594 | $ | (112,706 | ) | 171.5 | % | ||||||
| After-tax net investment gains (losses) | 15,121 | 23,717 | (36.2 | )% | 37,433 | (25,592 | ) | 246.3 | % | ||||||||||
| Goodwill impairment | — | — | — | % | — | (15,091 | ) | 100.0 | % | ||||||||||
| Adjusted operating income (loss)(1) | $ | 42,614 | $ | (32,608 | ) | 230.7 | % | $ | 43,161 | $ | (72,023 | ) | 159.9 | % | |||||
| Diluted Earnings Per Share Data | |||||||||||||||||||
| Net income (loss) | $ | 2.28 | $ | (0.36 | ) | NM | $ | 3.16 | $ | (4.50 | ) | 170.2 | % | ||||||
| After-tax net investment gains (losses) | 0.59 | 0.94 | (37.2 | )% | 1.47 | (1.02 | ) | 244.1 | % | ||||||||||
| Goodwill impairment | — | — | — | % | — | (0.60 | ) | 100.0 | % | ||||||||||
| Adjusted operating income (loss)(1) | $ | 1.69 | $ | (1.30 | ) | 230.0 | % | $ | 1.69 | $ | (2.88 | ) | 158.7 | % | |||||
| Catastrophe Data | |||||||||||||||||||
| Pre-tax catastrophe losses | $ | 8,291 | $ | 20,743 | (60.0 | )% | $ | 98,617 | $ | 142,004 | (30.6 | )% | |||||||
| Effect on after-tax earnings per share | 0.26 | 0.65 | (60.0 | )% | 3.05 | 4.48 | (31.9 | )% | |||||||||||
| Effect on combined ratio | 3.5 | % | 7.9 | % | (55.7 | )% | 10.2 | % | 13.5 | % | (24.4 | )% | |||||||
| Favorable (unfavorable) reserve development experienced on prior accident years | 22,810 | (12,386 | ) | 284.2 | % | 48,909 | 17,652 | 177.1 | % | ||||||||||
| GAAP combined ratio | 83.1 | % | 123.1 | % | (32.5 | )% | 100.3 | % | 115.9 | % | (13.5 | )% | |||||||
| Return on equity | 9.5 | % | (13.0 | )% | 173.1 | % | |||||||||||||
| Cash dividends declared per share | $ | 0.15 | $ | 0.33 | (54.5 | )% | $ | 0.60 | $ | 1.14 | (47.4 | )% | |||||||
| Diluted weighted average shares outstanding | 25,285,680 | 25,039,143 | 1.0 | % | 25,519,726 | 25,027,358 | 2.0 | % | |||||||||||
NM=Not meaningful
(1) Adjusted operating income is a non-GAAP financial measure of net income. See Definitions of Non-GAAP Information and Reconciliations to Comparable GAAP Measures for a reconciliation of adjusted operating income to net income.
| Income Statement | |||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
| (In Thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||
| Revenues | |||||||||||||||
| Net premiums earned | $ | 239,986 | $ | 263,563 | $ | 962,823 | $ | 1,055,082 | |||||||
| Investment income, net of investment expenses | 13,331 | 17,367 | 55,778 | 39,670 | |||||||||||
| Net investment gains (losses) | 19,140 | 30,021 | 47,383 | (32,395 | ) | ||||||||||
| Other income (loss) | 44 | (53 | ) | 207 | 6,270 | ||||||||||
| Total Revenues | $ | 272,501 | $ | 310,898 | $ | 1,066,191 | $ | 1,068,627 | |||||||
| Benefits, Losses and Expenses | |||||||||||||||
| Losses and loss settlement expenses | $ | 118,174 | $ | 243,298 | $ | 652,155 | $ | 869,467 | |||||||
| Amortization of deferred policy acquisition costs | 52,899 | 51,812 | 203,432 | 210,252 | |||||||||||
| Other underwriting expenses | 28,338 | 29,312 | 110,574 | 143,332 | |||||||||||
| Interest expense | 796 | — | 3,187 | — | |||||||||||
| Goodwill impairment | — | — | — | 15,091 | |||||||||||
| Total Benefits, Losses and Expenses | $ | 200,207 | $ | 324,422 | $ | 969,348 | $ | 1,238,142 | |||||||
| Income (loss) before income taxes | 72,294 | (13,524 | ) | 96,843 | (169,515 | ) | |||||||||
| Federal income tax expense ( benefit) | 14,559 | (4,633 | ) | 16,249 | (56,809 | ) | |||||||||
| Net income (loss) | $ | 57,735 | $ | (8,891 | ) | $ | 80,594 | $ | (112,706 | ) | |||||
| GAAP combined ratio: | |||||||||||||||
| Net loss ratio - excluding catastrophes | 45.7 | % | 84.4 | % | 57.5 | % | 68.9 | % | |||||||
| Catastrophes - effect on net loss ratio | 3.5 | 7.9 | 10.2 | 13.5 | |||||||||||
| Net loss ratio | 49.2 | % | 92.3 | % | 67.7 | % | 82.4 | % | |||||||
| Expense ratio | 33.9 | 30.8 | 32.6 | 33.5 | |||||||||||
| Combined ratio | 83.1 | % | 123.1 | % | 100.3 | % | 115.9 | % | |||||||
| Balance Sheet | |||||
| December 31, 2021 | December 31, 2020 | ||||
| (In Thousands) | |||||
| Invested assets | $ | 2,064,686 | $ | 2,149,217 | |
| Cash | 132,104 | 87,948 | |||
| Total assets | 3,012,721 | 3,069,678 | |||
| Loss and loss settlement expenses | 1,514,265 | 1,578,131 | |||
| Total liabilities | 2,133,600 | 2,244,529 | |||
| Net unrealized investment gains, after-tax | 49,769 | 83,070 | |||
| Total stockholders’ equity | 879,121 | 825,149 | |||
| Net Premiums Written by Line of Business | ||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | |||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||
| (In Thousands) | ||||||||||||
| Net Premiums Written(1) | ||||||||||||
| Commercial lines: | ||||||||||||
| Other liability(2) | $ | 63,282 | $ | 76,725 | $ | 286,547 | $ | 315,055 | ||||
| Fire and allied lines(3) | 60,634 | 55,663 | 241,491 | 241,432 | ||||||||
| Automobile | 47,259 | 61,889 | 224,657 | 276,336 | ||||||||
| Workers’ compensation | 10,487 | 12,854 | 56,055 | 70,335 | ||||||||
| Fidelity and surety | 8,822 | 7,306 | 36,704 | 30,452 | ||||||||
| Miscellaneous | 240 | 322 | 1,195 | 1,449 | ||||||||
| Total commercial lines | $ | 190,724 | $ | 214,759 | $ | 846,649 | $ | 935,059 | ||||
| Personal lines: | ||||||||||||
| Fire and allied lines(4) | $ | 65 | $ | 1,971 | $ | 3,065 | $ | 23,176 | ||||
| Automobile | (5 | ) | 1,587 | 272 | 21,135 | |||||||
| Miscellaneous | 7 | 41 | 55 | 854 | ||||||||
| Total personal lines | $ | 67 | $ | 3,599 | $ | 3,392 | $ | 45,165 | ||||
| Reinsurance assumed | 29,982 | 9,640 | 91,307 | 31,126 | ||||||||
| Total | $ | 220,773 | $ | 227,998 | $ | 941,348 | $ | 1,011,350 | ||||
(1) Net premiums written is a non-GAAP financial measure of net premiums earned. See Definitions of Non-GAAP Information and Reconciliations to Comparable GAAP Measures for a reconciliation of net premiums written to net premiums earned.
(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) Personal lines “Fire and allied lines” includes fire, allied lines, homeowners and inland marine.
| Net Premiums Earned, Losses and Loss Settlement Expenses and Loss Ratio by Line of Business | |||||||||||||||||||
| Three Months Ended December 31, | 2021 | 2020 | |||||||||||||||||
| Net Losses | Net Losses | ||||||||||||||||||
| and Loss | and Loss | ||||||||||||||||||
| Net | Settlement | Net | Net | Settlement | Net | ||||||||||||||
| (In Thousands) | Premiums | Expenses | Loss | Premiums | Expenses | Loss | |||||||||||||
| Unaudited | Earned | Incurred | Ratio | Earned | Incurred | Ratio | |||||||||||||
| Commercial lines | |||||||||||||||||||
| Other liability | $ | 74,389 | $ | 50,508 | 67.9 | % | $ | 81,080 | $ | 64,532 | 79.6 | % | |||||||
| Fire and allied lines | 61,815 | 27,104 | 43.8 | 61,926 | 56,889 | 91.9 | |||||||||||||
| Automobile | 57,897 | 29,487 | 50.9 | 71,341 | 84,897 | 119.0 | |||||||||||||
| Workers' compensation | 14,430 | 10,189 | 70.6 | 18,080 | 5,258 | 29.1 | |||||||||||||
| Fidelity and surety | 8,553 | (87 | ) | (1.0 | ) | 7,895 | 693 | 8.8 | |||||||||||
| Miscellaneous | 306 | 77 | 25.2 | 372 | (5 | ) | (1.3 | ) | |||||||||||
| Total commercial lines | $ | 217,390 | $ | 117,278 | 53.9 | % | $ | 240,694 | $ | 212,264 | 88.2 | % | |||||||
| Personal lines | |||||||||||||||||||
| Fire and allied lines | $ | 1,484 | $ | (2,185 | ) | NM | $ | 7,128 | $ | 11,443 | 160.5 | % | |||||||
| Automobile | 75 | (120 | ) | NM | 5,773 | 5,600 | 97.0 | ||||||||||||
| Miscellaneous | 24 | 1,153 | NM | 243 | 1,180 | NM | |||||||||||||
| Total personal lines | $ | 1,583 | $ | (1,152 | ) | NM | $ | 13,144 | $ | 18,223 | 138.6 | % | |||||||
| Reinsurance assumed | 21,013 | 2,048 | 9.7 | % | $ | 9,725 | $ | 12,811 | 131.7 | % | |||||||||
| Total | $ | 239,986 | $ | 118,174 | 49.2 | % | $ | 263,563 | $ | 243,298 | 92.3 | % | |||||||
NM=Not meaningful
| Net Premiums Earned, Losses and Loss Settlement Expenses and Loss Ratio by Line of Business | ||||||||||||||||||
| Years Ended December 31, | 2021 | 2020 | ||||||||||||||||
| Net Losses | Net Losses | |||||||||||||||||
| and Loss | and Loss | |||||||||||||||||
| Net | Settlement | Net | Net | Settlement | Net | |||||||||||||
| (In Thousands) | Premiums | Expenses | Loss | Premiums | Expenses | Loss | ||||||||||||
| Unaudited | Earned | Incurred | Ratio | Earned | Incurred | Ratio | ||||||||||||
| Commercial lines | ||||||||||||||||||
| Other liability | $ | 299,961 | $ | 184,794 | 61.6 | % | $ | 316,098 | $ | 200,280 | 63.4 | % | ||||||
| Fire and allied lines | 238,881 | 177,136 | 74.2 | 245,454 | 228,305 | 93.0 | ||||||||||||
| Automobile | 248,135 | 181,119 | 73.0 | 296,444 | 290,891 | 98.1 | ||||||||||||
| Workers' compensation | 61,690 | 43,790 | 71.0 | 75,953 | 29,463 | 38.8 | ||||||||||||
| Fidelity and surety | 30,989 | 2,913 | 9.4 | 28,001 | 707 | 2.5 | ||||||||||||
| Miscellaneous | 1,313 | 251 | 19.1 | 1,530 | 261 | 17.1 | ||||||||||||
| Total commercial lines | $ | 880,969 | $ | 590,003 | 67.0 | % | $ | 963,480 | $ | 749,907 | 77.8 | % | ||||||
| Personal lines | ||||||||||||||||||
| Fire and allied lines | 14,604 | 20,215 | 138.4 | % | $ | 32,061 | $ | 66,815 | 208.4 | % | ||||||||
| Automobile | 7,144 | 5,784 | 81.0 | 27,976 | 21,535 | 77.0 | ||||||||||||
| Miscellaneous | 361 | (216 | ) | NM | 1,148 | 3,741 | NM | |||||||||||
| Total personal lines | $ | 22,109 | $ | 25,783 | 116.6 | % | $ | 61,185 | $ | 92,091 | 150.5 | % | ||||||
| Reinsurance assumed | $ | 59,745 | $ | 36,369 | 60.9 | % | $ | 30,417 | $ | 27,469 | 90.3 | % | ||||||
| Total | $ | 962,823 | $ | 652,155 | 67.7 | % | $ | 1,055,082 | $ | 869,467 | 82.4 | % | ||||||
NM=Not meaningful
FAQ
What were the financial results of United Fire Group (UFCS) for Q4 2021?
How did United Fire Group (UFCS) perform in 2021 compared to 2020?
What was the combined ratio for United Fire Group (UFCS) in Q4 2021?
How much did net premiums earned decline for United Fire Group (UFCS) in Q4 2021?
What was the average renewal pricing increase for United Fire Group (UFCS) in 2021?
