United Fire Group Q3 profit falls 10% as combined ratio worsens

By Reuters News


Overview

  • US property and casualty insurer's Q3 net income and adjusted operating income fell yr/yr

  • Q3 net written premium rose 13%, led by growth in core commercial business

  • Combined ratio worsened to 94.6% on higher loss and expense ratios


Outlook

  • Company did not provide specific financial guidance for future quarters or full year


Result Drivers

  • COMMERCIAL PREMIUM GROWTH - Co said net written premium rose 13% in Q3, driven by growth in core commercial business

  • HIGHER LOSS RATIO - Underlying loss ratio increased 1.3 points to 57.3%, mainly due to lower favorable impacts vs. prior yr

  • INCREASED INVESTMENT INCOME - Net investment income rose 13% to $29.3 mln, helped by portfolio growth and reinvestment at higher yields


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted Combined Ratio

92.20%

Q3 Adjusted Operating Income

$35.07 mln

Q3 Combined Ratio

94.60%

Q3 Expense Ratio

34.90%


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the property & casualty insurance peer group is "buy"

  • Wall Street's median 12-month price target for United Fire Group Inc is $57.00, about 0.1% below its November 2 closing price of $57.08

  • The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Nov 2 - CNA Financial Q3 net income falls, catastrophe losses rise

  • Nov 3 - Bowhead Q3 profit beats estimates on divisional premium growth

  • Nov 2 - CNA misses Q3 analysts' estimates as core income drops 50%


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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