United Fire Group Third-Quarter Profit Falls 10% To $35.1 Million, Yet Nine-Month Earnings Hit A Record
The insurer grew premiums 13%, but a tough comparison with last year's standout quarter pushed its combined ratio up to 94.6%.
United Fire Group, which writes commercial property and casualty insurance, said Tuesday its third-quarter net income fell 10% to $35.1 million, or $1.34 per diluted share, from $39.2 million, or $1.49, a year earlier. Premiums grew 13%, and earnings for the first nine months of 2026 reached a record.
Growth up, underwriting margin thinner
Net written premium, the amount charged on policies issued, rose 13% to $371.4 million, led by the core commercial business. Core commercial average renewal premium rose 3.0%, with rates up 2.0% and exposure changes of 1.0%.
The combined ratio, where anything under 100% means an underwriting profit, rose 2.7 points to 94.6% from 91.9%. The underlying loss ratio climbed 1.3 points to 57.3%, which the company attributed mainly to smaller favorable effects than in what it called an exceptional third quarter of 2025. Catastrophe losses rose 1.1 points to 2.4%, below the five-year and 10-year averages, and the expense ratio rose 0.3 points to 34.9%.
The year-ago quarter was the company's best third-quarter combined ratio in nearly 20 years, according to the release.
Record nine months, bigger investment income
For the first nine months, net income reached $98.5 million, or $3.78 per share, against $79.8 million, or $3.03, a year earlier. The nine-month combined ratio of 95.2% improved 0.7 points and is the best in more than a decade, the company said. Return on equity was 14.0% for the nine months.
Net investment income rose 13% to $29.3 million. Income from bonds increased $5.6 million on portfolio growth and reinvestment at higher yields, while income on other long-term investments fell to $1.3 million from $2.7 million.
"UFG delivered its strongest quarter of 2026, contributing to an exceptional first nine months of the year," said President and CEO Kevin Leidwinger.
Book value splits two ways
Book value per share fell $0.37 to $36.51 as of September 30 from December 31, mainly on unrealized losses on bonds and dividends. Adjusted book value per share, which strips out unrealized investment gains and losses, rose $3.07 to $40.94.
The company, based in Cedar Rapids, Iowa, sells mainly through approximately 850 independent agencies and is licensed in all 50 states and the District of Columbia. It paid a $0.20 per share dividend in the quarter.
Management will discuss the results on an earnings call at 9:00 a.m. CT on Wednesday.
