United Fire sees lower profit

Too early to determine impact of Texas storms

By George C. Ford, The Gazette

United Fire Group reported a lower first-quarter profit on higher revenue when compared with the same period last year.

The Cedar Rapids-based insurer posted net income, including net realized investment gains and losses, of $22.4 million, or 88 cents per share, for the quarter that ended March 31. That compared with consolidated net income of $23.7 million, or 94 cents per share, in the first quarter of last year.

Revenue rose 11.4 percent to $265.7 million in the first quarter of this year, from $238.5 million in the same quarter of last year.

United Fire Group recognized consolidated net realized investment gains of $2.1 million during the first quarter, compared with consolidated net realized investment gains of $900,000 for the same period in 2015.

Net income for the company's property and casualty insurance segment totaled $22 million, or 86 cents per share, for the first quarter, down from $23.1 million, or 92 cents per share, in the same period of 2015. Net premiums earned increased 10 percent to $220.2 million in the first quarter, compared with $200.1 million in the same period of 2015 due to growth from writing new business and geographic expansion.

Catastrophe losses totaled $4.3 million, or 11 cents per share, for the first quarter, compared with $200,000, or 1 cent per share, for the same period in 2015.

'Catastrophe losses for the first quarter 2016 were slightly less than we would normally expect historically for a first quarter, but higher than the same period in 2015, when there was a lack of catastrophe losses,” United Fire Group President and CEO Randy Ramlo said in a news release.

Net income for the life insurance segment totaled $400,000, or 2 cents per share, for the first quarter, compared with $600,000, or 2 cents per share, for the first quarter of 2015.

In a conference call with analysts, Michael Wilkins, United Fire Group executive vice president and chief operating officer, said the company expects to incur catastrophe losses from large hailstorms last month in Texas.

'We're still assessing the magnitude of these events and are not able to quantify the losses,” Wilkins said.

l Comments: (319) 398-8366; george.ford@thegazette.com