United Fire Group (UFCS) Q4 2025 earnings summary

Executive summary

• Achieved record business size in 2025, with best annual underwriting profit, investment income, and return on equity in over a decade.

• Fourth quarter combined ratio improved to 92.3%, with all business units contributing to premium growth.

• Net income nearly doubled to $118M, or $4.48 per share, with ROE at 13.7%, the highest in a decade.

• Transformation since 2022 led to significant improvements in underwriting, actuarial insights, and operational efficiency.

• Strategic investments in technology enhanced underwriting capabilities and operational efficiency.

Financial highlights

• Underwriting profit rose from $9M in 2024 to $67M in 2025.

• Net written premium grew 11% in Q4 to $310M and 9% for the year to $1.3B.

• Net investment income increased 14% in Q4 to $26.4M and 19% for the year to $98M.

• Combined ratio improved to 92.3% in Q4 and 94.8% for the year, best in a decade.

• Book value per share increased $6.08 to $36.88; adjusted book value per share reached $37.87.

Outlook and guidance

• Positioned for continued profitable growth in 2026, targeting disciplined underwriting and long-term value creation.

• Board declared a 25% increase in quarterly cash dividend to $0.20 per share.

• Expense ratio targeted at 35% in the near term, with expectations to decrease by 0.5 points annually as growth continues.

• Modeled annual expected catastrophe loss ratio projected below 5% for 2026.

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