United Fire profit jumps 41 percent in 2nd Quarter, premiums for new business remain strong

United Fire Group recorded a strong second quarter with earnings jumping 41 percent and revenues rising 10 percent over the same quarter of 2014.

The Cedar Rapids-based insurer on Tuesday reported net income of $15 million, or 59 cents per share, for the quarter that ended on June 30, compared with net income of $10.7 million, or 42 cents per share, for the same period in 2014.

Revenue rose 10 percent to $255.9 million in the second quarter of 2015 from $232.7 million in the same quarter last year.

Net income for the company's property and casualty insurance segment totaled $13.3 million, or 52 cents per share, for the second quarter, compared with $9.5 million, or 37 cents per share, in the same period of 2014.

Catastrophe losses totaled $20.2 million, or 52 cents per share after tax, for the second quarter, compared with $20.6 million, or 53 cents per share after tax, for the same period in 2014. In a conference call with analysts, Mike Wilkins, United Fire executive vice president and chief operating officer, said losses were consistent with the company's expectations,

Randy Ramlo, United Fire president and CEO, told the analysts that the company is expanding its geographic reach through agency growth in regions where it feels it has been underutilized.

'Over the last few years, we have added approximately 100 new agencies per year,” Ramlo said. 'We are seeing the rewards of our efforts. We continue to assess existing relationships for profitability and mutual benefit.”

Net income for the company's life insurance segment totaled $1.7 million, or 7 cents per share, for the second quarter, compared with $1.1 million, or 5 cents per share, for the second quarter of 2014.