United Fire Group 3rd-quarter profit beats forecast

United Fire Group, corporate parent of United Fire & Casualty and United Life Insurance, on Tuesday reported a higher third-quarter profit that beat analysts' forecast.

The Cedar Rapids insurer posted net income of $11.7 million, or 45 cents per share, for the quarter that ended on Sept. 30, compared with net income of $8.7 million, or 34 cents per share, for the same period of 2012. Analysts on average had expected earnings of 37 cents per share, according to Thomson Reuters.

United Fire Group recorded third-quarter revenue of $223 million, compared with $206.6 million for the third quarter of 2012. Analysts on average had expected third-quarter revenue of $217.1 million.

Randy Ramlo, United Fire Group president and CEO, said the company continues on track to meet or exceed its 2013 expectations.

"For the quarter, net written premium increased 13.6 percent due mostly to rate increases in our commercial lines of business," Ramlo said. "Net premiums earned increased 10 percent and our return on equity is up 15.4 percent compared to the same quarter in 2012."

Catastrophic losses totaled $8.5 million, or 21 cents per share after tax, for the third quarter, compared with $8.5 million, or 22 cents per share after tax, for the same period in 2012.

Year-to-date, catastrophic losses totaled $27.2 million, or 69 per share after tax, compared with $34.5 million, or 88 cents per share after tax, for the same period of 2012.

"Third quarter catastrophe losses were consistent with the third quarter of 2012, and somewhat better than our expectations due to a benign hurricane season so far this year," Ramlo said. "Year-to-date, catastrophe losses were significantly less than at Sept. 30, 2012."