CEDAR RAPIDS, Iowa, Oct. 27, 2022 (GLOBE NEWSWIRE) — United Fire Group, Inc. (the “Company” or “UFG”) (Nasdaq: UFCS) introduced in the present day that its third quarter 2022 outcomes embrace estimated pre-tax disaster losses of $27 million, representing an affect on the third quarter 2022 GAAP mixed ratio of roughly 11.4 share factors which incorporates estimated disaster losses from Hurricane Ian of roughly $14 million earlier than taxes.
“Our thoughts are with those affected by Hurricane Ian,” stated UFG President and CEO Kevin Leidwinger. “We are committed to delivering on our promise of protection as we assist our policyholders in taking steps to repair, rebuild and recover from the devastation caused by this catastrophic event. We are grateful to our claims team for their swift response and compassionate service in the wake of Hurricane Ian.”
“In addition to higher-than-average catastrophe losses in the third quarter, we were also challenged by rising inflation and volatile financial markets. Despite those challenges, we remain committed to executing our strategic plan to deliver superior performance over the long term.”
UFG’s third quarter outcomes had been additionally impacted by elevated uncertainty of estimated final losses resulting from ongoing inflationary pressures. As a outcome, the GAAP mixed ratio is estimated to be within the vary of 110% to 114% within the third quarter of 2022.
Declining inventory market circumstances negatively impacted asset valuations within the Company’s fairness portfolio, leading to a 3rd quarter internet loss within the vary of $0.89 to $0.93 per diluted share, and an adjusted working loss within the vary of $0.45 to $0.49 per diluted share.
The unaudited loss estimates and different knowledge offered on this launch are preliminary, based mostly upon administration estimates and topic to the completion of the Company’s procedures for the preparation of its unaudited quarterly monetary statements. As a outcome, additional changes could also be made between now and the time monetary outcomes for the third quarter are finalized.
UFG will report third quarter 2022 earnings on Wednesday, November 2, 2022, after the shut of normal buying and selling on the Nasdaq Stock Market and can host a convention name to debate monetary outcomes at 9 a.m. Central time on Thursday, November 3, 2022.
About UFG
Founded in 1946 as United Fire & Casualty Company, UFG, via its insurance firm subsidiaries, is engaged within the business of writing property and casualty insurance.
Through our subsidiaries, we’re licensed as a property and casualty insurer in 50 states, plus the District of Columbia, and we’re represented by roughly 1,000 impartial companies. A.M. Best Company assigns a score of “A” (Excellent) for members of the United Fire & Casualty Group.
For extra details about UFG go to www.ufginsurance.com or contact:
Investor Relations or [email protected]
Disclosure of Forward-Looking Statements
This launch might comprise forward-looking statements about our operations, anticipated efficiency and different related issues. The Private Securities Litigation Reform Act of 1995 offers a protected harbor underneath the Securities Act of 1933 and the Securities Exchange Act of 1934 for forward-looking statements. The forward-looking statements are usually not historic details and contain dangers and uncertainties that might trigger precise outcomes to vary from these anticipated and/or projected. Such forward-looking statements are based mostly on present expectations, estimates, forecasts and projections concerning the Company, the trade through which we function, and beliefs and assumptions made by administration. Words akin to “expect(s),” “anticipate(s),” “intend(s),” “plan(s),” “believe(s),” “continue(s),” “seek(s),” “estimate(s),” “goal(s),” “remain(s) optimistic,” “target(s),” “forecast(s),” “project(s),” “predict(s),” “should,” “could,” “may,” “will,” “might,” “hope,” “can” and different phrases and phrases of comparable that means or expression in reference to a dialogue of future operations, monetary efficiency or monetary situation, are meant to determine forward-looking statements. These statements are usually not ensures of future efficiency and contain dangers, uncertainties and assumptions which can be tough to foretell. Therefore, precise outcomes and outcomes might differ materially from what’s expressed in such forward-looking statements. Information regarding components that might trigger precise outcomes and outcomes to vary materially from these expressed within the forward-looking statements is contained in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-Okay for the 12 months ended December 31, 2021, filed with the Securities and Exchange Commission (“SEC”) on February 25, 2022. The dangers recognized in our Annual Report on Form 10-Okay and in our different SEC filings are consultant of the dangers, uncertainties, and assumptions that might trigger precise outcomes and outcomes to vary materially from what’s expressed within the forward-looking statements. Readers are cautioned to not place undue reliance on these forward-looking statements, which communicate solely as of the date of this launch or as of the date they’re made. Except as required underneath the federal securities legal guidelines and the foundations and rules of the SEC, we shouldn’t have any intention or obligation to replace publicly any forward-looking statements, whether or not on account of new data, future occasions, or in any other case, besides as required by legislation.
Definitions of Non-GAAP Information and Reconciliations to Comparable GAAP Measures
The Company prepares its public monetary statements in conformity with accounting rules usually accepted within the United States of America (“GAAP”). Management additionally makes use of sure non-GAAP measures to guage its operations and profitability. As additional defined under, administration believes that disclosure of sure non-GAAP monetary measures enhances investor understanding of our monetary efficiency. Non-GAAP monetary measures disclosed on this launch embrace adjusted working earnings (loss). The Company has supplied the next definitions and reconciliations of adjusted working earnings (loss):
Adjusted working earnings (loss): Adjusted working earnings (loss) is calculated by excluding internet realized funding features and losses, after relevant federal and state earnings taxes from internet earnings. Management believes adjusted working earnings (loss) is a significant measure for evaluating insurance firm efficiency and a helpful complement to GAAP data as a result of it higher represents the traditional, ongoing efficiency of our business. Investors and fairness analysts who make investments and report on the insurance trade and the Company usually concentrate on this metric of their analyses. The distinction between estimated internet loss within the vary of $0.89 to $0.93 per diluted share and adjusted working loss within the vary of $0.45 to $0.49 per diluted share within the third quarter of 2022 is estimated after-tax internet realized funding losses of $0.44 per diluted share.
