UFG News

Fourth quarter net income of $1.45 per diluted share
and adjusted operating income of $1.50 per diluted share

Full year net income of $4.48 per diluted share
and adjusted operating income of $4.60 per diluted share

Full year return on equity of 13.7%

Board of directors declares 25% increase in quarterly dividend to $0.20 per share

Fourth quarter 2025 highlights compared to fourth quarter 2024: ⁽¹⁾

• Net income increased $6.9 million to $38.4 million.
• Net investment income increased 14% to $26.4 million.
• Combined ratio improved 2.1 points to 92.3%; composed of an underlying loss ratio of 55.4%, catastrophe loss ratio of 1.2%, no prior year reserve development, and underwriting expense ratio of 35.7%.
• Underlying combined ratio improved 1.7 points to 91.1%.
• Net written premium⁽²⁾ increased 11% to $309.7 million.

Full year 2025 highlights compared to full year 2024:⁽¹⁾

• Net income increased $56.2 million to $118.2 million.
• Net investment income increased 19% to $97.5 million.
• Combined ratio improved 4.4 points to 94.8%; composed of an underlying loss ratio of 56.3%, catastrophe loss ratio of 3.2%, favorable prior year reserve development of 0.4% and underwriting expense ratio of 35.7%.
• Underlying combined ratio improved 1.8 points to 92.0%.
• Net written premium⁽²⁾ increased 9% to $1.3 billion.
• Book value per share increased $6.08 to $36.88 as of December 31, 2025, compared to December 31, 2024.
• Adjusted book value per share increased $4.23 to $37.87 as of December 31, 2025, compared to December 31, 2024.

CEDAR RAPIDS, IOWA, February 10, 2026 — United Fire Group, Inc. (UFG) (Nasdaq: UFCS) today reported financial results for the fourth quarter ended December 31, 2025, with net income increasing $6.9 million over the prior year to $38.4 million ($1.45 per diluted share) and adjusted operating income increasing $7.2 million over the prior year to $39.7 million ($1.50 per diluted share).

In the fourth quarter, net written premium grew 11% with retention and new business above the prior year period and an average renewal premium increase of 6.3%. The fourth quarter combined ratio improved 2.1 points to 92.3% with improved underlying loss ratio, expense ratio and catastrophe losses, while prior year reserve development remained neutral overall. Net investment income of $26.4 million increased 14% from the prior year period.

For the full year, net written premium grew 9% with retention and new business strongly above prior year and an average renewal premium increase of 8.7%. The annual combined ratio of 94.8% improved 4.4 points from prior year with improvement across all components. Net investment income of $97.5 million increased 19% from prior year.

“UFG produced excellent results in the fourth quarter, providing a strong close to a year of outstanding achievements,” said President and CEO Kevin Leidwinger. “Through the efforts of our exceptional team, UFG achieved record levels of gross written premium, net written premium and new business production in 2025 while delivering the best annual underwriting profit, investment income and return on equity in a decade or longer.

“These milestones reflect the actions taken over the past several years to transform the company and significantly improve its operating performance. Our deepened expertise, evolved capabilities, enhanced actuarial insights and improved alignment with distribution partners have enabled us to more broadly serve our customers, which we believe positions UFG for continued profitable growth as a disciplined, solution-oriented underwriting company. 

“As we embark on our 80th year in business in 2026, UFG is well poised to navigate the complexities of an evolving market and will remain focused on the  strategic execution of our business plan. With confidence in our future financial performance and an enduring commitment to creating long-term value for our shareholders, I am pleased to announce that the board of directors has declared a 25% increase in our quarterly cash dividend from $0.16 per share to $0.20 per share.”

View the full release here. 

(1) Underlying loss ratio, underlying combined ratio and adjusted book value per share are non-GAAP financial measures. See Definitions of non-GAAP information and reconciliations to comparable GAAP measures for additional information.

(2) Net written premium is a performance measure reflecting the amount charged for insurance policy contracts issued and recognized on an annualized basis at the effective date of the policy. See Certain performance measures for additional information.