Kelly A. Walsh, director of insurance for United Fire Group Inc. (NASDAQ:), a property and casualty insurance company with a market cap of $655 million, recently sold 4,700 shares of the company’s stock. According to InvestingPro data, UFCS has shown strong financial health with a P/E ratio of 13. The transaction took place on June 10, 2024 at a price of $21.11 per share, for a total value of $99,217. Following this sale, Walsh retains ownership of 16,189 shares of the company. The transaction was part of a routine disclosure required by the Securities and Exchange Commission. Namely, UFCS shares have shown impressive momentum with a price return of 25% in the last six months, and InvestingPro analysis suggests that the stock is currently undervalued. The company has also maintained dividend payments for 52 consecutive years, demonstrating long-term financial stability.
In other recent news, United Fire Group Insurance delivered impressive results in the third quarter, posting the highest net and operating income in ten quarters. The company’s net written premiums increased 23% to $305.6 million, driven by significant growth in the prime commercial and alternative distribution sectors. Also worth mentioning is the favorable combined GAAP ratio of 98.2%, reflecting good risk-taking performance.
Investment income saw a significant increase of 49%, thanks to a strategic shift in the fixed income portfolio. Furthermore, a cash dividend of $0.16 per share was declared for shareholders. However, despite a 20% reduction in total headcount from early 2023, the company’s expense ratio remains a challenge, and strategies are being developed to reduce it over time.
On the bright side, the underlying loss ratio improved by 2.6 points year-on-year to 57.9%, fueling optimism about sustained improvements in the loss ratio. United Fire Group Insurance is committed to improving its risk profile and maintaining growth momentum, with a focus on larger, more sophisticated accounts. These recent developments point to a promising future for the company.
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