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

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

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

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(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.)