On this page of StockholderLetter.com we present the latest annual shareholder letter from UNITED FIRE GROUP INC — ticker symbol UFCS. Reading current and past UFCS letters to shareholders can bring important insights into the investment thesis.

 •  4/7/2026 Letter Continued (Full PDF)
 •  4/4/2023 UFCS Stockholder Letter
 •  4/2/2024 UFCS Stockholder Letter
 •  4/8/2025 UFCS Stockholder Letter
 •  More "Insurance Brokers" Category Stockholder Letters
 •  UFCS Benford's Law Stock Score = 69

UFCS Shareholder/Stockholder Letter Transcript:

ANNUAL
REPORT
2O25
UNITED FIRE GROUP, INC.

United Fire Group, Inc. 2025 Annual Report
About UFG Insurance
Founded in 1946, UFG Insurance is a property and casualty insurance company with 80 years of local market
expertise and a growing footprint that extends coast to coast. We provide commercial insurance protection to
businesses in 32 states, represented by approximately 850 independent agencies.
In addition to our core commercial business, we offer specialty excess and surplus lines (E&S) and surety bonds in
all 50 states plus D.C. and serve a broad range of alternative distribution channels globally.
Our company is headquartered in Cedar Rapids, Iowa, with offices in Arizona, California, Colorado, New Jersey
and Texas. With more than 850 employees, we pride ourselves on delivering deep expertise, specialized capabilities,
personal relationships and responsive service to our agents and policyholders.
At UFG, we are committed to achieving superior financial and operational performance, using our eight decades of
experience to successfully guide us through market cycles and industry challenges. We hold a financial strength rating
of    A-    (Excellent) from AM Best that was affirmed in August 2025, reflecting our long-term balance sheet strength.
Annual meeting of shareholders
United Fire Group, Inc.   s (UFG) annual meeting of shareholders will be held at 10:00 a.m. Central Time on
Wednesday, May 20, 2026. This year   s meeting will be held in virtual format only via live audio webcast.
You will be able to attend the meeting, submit questions and vote online by logging on to meetnow.global/MH7HMXN
using your 15-digit control number provided with the Notice Regarding the Availability of Proxy Materials or on your
proxy card.
Our Annual Report on Form 10-K for 2025 is filed with the Securities and Exchange Commission and is available
(without exhibits) to shareholders, free of charge, upon written or oral request to:
Investor Relations
United Fire Group, Inc.
118 Second Avenue SE
Cedar Rapids, Iowa 52401
Telephone: 319-399-5700
or
Registrar and Transfer Agent
Computershare
P.O. Box 505000
Louisville, Kentucky 40233-5000
Board of directors
James W. Noyce, Chairperson of the Board
John-Paul E. Besong
Scott L. Carlton
Brenda K. Clancy
Christopher R. Drahozal
Matthew R. Foran
Mark A. Green
Kevin J. Leidwinger
Lura E. McBride
George D. Milligan
Gilda L. Spencer
Susan E. Voss

United Fire Group, Inc. 2025 Annual Report
Letter to shareholders
Dear fellow shareholders,
UFG delivered outstanding performance in 2025, driven by the ongoing strategic execution of our business plan, the
strength of our distribution partnerships and the exceptional efforts of my colleagues in positioning the company for
superior financial and operational performance.
In 2025, we grew our business to record size while delivering the best combined ratio, investment income and return
on equity in a decade or longer. We also produced a record level of new business in 2025 as our distribution partners
have embraced the company   s transformation.
These milestone achievements reflect the strategic actions we have taken over the past three years to position UFG
for long-term growth and profitability, including deepening our underwriting expertise, evolving our capabilities,
enhancing our actuarial insights and improving alignment with our agency partners.
We have also invested in technology to process business more efficiently and effectively, launching a new policy
administration system, underwriting workbench and renewal underwriting center in 2025. We believe these investments
will generate significant operational efficiencies as our capabilities mature.
Through the cumulative effect of these actions, I am confident UFG has transformed into a disciplined, solution-oriented
underwriting company. We are resolutely committed to excellent risk selection, disciplined pricing, and contractual
integrity and believe we are competitively positioned to more broadly serve our agency partners with deepened
expertise and expanded capabilities.
By anchoring our transformation to the company   s overarching strategic pillars of long-term profitability, diversified
growth, continuous innovation, people development and expense management, we believe we have laid a strong
foundation for UFG   s future     as reflected in the company   s financial turnaround between 2022 and 2025:
UFG TRANSFORMATION BY THE NUMBERS: 2022-2025
984M to $1.3B
11% compound
annual growth rate

0.59 to $4.48
More than
sevenfold increase
101.4 % to 94.8%
From underwriting
loss to profit
1.9% to 13.7 %
More than 11-point
improvement

NET WRITTEN PREMIUM
COMBINED RATIO

45M to $98M
INVESTMENT INCOME
More than doubled
EARNINGS PER SHARE
RETURN ON EQUITY

29.36 to $36.88
BOOK VALUE PER SHARE
Increase of
over 25%
In addition, we have greatly enhanced the company   s reserve position in recent years as part of our ongoing commitment
to maintaining strong and stable reserves at UFG. Throughout 2025, we advanced to a more conservative position in our
range of actuarial estimates to further reinforce the portfolio and strengthen the balance sheet.
As I reflect on our progress over the past three years, it is clear to me that our transformation has taken hold at UFG,
embraced by both our people and our partners. With the work we   ve done to date, we believe our company is well
positioned to deliver continued profitable growth in the years ahead while navigating the complexities of an evolving
insurance market.

United Fire Group, Inc. 2025 Annual Report
2025 FINANCIAL PERFORMANCE
UFG reported significantly improved financial
performance in 2025, marking our second year in
a row of underwriting profitability.
FINANCIAL HIGHLIGHTS: 2025
1.3B
94.8%
118M
13.7%

Record net written
premium

Net income
Combined ratio
Return on equity
To recap our full year results compared to 2024,
net written premium increased 9% from record new
business production, strong retention in our core
commercial business and continued renewal premium
increases as our underwriters remained diligent in
an evolving market.
on disciplined expense management and business
growth. We expect our ongoing actions to
result in a gradual reduction of the expense ratio
over time.
*For an explanation of non-GAAP financial measures and a
reconciliation to the most comparable GAAP figure, please see
the section entitled    Non-GAAP Financial Measures    in Part II,
Item 7, of the following Annual Report on Form 10-K.
Net investment income grew to $97.5 million in 2025,
an increase of $15.6 million or 19.0% from 2024. We
continue to manage our investments with a conservative
philosophy, where 98% of our fixed maturity portfolio
is investment-grade quality. New purchase yields of
5% or better in 2025 have caused the overall book
yield of the fixed maturity portfolio to rise to 4.3% in
2025 compared to 3.7% in 2024. The virtuous cycle of
improving underwriting profitability and increased book
yields in the portfolio, together with a reduction in market
interest rates, allowed the fixed maturity portfolio to grow
to $2.2 billion at the end of 2025, compared to $1.9
billion at the end of 2024.
BALANCE SHEET STRENGTH
The overall average change in renewal premiums
was 8.7%, demonstrating our continued focus on
price adequacy across all lines of business in a more
competitive environment. On an annual basis, premium
retention was 84.0%, reflecting our confidence in the
portfolio following heightened risk selection and pricing
improvement actions in recent years.
As of December 31, 2025, our balance sheet remained
strong with $3.8 billion in total assets, $941.2 million in
total stockholders    equity and a $2.5 billion investment
portfolio, of which 89% is allocated to a high-quality
fixed income book. Book value per common share
was $36.88 as of December 31, 2025, up $6.08 from
a year ago.
The combined ratio improved 4.4 points to 94.8%
in 2025, compared to 99.2% in 2024, driven by
improvement in all components of the loss ratio:
In 2025, as a follow-up to our 2024 capital raise of $70
million, we successfully issued $30 million of Series B
notes to further support our long-term growth strategies.




The underlying loss ratio* improved 1.6 points to
56.3%, reflecting sustained lower frequency and
earned rate achievement as well as favorable large
loss experience compared to historical levels.
Catastrophe losses* improved 2.2 points to 3.2%,
below our five-year and 10-year historical averages
and our full year expectation of 5.7% for 2025.
Prior year reserve development was favorable at
0.4% for the full year 2025, compared to neutral prior
year reserve development in the full year 2024.
The underwriting expense ratio of 35.7% improved
0.2 points, primarily driven by continued focus
I am also pleased to share AM Best reaffirmed our
financial strength rating of    A-    (Excellent) with a stable
outlook in August 2025, reflecting our company   s
long-term balance sheet strength. AM Best ratings
are an important and trusted measure in the insurance
industry, and we are proud to be a financially strong
company that agents and policyholders can depend on.
Throughout 2025, we paid quarterly dividends totaling
$0.64 per share, returning $16.3 million to our
shareholders over the course of the year. This reflects
our capital management priorities of funding profitable
growth in the business and returning excess capital
to shareholders.

United Fire Group, Inc. 2025 Annual Report
CORPORATE RESPONSIBILITY
At UFG, our corporate vision is to always deliver on our
promises and that extends to the communities where
our people live and work.
Our longstanding promise of community support is
carried out through the UFG Foundation, our private
grantmaking foundation. In 2025, the foundation proudly
awarded $1 million in grants and scholarships, benefiting
over 70 nonprofit organizations in Eastern Iowa where
we are headquartered, as well as our regional locations
across the country. Since its establishment in 1999, the
foundation has awarded more than $18 million.
We also deliver on our promise of community support
through employee volunteerism. In 2025, UFG
employees volunteered more than 950 hours as part
of our company   s paid community service hours
program. Whether volunteering for a personal cause
or participating in the annual United Way Day of Caring,
our people inspire us with their dedication to giving
back locally.
Each year, we are honored to recognize the
extraordinary volunteerism of our employees and agents
with the    Scotty McIntyre Jr. Go Beyond    award, a
tribute to UFG   s founding family and their legacy of giving.
This award recognizes two individuals annually for their
outstanding community service, with UFG donating
$5,000 to a charity of each winner   s choice.
THE TRANSFORMATION CONTINUES IN 2026
2025 was a banner year for UFG and I am proud of the
progress we   ve made since our transformation began
in late 2022. We are focused on carrying this momentum
into 2026 and delivering on our value proposition of
providing deep expertise and specialized capabilities
to meet the evolving needs of today   s business owners,
underpinned by the personal relationships and
responsive service our partners value.
Providing insurance is more than a transaction to us at
UFG. We view our business as a people business and
are committed to doing business and treating people
the right way, a founding principle that remains deeply
ingrained within company walls and demonstrated daily
by our employees. As we continue to transform as a
company, we are ever mindful of not compromising the
personalized level of service that sets us apart.
With 2025 in the books, we now
turn our full focus to 2026     our
company   s 80th year in business.
I am pleased to share that the new
year is already off to a promising start,
with the board of directors declaring a 25% increase in
the quarterly dividend in February. I could not ask for
a better start to the year as we work to make our
company   s 80th year in business the best one yet.
On May 20, we will hold our 2026
annual meeting of shareholders,
where we will mark the retirement
of our longstanding board member,
John-Paul (JP) Besong, who has
reached the age limit for board
service as set forth in our bylaws. JP has been a
member of the UFG board since 2013, currently serving
as a member of our audit and risk management
committees. We thank him for his 13 years of
distinguished service and wish him a fulfilling retirement.
In anticipation of JP   s retirement,
we welcomed Gilda Spencer to our
board of directors in August 2025.
Gilda is a seasoned attorney and
insurance executive, appointed for
her valuable knowledge on regulatory,
governance and risk management matters. We look
forward to drawing on her extensive legal and insurance
experience in the years ahead.
In closing, I remain grateful for the dedication of our
employees, the support of the board of directors, the
loyalty of our distribution partners and the enduring
trust of our shareholders as we continue our pursuit of
superior financial and operational performance at UFG.
Sincerely,
Kevin J. Leidwinger
UFG President and CEO

4/7/2026 Letter Continued (Full PDF)

 

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