PLEASE UPDATE YOUR BROWSER

1 Reason Insurance (715)598-9924

Leadership Through Service

  • About
    • Meet the Insurance Agents of 1 Reason Insurance
    • Partner Insurance Companies
  • Personal Insurance
    • Car Insurance Quote for Personal Auto
    • Boat Insurance
    • Home Owners Insurance Application
    • Life Insurance Quotes
    • Motorcycle Insurance
    • Personal Umbrella Insurance
    • Renters Insurance
    • RV Camper Insurance
    • Snowmobile Insurance
  • Business Insurance
    • Commercial Auto Insurance
    • What is General Liability Insurance
    • Rental or Vacant Properties
    • Workers Compensation in Wisconsin
  • Blog
  • Contact 1 Reason Insurance
    • Contribute As Guest Author
Home > Insurance Companies > Insurance News > United Fire Group, Inc. Reports Estimates for Third Quarter 2022 Results

United Fire Group, Inc. Reports Estimates for Third Quarter 2022 Results

Posted on: October 27, 2022 By: Insurance Updates

CEDAR RAPIDS, Iowa, Oct. 27, 2022 (GLOBE NEWSWIRE) — United Fire Group, Inc. (the “Company” or “UFG”) (Nasdaq: UFCS) announced today that its third quarter 2022 results include estimated pre-tax catastrophe losses of $27 million, representing an impact on the third quarter 2022 GAAP combined ratio of approximately 11.4 percentage points which includes estimated catastrophe losses from Hurricane Ian of approximately $14 million before taxes.

“Our thoughts are with those affected by Hurricane Ian,” said UFG President and CEO Kevin Leidwinger. “We are committed to delivering on our promise of protection as we assist our policyholders in taking steps to repair, rebuild and recover from the devastation caused by this catastrophic event. We are grateful to our claims team for their swift response and compassionate service in the wake of Hurricane Ian.”

“In addition to higher-than-average catastrophe losses in the third quarter, we were also challenged by rising inflation and volatile financial markets. Despite those challenges, we remain committed to executing our strategic plan to deliver superior performance over the long term.”

UFG’s third quarter results were also impacted by increased uncertainty of estimated ultimate losses due to ongoing inflationary pressures. As a result, the GAAP combined ratio is estimated to be in the range of 110% to 114% in the third quarter of 2022.

Declining stock market conditions negatively impacted asset valuations in the Company’s equity portfolio, resulting in a third quarter net loss in the range of $0.89 to $0.93 per diluted share, and an adjusted operating loss in the range of $0.45 to $0.49 per diluted share.

The unaudited loss estimates and other data presented in this release are preliminary, based upon management estimates and subject to the completion of the Company’s procedures for the preparation of its unaudited quarterly financial statements. As a result, further adjustments may be made between now and the time financial results for the third quarter are finalized.

UFG will report third quarter 2022 earnings on Wednesday, November 2, 2022, after the close of regular trading on the Nasdaq Stock Market and will host a conference call to discuss financial results at 9 a.m. Central time on Thursday, November 3, 2022.

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 UFG visit www.ufginsurance.com or contact:

Investor Relations 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, 2021, filed with the Securities and Exchange Commission (“SEC”) on February 25, 2022. The risks identified in our Annual Report on Form 10-K 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 release include adjusted operating income (loss). The Company has provided the following definitions and reconciliations of adjusted operating income (loss):

Adjusted operating income (loss): Adjusted operating income (loss) is calculated by excluding net realized investment gains and losses, after applicable federal and state income taxes from net income. 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. The difference between estimated net loss in the range of $0.89 to $0.93 per diluted share and adjusted operating loss in the range of $0.45 to $0.49 per diluted share in the third quarter of 2022 is estimated after-tax net realized investment losses of $0.44 per diluted share.

United-Fire-Group-Inc-1 United Fire Group, Inc. Reports Estimates for Third Quarter 2022 Results

Comments

comments

Categories: Insurance News Tags: Insurance News

1Reason Agencies

What clients have to say:

Mike T. "I started a business last year and Robert responded to my inquiries immediately, and was extremely helpful and knowledgeable as to the type of insurance coverages I would need to get started. Now its been a year and he now carries All of my coverages! Absolutely the most hands on agent I've ever worked with but hands down the friendliest! I can call him anytime and never feel rushed and not only that but he responded while on a family vacation. I believe in relationships in business and so does Robert by the way he treats his customers. I have a true friend in the business, thank you Robert!"


Lynn R. "Bob is very knowledgeable and has always done a great job explaining different aspects of coverage. He is very accessible and looks out for what is best for the consumer. We highly recommend him!


Justin T. "Excellent agent, always available for answers to insurance related questions. Bob, is the person most people strive to become. Without a doubt, a great person!"


Sebastian T. "I can not begin to tell you how pleased I am with 1 Reason Insurance ! Their responding services is friendly and complete. For the services my company offers to the public it is sure nice to know that we are covered for a reasonable fee. Just having (1 R I ) 1 Reason Insurance there is such piece of mind ! Their insurance plans are strait to the point and easy to understand.
Thanks for the great service 1 Reason Insurance !"


Jeff H. "Very nice and cares about the customer! He was literally the reason why i chose him over other companies for my insurance"

Categories

  • Bonds
    • Performance Bond
  • Bookkeeping
    • Business Taxes
  • Business Marketing
    • Webhosting
  • Car Insurance
  • Commercial Auto
  • Commercial Insurance
  • Court Cases
  • Cyber Liability Insurance
  • Employment Opportunities
  • Employment Practices
  • Flood Insurance
  • Home Ownership
  • Homeowner's Insurance
  • Insurance Companies
    • Insurance News
  • Insurance Terms
  • Investing
    • Finance & Insurance News
  • Life Insurance
  • Non Emergency Medical Transportation
  • Payroll
  • Pinewood Derby
  • Professional Liability / E&O
  • Real Estate News
  • Rental Property Insurance
  • Retirement & Estate Planning
  • RV Insurance
  • Starting A Business
  • Stock Dividends
  • SuiteCRM Insurance CRM
  • Taxes
  • Tips & Advice
  • Travel
  • Uncategorized
  • Worker's Compensation

Recent Posts

  • Opendoor Announces Preliminary Proxy Filing Seeking Approval for Discretionary Reverse Stock Split
  • LGI Homes Opens Lake Gallagher Estates in Dover, Florida, with Premium Homes on Expansive Lots
  • DeFi Dev Corp. Partners with Drift Protocol to List dfdvSOL Liquid Staking Token
  • Abacus Global Management Announces Share Repurchase Program; Insider Buying
  • Vornado Completes Refinancing of Independence Plaza
  • Dalfen Industrial Closes Major Sale of One Million+ SF Houston Logistics Park to Global Tech Giant Foxconn
  • Greystone Provides $58.6 Million Freddie Mac Loan for Multifamily Property in Illinois
  • DeFi Development Corp. and Amber International Announce Strategic Partnership to Expand Solana Market Access and Treasury Solutions