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United Fire Group reports best Q2 combined ratio in 15 years
UFG posted a 95.3% combined ratio and an underlying loss ratio of 57.2% with zero adverse prior-year reserve development.
United Fire Group reported a 95.3% combined ratio for the three months ended June 30, its best second-quarter result in more than 15 years. The figure improved by 1.1 points from the prior-year quarter, signaling stronger profitability as underwriting discipline separates carriers. The company attributed the underwriting quality to its underlying loss ratio, which was 57.2%. UFG reported no adverse reserve development on prior-year claims, and catastrophe losses totaled 2.7%, below its five-year and 10-year historical averages. Net written premium increased 9% to $406.4 million, and net income rose 45% to $33.4 million. Under the hood, UFG said improvement reflected sustained lower frequency and earned rate achievement across core commercial lines, rather than a favorable weather quarter. On the portfolio side, UFG reported growth in several commercial lines, including other liability, commercial auto, and workers' compensation, while commercial fire and allied lines declined 9% to $67.9 million. The insurer also said net investment income rose 33% to $28.9 million, supported by portfolio growth and reinvestment at higher yields, according to Insurance Business.