third quarter 2026
Filed Nov 3, 2026Third quarter net income of $1.34 per diluted share and adjusted operating income of $1.34 per diluted share
Net written premium and net investment income increased, while third-quarter net income, adjusted operating income and the combined ratio deteriorated versus the prior-year quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenuesGAAP | $391.6M | – | – |
| Q3 2026 net earned premiumGAAP | $362.5M | – | 10.4% |
| Q3 2026 net written premiumother | $371.4M | – | 13.2% |
| Q3 2026 net investment incomeGAAP | $29.30M | – | 13% |
| Q3 2026 net investment gains (losses)GAAP | $24K | – | – |
| Q3 2026 other income (loss)GAAP | −$172K | – | – |
| Q3 2026 losses and loss settlement expensesGAAP | $216.4M | – | – |
| Q3 2026 amortization of deferred policy acquisition costsGAAP | $87.53M | – | – |
| Q3 2026 other underwriting expensesGAAP | $39.11M | – | – |
| Q3 2026 interest expenseGAAP | $3.19M | – | – |
| Q3 2026 other non-underwriting expensesGAAP | $625K | – | – |
| Q3 2026 total benefits, losses and expensesGAAP | $346.8M | – | – |
| Q3 2026 income (loss) before income taxesGAAP | $44.81M | – | – |
| Q3 2026 income tax expense (benefit)GAAP | $9.73M | – | – |
| Q3 2026 net income (loss)GAAP | $35.09M | – | decreased 10% |
| Q3 2026 adjusted operating income (loss)non-GAAP | $35.07M | – | decreased 11% |
| Q3 2026 net income (loss) per diluted shareGAAP | $ 1.34 | – | – |
| Q3 2026 adjusted operating income (loss) per diluted sharenon-GAAP | $ 1.34 | – | – |
| Q3 2026 net loss ratioother | 59.7 % | – | – |
| Q3 2026 catastrophe loss ratioother | 2.4 % | – | increased 1.1 points |
| Q3 2026 underlying loss rationon-GAAP | 57.3 % | – | increased 1.3 points |
| Q3 2026 underwriting expense ratioother | 34.9 % | – | increased 0.3 points |
| Q3 2026 combined ratioother | 94.6 % | – | increased 2.7 points |
| Q3 2026 underlying combined rationon-GAAP | 92.2 % | – | increased 1.6 points |
| Q3 2026 interest on fixed maturitiesGAAP | $27.43M | – | – |
| Q3 2026 income (loss) on other long-term investmentsGAAP | $1.34M | – | – |
| Q3 2026 other investment incomeGAAP | $2.90M | – | – |
| Q3 2026 total investment incomeGAAP | $31.67M | – | – |
| Q3 2026 investment expensesGAAP | $2.38M | – | – |
| Q3 2026 average yields on fixed income securities pre-taxother | 4.65 % | – | – |
| Nine months ended September 30, 2026 total revenuesGAAP | $1.14B | – | – |
| Nine months ended September 30, 2026 net earned premiumGAAP | $1.06B | – | – |
| Nine months ended September 30, 2026 net written premiumother | $1.15B | – | – |
| Nine months ended September 30, 2026 net investment incomeGAAP | $85.26M | – | – |
| Nine months ended September 30, 2026 net income (loss)GAAP | $98.50M | – | – |
| Nine months ended September 30, 2026 adjusted operating income (loss)non-GAAP | $99.02M | – | – |
| Nine months ended September 30, 2026 net income (loss) per diluted shareGAAP | $ 3.78 | – | – |
| Nine months ended September 30, 2026 adjusted operating income (loss) per diluted sharenon-GAAP | $ 3.80 | – | – |
| Nine months ended September 30, 2026 net loss ratioother | 60.1 % | – | – |
| Nine months ended September 30, 2026 catastrophe loss ratioother | 2.9 % | – | – |
| Nine months ended September 30, 2026 underlying loss rationon-GAAP | 57.2 % | – | – |
| Nine months ended September 30, 2026 underwriting expense ratioother | 35.1 % | – | – |
| Nine months ended September 30, 2026 combined ratioother | 95.2 % | – | improving 0.7 points |
| Nine months ended September 30, 2026 underlying combined rationon-GAAP | 92.3 % | – | – |
| Nine months ended September 30, 2026 return on equityGAAP | 14.0 % | – | – |
| September 30, 2026 book value per shareGAAP | $ 36.51 | – | decrease of $0.37 per share, or 1.0%, from December 31, 2025 |
| September 30, 2026 adjusted book value per sharenon-GAAP | 40.94 | – | increased $3.07 |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q3 2026 Commercial lines net written premiumGrowth in the company's core commercial business. | $307.1M | – | – |
| Q3 2026 Other liability net written premiumNot provided. | $120.3M | – | – |
| Q3 2026 Fire and allied lines commercial net written premiumNot provided. | $66.04M | – | – |
| Q3 2026 Automobile commercial net written premiumNot provided. | $83.23M | – | – |
| Q3 2026 Workers’ compensation net written premiumNot provided. | $23.26M | – | – |
| Q3 2026 Surety net written premiumNot provided. | $13.98M | – | – |
| Q3 2026 Personal lines net written premiumNot provided. | $5.33M | – | – |
| Q3 2026 Assumed reinsurance net written premiumIncludes Funds at Lloyd's. | $59.03M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- During the third quarter of 2026, the company declared and paid a $0.20 per share cash dividend to shareholders of record as of September 4, 2026.
What drove it
- Net written premium increased 13.2% and net earned premium increased 10.4% versus the third quarter of 2025.
- Core commercial average renewal premium increased 3.0%, with rates increasing 2.0% and exposure changes of 1.0%.
- Income from the fixed maturity portfolio increased by $5.6 million as a result of portfolio growth and reinvestment at higher yields.
- The nine-month combined ratio improved 0.7 points over prior year due to decreases in the expense ratio and catastrophe loss ratio.
Concerns
- The Q3 combined ratio increased 2.7 points to 94.6%, driven by a 1.3-point increase in the underlying loss ratio, a 1.1-point increase in catastrophe losses and a 0.3-point increase in the underwriting expense ratio.
- Q3 net income decreased $4.1 million to $35.1 million.
- Income on other long-term investments was $1.3 million during the third quarter of 2026, decreasing from $2.7 million in the third quarter of 2025 due to higher total returns related to market movements in 2025.
- Book value per share decreased $0.37 to $36.51 from December 31, 2025, primarily attributable to an increase in unrealized investment losses on fixed maturity securities and shareholder dividends.
What to watch
- Core commercial renewal pricing and exposure changes.
- The underlying loss ratio, catastrophe loss ratio and underwriting expense ratio.
- Portfolio growth, reinvestment at higher yields and fixed-income investment income.
- Net unrealized investment losses on fixed maturity securities and book value per share.
Balance sheet and cash flow
- Invested assets were $ 2,528,549 at September 30, 2026, compared with $ 2,464,687 at December 31, 2025.
- Cash was $ 150,741 at September 30, 2026, compared with $ 156,332 at December 31, 2025.
- Total assets were $ 4,083,291 at September 30, 2026, compared with $ 3,840,789 at December 31, 2025.
- Losses and loss settlement expenses were $ 2,062,147 at September 30, 2026, compared with $ 1,924,826 at December 31, 2025.
- Total liabilities were $ 3,144,397 at September 30, 2026, compared with $ 2,899,619 at December 31, 2025.
- Net unrealized investment gains (losses), after-tax were $ (113,923) at September 30, 2026, compared with $ (25,268) at December 31, 2025.
- Total stockholders’ equity was $ 938,894 at September 30, 2026, compared with $ 941,170 at December 31, 2025.
Analysis
United Fire Group reported Q3 2026 net income of $35.1 million, or $1.34 per diluted share, down from $39.2 million, or $1.49 per diluted share, in the prior-year quarter. Adjusted operating income was $35.1 million, or $1.34 per diluted share, versus $39.5 million, or $1.50 per diluted share. The quarter remained profitable on an underwriting basis, with a 94.6% combined ratio, but that ratio increased 2.7 points from 91.9%.
Premium trends were favorable. Net written premium rose 13.2% to $371.4 million and net earned premium increased 10.4% to $362.5 million. Management attributed growth to its core commercial business. Core commercial average renewal premium increased 3.0%, comprising 2.0% rate increases and 1.0% exposure changes. Commercial lines net written premium was $307.1 million and assumed reinsurance was $59.0 million.
The deterioration in the quarterly combined ratio reflected an underlying loss ratio increase of 1.3 points to 57.3%, catastrophe losses that increased 1.1 points to 2.4%, and a 0.3-point increase in the underwriting expense ratio to 34.9%. Management said the underlying loss ratio change was primarily driven by lower favorable impacts relative to an exceptional third quarter of 2025. The nine-month combined ratio was stronger, improving 0.7 points to 95.2%, while return on equity increased to 14.0% from 12.7%.
Investment income supported results. Q3 net investment income increased 13% to $29.3 million, as fixed-maturity interest income rose to $27.4 million from $21.9 million due to portfolio growth and reinvestment at higher yields. Average pre-tax fixed-income yields were 4.65% versus 4.37%. Book value per share declined to $36.51 from $36.88 at December 31, 2025, as net unrealized investment losses after tax widened to $113.9 million from $25.3 million. Adjusted book value per share increased to 40.94 from 37.87.
Capital allocation included a $0.20 per share cash dividend declared and paid during the third quarter. The filing provided no forward financial guidance. The principal reported watch items are commercial premium growth and renewal pricing, underwriting-ratio progression, catastrophe losses, fixed-income income generation and unrealized investment losses affecting book value.
Management, verbatim
UFG delivered its strongest quarter of 2026, contributing to an exceptional first nine months of the year.
Kevin Leidwinger, President and CEO
Through the first nine months of 2026, we generated record earnings, achieved a 14.0% return on equity and produced a 95.2% combined ratio.
Kevin Leidwinger, President and CEO
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Previous outlook was not provided.
- Cash flow from operations was not reported.
- Free cash flow was not reported.
- Debt balance was not reported.
- Share repurchases were not reported.
- Gross margin was not reported.
- Income tax rate was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.