United Fire Group Reports 11.9% Revenue Growth and 31.1% Increase in Net Income for Q1 2025

United Fire Group, Inc. (UFG) reported a notable increase in financial performance for the first quarter of 2025, with total revenues reaching $331.1 million, up 11.9% from $296.0 million in the same period last year. The company's net earned premiums rose by 9.8% to $308.4 million, driven by growth in core commercial lines and effective rate renewals. Net investment income also saw a significant increase of 43.5%, totaling $23.5 million compared to $16.3 million in the prior year. However, UFG experienced net investment losses of $0.8 million, an improvement from losses of $1.2 million in the previous year.

In terms of profitability, UFG's net income increased by 31.1% to $17.7 million, or $0.70 per share, compared to $13.5 million, or $0.53 per share, in the first quarter of 2024. The company's combined ratio, a key measure of underwriting profitability, was reported at 99.4%, slightly up from 98.9% a year earlier. The net loss ratio improved to 61.5% from 64.0%, indicating better claims management and underwriting performance.

Operationally, UFG's total assets increased to $3.53 billion as of March 31, 2025, compared to $3.49 billion at the end of 2024. The company reported a total stockholders' equity of $817.7 million, reflecting an increase from $781.5 million, primarily due to retained earnings and a reduction in unrealized losses on investments. The company’s employee headcount remained stable, supporting its operational capabilities across its insurance offerings.

Strategically, UFG continues to focus on its core commercial lines of property and casualty insurance, having phased out personal lines. The company operates through approximately 1,000 independent agencies across the United States, with significant premium contributions from states like Texas, California, and Iowa. UFG's investment strategy remains conservative, with a focus on high-quality fixed maturity securities, and it has maintained a strong liquidity position with cash and cash equivalents totaling $183.7 million.

Looking ahead, UFG remains optimistic about its growth trajectory, supported by favorable market conditions and strategic initiatives aimed at enhancing underwriting performance. The company is committed to managing its investment portfolio effectively while navigating the challenges posed by economic and regulatory environments. UFG's management anticipates continued improvements in net earned premiums and overall profitability as it leverages its established market presence and operational efficiencies.