United Fire Group completes formation of holding company

CEDAR RAPIDS -- United Fire Group Inc. on Wednesday completed a planned reorganization following the approval of a new holding company by its shareholders.

The reorganization agreement was approved by United Fire & Casualty's shareholders at a special meeting on Jan. 24. United Fire Group replaced United Fire & Casualty as the publicly held corporation owning the Cedar Rapids-based property and casualty insurer as well as United Life Insurance Co.

Holders of United Fire & Casualty common stock hold the same number of shares and same ownership percentage of United Fire Group as they held of United Fire & Casualty before the reorganization occurred. Shares of United Fire Group common stock will begin trading Thursday, Feb. 2, on the Nasdaq Global Select Market under the ticker symbol "UFCS."

The directors and executive officers of United Fire Group are the same individuals who were directors and executive officers of United Fire & Casualty before the reorganization.

When United Fire & Casualty first disclosed plans for a possible reorganization at the company's annual meeting in May, President and Chief Executive Officer Randy Ramlo said it would lessen the cost of raising capital.

"It's kind of a more modern, streamlined corporate structure that we probably should have done years ago,"Ramlo said. "Ultimately, if we were to experience another Hurricane Katrina, we could go out and raise capital easier under the holding company structure.

"We're a larger organization now (with the Mercer Insurance merger) and it makes even less sense to be unique."