United Fire Group, Inc. (the “Company” or “UFG”)
(Nasdaq: UFCS) today reported financial results for the three-
month period ended June 30, 2023 (the “second quarter of 2023”)
with a consolidated net loss of $56.4 million ($2.23 per diluted
share) and consolidated adjusted operating loss of $2.27 per
diluted share.
“Our second quarter results were impacted by reserve
strengthening and seasonally elevated catastrophe losses,” said UFG
President and CEO Kevin Leidwinger. “The reserve strengthening is a
result of enhanced actuarial processes within our Company that have
increased the depth of analysis and improved alignment with our
unique product exposures. These enhancements in our actuarial
processes foster greater confidence in our ability to estimate
ultimate losses and provide more actionable feedback that aligns
with the increasing levels of specialization being developed in the
underwriting and claims organizations. While the adjustments coming
out of these enhancements negatively impacted results in the short
term, they position us to more effectively manage our portfolio
going forward.
“In addition, the industry dealt with a historic level of
catastrophe losses in the second quarter of 2023, with UFG
experiencing catastrophe losses from 18 separate weather events
that resulted in losses slightly above the five- and 10- year
historic averages. We will continue to take action to improve the
risk profile of our property business to reposition the portfolio
and reduce volatility. During the second quarter of 2023, our
property average premium increase was 19%, with rate increases of
12% and exposure increases of 7%.
“Our second quarter underlying loss ratio included approximately
3 points of impact from a small number of claims and associated
reinsurance reinstatement premium in our surety business. This
business has delivered strong profitability historically, but can
experience occasional periods of volatility. We remain confident
this business will deliver favorable returns over the long
term.
“Despite these near-term impacts, there were many positive
results in the second quarter of 2023 that demonstrate our progress
in delivering consistent profitable growth. UFG produced
double-digit growth in net premiums written in the second quarter,
marking the fifth consecutive quarter of growth in net premiums
written, and the second consecutive quarter of growth in our core
commercial business. In addition to increases in new business and
retention, average renewal premiums increased, with rate
achievement up across all lines of business from the first quarter
of 2023, and at the highest level in six quarters.
“Our actions to sustainably reduce costs led the second quarter
of 2023 expense ratio to decrease 0.7 points from the prior year
quarter while we continue to make strategic investments in the
talent and technology capabilities necessary for success.
“UFG also recently announced the formation of distinct business
units within our underwriting organization, establishing
specialized operating models for small business and middle market.
This action is a key step in UFG’s evolution from a generalist to a
specialist company with the deeper levels of expertise necessary to
be successful.
“Looking ahead, we remain confident that we are executing the
actions necessary for UFG to deliver superior financial and
operational performance over time.”
(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 June
30, |
Six Months Ended June 30 |
(In Thousands, Except Per Share Data) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net premiums earned |
$ |
254,638 |
|
$ |
231,262 |
|
$ |
510,765 |
|
$ |
465,490 |
|
Net premiums written |
|
299,076 |
|
|
261,065 |
|
|
572,344 |
|
|
502,075 |
|
|
Net underlying loss ratio (1) |
|
64.6 |
% |
|
58.8 |
% |
|
64.1 |
% |
|
58.2 |
% |
Catastrophes-effect on net loss ratio (1) |
|
13.0 |
|
|
12.1 |
|
|
8.8 |
|
|
7.3 |
|
Reserve development-effect on net loss ratio (1) |
|
20.8 |
|
|
(5.4 |
) |
|
10.4 |
|
|
(4.9 |
) |
Net loss ratio |
|
98.4 |
% |
|
65.5 |
% |
|
83.3 |
% |
|
60.6 |
% |
|
|
|
|
|
Underwriting expense ratio |
|
34.5 |
% |
|
35.2 |
% |
|
35.1 |
% |
|
34.4 |
% |
|
|
|
|
|
GAAP combined ratio |
|
132.9 |
% |
|
100.7 |
% |
|
118.4 |
% |
|
95.0 |
% |
Underlying combined ratio (2) |
|
99.1 |
% |
|
94.0 |
% |
|
99.2 |
% |
|
92.7 |
% |
Net investment income, net
of investment expenses |
$ |
11,327 |
|
$ |
9,180 |
|
$ |
24,049 |
|
$ |
20,456 |
|
Net investment gains (losses) |
|
1,124 |
|
|
(20,932 |
) |
|
(621 |
) |
|
(21,397 |
) |
Other income (loss) |
|
(797 |
) |
|
(771 |
) |
|
(1,594 |
) |
|
(1,593 |
) |
Net income (loss) |
$ |
(56,382 |
) |
$ |
(10,457 |
) |
$ |
(55,688 |
) |
$ |
17,892 |
|
Adjusted operating income (loss) (3) |
$ |
(57,270 |
) |
$ |
6,080 |
|
|
(55,197 |
) |
|
34,796 |
|
|
|
|
|
|
Net income (loss) per diluted share |
$ |
(2.23 |
) |
$ |
(0.42 |
) |
$ |
(2.21 |
) |
$ |
0.70 |
|
Adjusted operating income (loss) per diluted share (3) |
|
(2.27 |
) |
|
0.24 |
|
|
(2.19 |
) |
|
1.37 |
|
Return on equity (4) |
|
|
|
(15.7 |
)% |
|
4.3 |
% |
(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
Second quarter 2023 results:(All comparisons
vs. second quarter 2022, unless noted otherwise)
Net premiums written grew year-over-year for the fifth
consecutive quarter, increasing 14.6% over that time period with
net premiums earned increasing 10.1% in the second quarter of 2023.
Core commercial lines net premiums written growth remained strong,
up 10.1% supported by increasing levels of rate, retention and new
business, together with an overall increase in renewal premiums of
8.5%, with 2.6% from exposure changes and 5.9% from rate increases.
Excluding the workers’ compensation line of business, the overall
average increase in renewal premiums was 9.4%, with 2.5% from
exposure changes and 6.9% from rate increases.
The combined ratio was 132.9%, up from 100.7%. This increase is
primarily attributable to prior period reserve strengthening of
20.8% this quarter compared to favorable development of 5.4% in the
second quarter of 2022. The majority of the strengthening is
concentrated in long-tailed liability exposures of excess and
surplus lines excess casualty and construction defect. This
increase reflects a continued rigor and sophistication of actuarial
analysis that affords greater understanding of the evolving
industry trends for these lines. The catastrophe loss ratio was
13.0% in the current quarter, an increase of 0.9 points. The
catastrophe loss ratio was approximately 2 points above the
five-year and 10-year historic mean catastrophe loss ratio and
within a normal range of variation despite significant, elevated
outcomes for the industry. The underlying loss ratio of 64.6%
increased 5.8 points. A small number of surety losses and
associated reinsurance reinstatement premium contributed 3 points
to this increase during the second quarter of 2023. Surety has been
a long-term profitable line and results can be volatile. The
underwriting expense ratio of 34.5% was 0.7 points lower,
benefiting from actions to sustainably reduce costs that are
offsetting strategic investments in talent and technology.
Investment Results
Second quarter 2023 results:(All comparisons
vs. second quarter 2022, unless noted otherwise)
Net investment income was $11.3 million for the second quarter
of 2023, an increase of $2.1 million. Income from our fixed income
portfolio increased by $1.2 million as we invested at higher
interest rates. In addition, income from cash and cash equivalents
increased $1.8 million. The valuation of our limited liability
partnerships declined $3.5 million in the current quarter,
representing $0.4 in additional loss compared to last year. The
valuation of these investments in limited liability partnerships
varies from period to period due to the current equity market
conditions, specifically related to financial institutions.
Investment Results |
(unaudited) |
Three Months Ended June 30, |
Six Months Ended June 30, |
(In Thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Investment income: |
|
|
|
|
Interest on fixed maturities |
$ |
13,423 |
|
$ |
12,196 |
|
$ |
26,720 |
|
$ |
23,087 |
|
Dividends on equity securities |
|
1,185 |
|
|
1,341 |
|
|
2,428 |
|
|
2,609 |
|
Income (loss) on other long-term investments |
|
(3,504 |
) |
|
(3,142 |
) |
|
(4,584 |
) |
|
(2,611 |
) |
Other |
|
2,434 |
|
|
682 |
|
|
4,294 |
|
|
1,390 |
|
Total investment income |
$ |
13,538 |
|
$ |
11,077 |
|
$ |
28,858 |
|
$ |
24,475 |
|
Less investment expenses |
|
2,211 |
|
|
1,897 |
|
|
4,809 |
|
|
4,019 |
|
Net investment income |
$ |
11,327 |
|
$ |
9,180 |
|
$ |
24,049 |
|
$ |
20,456 |
|
Average
yields: |
Fixed
income securities: |
Pre-tax(1) |
|
3.24 |
% |
|
2.96 |
% |
|
3.25 |
% |
|
2.82 |
% |
(1) Fixed income securities yield excluding net unrealized
investment gains/losses and expenses
Balance Sheet |
|
Balance Sheet |
(In Thousands) |
June 30, 2023 (unaudited) |
December 31, 2022 |
Invested assets |
$ |
1,835,621 |
|
$ |
1,844,891 |
|
Cash |
|
79,704 |
|
|
96,650 |
|
Total assets |
|
3,017,877 |
|
|
2,882,286 |
|
Losses and loss settlement
expenses |
|
1,614,832 |
|
|
1,497,274 |
|
Total liabilities |
|
2,341,512 |
|
|
2,142,172 |
|
Net unrealized investment gains
(losses), after-tax |
|
(89,095 |
) |
|
(88,369 |
) |
Total stockholders’ equity |
|
676,365 |
|
|
740,114 |
|
|
|
|
Book value per share |
$ |
26.77 |
|
$ |
29.36 |
|
Total consolidated assets as of June 30, 2023 were $3.0 billion,
which included $1.8 billion of invested assets. The Company’s book
value per share was $26.77, a decrease of $2.59 per share, or 8.8%,
from December 31, 2022. This decrease is primarily related to the
increase in loss and loss settlement expense reserves.
Capital Management
During the second quarter of 2023, the Company declared and paid
a $0.16 per share cash dividend to shareholders of record as of
June 2, 2023. UFG has paid a quarterly dividend every quarter since
March 1968.
Earnings Call Access Information
An earnings call will be held at 9:00 a.m. CT on August 8, 2023,
to allow securities analysts, shareholders and other interested
parties the opportunity to hear management discuss the Company’s
second 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 August 15, 2023. The replay access
information is toll-free 1-877-344-7529; conference ID no.
1030244.
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=utfxpqlS.
The archived audio webcast will be available until August 15,
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 June 30, |
Six Months Ended June 30, |
(In Thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Income Statement
Data |
|
|
|
|
Net income (loss) |
$ |
(56,382 |
) |
$ |
(10,457 |
) |
$ |
(55,688 |
) |
$ |
17,892 |
|
Less: after-tax net investment gains (losses) |
|
888 |
|
|
(16,537 |
) |
|
(491 |
) |
|
(16,904 |
) |
Adjusted operating income (loss) |
$ |
(57,270 |
) |
$ |
6,080 |
|
$ |
(55,197 |
) |
$ |
34,796 |
|
Diluted Earnings Per
Share Data |
|
|
|
|
Net income (loss) |
$ |
(2.23 |
) |
$ |
(0.42 |
) |
$ |
(2.21 |
) |
$ |
0.70 |
|
Less: after-tax net investment gains (losses) |
|
0.04 |
|
|
(0.66 |
) |
|
(0.02 |
) |
|
(0.67 |
) |
Adjusted operating income (loss) |
$ |
(2.27 |
) |
$ |
0.24 |
|
$ |
(2.19 |
) |
$ |
1.37 |
|
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 are 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 are 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 are
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 June 30, |
Six Months Ended June 30, |
(In Thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenues |
|
|
|
|
Net premiums earned |
$ |
254,638 |
|
$ |
231,262 |
|
$ |
510,765 |
|
$ |
465,490 |
|
Investment income, net of
investment expenses |
|
11,327 |
|
|
9,180 |
|
|
24,049 |
|
|
20,456 |
|
Net investment gains
(losses) |
|
1,124 |
|
|
(20,932 |
) |
|
(621 |
) |
|
(21,397 |
) |
Other income (loss) |
|
— |
|
|
26 |
|
|
— |
|
|
1 |
|
Total
Revenues |
$ |
267,089 |
|
$ |
219,536 |
|
$ |
534,193 |
|
$ |
464,550 |
|
|
|
|
|
|
Benefits, Losses and
Expenses |
|
|
|
|
Losses and loss settlement
expenses |
$ |
250,730 |
|
$ |
151,508 |
|
$ |
425,327 |
|
$ |
281,884 |
|
Amortization of deferred policy
acquisition costs |
|
59,156 |
|
|
52,538 |
|
|
118,991 |
|
|
103,009 |
|
Other underwriting expenses |
|
28,633 |
|
|
28,754 |
|
|
60,509 |
|
|
57,398 |
|
Interest expense |
|
797 |
|
|
797 |
|
|
1,594 |
|
|
1,594 |
|
Total Benefits, Losses
and Expenses |
$ |
339,316 |
|
$ |
233,597 |
|
$ |
606,421 |
|
$ |
443,885 |
|
|
|
|
|
|
Income (loss) before income taxes |
|
(72,227 |
) |
|
(14,061 |
) |
|
(72,228 |
) |
|
20,665 |
|
Federal income tax expense (benefit) |
|
(15,845 |
) |
|
(3,604 |
) |
|
(16,540 |
) |
|
2,773 |
|
Net income (loss) |
$ |
(56,382 |
) |
$ |
(10,457 |
) |
$ |
(55,688 |
) |
$ |
17,892 |
|
Net Premiums Written by Line of Business |
(unaudited) |
Three Months Ended June 30, |
Six Months Ended June 30, |
(In Thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net Premiums
Written(1) |
|
|
|
|
Commercial lines: |
|
|
|
|
Other liability(2) |
$ |
99,945 |
$ |
87,366 |
$ |
179,774 |
$ |
155,928 |
Fire and allied lines(3) |
|
70,408 |
|
58,878 |
|
132,437 |
|
117,667 |
Automobile |
|
60,033 |
|
53,764 |
|
119,312 |
|
108,696 |
Workers’ compensation |
|
14,196 |
|
13,511 |
|
27,560 |
|
29,753 |
Surety(4) |
|
9,520 |
|
12,318 |
|
24,921 |
|
24,130 |
Miscellaneous |
|
839 |
|
281 |
|
1,158 |
|
570 |
Total commercial lines |
$ |
254,941 |
$ |
226,118 |
$ |
485,162 |
$ |
436,744 |
|
|
|
|
|
Personal lines: |
|
|
|
|
Fire and allied lines(5) |
$ |
1,134 |
$ |
31 |
$ |
2,630 |
$ |
348 |
Automobile |
|
— |
|
— |
|
— |
|
— |
Miscellaneous |
|
4 |
|
9 |
|
9 |
|
17 |
Total personal lines |
$ |
1,138 |
$ |
40 |
$ |
2,639 |
$ |
365 |
Assumed reinsurance |
|
42,997 |
|
34,907 |
|
84,544 |
|
64,966 |
Total |
|
299,076 |
|
261,065 |
$ |
572,344 |
$ |
502,075 |
(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 June 30, |
|
|
2023 |
|
|
|
|
2022 |
|
|
|
Net |
Net Losses and
LossSettlement |
Net |
Net |
Net Losses and LossSettlement |
Net |
(In Thousands, Except
Ratios) |
Premiums |
Expenses |
Loss |
Premiums |
Expenses |
Loss |
(unaudited) |
Earned |
Incurred |
Ratio |
Earned |
Incurred |
Ratio |
Commercial lines |
|
|
|
|
|
|
Other liability |
$ |
81,028 |
$ |
106,805 |
|
131.8 |
% |
$ |
74,523 |
$ |
37,320 |
|
50.1 |
% |
Fire and allied lines |
|
61,808 |
|
52,056 |
|
84.2 |
|
|
53,350 |
|
51,304 |
|
96.2 |
|
Automobile |
|
51,905 |
|
53,908 |
|
103.9 |
|
|
52,756 |
|
42,595 |
|
80.7 |
|
Workers' compensation |
|
13,802 |
|
1,649 |
|
11.9 |
|
|
13,737 |
|
13,155 |
|
95.8 |
|
Surety |
|
6,386 |
|
7,872 |
|
123.3 |
|
|
8,824 |
|
1,750 |
|
19.8 |
|
Miscellaneous |
|
374 |
|
28 |
|
7.5 |
|
|
271 |
|
(18 |
) |
(6.6 |
) |
Total commercial lines |
$ |
215,303 |
$ |
222,318 |
|
103.3 |
% |
$ |
203,461 |
$ |
146,106 |
|
71.8 |
% |
|
|
|
|
|
|
|
Personal lines |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fire and allied lines |
$ |
1,000 |
$ |
141 |
|
14.1 |
% |
$ |
648 |
$ |
(242 |
) |
(37.3 |
)% |
Automobile |
|
— |
|
(121 |
) |
NM |
|
— |
|
(415 |
) |
NM |
Miscellaneous |
|
6 |
|
(19 |
) |
NM |
|
15 |
|
(72 |
) |
NM |
Total personal lines |
$ |
1,006 |
$ |
1 |
|
0.1 |
% |
$ |
663 |
$ |
(729 |
) |
(110.0 |
)% |
Assumed reinsurance |
$ |
38,329 |
$ |
28,411 |
|
74.1 |
% |
$ |
27,138 |
$ |
6,131 |
|
22.6 |
% |
Total |
$ |
254,638 |
$ |
250,730 |
|
98.4 |
% |
$ |
231,262 |
$ |
151,508 |
|
65.5 |
% |
NM = Not meaningful |
|
|
|
|
|
|
Net Premiums Earned, Net Losses and Loss
Settlement Expenses and Net Loss Ratio by Line of
Business
Six Months Ended June 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 |
$ |
159,433 |
$ |
159,649 |
|
100.1 |
% |
$ |
145,092 |
$ |
74,121 |
|
51.1 |
% |
Fire and allied lines |
|
118,274 |
|
97,937 |
|
82.8 |
|
|
112,098 |
|
96,540 |
|
86.1 |
|
Automobile |
|
100,877 |
|
90,689 |
|
89.9 |
|
|
105,988 |
|
74,928 |
|
70.7 |
|
Workers' compensation |
|
27,047 |
|
9,700 |
|
35.9 |
|
|
28,346 |
|
18,233 |
|
64.3 |
|
Surety |
|
18,332 |
|
9,093 |
|
49.6 |
|
|
16,944 |
|
2,125 |
|
12.5 |
|
Miscellaneous |
|
639 |
|
165 |
|
25.8 |
|
|
550 |
|
144 |
|
26.2 |
|
Total commercial lines |
$ |
424,602 |
$ |
367,233 |
|
86.5 |
% |
$ |
409,018 |
$ |
266,091 |
|
65.1 |
% |
|
|
|
|
|
|
|
Personal lines |
|
|
|
|
|
|
Fire and allied lines |
$ |
2,952 |
$ |
2,327 |
|
78.8 |
% |
$ |
1,598 |
$ |
949 |
|
59.4 |
% |
Automobile |
|
— |
|
(375 |
) |
NM |
|
1 |
|
(1,144 |
) |
NM |
Miscellaneous |
|
13 |
|
(65 |
) |
NM |
|
32 |
|
(90 |
) |
(281.3 |
)% |
Total personal lines |
$ |
2,965 |
$ |
1,887 |
|
63.6 |
% |
$ |
1,631 |
$ |
(285 |
) |
(17.5 |
)% |
Assumed reinsurance |
$ |
83,198 |
$ |
56,207 |
|
67.6 |
% |
$ |
54,841 |
$ |
16,078 |
|
29.3 |
% |
Total |
$ |
510,765 |
$ |
425,327 |
|
83.3 |
% |
$ |
465,490 |
$ |
281,884 |
|
60.6 |
% |
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