United Fire Group, Inc.
- Open
- 52.46
- Day high
- 53.80
- Day low
- 52.46
- Prev close
- 52.44
- Volume
- 77K
- Mkt cap
- $1.4B
- P/E (TTM)
- 10.5
- EPS (TTM)
- $5.07
- P/B
- 1.4
- P/S
- 1.0
- Yield
- 0.75%
- Per share
- $0.40
- ▲Insiders net buying $204K over the last 3 months (1 open-market buy, 0 sales)
- 🏛Institutions accumulating (13F)
United Fire Group, Inc. (UFCS) is a Financial Services company listed on NASDAQ. The stock is up 85% over the past year. Over the trailing 3 months, insiders filed 1 open-market buy and 0 sales (SEC Form 4).
United Fire Group, Inc. (UFCS) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
UFCS earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 6, 2026 | $0.87 | $1.16 | +33.3% | $343M | +0.8% |
| Nov 4, 2025 | $0.69 | $1.50 | +117.4% | $354M | +6.5% |
| Feb 13, 2024 | $0.56 | $0.65 | +16.1% | $287M | +3.1% |
| Nov 1, 2023 | $-0.16 | $0.31 | +293.7% | $274M | -0.4% |
| Feb 15, 2023 | $0.36 | $0.18 | -50.0% | $288M | +18.8% |
| Nov 2, 2022 | $-0.48 | $-0.47 | +2.1% | $236M | -0.8% |
| Aug 4, 2022 | $0.47 | $0.24 | -48.9% | $220M | -7.5% |
| May 5, 2022 | $0.84 | $1.13 | +34.5% | $245M | -9.1% |
| Feb 15, 2022 | $0.41 | $1.69 | +312.2% | $273M | -1.4% |
| Nov 4, 2021 | $-0.31 | $-0.31 | +0.0% | $249M | -10.0% |
| Aug 4, 2021 | $-0.07 | $0.35 | +600.0% | $244M | -12.2% |
| May 5, 2021 | $-0.29 | $-0.03 | +89.7% | $301M | +11.2% |
UFCS insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 9, 2026 | MILLIGAN GEORGE Ddirector | Buy | 4,500 | $45.23 |
| May 22, 2026 | NOYCE JAMESdirector | Grant | 2,082 | $48.04 |
| May 22, 2026 | MILLIGAN GEORGE Ddirector | Grant | 2,082 | $48.04 |
| May 22, 2026 | Drahozal Christopher Rdirector | Grant | 2,082 | $48.04 |
| May 22, 2026 | Spencer Gilda Livingstondirector | Grant | 2,082 | $48.04 |
| May 22, 2026 | Foran Matthew Rdirector | Grant | 2,082 | $48.04 |
| May 22, 2026 | Carlton Scott Ldirector | Grant | 2,082 | $48.04 |
| May 22, 2026 | Green Mark A.director | Grant | 2,082 | $48.04 |
| May 22, 2026 | McBride Lura Edirector | Grant | 2,082 | $48.04 |
| May 22, 2026 | Voss Susan Edirector | Grant | 2,082 | $48.04 |
| May 22, 2026 | Clancy Brenda Kaydirector | Grant | 2,082 | $48.04 |
| May 19, 2026 | Hernandez Steven Dennisofficer: Chief Human Resources Officer | Tax | 485 | $48.06 |
| Mar 24, 2026 | Leidwinger Kevin Jamesdirector, officer: Director, CEO | Tax | 3,925 | $36.40 |
| Mar 24, 2026 | Leidwinger Kevin Jamesdirector, officer: Director, CEO | Tax | 1,309 | $36.40 |
| Mar 24, 2026 | Madsen Sarah Eofficer: Chief Legal Officer | Tax | 613 | $36.40 |
Source: UFCS SEC Form 4 filings, latest Jun 9, 2026. For informational purposes only — not investment advice.
See the full UFCS insider & 13F page →United Fire Group, Inc. company profile
Overview
United Fire Group, Inc. (NASDAQ:UFCS) is a regional property and casualty insurance company founded in 1946 and headquartered in Cedar Rapids, Iowa. The company has been publicly traded since 1980 and operates as a traditional insurance carrier serving individuals and businesses across the United States through a network of independent insurance agencies. After experiencing significant underwriting challenges in recent years, United Fire has undergone substantial operational restructuring and strategic repositioning, achieving a notable turnaround with consecutive quarters of underwriting profitability beginning in 2024.
Business
United Fire Group operates in the property and casualty insurance industry, which provides coverage for physical assets and liability protection to individuals and businesses. Property insurance covers damage to buildings, equipment, and other physical assets from events like fires, storms, and theft, while casualty insurance protects against legal liability claims arising from accidents, injuries, or negligence. The company operates through several distinct business segments: 1. **Core Commercial Business** (approximately 60-65% of premium volume): This segment provides comprehensive insurance coverage to small and medium-sized businesses across multiple industries. Products include commercial property insurance (covering buildings and business equipment), general liability (protecting against third-party injury claims), commercial automobile coverage, workers' compensation (covering employee injuries), and inland marine insurance (covering goods in transit or specialized equipment). The company focuses on three main commercial subsegments: small business, middle market, and construction. 2. **Alternative Distribution Channels** (approximately 25-30% of premium volume): This includes assumed reinsurance business where United Fire accepts risk from other insurance companies, as well as specialty programs and participation in Lloyd's of London syndicates. This segment helps diversify the company's risk profile and provides access to different types of business without requiring significant additional staffing. 3. **Personal Lines** (approximately 5-10% of premium volume): Provides insurance coverage to individual consumers, primarily automobile insurance and homeowners coverage. This segment has been significantly reduced as part of the company's strategic focus on commercial business. 4. **Specialty and Surety Lines** (small percentage of total premium): Specialty lines include excess and surplus coverage for hard-to-place risks, while surety bonds guarantee performance of contractual obligations. These are niche, higher-margin products that require specialized underwriting expertise. The insurance industry operates on the principle of risk pooling, where many policyholders pay premiums into a common fund that is used to pay claims for the few who experience losses. Success depends on accurately pricing risk, maintaining disciplined underwriting standards, and efficiently managing claims and expenses.
Revenue model
United Fire Group generates revenue primarily through **insurance premium collection** from policyholders who purchase coverage. The company's business model follows the traditional insurance cycle: collect premiums upfront, invest the funds (called "float") until claims are paid, and profit from the combination of underwriting results and investment income. The company's paying customers include small and medium-sized businesses seeking commercial coverage, individual consumers purchasing personal lines insurance, and other insurance companies that cede risk through reinsurance arrangements. Premium rates are determined based on actuarial analysis of risk factors, claims history, and competitive market conditions. **Revenue streams include:** 1. **Net written premiums** (primary revenue source): Annual premium volume of approximately $1.3-1.4 billion 2. **Net investment income**: Approximately $80-90 million annually from investing insurance float in fixed-income securities, with recent new money yields around 5.3-5.5% 3. **Fee income**: Small amounts from policy administration and other services **Profitability factors that increase margins:** - Disciplined underwriting and risk selection that keeps loss ratios below premium collection - Rate increases that exceed claims inflation trends (currently achieving 9-12% rate increases) - Favorable claims development from prior accident years - Higher investment yields on the insurance float - Expense leverage from premium growth without proportional increases in fixed costs - Reduced catastrophe losses in any given period **Factors that decrease margins:** - Social inflation driving higher liability claim settlements and legal costs - Natural catastrophe events causing large property losses - Adverse claims development from prior years requiring additional reserves - Competitive pricing pressure limiting rate increases - Rising reinsurance costs for catastrophe protection - Inflation in construction materials and labor costs affecting property claims - Economic recession reducing premium volumes and increasing claim frequency The company's combined ratio (losses plus expenses divided by premiums) serves as the key profitability metric, with ratios below 100% indicating underwriting profit. United Fire has recently achieved combined ratios in the high 90s after several years above 100%.
Competitive moat
United Fire Group operates in a commodity-like insurance market with limited sustainable competitive advantages. The company's modest moat primarily stems from **regulatory barriers and local market relationships** rather than unique products or pricing power. **Existing competitive advantages:** - **Regulatory licensing requirements** create barriers to entry, as new competitors must obtain state-by-state insurance licenses and meet capital requirements - **Established independent agent relationships** built over decades provide distribution advantages, particularly in Midwest markets where the company has strong historical presence - **Specialized underwriting expertise** in certain commercial niches like construction and middle-market businesses, though this knowledge is not proprietary - **Financial stability and claims-paying ability** rated by AM Best, which provides credibility with agents and customers **Moat limitations:** The insurance industry is inherently competitive with numerous well-capitalized competitors offering similar products. United Fire faces significant challenges from larger, more diversified insurers with superior scale advantages, technology investments, and broader product offerings. The company's regional focus limits diversification benefits compared to national carriers. **Competitive threats and disruption risks:** - **Larger national carriers** like State Farm, Allstate, and Progressive have superior resources, technology, and brand recognition - **InsurTech companies** are introducing digital-first approaches that could disrupt traditional agent-based distribution - **Direct-to-consumer models** threaten the independent agent channel that United Fire relies upon - **Private equity-backed specialty insurers** are aggressively competing for commercial business with flexible capital structures - **Reinsurance market consolidation** could reduce alternative distribution opportunities The company's competitive position is weak relative to industry leaders, with limited differentiation beyond regional relationships and specialized knowledge in certain commercial segments. Success depends heavily on disciplined underwriting and operational efficiency rather than sustainable competitive advantages. The recent operational improvements represent necessary catch-up rather than the creation of durable moats.
Risks & safety
United Fire Group presents a **moderate margin of safety** with solid financial stability but limited growth prospects and cyclical earnings volatility. **Overall Assessment**: The company maintains adequate capitalization and liquidity but operates in a commodity business with modest returns and significant operational leverage to underwriting cycles. **Solvency and Liquidity:** - **Strong cash position**: $201 million in cash and short-term investments as of Q1 2025 - **Minimal debt**: Debt-to-equity ratio of essentially zero, with total debt representing less than 15% of equity - **Positive cash generation**: Operating cash flow of $340 million in 2024, free cash flow of $328 million - **Adequate reserves**: $2.7 billion in total liabilities, primarily insurance reserves, with conservative reserving practices **Valuation Metrics:** - **Price-to-earnings ratio**: 10.6x based on recent profitable quarters - **Price-to-book ratio**: 0.88x, trading below tangible book value - **EV/EBITDA**: 5.8x, reasonable for insurance industry - **Graham number**: Suggests fair value around $23-29 per share **Other Considerations:** - **Regulatory capital requirements**: Must maintain minimum surplus levels, currently well-capitalized - **Catastrophe exposure**: Geographic concentration in Midwest creates weather-related volatility - **Earnings volatility**: Combined ratios fluctuate significantly with underwriting cycles and catastrophe events - **Limited growth runway**: Mature regional markets with modest expansion opportunities
Recent development
United Fire Group has undergone significant strategic transformation over the past three years, focused on operational efficiency, underwriting discipline, and technology modernization. The company implemented a **voluntary early retirement program** that reduced its workforce by approximately 22% (around 160 employees), with the largest reductions in IT and administrative functions. This restructuring was designed to reduce the expense ratio and improve operational efficiency. A major technology initiative involved developing and deploying a **new policy administration system** across all business lines. The small business segment was fully deployed across 32 states by early 2025, with middle market and construction segments scheduled for deployment in July and November 2025, respectively. This system modernization aims to improve operational efficiency and support future growth. The company has strategically **repositioned its business mix** by substantially reducing its personal lines exposure while growing alternative distribution channels. The assumed reinsurance business, which includes treaty arrangements and Lloyd's of London participation, now represents approximately 25-30% of the portfolio, providing diversification and access to different risk types. The company has also rebuilt its specialty and surety operations after previous challenges. **Investment portfolio optimization** has been a key focus, with United Fire investing nearly $900 million in fixed maturity assets during 2024 at average yields of 5.5%. The portfolio credit quality was improved from AA- to AA rating, and the company partnered with New England Asset Management for enhanced investment management capabilities. The company has achieved **consecutive quarters of underwriting profitability** beginning in Q3 2024, with combined ratios consistently below 100% after years of underwriting losses. This improvement reflects disciplined pricing with rate increases of 9-12% that exceed loss trend inflation, improved claims management, and reduced catastrophe exposure through geographic diversification. **Reinsurance strategy evolution** included adding a variable quota-share treaty to support growth while reducing earnings volatility, though this came with increased reinsurance costs. The company also proactively addressed regulatory issues, including identifying and correcting rating errors in certain commercial lines that resulted in a one-time $3.2 million charge for potential premium refunds.
UFCS company profile · for informational purposes only — not investment advice.
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