Released on: Jun 3, 2024, 15:01 PM

CEDAR RAPIDS, IOWA – June 3, 2024

United Fire Group, Inc (the “Company” or “UFG”) (NASDAQ: UFCS), a property and casualty insurance holding company, today announced that it has successfully completed a placement of $70 million aggregate principal senior unsecured 9.0% notes due May 31, 2039 (the “Notes”) in a private offering (the “Offering”) with Ares Management Credit funds as the lead investor. Proceeds from the Offering will be used to support anticipated growth and for general corporate purposes.

“We are pleased with the successful execution of this capital raise,“ said UFG President and CEO Kevin Leidwinger.  “We appreciate the investment community’s support of our long-term strategies intended to deliver sustainable profitable growth.”

Stonybrook Capital, LLC served as the Company’s exclusive financial advisor in connection with the Offering.  

“We are pleased to provide a long-term private capital solution in support of UFG’s growth initiatives,” said Jeff Hughes, Managing Director in the Ares Credit Group. “This investment fits squarely within the Ares Alternative Credit team’s focus on delivering creative and flexible private credit solutions and represents our continued focus to partner with the insurance industry.”

The Ares Alternative Credit strategy is one of the largest investors in asset-based credit managing approximately $36.5 billion in assets under management as of March 31, 2024. The team invests across the capital structure and seeks opportunities in specialty finance, lender finance, loan portfolios, equipment leasing, structured products, net lease, cash flow streams (royalties, licensing, management fees) and other asset-focused investments.  

The notes were offered and sold in a transaction exempt from the registration requirements of the U.S. Securities Act of 1933, as amended (the "Securities Act"), and in the United States only to persons reasonably believed to be "qualified institutional buyers" in reliance on the exemption from registration under the Securities Act provided by Rule 144A and outside the United States to certain non U.S. persons in offshore transactions in reliance on Regulation S under the Securities Act.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state. 

About UFG
Founded in 1946 as United Fire & Casualty Company, UFG, through its insurance company subsidiaries, is engaged in the business of writing property and casualty insurance. 

Through our subsidiaries, we are licensed as a property and casualty insurer in 50 states, plus the District of Columbia, and we are represented by approximately 1,000 independent agencies. A.M. Best Company assigns a rating of "A-" (Excellent) for members of the United Fire & Casualty Group. For more information about UFG, visit www.ufginsurance.com.

Contact:
Investor relations email: ir@unitedfiregroup.com
Media inquiries email: news@unitedfiregroup.com