United Fire Group (UFCS) investor relations material

Executive summary

• Net income for Q2 2026 rose 45% year-over-year to $33.4 million ($1.29 per diluted share), with adjusted operating income up 42% to $33.7 million ($1.30 per diluted share), marking record net income, net written premium, and EPS for the quarter.

• Net written premium increased 9% to $406.4 million, led by core commercial business growth and strong new business and retention.

• Combined ratio improved 1.1 points to 95.3%, the best second-quarter result in over 15 years.

• Net investment income reached $28.9 million, a 33% increase, the highest in over a decade, driven by higher yields and portfolio growth.

• Return on equity was 13.2% for the six months ended June 30, 2026, the best year-to-date performance in 20 years.

Financial highlights

• Net earned premium grew 12.5% year-over-year to $354.1 million in Q2 2026.

• Book value per share increased to $38.02; adjusted book value per share rose to $39.72 since December 31, 2025.

• Total revenues for Q2 2026 were $383.7 million, up from $335.5 million in Q2 2025.

• Underwriting expense ratio was 35.4%, up 0.5 points year-over-year, partly due to a one-time lease buyout.

• Net investment losses were $0.4 million for Q2, an improvement over the prior year.

Outlook and guidance

• Management expects continued premium growth and stable underwriting results, with catastrophe losses below historical averages.

• Expense ratio is expected to gradually decline by 0.5 to 1 point per year through efficiency initiatives and real estate footprint reduction.

• Portfolio positioned to benefit from higher reinvestment rates, with new purchase yields exceeding portfolio average.

• Business remains well-positioned for prudent growth through varying market cycles.

• No material changes to risk factors or business outlook were reported for the remainder of 2026.