United Fire Group Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Provides Tax Rate Guidance for the Year 2018
February 14, 2018 at 07:00 am EST
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United Fire Group Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported net premiums earned were $260.068 million against $244.155 million a year ago. Total revenues were $273.355 million against $264.537 million a year ago. Income before income taxes from continuing operations were $29.369 million against $13.925 million a year ago. Net income from continuing operations were $45.259 million against $12.035 million a year ago. Net income was $45.993 million or $1.81 diluted per share against $11.995 million or $0.46 diluted per share a year ago. Adjusted operating income was $45.300 million or $1.78 diluted per share against $12.085 million or $0.46 diluted per share a year ago. Consolidated net investment income was $25.1 million for the fourth quarter 2017 with decreases of 24.8% for the quarter compared to net investment income of $33.4 million for the fourth quarter of 2016. The decrease in net investment income for the quarter was driven by the change in the value of investments in limited liability partnerships and not due to a change in investment philosophy.
For the year, the company reported net premiums earned were $997.492 million against $936.131 million a year ago. Total revenues were $1,052.737 million against $996.362 million a year ago. Income before income taxes from continuing operations were $15.650 million against $57.497 million a year ago. Net income from continuing operations were $44.870 million against $49.118 million a year ago. Net income was $51.023 million or $1.99 diluted per share against $49.904 million or $1.93 diluted per share a year ago. Adjusted operating income was $45.782 million or $1.79 diluted per share against $45.937 million or $1.78 diluted per share a year ago. The company's book value was $39.06 per share, which is an increase of $2.02 per share or 5.5% from December 31, 2016. Return on equity was 5.3% against 5.5% a year ago. Consolidated net investment income was $100.9 million for the full year 2017 with decreases of 5.5% for the full year, compared to net investment income of $106.8 million for the full year 2016. The decrease in net investment income for 2017 compared to 2016 was primarily driven by a change in the valuation of investments in limited liability partnerships. The increase in net income in the fourth quarter and full year over the comparable period is due to prior year favorable reserve development, improvement in core loss ratio, and changes in the corporate tax rate, resulting in a onetime adjustment to net income.
For the year 2018, the company anticipates effective tax rate will approximate 15% to 17% on average under the new tax code.
United Fire Group, Inc. is engaged in the business of writing property and casualty insurance through a network of independent agencies. The Companyâs insurance company subsidiaries are licensed as property and casualty insurers in 50 states, plus the District of Columbia. Its business is comprised primarily of commercial lines property and casualty insurance, including surety bonds. Its core commercial products support a variety of customers, including small business owners and middle market businesses operating in industries, such as construction, services, retail trade, financial and manufacturing, along with contract surety and commercial surety bonds offered through approximately 1,000 independent property and casualty agencies. It also provides specialty and surplus lines coverage through wholesale brokers on an admitted and non-admitted basis. Additionally, it offers reinsurance coverage for property and casualty insurance through traditional treaty reinsurance channels.
United Fire Group Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Provides Tax Rate Guidance for the Year 2018