United Fire earnings beat forecast

United Fire Group on Thursday reported fourth-quarter 2015 earnings that beat analysts' forecasts and annual revenue of $1 billion for the first time in company history.

The Cedar Rapids-based insurer posted a fourth-quarter profit of $30.9 million, or $1.21 per share, down 11.2 percent from $34.8 million, or $1.34 per share, in the same quarter of 2014. Analysts for Thomson Reuters were expecting earnings per share of 53 cents.

Fourth-quarter 2015 revenue was $276 million, up 10.2 percent from $$250.5 million in the final quarter of 2014.

For the year that ended on Dec. 31, 2015, United Fire recorded net income of $89.1 million, or $3.53 per share, up 50.7 percent from $59.1 million, or $2.32 per share, in 2014. Revenue was $1.03 billion, up 9.9 percent from $941.9 million in 2014.

Net income for United Fire's property and casualty insurance segment, including net realized investment gains and losses, totaled $30.9 million, or $1.21 per share, for the fourth quarter, compared with net income of $32.9 million, or $1.30 per share, for the fourth quarter of 2014. For the full year 2015, net income totaled $85.3 million, or $3.38 per share, compared with net income of $52.4 million, or $2.05 per share, for all of 2014.

Randy Ramlo, United Fire president and CEO, said in a news release that the company experienced an increase in its expense ratio in the fourth quarter 2015 as compared with the fourth quarter 2014 primarily due to an increase in amortization of deferred acquisition costs, and an increase in employee related expense.

'Our full year 2015 expense ratio was in line with the comparative full year 2014,” Ramlo said. 'We continue to make progress towards lowering our expense ratio, but with the lingering low interest rate environment, our postretirement benefit plan obligations offset savings from other sources in 2015.”

Founded in 1946 as United Fire & Casualty Co., United Fire Group through its insurance company subsidiaries is engaged in the business of writing property and casualty insurance and life insurance and selling annuities.