United Fire Group, Inc. (Nasdaq: UFCS),
United Fire Group, Inc. (the “Company” or
“UFG”) (Nasdaq: UFCS) today reported financial results for the
three-month period ended September 30, 2023 (the “third quarter of
2023”) with a consolidated net income of $6.4 million ($0.25 per
diluted share) and consolidated adjusted operating income of $0.31
per diluted share.
“I remain pleased with the progress we are making in positioning
UFG to deliver superior financial and operational performance,”
said UFG President and CEO Kevin Leidwinger. “Our third quarter
results show signs of improvement while we continue to execute
strategies to strengthen our Company.
“Net written premium was flat in the quarter as growth in our
core commercial and assumed reinsurance business was offset by
targeted underwriting action on underperforming segments as well as
increased surety reinsurance reinstatement premiums.
“Core commercial new business remained significantly above the
prior year period, and average renewal premiums change accelerated
to 11.0% in the third quarter, representing our highest level since
at least 2018. Rate achievement increased across all lines of
business from the second quarter of 2023, excluding workers'
compensation, with property rates increasing 17.3%.
“The third quarter underlying loss ratio of 60.5% included
approximately 2.0 points of impact from a small number of large
claims and associated reinsurance reinstatement premiums in our
surety business as economic conditions discussed last quarter
continued. This impact was reduced by an improved outlook for
profitability in other lines of business.
“The third quarter expense ratio of 35.5% was also impacted by
surety reinstatement premiums that offset our ongoing actions to
sustainably reduce expenses. In addition to reducing expenses
through careful vacancy management, we took the additional step to
implement a voluntary early retirement program that we anticipate
will provide ongoing benefits to our expense ratio in 2024.
“Other results improved in the third quarter of 2023, including
neutral prior period reserve development, catastrophe losses below
long-term averages, and investment returns that benefited from
investing at higher interest rates and the strategic reallocation
of public equity assets into fixed maturities.
“We continued to make strategic investments in the third
quarter, including the ongoing rollout of our small business
quoting platform in multiple states, and continued additions to
leadership talent from within and outside the Company.
“We remain confident in our strategy and in the actions we are
taking to position UFG for superior financial and operational
performance in the long term.”
(1) Net premiums written is a performance measure reflecting the
amount charged for insurance policy contracts issued and recognized
on an annualized basis at the effective date of the policy. See
Certain Performance Measures for additional information.(2) Net
underlying loss ratio is defined as the net loss ratio less impacts
of catastrophes and non-catastrophe prior period reserve
development. See Certain Performance Measures for additional
information.
Consolidated Financial Highlights:
Consolidated Financial Highlights |
(unaudited) |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
(In
Thousands, Except Per Share Data) |
2023 |
|
2022 |
|
2023 |
|
2022 |
Net premiums earned |
$ |
259,456 |
|
|
$ |
238,256 |
|
|
$ |
770,221 |
|
|
$ |
703,746 |
|
Net premiums written |
|
247,727 |
|
|
|
247,417 |
|
|
|
820,071 |
|
|
|
749,492 |
|
|
|
|
|
|
|
|
|
Net underlying loss ratio(1) |
|
60.5 |
% |
|
|
60.4 |
% |
|
|
62.9 |
% |
|
|
58.9 |
% |
Catastrophes-effect on net loss ratio(1) |
|
5.9 |
|
|
|
11.4 |
|
|
|
7.8 |
|
|
|
8.7 |
|
Reserve development-effect on net loss ratio(1) |
|
0.2 |
|
|
|
4.8 |
|
|
|
7.0 |
|
|
|
(1.6 |
) |
Net loss ratio |
|
66.6 |
% |
|
|
76.6 |
% |
|
|
77.7 |
% |
|
|
66.0 |
% |
|
|
|
|
|
|
|
|
Underwriting expense ratio |
|
35.5 |
% |
|
|
35.1 |
% |
|
|
35.3 |
% |
|
|
34.6 |
% |
|
|
|
|
|
|
|
|
GAAP combined ratio |
|
102.1 |
% |
|
|
111.7 |
% |
|
|
113.0 |
% |
|
|
100.6 |
% |
Underlying combined ratio(2) |
|
96.0 |
% |
|
|
95.5 |
% |
|
|
98.2 |
% |
|
|
93.5 |
% |
|
|
|
|
|
|
|
|
Net investment income, net of investment expenses |
$ |
16,459 |
|
|
$ |
11,606 |
|
|
$ |
40,508 |
|
|
$ |
32,062 |
|
Net investment gains (losses) |
|
(1,960 |
) |
|
|
(14,250 |
) |
|
|
(2,581 |
) |
|
|
(35,647 |
) |
Other income (loss) |
|
(797 |
) |
|
|
(836 |
) |
|
|
(2,391 |
) |
|
|
(2,429 |
) |
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
6,380 |
|
|
$ |
(22,981 |
) |
|
$ |
(49,308 |
) |
|
$ |
(5,089 |
) |
Adjusted operating income (loss)(3) |
|
7,927 |
|
|
|
(11,724 |
) |
|
|
(47,270 |
) |
|
|
23,072 |
|
|
|
|
|
|
|
|
|
Net income (loss) per diluted share |
$ |
0.25 |
|
|
$ |
(0.91 |
) |
|
$ |
(1.95 |
) |
|
$ |
(0.20 |
) |
Adjusted operating income (loss) per diluted share(3) |
|
0.31 |
|
|
|
(0.47 |
) |
|
|
(1.87 |
) |
|
|
0.92 |
|
|
|
|
|
|
|
|
|
Return on equity(4) |
|
|
|
|
(9.5 |
)% |
|
(0.9 |
)% |
|
|
|
|
|
|
|
|
(1) Net underlying loss ratio is defined as the net loss ratio
less impacts of catastrophes and non-catastrophe prior period
reserve development. See Certain Performance Measures for
additional information.(2) Underlying combined ratio is defined as
the GAAP combined ratio less impacts of catastrophes and
non-catastrophe prior period reserve development. See Certain
Performance Measures for additional information.(3) Adjusted
operating income (loss) is a non-GAAP financial measure of net
income excluding net investment gains and losses, after applicable
taxes. See Non-GAAP Financial Measure for more information and a
reconciliation of adjusted operating income (loss) to net income.
(4) Return on equity is calculated by dividing annualized net
income by average year-to-date stockholders’ equity.
Total Property & Casualty Underwriting
Results
Third quarter 2023 results:(All comparisons vs.
third quarter 2022, unless noted otherwise)
While growth in net premiums written slowed, increasing 0.1%,
the impact of growth in prior periods contributed to significant
increases to earnings, as net premiums earned increased 8.9% in the
third quarter of 2023. Core commercial lines net premiums written
increased 2.7%, supported by increasing levels of rate achievement
and new business, together with an overall increase in renewal
premiums of 11.0%, with 2.6% from exposure changes and 8.4% from
rate increases. Excluding the workers’ compensation line of
business, the overall average increase in renewal premiums was
12.4%, with 2.7% from exposure changes and 9.7% from rate
increases.
The combined ratio was 102.1%, improving 9.6 points from 111.7%.
This decrease is primarily attributable to lower prior period
reserve adjustments and favorable catastrophe losses. Prior period
reserves were neutral this quarter compared to 4.8% unfavorable in
the third quarter of 2022. The catastrophe loss ratio was 5.9% in
the third quarter of 2023, a decrease of 5.5 points, which was the
lowest third quarter ratio in five years and below historic
averages. The underlying loss ratio of 60.5% increased 0.1 point, a
result of counteracting factors across lines of business. In
surety, the small number of large losses experienced in the second
quarter 2023 continued in the third quarter, contributing
approximately 2.0 points of adverse impact to the underlying ratio.
Offsetting this negative impact was improved profitability in
commercial auto driven by improved frequency and standard umbrella,
where additional insights on rate levels have improved our outlook.
The underwriting expense ratio of 35.5% was 0.4 points higher and
impacted by surety reinstatement premiums that offset our ongoing
actions to sustainably reduce expenses.
Investment Results
Third quarter 2023 results:(All comparisons vs.
third quarter 2022, unless noted otherwise)
Net investment income was $16.5 million for the third
quarter of 2023, an increase of $4.9 million. Income from our
fixed income portfolio increased by $1.7 million as we invested at
higher interest rates. In addition, income from cash and cash
equivalents increased $1.7 million. Income on other long-term
investments resulted in an additional $2.4 million of income as the
valuation of the investments in limited liability partnerships
varies from period to period due to the current market conditions.
The dividends on equity securities decreased $0.7 million due to a
strategic reallocation of equity securities to fixed income assets
over the past two quarters.
Investment Results |
(unaudited) |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
(In
Thousands) |
2023 |
|
2022 |
|
2023 |
|
2022 |
Investment income: |
|
|
|
|
|
|
|
Interest on fixed maturities |
$ |
14,472 |
|
|
$ |
12,792 |
|
|
$ |
41,192 |
|
|
$ |
35,879 |
|
Dividends on equity securities |
|
639 |
|
|
|
1,325 |
|
|
|
3,067 |
|
|
|
3,934 |
|
Income (loss) on other long-term investments |
|
1,093 |
|
|
|
(1,348 |
) |
|
|
(3,491 |
) |
|
|
(3,959 |
) |
Other |
|
2,574 |
|
|
|
891 |
|
|
|
6,868 |
|
|
|
2,279 |
|
Total investment income |
$ |
18,778 |
|
|
$ |
13,660 |
|
|
$ |
47,636 |
|
|
$ |
38,133 |
|
Less investment expenses |
|
2,319 |
|
|
|
2,054 |
|
|
|
7,128 |
|
|
|
6,071 |
|
Net investment income |
$ |
16,459 |
|
|
$ |
11,606 |
|
|
$ |
40,508 |
|
|
$ |
32,062 |
|
|
|
|
|
|
|
|
|
Average yields: |
|
|
|
|
|
|
|
Fixed income securities: |
|
|
|
|
|
|
|
Pre-tax(1) |
|
3.35 |
% |
|
|
3.07 |
% |
|
|
3.20 |
% |
|
|
2.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Fixed income securities yield excluding net unrealized
investment gains/losses and expenses.
Balance Sheet
Balance Sheet |
(In Thousands) |
September 30, 2023 |
|
December 31, 2022 |
|
(unaudited) |
|
|
Invested assets |
$ |
1,829,099 |
|
|
$ |
1,844,891 |
|
Cash |
|
69,150 |
|
|
|
96,650 |
|
Total assets |
|
3,051,779 |
|
|
|
2,882,286 |
|
Losses and loss settlement
expenses |
|
1,636,918 |
|
|
|
1,497,274 |
|
Total liabilities |
|
2,406,842 |
|
|
|
2,142,172 |
|
Net unrealized investment
gains (losses), after-tax |
|
(123,198 |
) |
|
|
(88,369 |
) |
Total
stockholders’ equity |
|
644,937 |
|
|
|
740,114 |
|
|
|
|
|
Book value per share |
$ |
25.53 |
|
|
$ |
29.36 |
|
|
|
|
|
|
|
|
|
Total consolidated assets as of September 30, 2023 were
$3.1 billion, which included $1.8 billion of invested
assets. The Company’s book value per share was $25.53, a decrease
of $3.83 per share, or 13.0%, from December 31, 2022. This
decrease is primarily related to an increase in loss and loss
settlement expense reserves and a decrease in invested assets.
Capital Management
During the third quarter of 2023, the Company declared and paid
a $0.16 per share cash dividend to shareholders of record as of
September 1, 2023. UFG has paid a quarterly dividend every quarter
since March 1968.
Earnings Call Access Information
An earnings call will be held at 11:00 a.m. CT on
November 2, 2023, to allow securities analysts, shareholders
and other interested parties the opportunity to hear management
discuss the Company’s third quarter of 2023 results.
Teleconference: Dial-in information for the call is toll-free
1-844-492-3723. The event will be archived and available for
digital replay through November 9, 2023. The replay access
information is toll-free 1-877-344-7529; conference ID no.
6743487.
Webcast: An audio webcast of the teleconference can be accessed
at the Company’s investor relations page at
https://ir.ufginsurance.com/event/ or
https://event.choruscall.com/mediaframe/webcast.html?webcastid=nLpkgTHs.
The archived audio webcast will be available until November 9,
2023.
Transcript: A transcript of the teleconference will be available
on the Company’s website soon after the completion of the
teleconference.
About UFG
Founded in 1946 as United Fire & Casualty Company, UFG,
through its insurance company subsidiaries, is engaged in the
business of writing property and casualty insurance.
Through our subsidiaries, we are licensed as a property and
casualty insurer in 50 states, plus the District of Columbia, and
we are represented by approximately 1,000 independent agencies.
A.M. Best Company assigns a rating of “A-” (Excellent) for members
of the United Fire & Casualty Group.
For more information about UFG, visit ufginsurance.com or
contact:
Investor Relations at IR@unitedfiregroup.com.
Disclosure of Forward-Looking Statements
This release may contain forward-looking statements about our
operations, anticipated performance and other similar matters. The
Private Securities Litigation Reform Act of 1995 provides a safe
harbor under the Securities Act of 1933 and the Securities Exchange
Act of 1934 for forward-looking statements. The forward-looking
statements are not historical facts and involve risks and
uncertainties that could cause actual results to differ from those
expected and/or projected. Such forward-looking statements are
based on current expectations, estimates, forecasts and projections
about the Company, the industry in which we operate, and beliefs
and assumptions made by management. Words such as “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 other words and terms of similar meaning or expression in
connection with a discussion of future operations, financial
performance or financial condition, are intended to identify
forward-looking statements. These statements are not guarantees of
future performance and involve risks, uncertainties and assumptions
that are difficult to predict. Therefore, actual outcomes and
results may differ materially from what is expressed in such
forward-looking statements. Information concerning factors that
could cause actual outcomes and results to differ materially from
those expressed in the forward-looking statements is contained in
Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K/A
for the year ended December 31, 2022, filed with the
Securities and Exchange Commission (“SEC”) on March 1, 2023.
The risks identified in our Annual Report on Form 10-K/A and in our
other SEC filings are representative of the risks, uncertainties,
and assumptions that could cause actual outcomes and results to
differ materially from what is expressed in the forward-looking
statements. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
of this release or as of the date they are made. Except as required
under the federal securities laws and the rules and regulations of
the SEC, we do not have any intention or obligation to update
publicly any forward-looking statements, whether as a result of new
information, future events, or otherwise, except as required by
law. In addition, future dividend payments are within the
discretion of our Board of Directors and will depend on numerous
factors, including our financial condition, our capital
requirements and other factors that our Board of Directors
considers relevant.
Non-GAAP Financial Measure
The Company prepares its public financial statements in
conformity with accounting principles generally accepted in the
United States of America (“GAAP”). Management also uses adjusted
operating income, a non-GAAP measure, to evaluate its operations
and profitability.
Adjusted operating income: Adjusted operating
income is calculated by excluding net investment gains and losses,
after applicable federal and state income taxes from net income
(loss). Management believes adjusted operating income is a
meaningful measure for evaluating insurance company performance and
a useful supplement to GAAP information because it better
represents the normal, ongoing performance of our business.
Investors and equity analysts who invest and report on the
insurance industry and the Company generally focus on this metric
in their analyses.
Net Income Reconciliation |
(unaudited) |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
(In
Thousands) |
2023 |
|
2022 |
|
2023 |
|
2022 |
Income Statement Data |
|
|
|
|
|
|
|
Net income (loss) |
$ |
6,380 |
|
|
$ |
(22,981 |
) |
|
$ |
(49,308 |
) |
|
$ |
(5,089 |
) |
Less: after-tax net investment gains (losses) |
|
(1,547 |
) |
|
|
(11,257 |
) |
|
|
(2,038 |
) |
|
|
(28,161 |
) |
Adjusted operating income (loss) |
$ |
7,927 |
|
|
$ |
(11,724 |
) |
|
$ |
(47,270 |
) |
|
$ |
23,072 |
|
Diluted Earnings Per
Share Data |
|
|
|
|
|
|
|
Net income (loss) |
$ |
0.25 |
|
|
$ |
(0.91 |
) |
|
$ |
(1.95 |
) |
|
$ |
(0.20 |
) |
Less: after-tax net investment gains (losses) |
|
(0.06 |
) |
|
|
(0.44 |
) |
|
|
(0.08 |
) |
|
|
(1.12 |
) |
Adjusted operating income (loss) |
$ |
0.31 |
|
|
$ |
(0.47 |
) |
|
$ |
(1.87 |
) |
|
$ |
0.92 |
|
Certain Performance Measures
The Company uses the following measures to evaluate its
financial performance. Management believes a discussion of these
measures provides financial statement users with a better
understanding of results of operations. The Company has provided
the following definitions:
Net premiums written: Net premiums written is
frequently used by industry analysts and other recognized reporting
sources to facilitate comparisons of the performance of insurance
companies. Net premiums written is the amount charged for insurance
policy contracts issued and recognized on an annualized basis at
the effective date of the policy. Management believes net premiums
written is a meaningful measure for evaluating insurance company
sales performance and geographical expansion efforts. Net premiums
written for an insurance company consists of direct premiums
written and premiums assumed, less premiums ceded. Net premiums
earned is calculated on a pro-rata basis over the terms of the
respective policies. Unearned premium reserves are established for
the portion of premiums written applicable to the unexpired terms
of the insurance policies in force. The difference between net
premiums earned and net premiums written is the change in unearned
premiums and the change in prepaid reinsurance premiums.
Net underlying loss ratio and underlying combined
ratio: Net underlying loss ratio represents the net loss
ratio less the impacts of catastrophes and non-catastrophe prior
period reserve development. The underlying combined ratio
represents the combined ratio less the impacts of catastrophes and
non-catastrophe prior period reserve development. The Company
believes that the net underlying loss ratio and underlying combined
ratio are meaningful metrics to understand the underlying trends in
the core business in the current accident year, removing the
volatility of prior period impacts and catastrophes. Management
believes separate discussions on catastrophe losses and prior
period reserve development are important to understanding how the
Company is managing catastrophe risk and in identifying
developments in longer-tailed business.
Prior period reserve development is the increase (unfavorable)
or decrease (favorable) in incurred loss and loss adjustment
expense reserves at the valuation dates for losses which occurred
in previous calendar years. This measure excludes development on
catastrophe losses.
Catastrophe losses is an operational measure which utilizes the
designations of the Insurance Services Office (“ISO”) and is
reported with losses and loss adjustment expense amounts net of
reinsurance recoverables, unless specified otherwise. In addition
to ISO catastrophes, we also include as catastrophes those events
(“non-ISO catastrophes”), which may include U.S. or international
losses, that we believe are, or will be, material to our
operations, either in amount or in number of claims made.
Catastrophes are not predictable and are unique in terms of timing
and financial impact. While management estimates catastrophe losses
as incurred, due to the inherently unique nature of catastrophe
losses, the impact in a reporting period is inclusive of
catastrophes that occurred in the reporting period, as well as
development on catastrophes that may have occurred in prior
periods.
Supplemental Tables
Income Statement |
(unaudited) |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
(In
Thousands) |
2023 |
|
2022 |
|
2023 |
|
2022 |
Revenues |
|
|
|
|
|
|
|
Net premiums earned |
$ |
259,456 |
|
|
$ |
238,256 |
|
|
$ |
770,221 |
|
|
$ |
703,746 |
|
Investment income, net of
investment expenses |
|
16,459 |
|
|
|
11,606 |
|
|
|
40,508 |
|
|
|
32,062 |
|
Net investment gains
(losses) |
|
(1,960 |
) |
|
|
(14,250 |
) |
|
|
(2,581 |
) |
|
|
(35,647 |
) |
Other
income (loss) |
|
— |
|
|
|
(39 |
) |
|
|
— |
|
|
|
(38 |
) |
Total Revenues |
$ |
273,955 |
|
|
$ |
235,573 |
|
|
$ |
808,148 |
|
|
$ |
700,123 |
|
|
|
|
|
|
|
|
|
Benefits, Losses and
Expenses |
|
|
|
|
|
|
|
Losses and loss settlement
expenses |
$ |
172,798 |
|
|
$ |
182,411 |
|
|
$ |
598,125 |
|
|
$ |
464,295 |
|
Amortization of deferred
policy acquisition costs |
|
62,709 |
|
|
|
53,107 |
|
|
|
181,700 |
|
|
|
156,116 |
|
Other underwriting
expenses |
|
29,275 |
|
|
|
30,487 |
|
|
|
89,784 |
|
|
|
87,885 |
|
Interest expense |
|
797 |
|
|
|
797 |
|
|
|
2,391 |
|
|
|
2,391 |
|
Total Benefits, Losses and Expenses |
$ |
265,579 |
|
|
$ |
266,802 |
|
|
$ |
872,000 |
|
|
$ |
710,687 |
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
$ |
8,376 |
|
|
$ |
(31,229 |
) |
|
$ |
(63,852 |
) |
|
$ |
(10,564 |
) |
Federal income tax expense (benefit) |
|
1,996 |
|
|
|
(8,248 |
) |
|
|
(14,544 |
) |
|
|
(5,475 |
) |
Net income (loss) |
$ |
6,380 |
|
|
$ |
(22,981 |
) |
|
$ |
(49,308 |
) |
|
$ |
(5,089 |
) |
Net Premiums Written by Line of Business |
(unaudited) |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
(In
Thousands) |
2023 |
|
2022 |
|
2023 |
|
2022 |
Net Premiums Written(1) |
|
|
|
|
|
|
|
Commercial lines: |
|
|
|
|
|
|
|
Other liability(2) |
$ |
66,733 |
|
|
$ |
87,705 |
|
|
$ |
246,506 |
|
|
$ |
243,633 |
|
Fire and allied lines(3) |
|
64,850 |
|
|
|
60,593 |
|
|
|
197,287 |
|
|
|
178,260 |
|
Automobile |
|
52,731 |
|
|
|
46,895 |
|
|
|
172,043 |
|
|
|
155,591 |
|
Workers’ compensation |
|
11,038 |
|
|
|
13,704 |
|
|
|
38,598 |
|
|
|
43,457 |
|
Surety(4) |
|
10,679 |
|
|
|
14,676 |
|
|
|
35,600 |
|
|
|
38,806 |
|
Miscellaneous |
|
2,262 |
|
|
|
239 |
|
|
|
3,420 |
|
|
|
809 |
|
Total commercial lines |
$ |
208,293 |
|
|
$ |
223,812 |
|
|
$ |
693,454 |
|
|
$ |
660,556 |
|
|
|
|
|
|
|
|
|
Personal lines: |
|
|
|
|
|
|
|
Fire and allied lines(5) |
$ |
1,779 |
|
|
$ |
724 |
|
|
$ |
4,409 |
|
|
$ |
1,072 |
|
Automobile |
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
Miscellaneous |
|
4 |
|
|
|
8 |
|
|
|
13 |
|
|
|
25 |
|
Total personal lines |
$ |
1,783 |
|
|
$ |
731 |
|
|
$ |
4,422 |
|
|
$ |
1,096 |
|
Assumed reinsurance |
|
37,651 |
|
|
|
22,875 |
|
|
|
122,195 |
|
|
|
87,840 |
|
Total |
$ |
247,727 |
|
|
$ |
247,417 |
|
|
$ |
820,071 |
|
|
$ |
749,492 |
|
(1) Net premiums written is a performance measure reflecting the
amount charged for insurance policy contracts issued and recognized
on an annualized basis at the effective date of the policy. See
Certain Performance Measures for additional information.(2)
Commercial lines “Other liability” is business insurance covering
bodily injury and property damage arising from general business
operations, accidents on the insured’s premises and products
manufactured or sold.(3) Commercial lines “Fire and allied lines”
includes fire, allied lines, commercial multiple peril and inland
marine.(4) Commercial lines “Surety” previously referred to as
“Fidelity and surety.”(5) Personal lines “Fire and allied lines”
includes fire, allied lines, homeowners and inland marine.
Net Premiums Earned, Net Losses and Loss Settlement
Expenses and Net Loss Ratio by Line of Business |
Three
Months Ended September 30, |
2023 |
|
2022 |
|
|
|
Net Losses |
|
|
|
|
|
Net Losses |
|
|
|
|
|
and Loss |
|
|
|
|
|
and Loss |
|
|
|
Net |
|
Settlement |
|
Net |
|
Net |
|
Settlement |
|
Net |
(In Thousands, Except
Ratios) |
Premiums |
|
Expenses |
|
Loss |
|
Premiums |
|
Expenses |
|
Loss |
(unaudited) |
Earned |
|
Incurred |
|
Ratio |
|
Earned |
|
Incurred |
|
Ratio |
Commercial lines |
|
|
|
|
|
|
|
|
|
|
|
Other liability |
$ |
78,090 |
|
|
$ |
34,466 |
|
|
44.1 |
% |
|
$ |
80,231 |
|
|
$ |
85,738 |
|
|
106.9 |
% |
Fire and allied lines |
|
64,531 |
|
|
|
53,602 |
|
|
83.1 |
|
|
|
60,263 |
|
|
|
47,857 |
|
|
79.4 |
|
Automobile |
|
53,929 |
|
|
|
46,186 |
|
|
85.6 |
|
|
|
51,939 |
|
|
|
32,093 |
|
|
61.8 |
|
Workers’ compensation |
|
13,366 |
|
|
|
9,616 |
|
|
71.9 |
|
|
|
14,043 |
|
|
|
(1,888 |
) |
|
(13.4 |
) |
Surety |
|
9,279 |
|
|
|
6,575 |
|
|
70.9 |
|
|
|
9,756 |
|
|
|
3,598 |
|
|
36.9 |
|
Miscellaneous |
|
883 |
|
|
|
112 |
|
|
12.7 |
|
|
|
267 |
|
|
|
449 |
|
|
168.2 |
|
Total commercial lines |
$ |
220,078 |
|
|
$ |
150,557 |
|
|
68.4 |
% |
|
$ |
216,499 |
|
|
$ |
167,847 |
|
|
77.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Personal lines |
|
|
|
|
|
|
|
|
|
|
|
Fire and allied lines |
$ |
1,616 |
|
|
$ |
1,304 |
|
|
80.7 |
% |
|
$ |
529 |
|
|
$ |
1,195 |
|
|
225.9 |
% |
Automobile |
|
— |
|
|
|
49 |
|
|
NM |
|
|
(1 |
) |
|
|
(775 |
) |
|
NM |
Miscellaneous |
|
5 |
|
|
|
(83 |
) |
|
NM |
|
|
10 |
|
|
|
(1,020 |
) |
|
NM |
Total personal lines |
$ |
1,621 |
|
|
$ |
1,270 |
|
|
78.3 |
% |
|
$ |
538 |
|
|
$ |
(600 |
) |
|
(111.5 |
)% |
Assumed reinsurance |
|
37,757 |
|
|
|
20,971 |
|
|
55.5 |
|
|
|
21,219 |
|
|
|
15,164 |
|
|
71.5 |
|
Total |
$ |
259,456 |
|
|
$ |
172,798 |
|
|
66.6 |
% |
|
$ |
238,256 |
|
|
$ |
182,411 |
|
|
76.6 |
% |
NM = Not meaningful
Net Premiums Earned, Net Losses and Loss Settlement
Expenses and Net Loss Ratio by Line of Business |
Nine
Months Ended September 30, |
2023 |
|
2022 |
|
|
|
Net Losses |
|
|
|
|
|
Net Losses |
|
|
|
|
|
and Loss |
|
|
|
|
|
and Loss |
|
|
|
Net |
|
Settlement |
|
Net |
|
Net |
|
Settlement |
|
Net |
(In Thousands, Except
Ratios) |
Premiums |
|
Expenses |
|
Loss |
|
Premiums |
|
Expenses |
|
Loss |
(unaudited) |
Earned |
|
Incurred |
|
Ratio |
|
Earned |
|
Incurred |
|
Ratio |
Commercial lines |
|
|
|
|
|
|
|
|
|
|
|
Other liability |
$ |
237,523 |
|
|
$ |
194,115 |
|
|
81.7 |
% |
|
$ |
225,323 |
|
|
$ |
159,859 |
|
|
70.9 |
% |
Fire and allied lines |
|
182,805 |
|
|
|
151,539 |
|
|
82.9 |
|
|
|
172,361 |
|
|
|
144,397 |
|
|
83.8 |
|
Automobile |
|
154,806 |
|
|
|
136,875 |
|
|
88.4 |
|
|
|
157,927 |
|
|
|
107,021 |
|
|
67.8 |
|
Workers’ compensation |
|
40,413 |
|
|
|
19,316 |
|
|
47.8 |
|
|
|
42,389 |
|
|
|
16,345 |
|
|
38.6 |
|
Surety |
|
27,611 |
|
|
|
15,668 |
|
|
56.7 |
|
|
|
26,700 |
|
|
|
5,723 |
|
|
21.4 |
|
Miscellaneous |
|
1,522 |
|
|
|
277 |
|
|
18.2 |
|
|
|
817 |
|
|
|
593 |
|
|
72.6 |
|
Total commercial lines |
$ |
644,680 |
|
|
$ |
517,790 |
|
|
80.3 |
% |
|
$ |
625,517 |
|
|
$ |
433,938 |
|
|
69.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Personal lines |
|
|
|
|
|
|
|
|
|
|
|
Fire and allied lines |
$ |
4,568 |
|
|
$ |
3,631 |
|
|
79.5 |
% |
|
$ |
2,127 |
|
|
$ |
2,144 |
|
|
100.8 |
% |
Automobile |
|
— |
|
|
|
(326 |
) |
|
NM |
|
|
— |
|
|
|
(1,919 |
) |
|
NM |
Miscellaneous |
|
18 |
|
|
|
(148 |
) |
|
NM |
|
|
42 |
|
|
|
(1,110 |
) |
|
NM |
Total personal lines |
$ |
4,586 |
|
|
$ |
3,157 |
|
|
68.8 |
% |
|
$ |
2,169 |
|
|
$ |
(885 |
) |
|
(40.8 |
)% |
Assumed reinsurance |
|
120,955 |
|
|
|
77,178 |
|
|
63.8 |
|
|
|
76,060 |
|
|
|
31,242 |
|
|
41.1 |
|
Total |
$ |
770,221 |
|
|
$ |
598,125 |
|
|
77.7 |
% |
|
$ |
703,746 |
|
|
$ |
464,295 |
|
|
66.0 |
% |
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