United Fire Group Reports Record Earnings in Q3 Call

United Fire Group ((UFCS)) has held its Q3 earnings call. Read on for the main highlights of the call.

United Fire Group’s recent earnings call conveyed a positive sentiment, underscored by a robust financial performance. The company reported record net income and improvements in its combined ratio, reflecting significant growth across key business areas. Despite these achievements, the call also highlighted challenges due to soft market conditions and a slight decline in specific premium lines.

Record Net Income and Combined Ratio

United Fire Group announced a remarkable increase in third-quarter net income, reaching $39.2 million, which is nearly double the previous year’s figure. This marks the highest net income in at least two decades. The company also achieved a 91.9% combined ratio, representing the best third-quarter underwriting result in nearly 20 years.

Strong Return on Equity

The company reported a return on equity of 12.7% for the first nine months of 2025, marking its best year-to-date financial performance in nearly two decades. This strong return underscores the company’s effective financial strategies and robust performance.

Exceptional Loss Ratio Improvement

United Fire Group achieved a notable improvement in its underlying loss ratio, which improved by 1.9 points to 56% in the third quarter. Year-to-date, the loss ratio improved by 2 points to 56.7% compared to the same periods last year, indicating effective risk management and underwriting practices.

Net Written Premium Growth

The company experienced a 7% growth in net written premium during the quarter, with its core commercial business growing by an impressive 22%. This growth highlights the company’s ability to expand its market presence and capitalize on business opportunities.

Increased Investment Income

United Fire Group’s fixed income portfolio generated 17% more income compared to the prior year. The new purchase yields exceeded the overall portfolio yield by 60 basis points, showcasing the company’s strategic investment decisions.

Improved Expense Ratio

The third-quarter expense ratio improved by 1.3 points to 34.6% from the prior year. This improvement reflects the company’s focus on cost management and operational efficiency.

Soft Market Conditions

The company is navigating a soft market characterized by competitive pressures, particularly in the E&S market. While casualty pricing remains robust, property rates are moderating, presenting challenges in maintaining growth momentum.

Slight Decline in Specialty Excess and Surplus Lines Premiums

There was a slight decline in specialty excess and surplus lines premiums compared to the prior year, following strong growth in the first half of the year. This decline highlights the challenges in sustaining growth in certain premium lines.

Forward-Looking Guidance

United Fire Group provided robust guidance during the call, emphasizing significant achievements and strategic directions. The company highlighted its record net income and combined ratio, alongside improvements in underwriting and investment income. The strategic focus remains on delivering consistent profitability, diversifying growth, and enhancing relevance with distribution partners to navigate the moderating market dynamics.

In summary, United Fire Group’s earnings call reflected a strong financial performance with record net income and improvements in key financial metrics. Despite challenges in the market, the company remains focused on strategic growth and profitability, positioning itself well for future success.