NASDAQ$UFCS
United Fire Group Inc · Q1 2020 earnings
Q1 2020 earnings · · Investor relations
Briefing
Reported a consolidated net loss due to a decrease in the value of investments in equity securities, an increase in severity of catastrophe and non-catastrophe losses and a decrease in net investment income.
United Fire Group reported a net loss of $72.5 million, or $2.90 per diluted share, for the first quarter of 2020, compared to a net income of $44.5 million, or $1.74 per diluted share, for the same period in 2019. The company's GAAP combined ratio increased to 105.2% compared to 95.6% in the same period in 2019. Net premiums earned increased 2.5 percent to $268.8 million.
- Net loss was $72.5 million ($2.90 per diluted share) for Q1 2020, compared to net income of $44.5 million ($1.74 per diluted share) for the same period in 2019.
- Adjusted operating income was $0.05 per diluted share for Q1 2020, compared to $0.91 per diluted share for the same period in 2019.
- GAAP combined ratio increased to 105.2% for Q1 2020, compared to 95.6% in the same period in 2019.
- Net premiums earned increased 2.5% to $268.8 million in Q1 2020, compared to $262.3 million in the same period in 2019.
Headline financials
Revenue & EPS history
United Fire Group · Revenue · Quarterly
$178M
Revenue by segment
United Fire Group · $269M total across 3 segments · Q1 2020
- Commercial Lines$245M—91.2%
- Personal Lines$17.9M—6.7%
- Assumed Reinsurance$5.71M—2.1%
Forward guidance
Depending on the duration of the suppressed economy in the second quarter and beyond, the company anticipates that there could be an adverse impact to its business, including lower premiums and demand for its products. Based on information available, the company expects the effect of the COVID-19 pandemic on claims currently under its policy coverage to be manageable.
Tailwinds
- Company is fully operational, but has limited travel for non-essential employees
- Company has dispatched its staff to work remotely
- The increase in net unrealized investment gains is primarily the result of a decrease in interest rates in the first quarter of 2020.
- The average renewal pricing change for commercial lines increased 7.6 percent in the first quarter of 2020 compared to 6.6 percent in the fourth quarter of 2019.
- Experienced favorable development in net reserves for prior accident years of $13.7 million in the first quarter of 2020
Headwinds
- Net loss reported in the first quarter 2020 was driven primarily by the decrease in the value of investments in equity securities
- Net loss reported in the first quarter 2020 was driven primarily by an increase in severity of catastrophe and non-catastrophe losses
- Net loss reported in the first quarter 2020 was driven primarily by a decrease in net investment income
- Commercial auto loss ratio remains at a higher than acceptable level.
- COVID-19 pandemic significantly impacted the financial markets, and in turn the value of company investments in equities.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2020
-0.0%
Avg return
Earnings day
+1.1%
Avg return
5 days after
+2.4%
Avg return
30 days after
43%
28 / 65 earnings
Positive
+27.4%
Q3 2024
Best reaction
-14.6%
Q4 2016
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +8.0% | +21.7% | +13.4% | |
| Q4 2025 | +7.2% | +8.9% | +2.0% | |
| Q3 2025 | +14.7% | +17.3% | +13.0% | |
| Q1 2025 | -4.6% | -2.4% | -0.7% | |
| Q4 2024 | +2.2% | +5.7% | +16.2% | |
| Q3 2024 | +27.4% | +25.3% | +62.4% | |
| Q2 2024 | -9.4% | -8.1% | -1.6% | |
| Q1 2024 | +1.4% | +1.8% | -8.8% | |
| Q4 2023 | +12.0% | +9.1% | -2.6% | |
| Q3 2023 | -2.5% | -1.2% | +5.4% | |
| Q2 2023 | -3.2% | -4.4% | -8.5% | |
| Q1 2023 | -10.1% | -10.6% | -14.0% | |
| Q4 2022 | -6.4% | +1.0% | -7.9% | |
| Q3 2022 | -4.3% | +3.4% | +6.9% | |
| Q2 2022 | -13.8% | -9.4% | -9.6% | |
| Q1 2022 | -2.3% | -4.7% | +4.4% | |
| Q4 2021 | +26.2% | +26.8% | +23.7% | |
| Q3 2021 | -3.9% | -2.3% | -4.1% | |
| Q2 2021 | +3.9% | +9.5% | +3.4% | |
| Q1 2021 | +7.0% | +5.4% | +1.3% | |
| Q4 2020 | -2.6% | -4.3% | +12.9% | |
| Q3 2020 | -7.7% | +0.7% | +12.7% | |
| Q2 2020 | +4.4% | +12.1% | -4.7% | |
| Q1 2020 | -0.9% | -1.7% | +15.7% | |
| Q4 2019 | -0.0% | -3.4% | -31.1% | |
| Q3 2019 | -4.7% | -5.7% | -7.6% | |
| Q2 2019 | -10.2% | -11.5% | -12.3% | |
| Q1 2019 | +6.6% | +6.2% | +9.0% | |
| Q4 2018 | -8.9% | -13.3% | -21.3% | |
| Q3 2018 | -8.3% | -9.9% | -2.3% | |
| Q2 2018 | -11.9% | -11.5% | -9.8% | |
| Q1 2018 | +3.5% | +1.4% | +13.7% | |
| Q4 2017 | +8.0% | +10.9% | +18.9% | |
| Q3 2017 | +1.4% | +0.1% | +0.1% | |
| Q2 2017 | -1.4% | -1.8% | -5.6% | |
| Q1 2017 | -0.9% | -1.8% | +0.9% | |
| Q4 2016 | -14.6% | -14.3% | -10.0% | |
| Q3 2016 | -3.3% | -1.7% | +15.2% | |
| Q2 2016 | -0.3% | +1.3% | +3.6% | |
| Q1 2016 | -11.7% | — | — | |
| Q4 2015 | +8.2% | — | — | |
| Q3 2015 | +8.3% | — | — | |
| Q2 2015 | +3.0% | — | — | |
| Q1 2015 | +0.7% | — | — | |
| Q4 2014 | -1.6% | — | — | |
| Q3 2014 | -3.9% | — | — | |
| Q2 2014 | -0.8% | — | — | |
| Q1 2014 | -2.0% | — | — | |
| Q4 2013 | +9.4% | — | — | |
| Q3 2013 | -9.6% | — | — | |
| Q2 2013 | +4.9% | — | — | |
| Q1 2013 | +2.1% | — | — | |
| Q4 2012 | +0.8% | — | — | |
| Q3 2012 | -5.3% | — | — | |
| Q2 2012 | +14.3% | — | — | |
| Q1 2011 | +0.8% | — | — | |
| Q1 2012 | +1.8% | — | — | |
| Q4 2009 | -0.7% | — | — | |
| Q4 2011 | -0.7% | — | — | |
| Q4 2010 | -0.7% | — | — | |
| Q3 2010 | +1.8% | — | — | |
| Q3 2011 | +1.8% | — | — | |
| Q2 2011 | -8.7% | — | — | |
| Q2 2010 | -8.7% | — | — | |
| Q1 2010 | -1.6% | — | — |
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