United Fire Group (UFCS) Q1 2026 earnings summary

Executive summary

• Net income rose 70% year-over-year to $30.1 million, or $1.15 per diluted share, with adjusted operating income up 65% to $30.3 million, or $1.16 per diluted share, driven by record net written premium of $376.9 million, improved catastrophe loss ratio, and higher investment income.

• Combined ratio improved 3.8 points to 95.6%, reflecting better underwriting profitability and lower catastrophe losses.

• Book value per share increased to $37.06, and adjusted book value per share rose to $38.61 as of March 31, 2026.

• Strategic actions in underwriting, actuarial expertise, and distribution expanded business opportunities and supported disciplined, profitable growth.

Financial highlights

• Net written premium increased 12.4% year-over-year to $376.9 million, with Core Commercial up 11% and new business growth of 14%.

• Net earned premium grew 11.2% to $343.0 million; net investment income rose 15% to $27.0 million, with fixed maturity income up 18% to $24.9 million.

• Expense ratio improved three points to 34.9% from prior year, aided by system implementation and growth.

• Catastrophe loss ratio improved to 3.7%, outperforming historical averages.

• Return on equity improved to 12.7% from 8.9% in the prior year.

Outlook and guidance

• Ongoing actions expected to further reduce expense ratio by 60–70 basis points year-over-year with 10% growth.

• Portfolio positioned to benefit from higher reinvestment rates, with new purchase yield at 5.0% exceeding portfolio average.

• Management remains focused on profitable growth, disciplined underwriting, and expense management, leveraging expanded capabilities to serve distribution partners.