Cedar Rapids insurer cuts 40 employees

United Fire Group, one of Cedar Rapids' largest employers, cut 40 employees from its workforce last week.

The company posted a notice Oct. 24 on the Iowa Worker Adjustment and Retraining Notification (WARN) Act website that it was laying off a total of 40 workers, effective immediately.

Casey Prince, associate vice president and marketing and communications manager for UFG Insurance, said the 40 positions were eliminated “due to lack of business need” as part of a reorganization of the company’s information technology structure “to better support the company’s business objectives and ongoing digital transformation.”

“We regret the hardship this decision has on our former team members and thank those impacted for their valuable contributions during their time with the company,” Prince responded to The Gazette in an email. “UFG is fully committed to supporting these employees through this transition, including pay with benefits through the end of the year as well as outplacement services.”

He said 28 of the 40 employees whose positions were eliminated live in Iowa.

The company employs more than 1,000 individuals across six states, and is represented by approximately 1,000 independent insurance agencies across the country.

United Fire Group was founded in 1946 as United Casualty Company by Scott McIntyre Sr. It became United Fire & Casualty Company in 1950, and by 1964 had moved its corporate headquarters to its current location along Second Avenue SE in downtown Cedar Rapids.

The company provides property and casualty insurance policies, with a focus on commercial insurance serving retail, manufacturing, construction and small business industries, among others.

Major insurers GEICO, Liberty Mutual, State Farm and Farmers, among others, reported large underwriting losses last year caused by costly natural disasters, rising accident claims and material costs, and persistent inflation — leading to layoffs.

In August, UFG reported a net loss of $56.4 million for the second quarter, “driven by prior period loss reserve strengthening and elevated catastrophe losses.”

“In addition, the industry dealt with a historic level of catastrophe losses in the second quarter of 2023, with UFG experiencing catastrophe losses from 18 separate weather events that resulted in losses slightly above the five- and 10- year historic averages,” UFG President and CEO Kevin Leidwinger said in a news release of the company’s financial results for the three- month period ending June 30.

“We will continue to take action to improve the risk profile of our property business to reposition the portfolio and reduce volatility,” Leidwinger said.

Despite the loss, UFG produced double-digit growth in net premiums written in the second quarter and increases in new business and retention, according to the company.

While reducing costs, Leidwinger said UFG continues “to make strategic investments in the talent and technology capabilities necessary for success.”

Comments: (319) 398-8499; tom.barton@thegazette.com