United Fire Group, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>United Fire Group, Inc. has submitted its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

UNITED FIRE GROUP INC (UFCS) filed a Annual Report (10-K) with the SEC on February 29, 2024. United Fire Group, Inc. filed its 2023 Form 10-K on February 29, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is Fire, Marine & Casualty Insurance. Its headquarters are located at 118 Second Ave SE, Cedar Rapids, IA. The SEC file number for this report is 001-34257.

Why It Matters

For investors and stakeholders tracking UNITED FIRE GROUP INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of United Fire Group's financial health, operational strategies, and risk factors for the fiscal year 2023, crucial for investors and stakeholders to assess the company's performance and future outlook. As a publicly traded insurance company, the detailed financial disclosures in this 10-K are essential for regulatory compliance and for providing transparency to the market regarding its property and casualty insurance segment and overall financial position.

Risk Assessment

Risk Level: medium — UNITED FIRE GROUP INC shows moderate risk based on this filing. The company operates in the insurance industry, which is subject to significant regulatory oversight and market fluctuations, as indicated by its SIC code and the nature of its business.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand United Fire Group's performance and potential challenges in the property and casualty insurance market.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of report)
• 2024-02-29 — Filing Date (Date of filing)
• 001-34257 — SEC File Number (SEC filing identifier)
• 6331 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• UNITED FIRE GROUP INC (company) — Filer name
• 10-K (filing) — Form type
• 2024-02-29 (date) — Filing date
• 2023-12-31 (date) — Period of report
• FIRE, MARINE & CASUALTY INSURANCE (industry) — Standard Industrial Classification
• 118 SECOND AVE SE, CEDAR RAPIDS, IA (address) — Business address
• 001-34257 (filing) — SEC file number
• UFCS (ticker) — Ticker symbol

FAQ

Industry Context

United Fire Group operates within the Fire, Marine & Casualty Insurance industry, a sector characterized by underwriting, claims management, and investment activities.

Regulatory Implications

As an insurance provider, the company is subject to state-specific insurance regulations and federal securities laws governing public companies.

What Investors Should Do

1. Analyze the company's financial statements for the fiscal year ended December 31, 2023.
2. Review the business description and risk factors to understand the operational landscape of United Fire Group.
3. Note the filing date and period covered to track reporting timeliness.

Key Dates

• 2024-02-29: 10-K Filing — Submission of the annual report for fiscal year 2023.

Year-Over-Year Comparison

This is the initial filing analyzed for the period ending December 31, 2023. No prior filing data is available for comparison within this context.

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value UFCS The NASDAQ Global Select
• $23.9 million — d to receive profit-sharing payments of $23.9 million in 2024, based on profitable business p

Filing Documents

• ufcs-20231231.htm (10-K) — 5466KB
• exhibit21123123.htm (EX-21) — 14KB
• exhibit231123123.htm (EX-23.1) — 10KB
• exhibit232123123.htm (EX-23.2) — 11KB
• exhibit311123123.htm (EX-31.1) — 11KB
• exhibit312123123.htm (EX-31.2) — 11KB
• exhibit321123123.htm (EX-32.1) — 6KB
• exhibit322123123.htm (EX-32.2) — 6KB
• recovery-ofxerroneousxaw.htm (EX-97) — 15KB
• recovery-ofxerroneousxaw001.jpg (GRAPHIC) — 249KB
• recovery-ofxerroneousxaw002.jpg (GRAPHIC) — 252KB
• recovery-ofxerroneousxaw003.jpg (GRAPHIC) — 286KB
• recovery-ofxerroneousxaw004.jpg (GRAPHIC) — 263KB
• recovery-ofxerroneousxaw005.jpg (GRAPHIC) — 87KB
• ufcs-20231231_g1.jpg (GRAPHIC) — 150KB
• 0000101199-24-000019.txt (&nbsp;) — 28614KB
• ufcs-20231231.xsd (EX-101.SCH) — 100KB
• ufcs-20231231_cal.xml (EX-101.CAL) — 173KB
• ufcs-20231231_def.xml (EX-101.DEF) — 682KB
• ufcs-20231231_lab.xml (EX-101.LAB) — 1387KB
• ufcs-20231231_pre.xml (EX-101.PRE) — 1028KB
• ufcs-20231231_htm.xml (XML) — 6640KB

Risk Factors

Item 1A. Risk Factors 15

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 26

Cybersecurity

Item 1C. Cybersecurity 26

Properties

Item 2. Properties 28

Legal Proceedings

Item 3. Legal Proceedings 28

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 28 PART II:

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29

[Reserved]

Item 6. [Reserved] 30

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 31

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 66

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 67

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 137

Controls and Procedures

Item 9A. Controls and Procedures 137

Other Information

Item 9B. Other Information 140

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 140 PART III:

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 140

Executive Compensation

Item 11. Executive Compensation 140

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 141

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 141

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 141 PART IV:

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 142

Form 10-K Summary

Item 16. Form 10-K Summary 154

Signatures

Signatures 155 Table of Contents FORWARD-LOOKING INFORMATION This report 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 (the "Securities Act") and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), 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 United Fire Group, Inc. ("UFG," the "Registrant," the "Company," "we," "us," or "our"), 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. See Part I, Item 1A "Risk Factors" of this report for more information concerning factors that could cause actual results to differ materially from those in the forward-looking statements. Risks and uncertainties that may affect the actual financial condition and results of the Company include, but are not limited to, the following: Our ability to effectively underwrite and adequately price insured risks; Risks related to our investment portfolio that could negatively affect our profitability; General macroeconomic conditions, interest rate risk, the impact of inflation and changes in governmental regulations and monetary po

BUSINESS

ITEM 1. BUSINESS OVERVIEW United Fire Group, Inc. ("UFG", "United Fire", the "Registrant", the "Company", "we", "us", or "our") and its consolidated subsidiaries and affiliates are engaged in the business of writing property and casualty insurance through a network of independent agencies. Our insurance company subsidiaries are currently licensed as property and casualty insurers in 50 states, plus the District of Columbia. United Fire & Casualty Company was incorporated in Iowa in January 1946. Our principal executive office is located at 118 Second Avenue SE, Cedar Rapids, Iowa 52401; telephone: 319-399-5700. United Fire Group, Inc. owns 100 percent of one subsidiary, United Fire & Casualty Company. United Fire & Casualty Company owns 100 percent of eight subsidiaries: (1) Addison Insurance Company; (2) Lafayette Insurance Company; (3) United Fire & Indemnity Company; (4) Mercer Insurance Company; (5) Financial Pacific Insurance Company; (6) UFG Specialty Insurance Company; (7) United Real Estate Holdings LLC and (8) McIntyre Cedar UK Limited. Mercer Insurance Company owns 100 percent of two subsidiaries: (1) Franklin Insurance Company; and (2) Mercer Insurance Company of New Jersey, Inc. United Fire Lloyds, which is organized as a Texas Lloyds plan, is an affiliate of United Fire & Indemnity Company. McIntyre Cedar UK Limited owns 100 percent of McIntyre Cedar Corporate Member LLP. All of our property and casualty insurance subsidiaries and affiliates belong to an intercompany reinsurance pooling arrangement. Pooling arrangements permit the participating companies to rely on the capacity of the entire pool's capital and surplus, rather than being limited to policy exposures of a size commensurate with each participant's own surplus level. Under such arrangements, the members share substantially all of the insurance business that is written and allocate the combined premiums, losses and expenses based on percentages defined in the arrangement. PROPERTY AND C

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