Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2025 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ______ to ______ Commission File Number 001-34257 UNITED FIRE GROUP, INC. (Exact name of registrant as specified in its charter) (State or other jurisdictio ...

Core Insights - United Fire Group (UFG) reported a record-setting performance in 2025, highlighting significant improvements in underwriting profitability, investment income, and premium growth following a multi-year operational transformation [5][8]. Financial Performance - For the full year, net written premium increased by 9% to over $1.3 billion, driven by record new business production and strong retention in core commercial lines [2][8]. - Underwriting profit surged to $67 million in 2025 from $9 million in 2024, marking the best annual underwriting profit in over a decade [3][8]. - Return on equity reached 13.7%, the highest in nearly two decades [1][8]. - Net investment income rose by nearly 20% year over year, contributing to improved overall financial performance [3][8]. Operational Improvements - The company emphasized deeper underwriting expertise, enhanced actuarial insights, and improved alignment with distribution partners as key factors in its operational transformation [4][5]. - UFG achieved record new business of $247 million in 2025, nearly double the level produced at the start of its transformation [10]. Underwriting and Loss Ratios - The annual combined ratio improved to 94.8%, with management citing enhancements in the underlying loss ratio and expense ratio [2][8]. - The underlying loss ratio was reported at 55.4% for the fourth quarter and 56.3% for the full year, reflecting a year-over-year improvement of 1.6 points [19]. Catastrophe Losses and Reinsurance - Catastrophe losses were favorable, with a full-year catastrophe loss ratio of 3.2%, outperforming expectations [13][15]. - UFG's reinsurance renewals on January 1 resulted in lower ceded margins and expanded coverage, with exposure-adjusted rate decreases across major programs [15]. Dividend and Capital Management - The board approved a 25% increase in the quarterly cash dividend to $0.20 per share, reflecting the company's strengthened profitability and capital position [7][9]. - UFG maintains authorization to repurchase up to 1 million shares, focusing on funding profitable growth and returning excess capital to shareholders [9].

Financial Performance - Fourth quarter net income increased by $6.9 million to $38.4 million, or $1.45 per diluted share, while adjusted operating income rose by $7.2 million to $39.7 million, or $1.50 per diluted share [2][4]. - Full year net income increased by $56.2 million to $118.2 million, or $4.48 per diluted share, with adjusted operating income rising to $121.2 million, or $4.60 per diluted share [4][5]. - Net income for the fourth quarter of 2025 was $38.354 million, compared to $31.442 million in the same quarter of 2024, representing a year-over-year increase of 22.5% [30]. - Adjusted operating income for the twelve months ended December 31, 2025, was $121.210 million, up from $66.246 million in 2024, reflecting an increase of 83.2% [30]. - Total revenues for the twelve months ended December 31, 2025, reached $1.386 billion, compared to $1.253 billion in 2024, indicating a growth of 10.6% [37]. Premium Growth - Net written premium for the fourth quarter grew by 11% to $309.7 million, while full year net written premium increased by 9% to $1.3 billion [3][5]. - Net written premium for the fourth quarter of 2025 was $309.747 million, an increase from $278.529 million in the same quarter of 2024, marking a growth of 11.2% [39]. - Total net earned premium for the twelve months ended December 31, 2025, was $1,292.7 million, an increase from $1,176.8 million in 2024, reflecting a growth of 9.9% [44]. Investment Income - Net investment income for the fourth quarter was $26.4 million, a 14% increase, while full year net investment income reached $97.5 million, up 19% [3][19]. - The company reported net investment income of $26.415 million for the fourth quarter of 2025, an increase from $23.156 million in the same quarter of 2024 [37]. Underwriting Performance - The combined ratio improved by 2.1 points to 92.3% in the fourth quarter and by 4.4 points to 94.8% for the full year, reflecting better underwriting performance [4][17]. - The underlying loss ratio improved to 55.4% in the fourth quarter and 56.3% for the full year, indicating sustained lower frequency and favorable large loss experience [20][21]. - The total net loss ratio for commercial lines improved to 58.9% in 2025 from 63.1% in 2024, indicating better loss management [44]. - The other liability segment in commercial lines had a net loss ratio of 72.9% in 2025, down from 82.5% in 2024, indicating improved performance [44]. - The fire and allied lines in commercial lines reported a net loss ratio of 42.5% in 2025, an improvement from 49.9% in 2024 [44]. - The assumed reinsurance segment had a net loss ratio of 61.8% in 2025, down from 64.6% in 2024, reflecting better underwriting results [44]. - The miscellaneous segment in commercial lines showed a net loss ratio of 56.1% in 2025, slightly down from 58.6% in 2024 [44]. Shareholder Returns - The board of directors declared a 25% increase in the quarterly dividend to $0.20 per share, up from $0.16 [2][8]. - For the fourth quarter of 2025, the company declared a cash dividend of $0.16 per share, with a subsequent increase to $0.20 per share for the first quarter of 2026 [25]. Equity and Book Value - Book value per share increased to $36.88 as of December 31, 2025, compared to $30.80 a year earlier [23]. - The company's book value per share increased to $36.88, up by $6.08 per share or 19.7% from December 31, 2024 [24]. - Shareholders' equity increased to $941.170 million as of December 31, 2025, up from $781.531 million a year earlier [34]. Strategic Outlook - The company achieved record levels of gross written premium, net written premium, and new business production in 2025, marking the best annual underwriting profit and return on equity in over a decade [6][8]. - The company remains focused on strategic execution and is well-positioned for continued profitable growth in the evolving market [7][8]. - The underlying loss ratio and underlying combined ratio are key metrics for evaluating the company's core business performance, excluding the impacts of catastrophes and prior year reserve development [29]. Ratings - The company maintains an "A-" (Excellent) rating from AM Best, reflecting its strong financial stability and operational performance [26].

Financial Data and Key Metrics Changes - Underwriting profit increased from $9 million in 2024 to $67 million in 2025, marking a significant improvement [6] - Net investment income grew by nearly 20%, contributing to the overall financial performance [6] - Full-year operating earnings per share improved by 80%, reaching $4.60, while book value per share increased by more than $6 [6][10] - Full-year net written premium rose by 9% to over $1.3 billion, driven by record new business production and strong retention [7] - The annual combined ratio improved to 94.8%, reflecting ongoing enhancements in the underlying loss ratio and expense ratio [7] Business Line Data and Key Metrics Changes - Growth in net written premium was strongest in the core commercial business, which includes small business, middle market, and construction [12] - Specialty E&S net written premium experienced double-digit growth in both the fourth quarter and full year [15] - The surety business also delivered double-digit net written premium growth for the quarter and full year [15] Market Data and Key Metrics Changes - Rate increases moderated to 4.8% for the quarter, indicating a more competitive environment, particularly in property lines [13] - Casualty lines experienced modest impacts, with umbrella lines returning to double-digit increases [13] Company Strategy and Development Direction - The company has focused on deepening underwriting expertise and enhancing actuarial insights to attract a broader customer base [5] - Strategic investments in technology are aimed at improving operational efficiency and expanding underwriting capabilities [8] - The company is positioned to deliver continued profitable growth as a disciplined, solution-oriented underwriting company [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of improved profitability and the ability to navigate competitive market dynamics [26] - The company anticipates continued attractive business opportunities despite increased competition [35] - Management highlighted the importance of disciplined underwriting and maintaining a conservative reserve posture to protect the balance sheet [17] Other Important Information - The board of directors declared a 25% increase in the quarterly cash dividend from $0.16 to $0.20 per share [11] - The company reported a strong capital position, allowing for flexibility in capital management and shareholder returns [22] Q&A Session Summary Question: Current pricing expectations in a competitive market - Management noted that while the market is more competitive, they are still achieving positive rates and will maintain disciplined risk selection to navigate the environment [26] Question: Long-term target for underwriting expense ratio - The target run rate for the expense ratio is around 35%, with expectations for gradual reduction over time as growth continues [30][31] Question: Margin compression in the assumed insurance business - Management acknowledged increased competition affecting rates and terms but emphasized their commitment to disciplined underwriting and long-term relationships [34] Question: Profitability dynamics in the other liability line - Management indicated pressure on profitability in the umbrella line due to large losses but is taking a conservative approach to pricing and reserves [36][39]

Financial Data and Key Metrics Changes - In 2025, the company achieved record underwriting profit of $67 million, up from $9 million in 2024, and net investment income increased by nearly 20% [6][7] - Full-year operating earnings per share improved by 80%, reaching $4.60, while book value per share grew by more than $6 to $36.88 [6][10] - The annual combined ratio improved to 94.8%, reflecting ongoing improvements in the underlying loss ratio, catastrophe loss ratio, and expense ratio [7][10] Business Line Data and Key Metrics Changes - The core commercial business, including small business, middle market, and construction, saw the strongest growth, contributing to a 9% increase in net written premium to over $1.3 billion [7][12] - Specialty E&S net written premium grew at a double-digit pace, while the surety business also delivered double-digit growth for the quarter and full year [15][16] - Rate increases moderated to 4.8% for the quarter, indicating a more competitive environment, particularly in property lines [13] Market Data and Key Metrics Changes - The company experienced a competitive market environment, particularly in property, but maintained a disciplined approach to underwriting and pricing [13][26] - The renewal of reinsurance treaties was successful, resulting in lower ceded margins and improved terms, despite exposure-adjusted rate decreases in major programs [19] Company Strategy and Development Direction - The company is focused on disciplined, solution-oriented underwriting, aiming for continued profitable growth and improved operational efficiency through strategic investments in technology [8][11] - The board of directors declared a 25% increase in the quarterly cash dividend, reflecting confidence in future financial performance and commitment to shareholder value [11][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning for 2026, emphasizing the successful transformation since late 2022 and the potential for sustainable growth [9][42] - The company is committed to maintaining a conservative posture with reserves to protect the balance sheet and is confident in achieving mid-teens return on equity targets [10][26] Other Important Information - The company reported a fourth-quarter net income of $1.45 per diluted share, with adjusted operating income of $1.50 per diluted share [21] - The expense ratio improved to 35.7%, with expectations for gradual reduction over time as growth continues [21][30] Q&A Session Summary Question: Current pricing expectations in a competitive market - Management acknowledged increased competition but maintained that pricing remains rational and attractive, with a focus on disciplined risk selection [25][26] Question: Long-term target for underwriting expense ratio - The company targets a run rate of about 35% for the expense ratio, with expectations for gradual reduction as growth continues [29][30] Question: Dynamics affecting profitability in the student insurance business - Management noted increased competition affecting rates and terms but emphasized disciplined underwriting and long-term commitments to maintain profitability [34][35] Question: Profitability issues in the other liability line - Management identified pressure on profitability in the umbrella line due to large losses but is taking a conservative approach to pricing and reserves [36][37] Question: Impact of nuclear verdicts on umbrella profitability - Management clarified that while social inflation impacts the portfolio, they have not seen significant nuclear verdicts affecting their business [38][39]

Financial Data and Key Metrics Changes - Underwriting profit increased significantly from $9 million in 2024 to $67 million in 2025, marking a substantial improvement in financial performance [6] - Net investment income grew by nearly 20%, contributing to the overall financial health of the company [6] - Full-year operating earnings per share improved by 80%, reaching $4.60, while book value per share increased by over $6 to $36.88 [10] - The annual combined ratio improved to 94.8%, reflecting ongoing enhancements in the underlying loss ratio, catastrophe loss ratio, and expense ratio [6][10] Business Line Data and Key Metrics Changes - The core commercial business, which includes small business, middle market, and construction, experienced the strongest growth, with record new business production of $247 million [12][13] - Specialty E&S net written premium grew at a double-digit pace for both the fourth quarter and the full year, despite emerging competitive pressures [14] - The surety business also delivered double-digit net written premium growth for the quarter and full year, indicating strong momentum [15] Market Data and Key Metrics Changes - Rate increases moderated to 4.8% for the quarter, primarily in the property segment, while casualty lines experienced more modest impacts [13] - The underlying loss ratio improved to 55.4% in the fourth quarter, reflecting the quality of the portfolio developed over the last three years [16] - The fourth quarter catastrophe loss ratio was 1.2%, and the full year catastrophe loss ratio of 3.2% outperformed expectations [18] Company Strategy and Development Direction - The company has undergone significant transformation since late 2022, focusing on deepening underwriting expertise and enhancing actuarial insights [5] - Strategic investments in technology are aimed at improving operational efficiency and expanding underwriting capabilities, which are expected to generate significant operational efficiencies [8] - The company is committed to maintaining a conservative posture with reserves to protect its balance sheet and ensure long-term stability [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a more competitive market while maintaining disciplined underwriting practices [27] - The company anticipates continued profitable growth in 2026, supported by a strong capital position and improved profitability metrics [11][24] - Management highlighted the importance of maintaining strong relationships with distribution partners and emphasized the ongoing commitment to long-term value creation for shareholders [11] Other Important Information - The board of directors declared a 25% increase in the quarterly cash dividend from $0.16 per share to $0.20 per share, reflecting confidence in the company's financial performance [11][23] - The company reported a strong return on equity of 13.7%, the best in nearly two decades, indicating robust financial health [7][10] Q&A Session Summary Question: Current pricing expectations in a competitive market - Management acknowledged increased competition but emphasized that pricing remains rational and attractive, with a focus on disciplined risk selection [27] Question: Long-term target for underwriting expense ratio - The company targets a run rate of about 35% for the expense ratio, with expectations for gradual reduction over time as growth continues [30][31] Question: Dynamics affecting profitability in the other liability line - Management noted pressure on profitability in the umbrella line due to large losses but is taking a conservative approach to pricing and reserves [36][37] Question: Impact of social inflation on umbrella line - Management indicated that while they have not seen significant nuclear verdicts, they are guarding against social inflation through careful pricing and reserve management [39]

FOURTH QUARTER 2025 RESULTS February 11, 2026 SAFE HARBOR STATEMENT AND NON-GAAP MEASURES This presentation 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 ac ...

分组1 - United Fire Group (UFCS) reported quarterly earnings of $1.5 per share, exceeding the Zacks Consensus Estimate of $0.9 per share, and showing an increase from $1.25 per share a year ago, resulting in an earnings surprise of +66.67% [1] - The company achieved revenues of $365.81 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.04%, and up from $333.17 million in the same quarter last year [2] - United Fire has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] 分组2 - The stock has underperformed the market, losing about 0.8% since the beginning of the year, while the S&P 500 has gained 1.7% [3] - The current consensus EPS estimate for the upcoming quarter is $1.02 on revenues of $366.4 million, and for the current fiscal year, it is $3.55 on revenues of $1.52 billion [7] - The Zacks Industry Rank for Insurance - Property and Casualty is currently in the bottom 38% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Core Insights - United Fire Group, Inc. (UFG) reported a strong financial performance for the fourth quarter and full year of 2025, with significant increases in net income and adjusted operating income compared to the previous year [2][5][6]. Financial Performance - Fourth quarter net income increased by $6.9 million to $38.4 million, translating to $1.45 per diluted share, while adjusted operating income rose by $7.2 million to $39.7 million, or $1.50 per diluted share [2][14]. - For the full year, net income reached $118.2 million, up $56.2 million from the previous year, resulting in $4.48 per diluted share, with adjusted operating income at $121.2 million, or $4.60 per diluted share [14][24]. Premium Growth - In the fourth quarter, net written premium grew by 11% to $309.7 million, with retention and new business exceeding the prior year, and an average renewal premium increase of 6.3% [3][16]. - For the full year, net written premium increased by 9% to $1.3 billion, supported by strong retention and new business, with an average renewal premium increase of 8.7% [4][17]. Combined Ratio Improvement - The fourth quarter combined ratio improved by 2.1 points to 92.3%, driven by enhancements in the underlying loss ratio, expense ratio, and catastrophe losses [3][18]. - The full year combined ratio improved by 4.4 points to 94.8%, reflecting improvements across all components, including a favorable underlying loss ratio of 56.3% [4][19]. Investment Income - Net investment income for the fourth quarter was $26.4 million, a 14% increase from the prior year, while for the full year, it reached $97.5 million, up 19% [20][21]. - The increase in investment income was attributed to portfolio growth and reinvestment at higher yields [20]. Dividend Announcement - The board of directors declared a 25% increase in the quarterly dividend to $0.20 per share, reflecting confidence in the company's financial performance and commitment to shareholder value [8][25]. Book Value Growth - The company's book value per share increased by $6.08 to $36.88 as of December 31, 2025, representing a 19.7% increase from the previous year, primarily due to higher net income and reduced unrealized investment losses [24][23]. Strategic Positioning - UFG's management emphasized the company's transformation efforts over the past years, which have significantly improved operational performance and positioned the company for continued profitable growth [5][7].

Core Viewpoint - United Fire Group, Inc. (UFG) is set to release its fourth quarter 2025 earnings results on February 10, 2026, with a subsequent earnings call scheduled for February 11, 2026, at 9 a.m. CT to discuss these results [1]. Group 1 - The earnings results will be announced after market close on February 10, 2026 [1]. - An earnings call will take place on February 11, 2026, at 9 a.m. CT for analysts and shareholders [1]. - The teleconference can be accessed via a toll-free number, and will be archived for replay until February 25, 2026 [2]. Group 2 - A webcast of the teleconference will be available on the company's investor relations website, with an archived audio version accessible for one year [3]. - A transcript of the teleconference will be published on the company's website shortly after the event [3]. Group 3 - United Fire Group, founded in 1946, operates in the property and casualty insurance sector and is licensed in all 50 states and the District of Columbia [4]. - The company is represented by approximately 850 independent agencies and has an "A-" (Excellent) rating from A.M. Best Company [4].