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- **Record Q3 Results**: $39.2 million net income (double YoY), 91.9% combined ratio, and $328 million net written premium, marking the best third-quarter performance in 20 years.
- **Underwriting Excellence**: 56% underlying loss ratio (down 1.9 points) and 1.3% catastrophe loss ratio, driven by disciplined underwriting and portfolio optimization.
- **Investment Strength**: 17% year-over-year growth in fixed income income and 10% annualized return on limited partnerships, supporting 12.7% ROE.
- **Market Resilience**: Focused on core commercial (99% of accounts below $500k) and new business (27% of Q3 premium), with underwriting expertise maintaining margins in a softening market.

**【CEO Opening Remarks】**
- **Record Financial Performance**: Q3 net income of $39.2 million, doubling year-over-year, with the highest third-quarter net income in 20 years. Combined ratio improved to 91.9%, and net written premium reached $328 million, a new quarterly record. Year-to-date return on equity (ROE) is 12.7%, the best in nearly two decades.
- **Strategic Execution**: Emphasized progress in underwriting expertise, customer base expansion, distribution alignment, investment returns, and reserve stabilization. Proud of team resilience and strategic execution for long-term profitability.

**【COO Underwriting Commentary】**
- **Loss Ratio Improvement**: Underlying loss ratio decreased 1.9 points to 56% in Q3, driven by strong earned rate achievement, disciplined underwriting, and favorable frequency trends. Reserves remain conservative within actuarial estimates.
- **Catastrophe Performance**: Catastrophe loss ratio of 1.3%, below 5-year and 10-year averages, benefiting from improved deductible profiles and portfolio management.
- **Growth and Retention**: Net written premium grew 7% (22% in core commercial), with 27% new business contribution. Retention rate of 86% reflects portfolio confidence. Rate increases of 5.8% across core commercial, moderating but still strong.
- **Specialty Lines**: E&S premium growth paused due to market competition, while surety and alternative distribution channels show disciplined growth.

**【CFO Financial Commentary】**
- **Investment Income Growth**: Fixed income portfolio generated 17% more income year-over-year, with new purchases yielding 5% (60bps above portfolio average). Limited partnerships returned $2.7 million (10% annualized).
- **Expense Efficiency**: Expense ratio improved 1.3 points to 34.6%, benefiting from growth and cost management. Expect gradual reduction over time.
- **Earnings and Capital Management**: Net income of $1.49 per share, with adjusted book value per share at $36.34. Dividend of $0.16 per share declared and paid.

**【Q&A Highlights】**
- **Soft Market Strategy**: Maintain underwriting discipline, focus on core commercial (99% of accounts below $500,000), and leverage deep underwriting expertise. Portfolio composition (45% of core commercial written since 2023) provides confidence in navigating market softness.
- **Capital Allocation**: Prioritize growth and dividend continuity, with no immediate M&A plans. Capital management remains focused on sustainable profitability and ROE targets.


United Fire Group, Inc. (UFCS) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

UFCS

UFCS fundamentals

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