UFCS - United Fire Group: Underwriting Results On An Upswing
2024-04-23 23:27:02 ET
Summary
- United Fire Group's underwriting results worsened in 2023 due to negative reserve developments and high inflation-impacting claims.
- Poor underwriting results are leading to a hard market, as insurers reprice policies to recoup costs.
- I expect UFCS to return to profitability in 2024 with better pricing and continued strong investment income. However, until the company actually delivers, I prefer to maintain my hold rating.
With Property & Casualty ("P&C") peers like Progressive Corp. ( PGR ) and Allstate Corp. ( ALL ) recently making new highs, I thought it may be timely to revisit United Fire Group ( UFCS ), to see if its business fundamentals are also on an upswing....
United Fire Group: Underwriting Results On An Upswing