Loading...
•
Dec 31, 2019
United Fire Group Q4 2019 Earnings Report
United Fire Group reported a net loss for the fourth quarter of 2019, impacted by commercial auto losses.
Key Takeaways
United Fire Group reported a consolidated net loss of $23.2 million, or $0.93 per diluted share, for the fourth quarter of 2019, compared to a net loss of $29.3 million, or $1.17 per diluted share, for the same period in 2018. The company's results were negatively impacted by commercial auto losses and prior year reserve strengthening in the Gulf Coast Region.
Consolidated net loss was $23.2 million ($0.93 per diluted share) for Q4 2019, compared to a net loss of $29.3 million ($1.17 per diluted share) for the same period in 2018.
Consolidated adjusted operating loss was $1.04 per diluted share for Q4 2019, compared to an adjusted operating loss of $0.30 per diluted share for the same period in 2018.
Net premiums earned increased 0.9 percent to $273.2 million for Q4 2019, compared to $270.7 million in Q4 2018.
The GAAP combined ratio increased to 117.9 percent for Q4 2019, compared to 108.5 percent for Q4 2018, driven by an increase in the loss ratio due to commercial auto losses.
Revenue by Segment
Forward Guidance
UFG plans to be more aggressive with non-renewals in 2020 which will reduce their commercial auto unit counts, especially in poor-performing segments, and not write new classes of business that are auto heavy.
Positive Outlook
- Strategic plan initiatives underway in underwriting.
- Strategic plan initiatives underway in claims.
- Strategic plan initiatives underway in analytics.
- Strategic plan initiatives underway in portfolio management.
- Strategic plan initiatives underway in technology innovation.
Challenges Ahead
- Commercial auto losses.
- Prior year reserve strengthening in Gulf Coast Region.
- Failure to meet expectations.
- Failure to make an operational profit.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...