UFCS

Progressive (PGR) came out with quarterly earnings of $4.6 per share, beating the Zacks Consensus Estimate of $4.46 per share. This compares to earnings of $4.05 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.14%. A quarter ago, it was expected that this insurer would post earnings of $4.7 per share when it actually produced earnings of $4.85, delivering a surprise of +3.19%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Progressive, which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $23.36 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.22%. This compares to year-ago revenues of $22.22 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Progressive shares have lost about 2.1% since the beginning of the year versus the S&P 500's gain of 14%. While Progressive has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Progressive was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.02 on $23.15 billion in revenues for the coming quarter and $18.14 on $92.39 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, United Fire Group (UFCS), has yet to report results for the quarter ended September 2026. This property and casualty insurance company is expected to post quarterly earnings of $1.19 per share in its upcoming report, which represents a year-over-year change of -20.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. United Fire Group's revenues are expected to be $388.6 million, up 9.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Progressive Corporation (PGR) : Free Stock Analysis Report United Fire Group, Inc (UFCS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

CEDAR RAPIDS, Iowa, Aug. 21, 2026 (GLOBE NEWSWIRE) -- Today, the board of directors of United Fire Group, Inc. (UFG) (Nasdaq: UFCS) declared a common stock quarterly cash dividend of $0.20 per share. This dividend will be payable September 18, 2026, to shareholders of record as of September 4, 2026. UFG has a long history of paying quarterly dividends dating back to March 1968. New appointment to the board of directors UFG is pleased to announce the appointment of a new independent member to its board of directors, effective August 21, 2026. Teresa (“Terri”) Brown has been appointed as a Class C director and will serve on the board’s risk management and audit committees. The board is confident that Brown’s considerable expertise in insurance, finance and risk management will further enhance its ability to provide guidance and governance that contributes to the company’s success. Brown is a prominent insurance executive with over 35 years of experience in the property and casualty industry, currently serving as a senior advisor at Boston Consulting Group. Prior to this, she held the position of executive vice president and chief financial officer at Grange Insurance from 2016 until her retirement in 2024. Brown has held several other leadership positions throughout her career, including chief risk officer at Allstate and Aviva USA; senior vice president of property insurance product management at Allstate; director at Deloitte Consulting; chief actuary and senior vice president of claims at Safeco Insurance; and chief actuary at Travelers Insurance. “The board is honored to welcome Terri Brown as our newest member,” said UFG Board Chairperson Jim Noyce. “With more than three decades in the insurance industry, Terri brings deep expertise across nearly every facet of property and casualty insurance. Her vast knowledge and seasoned perspective will be invaluable as we advance the company’s strategic priorities and continue creating long-term value for our shareholders.” Brown graduated from Southwestern College with bachelor’s degrees in applied mathematics and communication. She is a fellow of the Casualty Actuarial Society and board certified by the National Association of Corporate Directors. In addition to serving on the UFG board, Brown is currently a board member of Branch Insurance and Southwestern College. She is also a former board member of Nuclear Electric Insurance Limited. With Brown’s appointment, the UFG board of directors will consist of 12 members. 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. The company is licensed as a property and casualty insurer in 50 states and the District of Columbia, and is represented by approximately 850 independent agencies. AM Best assigns a rating of “A-” (Excellent) for members of the United Fire & Casualty Group. For more information about UFG, visit www.ufginsurance.com. Contact: Investor relationsEmail: [email protected] Media inquiries Email: [email protected] 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 for the year ended December 31, 2025, filed with the Securities and Exchange Commission ("SEC") on February 26, 2026. The risks identified in our Annual Report on Form 10-K 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. 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.

Image source: The Motley Fool. Aug. 4, 2026 at 10 a.m. ET President and Chief Executive Officer - Kevin Leidwinger Executive Vice President and Chief Operating Officer - Julie Stephenson Executive Vice President and Chief Financial Officer - Eric Martin Investor Relations - Timothy Borst Operator: Good day, and welcome to the United Fire Group Insurance 2026 second quarter conference call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Tim Borst. Please go ahead. Timothy Borst: Good morning, and thank you for joining this call. Yesterday afternoon, we issued a press release on our results. To find a copy of this document, please visit our website at ufginsurance.com. Press releases and slides are located under the Investors tab. Joining me today on the call are UFG President and Chief Executive Officer, Kevin Leidwinger; Executive Vice President and Chief Operating Officer, Julie Stephenson; and Executive Vice President and Chief Financial Officer, Eric Martin. Before I turn the call over to Kevin, a couple of reminders. First, please note that our presentation today may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. 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. The company cautions investors that any forward-looking statement includes risks and uncertainties and are not a guarantee of future performance. Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. These forward-looking statements are based on management's current expectations, and the company assumes no obligation to update any forward-looking statements. The actual results may differ materially due to a variety of factors, which are described in our press release and SEC filings discussed specifically in our most recent annual report on Form 10-K. Also, please note that in our discussion today, we may use some non-GAAP financial measures. Reconciliations of these measures to the most comparable GAAP measures are also available in our press release and SEC filings. At this time, I will turn the call over to Mr. Kevin Leidwinger, CEO of UFG Insurance. Kevin Leidwinger: Good morning, and thank you for joining UFG's second quarter 2026 earnings call. I'm pleased to report another quarter of exceptional performance for UFG. Our team delivered outstanding results across the organization, achieving our best second quarter combined ratio in more than 15 years, record net income, record net written premium and our highest level of investment income in over a decade. These results reflect the success of the strategic actions we've taken to transform the company. By deepening our underwriting expertise, evolving our capabilities, strengthening alignment with our distribution partners and improving investment performance, we continue to create meaningful value for our stakeholders. These efforts are driving sustained improvements in UFG's financial and operational performance while positioning the company for long-term success. While we achieved several notable performance milestones in the quarter, I'm particularly encouraged by the strength of our underwriting results. Our combined ratio was the best for a second quarter in more than 15 years, reflecting disciplined risk selection, appropriate pricing relative to exposure and the continued successful execution of our catastrophe management strategy. These results demonstrate the effectiveness of our underwriting approach and our commitment to delivering consistent profitability. Investment income was also a significant contributor to our performance, reaching its highest quarterly level in more than 10 years. The strength of our portfolio, combined with favorable market conditions, continue to support earnings growth. Together, strong underwriting execution and improved investment returns produced another quarter of excellent financial results. Beyond our second quarter achievements, we delivered a 13.2% return on equity for the first 6 months of 2026, representing our best year-to-date financial performance in 20 years. This milestone highlights the progress we've made in building a more profitable, resilient and higher-performing organization. As we look forward to the second half of the year, we remain confident in our ability to navigate evolving market conditions. Our deep underwriting expertise, strong agency relationships and disciplined operating approach position us well to continue delivering profitable growth and creating long-term value. Before I turn the call over to Julie, I want to thank our employees, agency partners and policyholders for their continued trust, commitment and support. Their dedication is fundamental to our success, and I'm proud of all we've accomplished together. With that, I'll turn the call over to Julie to review the quarter in greater detail. Thank you. Julie Stephenson: Thanks, Kevin. We are pleased with the continued positive momentum in our results as our underwriting teams successfully navigate a persistently competitive marketplace. Our underwriters remain disciplined as they defend renewals, refine risk selection and maintain strong relationships with our distribution partners to capitalize on the opportunities afforded to us by our deepened expertise and evolving capabilities. These efforts continue to support healthy new business production, positive rate achievement and steady retention. Net written premium increased 9% in the second quarter, driven by sustained selective growth in our core commercial business, which includes small business, middle market and construction. The average renewal rate change was 2.9%, reflecting ongoing competitive market conditions. Property rates remained under pressure during the quarter, and we are seeing modest pressure in general liability. Auto rate performance was consistent with the first quarter, while umbrella continued to deliver strong double-digit rate increases. Although rate achievement has moderated over the past several quarters, we believe we are well positioned for the current environment. The portfolio actions and underwriting discipline we have implemented over the last several years, combined with established pricing and risk selection rigor, enable us to selectively pursue opportunities that support continued profitable growth and attractive returns. By example, policies written from 2024 through Q2 of 2026 make up over 50% of the portfolio, and our new business is performing very well, meeting or exceeding our expectations. At the same time, the renewal portfolio has been thoroughly pruned through the lens of our current underwriting guidelines, so we have a high degree of confidence in the portfolio on the whole. In specialty excess and surplus lines, market conditions continue to evolve rapidly with heightened competition across both property and casualty lines. Net written premium declined compared to the prior year as increased competition for larger accounts had a greater impact on our relatively small portfolio. However, quarter-over-quarter production activity remained stable and disciplined. We continue to focus on moderate hazard opportunities and on retaining well-performing, adequately priced accounts to support a balanced and resilient portfolio. Surety delivered strong growth in the quarter, benefiting from several large project opportunities following a relatively flat first quarter. We remain confident in both the quality of the portfolio and the long-term growth prospects of the business. Alternative distribution, which includes treaty, programs and Funds at Lloyd's, increased net written premium by 13% over the prior year. This growth reflects the strong January 1 treaty and FAL renewal cycle and demonstrates the value of our diversified distribution platform. Given our broad opportunities and disciplined exposure management, we believe this business remains well positioned to support prudent growth through varying market cycles. Turning to profitability. Our underlying loss ratio was 57.2% in the second quarter, a slight improvement from the prior year and consistent with first quarter results. Performance improved across our core lines of business, partially offset by impacts from assumed reinsurance. The assumed reinsurance market remains highly competitive, but our diversified portfolio continues to provide opportunities for profitable growth. Within our core business, we continue to benefit from strong earned rate achievement and a stable loss trend environment. Overall, our portfolio remains positioned to deliver consistent long-term profitability while maintaining a conservative risk profile. Prior year reserve development was neutral overall in the second quarter. Our actuarial review included a comprehensive analysis of all business segments, along with our annual assessment of adjusting and other reserves, and produced generally favorable indications. In recent quarters, we have seen some stability in emergence associated with our longer-tail liability lines. This is a positive sign, but we continue to view these lines with caution and maintain a strong reserve position we've built over the past few years. We also experienced favorable emergence in automobile, property and workers' compensation. Consistent with our approach in recent years, we redeployed the benefit of favorable emergence to maintain a conservative position in areas subject to greater uncertainty. The second quarter catastrophe loss ratio was 2.7%, 2.8 points below prior year and well below both 5- and 10-year historical averages. Results benefited from favorable development on prior period events. Excluding this benefit, our current accident-year catastrophe loss ratio would have produced a result of approximately 6%, so still comfortably below historical averages and in line with our expectations, reflecting the ongoing impact of actions taken in recent years to improve our catastrophe risk profile. Our half-year catastrophe result of 3.2% is trending favorably to our full year estimate of 5%. With that, I will turn the call over to Eric Martin to discuss the remainder of our financial results. Eric Martin: Thank you, Julie. Starting with investments. Our high-quality portfolio continued to deliver a sustainable increase in net investment income, which grew 33% in the second quarter to $29 million. I continue to be very pleased with the performance of our investments. This quarter represents the highest investment income since the sale of our life insurance operations in 2016 (sic) [ 2018 ]. Fixed maturity income of $26.3 million increased 24% from prior year while maintaining duration and an average AA credit quality rating. Over the past year, the size of our fixed maturity portfolio has grown approximately 16% as improved underwriting profitability fuels growth in investment income. The elevated interest rate environment provides opportunities to sustainably increase portfolio returns as new money yields of 5.1% continue to exceed the overall portfolio average by approximately 50 basis points. Outside of fixed income, our portfolio of approximately $100 million of limited partnership investments contributed to these favorable results, generating a return of $2.3 million in the quarter. Looking back over the past 8 quarters, this portfolio has produced an annualized yield of 8.7%. Turning to the expense ratio. The second quarter result of 35.4% increased approximately 0.5 point from prior year. We experienced a small onetime increase this quarter from actions to buy out a lease on a building in Houston that will reduce lease costs on a go-forward basis. This contributed about half of the increase from our recent run rate of 35%. We expect our ongoing actions to result in a continued gradual reduction of the expense ratio over time. Based on our current growth plan and the continued transformation of the company, we expect future expense ratio improvements of 0.5 point to a full point per year. This includes continued investment in technology modernization beyond the policy administration system aimed at continued efficiency gains. Second quarter net income was $1.29 per diluted share with non-GAAP adjusted operating income of $1.30 per diluted share. This quarter's earnings improved book value per common share to $38.02. The increase in interest rates in the second quarter caused our unrealized loss position to increase by approximately $4 million from the first quarter, negatively impacting book value per share by $0.15. Adjusted book value per share, which excludes the impact of unrealized investment losses, increased to $39.72. From a capital management perspective, during the second quarter, we declared and paid a $0.20 per share cash dividend to shareholders of record as of June 5, 2026. This concludes our prepared remarks. I will now have the operator open the line for questions. Operator: [Operator Instructions] Our first question comes from Jason Weaver with JonesTrading. Jason Weaver: Just one on the commercial auto loss ratio. How much of that is related to social inflation and enhanced judgment costs? And where do you think auto rate needs to hold to get back into your target there? Julie Stephenson: Thanks so much for the question. I think the auto portfolio is a very important part of our ability to be a total account solution provider. So we know that auto has to be an important part of the portfolio going forward, but our underwriting rigor has deepened over the last few years. We certainly are paying attention to pricing. We've seen some moderating pricing in the auto line, but still positive for us. There's not a lot of social inflation in our auto risk profile. We're not in the heavy wheels business or the trucking business, so mostly associated with our middle market construction and small business portfolios, which are on the smaller to midsize of middle and construction. So not a lot of impact from social inflation for us, and we feel like we're still getting attractive rate. Jason Weaver: Got it. And then on the 13.2% ROE versus your long-term 15% target, what is the board's threshold on looking at a repurchase program here? And how do you think about the relative merits of doing something like that versus the existing $0.20 dividend? Eric Martin: Yes, Jason, thanks for joining us. Thanks for your question. This is Eric here. As we think about capital management, we're going to continue to do the things we've done here in the past couple of years. We're going to focus first on making sure we've got the right amount of capital to grow. Second is, as you said, we've got a $0.20 per quarter dividend right now. We're going to make sure that, that is -- that's always important to us as a dividend, and we'll continue to make sure that's the case. We do have 2 million shares authorized for a buyback. We'll always consider that going forward, but it will be the third in the line of priorities there. Operator: Our next question comes from Paul Newsome with Piper Sandler. Jon Paul Newsome: Just maybe expansion on the commercial auto question. Where do you think, generally speaking, you are with rate versus claims inflation? Do you think that underlying combined ratio has the ability to go lower? Julie Stephenson: The underlying combined ratio on the whole or just for auto? Jon Paul Newsome: The whole, beyond the commercial auto. I mean, I think you've sort of answered the commercial auto piece. I'm just curious about the rest of the business. Julie Stephenson: Yes. I mean I think we have a very high degree of confidence in the portfolio and our ability to navigate the market. I think both our new and renewal books, as we discussed, Paul, are performing well, and they're well within our expectations under our recent underwriting rigor. I think more importantly, we feel like that we've built the actuarial and the analytical rigor to monitor our pricing behavior and the performance of the portfolio across multiple dimensions and we can react more nimbly. So all that said, I think we have a high degree of confidence that we can maintain the underlying loss ratio even with the challenges in the marketplace. Jon Paul Newsome: Makes sense. In terms of the competitive environment, do you think the current environment will allow you to continue to scale? Or do you think we'll have to take a little bit of a pause before we see enough growth to scale? Obviously, you're working on the expense ratio, too. But what's your thought on top line growth and scalability in the near term? Julie Stephenson: Yes. I think we can continue to grow. As we've discussed before, we're seeing accounts from our agency plant that UFG has never seen before because they're recognizing the deepened expertise. They're recognizing the expanded capabilities. So it just gives us a much wider pool of opportunities to choose from. And with that as a tailwind, we really think we can continue to grow even though the market is softening. So as long as we are sticking to our guns relative to underwriting discipline and we're pricing the exposures that are coming to us, we think scale is still possible throughout this market cycle. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Kevin Leidwinger for any closing remarks. Kevin Leidwinger: Thank you for joining us today. We're very pleased with our second quarter and year-to-date results. The record financial performance we delivered reflects the success of our strategic transformation, the strength of our underwriting discipline and the commitment of our employees and agency partners. These results continue to underscore the progress we've made in building a more profitable, resilient and consistently performing organization. Despite an increasingly competitive market, we remain confident in our ability to navigate changing conditions and continue generating profitable growth and attractive returns. As we move through the second half of 2026, we remain focused on disciplined execution and long-term value creation for all stakeholders. Thank you for your continued support and interest in UFG, and we look forward to speaking with you again next quarter. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in United Fire Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and United Fire Group wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $399,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,374,595!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 10, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. United Fire Group (UFCS) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. United Fire Group (UFCS) just released its second quarter 2026 results, giving investors fresh data on how the property and casualty insurer is performing this year. See our latest analysis for United Fire Group. United Fire Group shares trade at US$52.09 after a strong year to date, with a 46.4% year to date share price return and a 98.2% 1 year total shareholder return, suggesting positive momentum following the earnings beat and recent underwriting improvements. If United Fire Group’s move has you thinking about what else might be setting up for strong multi year stories, broaden your search with 19 top founder-led companies United Fire Group now trades slightly above analyst targets after a sharp rerating on its earnings beat. Is the market overpaying for recent progress, or does the current valuation still leave enough cushion for caution? United Fire Group currently trades at $52.09 compared with a most followed fair value estimate of $51.00. That small premium puts the spotlight on the earnings path and assumptions behind that fair value work. Read the complete narrative. Want to see what keeps that fair value anchored despite the catastrophe overhang? Revenue growth expectations, margin compression and a richer future earnings multiple sit at the core of this narrative. Result: Fair Value of $51.00 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, United Fire Group could break this overvalued narrative if underwriting technology keeps loss ratios in check and catastrophe exposure remains better contained than expected. Find out about the key risks to this United Fire Group narrative. While the consensus narrative pins United Fire Group at around 2.1% overvalued on a $51.00 fair value, the current P/E of 10.2x tells a slightly different story. It sits below the US Insurance industry at 11.9x and well below peers at 20.3x, yet above a fair ratio of 9.3x that the market could move toward. Is the stock being priced for its recent earnings strength or for more modest future expectations? To see how these P/E gaps fit into the broader picture of risk and opportunity, take a closer look at the detailed valuation breakdown in the See what the numbers say about this price — find out in our valuation breakdown. With sentiment mixed around United Fire Group’s valuation and outlook, it helps to see the full picture and decide quickly where you stand. Weigh both sides of the story for yourself by checking the 3 key rewards and 2 important warning signs If United Fire Group has sharpened your focus, do not stop here. Broaden your watchlist with fresh ideas that match different goals and risk levels. Target stronger long term compounding potential by reviewing 53 high quality undervalued stocks that combine quality fundamentals with room for upside. Prioritise resilience and sleep easier at night by scanning 82 resilient stocks with low risk scores that score well on financial strength and stability. Spot future standouts early by checking the screener containing 18 high quality undiscovered gems before they appear on every investor’s radar. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include UFCS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved the best second quarter combined ratio in over 15 years, driven by disciplined risk selection and catastrophe management strategies. Delivered a 13.2% return on equity for the first half of 2026, marking the company's strongest year-to-date financial performance in 20 years. Realized record net written premium growth of 9%, supported by selective expansion in core commercial segments including small business, middle market, and construction. Successfully pruned the renewal portfolio through the lens of current underwriting guidelines, with over 50% of the portfolio now comprised of policies written since 2024. Benefited from the highest level of investment income in over a decade, fueled by improved underwriting profitability and a 16% growth in the fixed maturity portfolio. Maintained a neutral prior year reserve development by redeploying favorable emergence from auto and property to areas of greater uncertainty. Reported a catastrophe loss ratio of 2.7%, significantly below historical averages due to strategic actions taken to improve the company's risk profile. Management expects a gradual reduction in the expense ratio of 0.5 to 1.0 percentage point per year, supported by ongoing technology modernization and efficiency gains. The company projects a full-year catastrophe loss ratio of approximately 5%, with current year-to-date results of 3.2% trending favorably against this estimate. Anticipates continued top-line growth despite a softening market by leveraging deepened underwriting expertise to access a wider pool of agency opportunities. Expects to sustainably increase portfolio returns as new money yields of 5.1% continue to exceed the current portfolio average by approximately 50 basis points. Maintains a long-term return on equity target of 15%, with capital allocation prioritizing organic growth and dividends over share repurchases. Incurred a one-time expense increase in the second quarter related to a lease buyout in Houston, which is expected to reduce go-forward occupancy costs. Noted modest pricing pressure in property and general liability lines due to persistently competitive market conditions. Experienced a decline in specialty excess and surplus lines premium as heightened competition for larger accounts impacted the company's smaller portfolio in that segment. Reported a $4 million increase in unrealized investment losses due to rising interest rates, negatively impacting book value per share by $0.15. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated that the auto portfolio lacks significant exposure to social inflation because they do not participate in heavy wheels or trucking business. The company views auto as a critical component of their total account solution and remains satisfied with current rate achievement in middle market and construction segments. Capital allocation priorities are ranked as: 1) supporting organic growth, 2) maintaining the $0.20 quarterly dividend, and 3) considering the 2 million share buyback authorization. The CFO emphasized that while buybacks are considered, they remain the third priority behind growth and dividends. Management believes they can continue to scale because their deepened expertise is attracting accounts from agency partners that the company has never seen before. The company expressed high confidence in maintaining the underlying loss ratio despite market challenges due to improved analytical rigor and pricing monitoring.

This article first appeared on GuruFocus. Net Income: $1.29 per diluted share for Q2 2026; record net income achieved. Adjusted Operating Income: $1.30 per diluted share (non-GAAP). Net Written Premium: Increased 9% in Q2, driven by growth in core commercial business. Combined Ratio: Best Q2 result in more than 15 years. Underlying Loss Ratio: 57.2% in Q2, a slight improvement from the prior year. Catastrophe Loss Ratio: 2.7% in Q2, 2.8 points below prior year; half-year result of 3.2% trending favorably to full-year estimate of 5%. Net Investment Income: Grew 33% to $29 million, the highest quarterly level in more than 10 years. Fixed Maturity Income: $26.3 million, up 24% from prior year. Expense Ratio: 35.4% in Q2, up approximately 0.5 point from prior year. Book Value per Share: $38.02; adjusted book value per share of $39.72. Return on Equity: 13.2% for the first six months of 2026, best year-to-date performance in 20 years. Average Renewal Rate Change: 2.9% in Q2. Dividend: Declared and paid $0.20 per share cash dividend. Warning! GuruFocus has detected 6 Warning Signs with DHC. Is UFCS fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record net income and net written premium in Q2 2026, with the best second-quarter combined ratio in over 15 years. Net investment income grew 33% year-over-year to $29 million, the highest level in over a decade. Underlying loss ratio improved slightly to 57.2%, with strong performance across core commercial lines. Catastrophe loss ratio of 2.7% was well below historical averages, reflecting successful risk management. Year-to-date return on equity of 13.2% is the best in 20 years, with strong growth in alternative distribution and surety. Renewal rate changes moderated to 2.9%, with property rates under pressure and modest pressure in general liability. Specialty excess and surplus lines saw a decline in net written premium due to heightened competition. Expense ratio increased 0.5 points year-over-year, partly due to a one-time lease buyout in Houston. Unrealized losses on investments increased by $4 million in Q2, negatively impacting book value per share. Assumed reinsurance market remains highly competitive, impacting underlying loss ratio performance. Q: How much of the commercial auto loss ratio is related to social inflation, and where does auto rate need to hold to get back to target? A: Julie Stephenson (COO) stated that the auto portfolio is a key part of their total account solution, but noted there is not a lot of social inflation in their risk profile as they avoid heavy trucking. The portfolio is mostly associated with middle market, construction, and small business. She confirmed they are still getting attractive rate, despite some moderating pricing in the line. Q: With a 13.2% ROE versus the long-term 15% target, what is the board's threshold for a repurchase program versus the existing $0.20 dividend? A: Eric Martin (CFO) explained that capital management priorities remain focused first on ensuring adequate capital for growth, second on maintaining the quarterly dividend, and third on the 2 million shares authorized for buyback. He indicated buybacks will be considered but remain a lower priority than growth and dividends. Q: Broadly speaking, where are you with rate versus claims inflation, and does the underlying combined ratio have the ability to go lower? A: Julie Stephenson (COO) expressed a high degree of confidence in the portfolio, noting both new and renewal books are performing well within expectations. She highlighted that they have built actuarial and analytical rigor to monitor pricing behavior and react nimbly, allowing them to maintain the underlying loss ratio even with marketplace challenges. Q: Do you think the current competitive environment will allow you to continue to scale, or will you need to pause before seeing enough growth to scale? A: Julie Stephenson (COO) stated they can continue to grow because they are seeing accounts from their agency plant that UFG has never seen before, due to deepened expertise and expanded capabilities. She believes scale is still possible throughout this market cycle as long as they stick to underwriting discipline and price exposures appropriately. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in United Fire Group, Inc? Here are five stocks we like better. Record second-quarter performance: United Fire Group reported record net income and net written premium, a 13.2% first-half return on equity, and its strongest second-quarter combined ratio in more than 15 years. Profitable growth despite softer pricing: Net written premium rose 9%, led by commercial lines, surety and alternative distribution. Catastrophe losses remained favorable, with a second-quarter catastrophe loss ratio of 2.7% and first-half ratio of 3.2%, below the company’s 5% full-year estimate. Investment income strengthened capital generation: Net investment income increased 33% to $29 million, while book value per share reached $38.02. Management plans to prioritize funding growth and maintaining the dividend before considering share repurchases. United Fire Group (NASDAQ:UFCS) reported what President and Chief Executive Officer Kevin Leidwinger described as an exceptional second quarter, highlighted by record net income, record net written premium, its strongest second-quarter combined ratio in more than 15 years, and the highest quarterly investment income in over a decade. Leidwinger said the insurer’s first-half return on equity reached 13.2%, which he called the company’s best year-to-date financial performance in 20 years. He attributed the results to underwriting discipline, enhanced capabilities, stronger distribution-partner alignment and improved investment performance. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “These efforts are driving sustained improvements in UFG’s financial and operational performance while positioning the company for long-term success,” Leidwinger said. Executive Vice President and Chief Operating Officer Julie Stephenson said second-quarter net written premium increased 9%, driven by selective expansion in the company’s core commercial operations, including small business, middle market and construction. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? The average renewal rate change was 2.9% during the quarter. Stephenson said property pricing remained under pressure, general liability experienced modest pressure, and commercial auto pricing was consistent with the first quarter. Umbrella business continued to generate strong double-digit rate increases. Although rate gains have moderated over several quarters amid a competitive market, Stephenson said the company believes it is positioned to continue pursuing profitable growth. Policies written from 2024 through the second quarter of 2026 account for more than half of the portfolio, she said, and new business has performed at or above expectations. The renewal portfolio also has been pruned using current underwriting guidelines. → Why Rare Earth Processing Could Be the Real 2027 Opportunity In specialty excess and surplus lines, net written premium declined from a year earlier as greater competition for larger accounts affected the company’s relatively small portfolio. UFG is focusing on moderate-hazard opportunities and retaining adequately priced, well-performing accounts, Stephenson said. Surety business posted strong growth, aided by several large project opportunities following a relatively flat first quarter. Alternative distribution, including treaty, programs and funds at Lloyd’s, increased net written premium by 13% year over year, benefiting from the January treaty and FAO renewal cycle. UFG’s underlying loss ratio was 57.2% in the second quarter, slightly improved from a year earlier and consistent with the first quarter. Stephenson said core-line performance improved, though the benefit was partly offset by assumed reinsurance. Prior-year reserve development was neutral overall. The company’s actuarial review produced generally favorable indications, according to Stephenson. UFG experienced favorable emergence in automobile, property and workers’ compensation, but redeployed those benefits to maintain conservative reserves in areas with greater uncertainty. The company continues to monitor longer-tail liability lines cautiously despite recent stability in loss emergence. The second-quarter catastrophe loss ratio was 2.7%, down 2.8 percentage points from the prior-year period and below the company’s five- and 10-year historical averages. Results included favorable development on prior-period catastrophe events. Excluding that benefit, the current accident-year catastrophe loss ratio would have been about 6%, which Stephenson said remained below historical averages and aligned with expectations. For the first half, the catastrophe loss ratio was 3.2%, trending favorably against UFG’s full-year estimate of 5%. Responding to analyst questions, Stephenson said UFG has limited exposure to social inflation within its commercial auto portfolio because it does not participate in heavy-wheels or trucking business. The company’s auto business is primarily tied to its middle-market construction and small-business portfolios. She said auto pricing remains positive and attractive for UFG. Stephenson also said management has confidence it can maintain its underlying loss ratio despite market pressures, citing the company’s underwriting standards and its expanded actuarial and analytical capabilities. She said UFG continues to receive account opportunities from agency partners that it had not previously seen, supporting potential growth even as the market softens. Executive Vice President and Chief Financial Officer Eric Martin said net investment income rose 33% to $29 million in the second quarter, the company’s highest level since the sale of its life insurance operations in 2016. Fixed-maturity income increased 24% from the prior year to $26.3 million. The fixed-maturity portfolio grew about 16% over the past year while maintaining duration and an average double-A credit-quality rating. New-money yields of 5.1% exceeded the overall portfolio average by about 50 basis points, Martin said. UFG’s approximately $100 million limited-partnership portfolio contributed $2.3 million during the quarter. Over the prior eight quarters, the portfolio generated an annualized yield of 8.7%, according to Martin. The expense ratio was 35.4%, roughly half a percentage point higher than a year earlier. Martin said the result included a small one-time cost from buying out a lease on a Houston building, a move expected to reduce future lease expenses. Management expects continued operational actions and technology modernization efforts to reduce the expense ratio gradually, targeting improvements of roughly half a point to a full point per year. Second-quarter net income was $1.29 per diluted share, while non-GAAP adjusted operating income was $1.30 per diluted share. Book value per common share rose to $38.02, while adjusted book value per share, excluding unrealized investment losses, increased to $39.72. Rising interest rates during the quarter increased the unrealized loss position by about $4 million from the first quarter, reducing book value per share by $0.15. The company declared and paid a quarterly cash dividend of $0.20 per share. Martin said UFG’s capital priorities remain funding growth first and maintaining the dividend second. The company has authorization to repurchase 2 million shares, though buybacks would rank third among capital-management priorities. United Fire Group, Inc (NASDAQ: UFCS) is an insurance holding company based in Cedar Rapids, Iowa, that specializes in property and casualty coverage for commercial and personal lines. The company underwrites business through three primary segments: commercial, personal and specialty insurance. Within the commercial segment, United Fire Group offers tailored policies for small- and medium-sized enterprises, including general liability, commercial property and workers' compensation. Its personal lines cover homeowners, auto, farm and umbrella policies. United Fire Group distributes its products primarily through a national network of independent insurance agents and brokers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "United Fire Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Second quarter net income of $1.29 per diluted shareand adjusted operating income of $1.30 per diluted share Second quarter 2026 highlights compared to second quarter 2025, unless otherwise noted:(1) Net income increased $10.4 million to $33.4 million. Net investment income increased 33% to $28.9 million. Combined ratio improved 1.1 points to 95.3%, composed of an underlying loss ratio of 57.2%, catastrophe loss ratio of 2.7%, no prior year reserve development, and underwriting expense ratio of 35.4%. Underlying combined ratio increased 0.1 points to 92.6%. Net written premium(2) increased 9% to $406.4 million. Book value per share increased $1.14 to $38.02 as of June 30, 2026, compared to December 31, 2025. Adjusted book value per share increased $1.85 to $39.72 as of June 30, 2026, compared to December 31, 2025. Return on equity was 13.2% for the six months ended June 30, 2026. CEDAR RAPIDS, Iowa, Aug. 03, 2026 (GLOBE NEWSWIRE) -- United Fire Group, Inc. (UFG) (Nasdaq: UFCS) today reported financial results for the quarter ended June 30, 2026, with net income increasing 45% over the prior year to $33.4 million ($1.29 per diluted share) and adjusted operating income increasing 42% over the prior year to $33.7 million ($1.30 per diluted share). Net written premium increased 9% in the second quarter, led by growth in the company's core commercial business. The second quarter combined ratio improved 1.1 points year-over-year to 95.3% primarily due to a decreased catastrophe loss ratio. Prior year reserve development remained neutral overall, and net investment income increased 33% to $28.9 million. “UFG delivered another quarter of outstanding results, achieving our best second-quarter combined ratio in more than 15 years, record net income, record net written premium, and the highest investment income in over 10 years,” said President and CEO Kevin Leidwinger. “These results contributed to a 13.2% return on equity through the first six months of 2026, marking our strongest year-to-date financial performance in two decades. “The momentum we are seeing reflects the benefits of the strategic actions we have taken to deepen underwriting expertise, evolve our capabilities, strengthen alignment with our distribution partners, and improve investment returns. The transformation of our business continues to generate meaningful financial and operational results, positioning UFG for long-term success. “As we enter the second half of the year, we remain focused on leveraging our underwriting expertise and strong distribution relationships to pursue attractive growth opportunities. We are confident in our ability to navigate evolving market conditions as a disciplined, solution-oriented underwriting company while continuing to create value for our policyholders, distribution partners and shareholders.” Earnings call access information An earnings call will be held at 9:00 a.m. CT on Tuesday, August 4, 2026, to allow securities analysts, shareholders and other interested parties the opportunity to hear management discuss the company’s second quarter of 2026 results. Teleconference: Dial-in information for the call is toll-free 1-844-492-3723 (international 1-412-542-4184). Participants should request to join the United Fire Group call. The event will be archived and available for digital replay through August 11, 2026. The replay access information is toll-free 1-855-669-9658 (international 1-412-317-0088); conference ID no. 2119197. Webcast: An audio webcast of the teleconference can be accessed at the company’s investor relations page at https://ir.ufginsurance.com/events-and-presentations/ or https://event.choruscall.com/mediaframe/webcast.html?webcastid=sEg6VEdp. The archived audio webcast will be available for one year. Transcript: A transcript of the teleconference will be available on the company’s website soon after the completion of the teleconference. ___________________(1) Underlying loss ratio, underlying combined ratio, adjusted book value per share and adjusted operating income are non-GAAP financial measures. See Definitions of non-GAAP information and reconciliations to comparable GAAP measures for additional information.(2) Net written premium 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. Consolidated financial highlights: (1) Underlying loss ratio, underlying combined ratio and adjusted operating income (loss) are non-GAAP financial measures. See Definitions of non-GAAP information and reconciliations to comparable GAAP measures for additional information.(2) Return on equity is calculated by dividing annualized net income by average stockholders’ equity, which is calculated using a simple average of the beginning and ending balances for the period. Second quarter 2026 results:(All comparisons vs. second quarter 2025, unless noted otherwise) Net written premium and net earned premium increased by 9.0% and 12.5%, respectively. Core commercial average renewal premium increased 4.6% with rates increasing 2.9% and exposure changes of 1.7%. Excluding the workers' compensation line of business, the overall average increase in renewal premium was 5.0%, with 3.5% from rate increases and 1.5% from exposure changes. The second quarter combined ratio improved 1.1 points to 95.3% compared to 96.4% in the prior year quarter, primarily driven by the following: The underlying loss ratio decreased 0.4 points to 57.2%, reflecting sustained lower frequency and earned rate achievement on core commercial lines. Catastrophe losses improved 2.8 points to 2.7%, below both the five-year and 10-year historical averages. The underwriting expense ratio of 35.4% increased 0.5 points partially driven by actions to reduce our real estate footprint and future expense ratio along with other normal variability. Net investment income was $28.9 million for the second quarter of 2026, an increase of $7.3 million or 33%. Income from the fixed maturity portfolio increased by $5.0 million as a result of portfolio growth and reinvestment at higher yields. Income on other long-term investments increased $2.2 million during the second quarter of 2026 due to an increase in valuation of the underlying investments. (1) Fixed income securities yield excluding net unrealized investment gains/losses and expenses. Balance sheet (1) Adjusted book value per share is a non-GAAP financial measure. See Definitions of non-GAAP information and reconciliations to comparable GAAP measures for additional information. The company’s book value per share was $38.02, an increase of $1.14 per share, or 3.1%, from December 31, 2025. This increase is primarily related to an increase in net income, partially offset by an increase in unrealized investment losses on fixed maturity securities and shareholder dividends during the six-month period ended June 30, 2026. Capital management During the second quarter of 2026, the company declared and paid a $0.20 per share cash dividend to shareholders of record as of June 5, 2026. 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. The company is licensed as a property and casualty insurer in 50 states and the District of Columbia, and is represented by approximately 850 independent agencies. AM Best assigns a rating of “A-” (Excellent) for members of the United Fire & Casualty Group. For more information about UFG, visit www.ufginsurance.com. Contact: Investor relationsEmail: [email protected] Media inquiries Email: [email protected] 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 for the year ended December 31, 2025 (“2025 Annual Report”), filed with the Securities and Exchange Commission (“SEC”) on February 26, 2026. The risks identified in our 2025 Annual Report 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. Definitions of non-GAAP information and reconciliations to comparable GAAP measures The company prepares its financial statements in conformity with generally accepted accounting principles (GAAP) in the United States of America. Management uses certain non-GAAP financial measures to evaluate its operations and profitability. Management also believes that disclosure of certain non-GAAP financial measures enhances investor understanding of our financial performance. Non-GAAP financial measures disclosed in this report include: adjusted operating income, underlying loss ratio, underlying combined ratio, and adjusted book value per share. The company has provided the following definitions and reconciliations of the non-GAAP financial measures: 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 in and report on the insurance industry and the company generally focus on this metric in their analyses. Underlying loss ratio and underlying combined ratio: Underlying loss ratio represents the net loss ratio less the impacts of catastrophes and non-catastrophe prior year reserve development. The underlying combined ratio represents the combined ratio less the impacts of catastrophes and non-catastrophe prior year reserve development. The company believes that the underlying loss ratio and underlying combined ratio are meaningful measures to understand the underlying trends in the core business in the current accident year, removing the volatility of catastrophes and prior year impacts. Management believes separate discussions on catastrophe losses and prior year reserve development are important to understanding how the company is managing catastrophe risk and identifying developments in longer-tailed business. Prior year reserve development is the increase (unfavorable) or decrease (favorable) in incurred loss and loss adjustment expense 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, 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 have occurred in prior periods. Adjusted book value per share: Adjusted book value per share is calculated by dividing shareholders' equity, excluding net unrealized investment gains and losses, net of tax, by the number of common shares outstanding. Management believes adjusted book value per share is a meaningful measure for evaluating the company's net worth that is primarily attributable to our business operations, because it removes the effect of changing prices on invested assets that can fluctuate from period to period. Book value per share is the most directly comparable GAAP measure. Certain performance measures The company uses the following measure to evaluate its financial performance. Management believes a discussion of this measure provides financial statement users with a better understanding of the company’s results of operations. The company has provided the following definition: Net written premium: Net written premium is frequently used by industry analysts and other recognized reporting sources to facilitate comparisons of the performance of insurance companies. Net written premium 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 written premium is a meaningful measure for evaluating insurance company sales performance and geographical expansion efforts. Net written premium for an insurance company consists of direct premiums written and premiums assumed, less premiums ceded. Net earned premium is calculated on a pro-rata basis over the terms of the respective policies. Unearned premium reserves are established for the portion of written premium applicable to the unexpired terms of the insurance policies in force. The difference between net earned premium and net written premium is the change in unearned premium and the change in prepaid reinsurance premiums. Supplemental tables (1) Net written premium 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.(6) Assumed reinsurance includes Funds at Lloyd's. NM = Not meaningful NM = Not meaningful

United Fire Group (UFCS) came out with quarterly earnings of $1.3 per share, beating the Zacks Consensus Estimate of $0.7 per share. This compares to earnings of $0.9 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +85.71%. A quarter ago, it was expected that this property and casualty insurance company would post earnings of $0.87 per share when it actually produced earnings of $1.16, delivering a surprise of +33.33%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. United Fire, which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $383.73 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.21%. This compares to year-ago revenues of $335.47 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. United Fire shares have added about 41.3% since the beginning of the year versus the S&P 500's gain of 9.4%. While United Fire has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for United Fire was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.49 on $388 million in revenues for the coming quarter and $4.69 on $1.53 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, American Coastal Insurance (ACIC), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This property and casualty insurance company is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of -22.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. American Coastal Insurance's revenues are expected to be $75.7 million, down 10.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Fire Group, Inc (UFCS) : Free Stock Analysis Report American Coastal Insurance Corporation (ACIC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research