United Fire posts higher profit

CEDAR RAPIDS - United Fire Group on Thursday reported sharply higher third-quarter earnings and lower-than-expected catastrophic losses.

The Cedar Rapids based insurer posted net profit of $19.5 million, or 77 cents per share, for the third quarter that ended on Sept. 30, compared with a net profit of $325,000, or 1 cent per share, in the same period in 2014.

Total revenues increased 12.2 percent to $264.6 million in the most recent quarter from $235.9 million in the third quarter of 2014. Net premiums earned rose 12.9 percent in the third quarter and net investment income increased 5.3 percent when compared with the third quarter of 2014.

Randy Ramlo, United Fire Group president and CEO, said that the company's book of business continues to perform very well.

'For the quarter, consolidated net premiums earned increased 12.9 percent due to both rate increases in our commercial lines of business and new business,” Ramlo said in a news release. 'We continue to believe that 2015 will be a milestone year as the company continues to be on pace to achieve the $1 billion revenue threshold.”

Catastrophic losses totaled $7 million, or 18 cents per share after tax, for the third quarter, compared with $23.3 million, or 60 cents per share after tax, for the same period in 2014.

'Catastrophe losses for the third quarter were less than we would normally expect,” Ramlo said. 'Second and third quarters are more storm- and catastrophe-laden in geographic areas where we conduct much of our business due to spring and summer convective storms and hurricanes.

'However, 2015 has experienced a mild hurricane season and convective seasonal storms have not been a significant factor for us.”

Net income for United Fire Group's life insurance segment totaled $1.5 million, or 6 cents per share, for the third quarter, compared with $2.2 million, or 9 cents per share, for the third quarter of 2014.