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2018

United Fire Group, Inc. Reports First Quarter 2018 Results

Released on: May 9, 2018, 08:00 AM
United Fire Group, Inc. (the "Company" or "UFG") (Nasdaq:UFCS) today reported consolidated net income, including net realized investment gains and losses and changes in the fair value of equity securities, of $45.8 million ($1.80 per diluted share) for the three-month period ended March 31, 2018 (the "first quarter"), compared to consolidated net income of $19.9 million ($0.77 per diluted share) for the same period in 2017.

CEDAR RAPIDS, Iowa, May 09, 2018 (GLOBE NEWSWIRE) -- United Fire Group, Inc. (Nasdaq:UFCS) -

Consolidated Financial Results - Highlights:(1)

Three Months Ended March 31, 2018
Net income per diluted share(2) $ 1.80
Adjusted operating income(3)per diluted share(2) $ 1.00
Gain on sale of discontinued operations per diluted share(2) $ 1.07
Net realized investment losses per diluted share(2) $ (0.27)
GAAP combined ratio 93.5%
Book value per share $ 38.96
Return on equity(4) 11.0%

The Company reported consolidated adjusted operating income of $1.00 per diluted share for the first quarter, compared to consolidated adjusted operating income of $0.67 per diluted share for the same period in 2017.

First quarter 2018 net income was impacted by our previously announced sale of our wholly-owned subsidiary United Life Insurance Company, which received regulatory approval and closed on March 30, 2018. The sale resulted in a net gain after tax of $27.3 million or $1.07 per diluted share. Further, we adopted new accounting guidance which requires changes in the value of equity securities to be recognized in net income rather than accumulated other comprehensive income within shareholders equity. This change in accounting principles resulted in a net realized investment loss on equity securities after tax of $8.1 million or $0.32 per diluted share.

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