United Fire exceeds first quarter expectations

United Fire Group on Tuesday reported sharply higher first-quarter net income that topped analysts' expectations.

The Cedar Rapids-based insurer posted net income of $23.7 million, or 94 cents per share, for the quarter that ended on March 31, up sharply from $13.3 million, or 52 cents per share, for the same period in 2014. Analysts for Thomson Reuters, on average, were expecting net income of 86 cents per share.

First-quarter revenue was $238.5 million, a 7 percent improvement over $222.9 million in the same quarter of 2014. Analysts, on average, had forecast revenue of $248.2 million.

Randy Ramlo, United Fire Group president and CEO, said in a news release that the company remains on track to achieve each of its long term objectives.

'We are, however, cautiously optimistic as we enter into second and third quarters, which are sometimes laden with storm and catastrophe losses in those areas where we conduct much of our business,” Ramlo said.

Catastrophic losses totaled $200,000, or less than a cent per share after tax, for the first quarter, compared with $3.3 million, or 8 cents per share after tax, for the same period in 2014.

Net income for United Fire Group's property and casualty insurance segment totaled $23.1 million, or 92 cents per share for the first quarter, compared with $11.8 million, or 46 cents per share, in the same period of 2014.

Net premiums earned increased 11.5 percent to $200.1 million in the first quarter, compared with $179.5 million in the same period last year.

Net income for the company's life insurance segment totaled $600,0000, or 2 cents per share, for the first quarter, compared with $1.5 million, or 6 cents per share, for the first quarter of 2014. The decrease in net income for the quarter was primarily due to a decrease in net premiums earned from lower sales of single premium whole life policies, an increase in losses and loss settlement expenses from higher death benefits, and a decrease in investment income.