United Fire Group, Inc.

Reported Q2 net income was $1.29 per diluted share and non-GAAP adjusted operating income was $1.30 per diluted share. Net written premium increased 9% year over year, average renewal rate change was 2.9%, and the underlying loss ratio was 57.2%. The second-quarter catastrophe loss ratio was 2.7%, 2.8 points below the prior year, and net investment income increased 33% to $29 million; fixed maturity income rose 24% to $26.3 million. Expense ratio was 35.4%, about 0.5 point higher than last year, while book value per common share was $38.02 and adjusted book value per share was $39.72. For the first half of 2026, ROE was 13.2%, and management reiterated a full-year catastrophe loss estimate of 5% and expected future expense ratio improvement of 0.5 point to a full point per year.

Kevin Leidwinger framed the quarter as evidence that UFG’s strategic transformation is working, pointing to record net income, record net written premium, and the best Q2 combined ratio in over 15 years. He emphasized that deeper underwriting expertise, stronger distribution alignment, and better investment performance are creating a more profitable and resilient company. His tone was confident and constructive, with an emphasis on disciplined execution and long-term value creation.

Eric Martin highlighted the financial lift from investments and capital discipline. Net investment income grew 33% to $29 million, fixed maturity income was $26.3 million, and the fixed maturity portfolio has grown about 16% over the past year; new-money yields were 5.1%, about 50 basis points above the overall portfolio average. He said the expense ratio was 35.4%, with about half the increase tied to a one-time Houston lease buyout, and reiterated expectations for 0.5 to 1.0 points of annual expense ratio improvement. He also noted book value per share of $38.02, adjusted book value per share of $39.72, and that the company paid a $0.20 quarterly cash dividend.

Analysts focused on commercial auto, asking about social inflation and whether rate is sufficient to offset claims cost pressure. Management said social inflation is not a major issue in UFG’s auto book because it is not exposed to heavy trucking or heavy-wheels risks, and that pricing is still positive though moderating. Questions also centered on the path to the 15% ROE target and capital returns; management said capital priorities are first to support growth, then the $0.20 quarterly dividend, with the authorized 2 million-share buyback considered third. Management also said it believes the portfolio can still scale in a softening market because agency relationships are bringing in opportunities UFG had not seen before.