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United Fire Group, Inc. Reports Fourth Quarter and Year End 2015 Results

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CEDAR RAPIDS, Iowa, Feb. 18, 2016 (GLOBE NEWSWIRE) -- United Fire Group, Inc. (NASDAQ: UFCS)

 
Consolidated Financial Results - Highlights:
 
Quarter Ended December 31, 2015  Year Ended December 31, 2015 
Operating income(1) per diluted share(2)$1.21  Operating income(1) per diluted share(2)$3.46 
Net income per diluted share(2)$1.21  Net income per diluted share(2)$3.53 
Net realized investment gains per share(2)$  Net realized investment gains per share(2)$0.07 
GAAP combined ratio86.8% GAAP combined ratio92.0%
   Book value per share$34.94 
   Return on equity(3)10.5%
      

United Fire Group, Inc. (the "Company", or "UFG") (NASDAQ: UFCS) today reported consolidated net operating income(1) of $1.21 per diluted share for the three-month period ended December 31, 2015 (the "fourth quarter") compared to consolidated net operating income of $1.34 per diluted share for the same period in 2014. For the year ended December 31, 2015 (the "full year"), the Company reported consolidated net operating income of $3.46 per diluted share compared to consolidated net operating income of $2.13 per diluted share for 2014.

The Company reported consolidated net income, including investment gains and losses, of $30.9 million ($1.21 per diluted share) for the fourth quarter and $89.1 million ($3.53 per diluted share) for the full year, compared to consolidated net income, including investment gains and losses, of $34.8 million ($1.38 per diluted share) and $59.1 million ($2.32 per diluted share), respectively, for the fourth quarter and full year 2014.

Achieved $1 billion revenue milestone

"For the first time in UFG history, we earned over $1.0 billion in revenue in the year ended December 31, 2015," stated Randy A. Ramlo, President and Chief Executive Officer. "This milestone is the result of the hard work and dedication of our employees and agents and the loyalty of our customers. This achievement is in-line with our key objectives and demonstration of our execution against our 2020 Vision."

____________________
(1) Operating income (loss) is a commonly used non-GAAP financial measure of net income (loss) excluding realized investment gains and losses and related federal income taxes. Management evaluates this measure and ratios derived from this measure because we believe it better represents the normal, ongoing performance of our business. See Supplemental Tables - Financial Highlights for a reconciliation of operating income to net income.
(2) Per share amounts are after tax.
(3) Return on equity is calculated by dividing annualized net income by average year-to-date equity.


Strong 2015 results with core margin expansion

"I'm pleased to report strong fourth quarter and full year results," continued Ramlo. "For the full year 2015, we improved our return on equity ("ROE") to 10.5 percent compared to 7.4 percent in 2014, increased our earned premium 12.4 percent compared with 2014, increased our book value $2.27 to $34.94 and experienced a decrease in our GAAP combined ratio of 5.8 points to 92.0 percent, which benefited from an improvement of 5.5 points in our core loss ratio and an improvement of 0.3 points in our expense ratio."

The Company recognized consolidated net realized investment gains of $0.2 million during the fourth quarter and $2.8 million for the full year 2015, compared to net realized investment gains of $1.5 million and $7.3 million, respectively, for the fourth quarter and full year 2014. With the recent turmoil in the energy and resource sector, our investment portfolio review determined one of our life segment fixed maturity securities was other-than-temporarily impaired. This other-than-temporary impairment charge totaled $1.3 million before tax.

Consolidated net investment income was $26.6 million for the fourth quarter 2015 and $100.8 million for the full year 2015 with decreases of 3.0 percent for the quarter and 3.7 percent for the full year, compared to net investment income of $27.4 million and $104.6 million, respectively, for the fourth quarter and full year 2014. The decreases are primarily due to lower interest income on fixed maturity securities due to a lower asset base, from a decline in deferred annuity deposits, and from lower reinvestment interest rates due to the current interest rate environment.

Consolidated net unrealized investment gains, net of tax, totaled $128.4 million as of December 31, 2015, a decrease of $21.3 million or 14.2 percent, compared to December 31, 2014, due primarily to a decrease in the fair value of our fixed maturity investment portfolio as a result of an increase in interest rates and also, to a lesser extent, from a decrease in the fair value of our equity securities portfolio. 

Total consolidated assets as of December 31, 2015 were $3.9 billion, which included $3.1 billion of invested assets. The Company's book value was $34.94 per share, which is an increase of $2.27 per share or 6.9 percent from December 31, 2014. The increase is primarily attributed to net income of $89.1 million and the change in valuation of our postretirement benefit obligations of $10.5 million, both offset by, a decrease in net unrealized investment gains of $21.3 million, net of tax, the payment of stockholder dividends of $21.7 million and share repurchases of $2.4 million.

P&C Segment

Net income for the property and casualty insurance segment, including net realized investment gains and losses, totaled $30.9 million ($1.21 per diluted share) for the fourth quarter, compared to net income of $32.9 million ($1.30 per diluted share) for the fourth quarter of 2014. For the full year, net income totaled $85.3 million ($3.38 per diluted share), compared to net income of $52.4 million ($2.05 per diluted share) for the full year 2014.

Net premiums earned increased 9.2 percent to $223.3 million for the fourth quarter, compared to $204.4 million in the fourth quarter 2014. For the full year, net premiums earned increased 11.1 percent to $851.7 million, compared to $766.9 million in 2014. 

Rates and loss cost trends

"Competitive market conditions continued during the quarter for both renewals and new business," stated Ramlo.  "Renewal pricing average percentage increases were in the very low single digits on smaller accounts, and decreases were in the flat to low single digits decreases on larger accounts.  Albeit diminishing, this is the 17th consecutive quarter of commercial lines pricing increases on our overall book of business. Current rate increases continue to meet loss cost trends. We continue to believe loss cost trends will remain at low levels and the margin between loss costs and rate increases will narrow. We currently believe that loss costs are approximately 3.0 percent. Earned premium growth should continue to outpace loss cost trends during 2016 as rate increases achieved over the past several quarters earn out."

2015 catastrophe losses were less than expected

Catastrophe losses(4) totaled $5.0 million ($0.13 per share after tax) and $32.3 million ($0.83 per share after tax) for the three- and twelve-month periods ended December 31, 2015, respectively, compared to $2.5 million ($0.06 per share after tax) and $49.7 million ($1.27 per share after tax) for the same periods in 2014.

"Catastrophe losses for the fourth quarter and the full year were less than we would normally expect," stated Ramlo. "For the fourth quarter and full year, catastrophe losses added 2.2 percentage points and 3.8 percentage points, respectively, to the combined ratio. Our expectations for catastrophe losses in any given year is six percentage points of the combined ratio."

The property and casualty insurance segment experienced $16.3 million and $40.4 million of favorable reserve development in our net reserves for prior accident years during the three- and twelve-month periods ended December 31, 2015, respectively, compared to $24.2 million and $56.7 million of favorable reserve development in the same periods of 2014. Development amounts can vary significantly from quarter to quarter and year to year depending on a number of factors, including the number of claims settled and the settlement terms. At December 31, 2015, our total reserves were within our actuarial estimates.

"Our reserving philosophy is to set initial reserves at the higher end of our initial assessment and adjust reserves as additional claim information is received," stated Ramlo. "As a result, favorable reserve development is not unusual for us. During 2015, the favorable development primarily occurred in our commercial liability and workers' compensation lines of business. The favorable development is attributable to reductions in reserves for reported claims as well as reductions in required reserves for incurred but not reported claims combined with continued successful management of litigation expenses. These reserve decreases were more than sufficient to offset claim payments."

The GAAP combined ratio increased 3.2 percentage points to 86.8 percent for the fourth quarter 2015, compared to 83.6 percent for the fourth quarter of 2014. For the year ended December 31, 2015, the combined ratio decreased by 5.8 percentage points to 92.0 percent as compared to 97.8 percent for the same period of 2014. The improvement in the combined ratio in the full year 2015 as compared to 2014 was primarily due an improvement of 5.5 points in our core loss ratio and an improvement of 0.3 points in our expense ratio.

Expense Levels

The expense ratio for the fourth quarter was 33.1 percentage points, compared to 31.3 percentage points for the fourth quarter of 2014.  For the full year, the expense ratio decreased to 31.0 percentage points, compared to 31.3 percentage points for 2014.

_____________

(4) Catastrophe losses is a commonly used non-GAAP financial measure, which utilizes the designations of the Insurance Services Office ("ISO") and are reported with losses and loss settlement expenses amounts net of reinsurance recoverables.

"We had an increase in our expense ratio in the fourth quarter 2015 as compared to fourth quarter 2014 primarily due to an increase in amortization of deferred acquisition costs, and an increase in employee related expenses," commented Ramlo. "However, our full year 2015 expense ratio was in line with the comparative full year 2014. We continue to make progress towards lowering our expense ratio, but with the lingering low interest rate environment our postretirement benefit plan obligations offset savings from other sources in 2015."

Life Segment

Net income (loss) for the life insurance segment totaled $(5.0) thousand ($0.00 per share) and $3.8 million ($0.15 per share) in the three- and twelve-month periods ended December 31, 2015, respectively, compared to $1.9 million ($0.08 per share) and $6.8 million ($0.27 per share), respectively, for the same periods of 2014.

"Our life segment continues to have strong sales of single premium whole life polices which was the primary driver of the 54.1 percent increase in premiums earned in the fourth quarter and 29.0 percent for the full year of 2015 compared to the same periods in 2014," stated Ramlo. "This correlated with our strategy to write more life products that are not interest rate sensitive. Our lapse ratios remained strong for the year at 4.27 percent and we were able to successfully execute on our geographical expansion strategy with sales growth of ten percent or more in ten states. The life segment earnings, however, were impacted by an other than temporary impairment of one energy and resource sector fixed maturity security in the fourth quarter of 2015. Also, we experienced a decrease in investment income due to the low interest rate environment and a lower asset base due to declining deferred annuity deposits. Our emphasis on deferred annuity products has been profitability rather than market share as, we were able to improve our spreads on deferred annuity products by 32 basis points in 2015."

Net premiums earned increased 54.1 percent and 29.0 percent in the three- and twelve-month periods ended December 31, 2015, respectively, compared to the same periods of 2014. The increase is primarily due to an increase in the sale of single premium whole life policies.

Net investment income decreased 5.3 percent and 10.2 percent for the three- and twelve-month periods ended December 31, 2015, respectively, compared to the same periods of 2014. The decreases were due to the low interest rate environment and a lower asset base due to declining deferred annuity deposits.

Loss and loss settlement expenses increased $0.7 million and $2.6 million for the three- and twelve-month periods ended December 31, 2015, respectively, compared to the same periods of 2014. Fluctuations in the timing of death benefits occur from quarter-to-quarter and year-to-year.

The increase in liability for future policy benefits increased $8.3 million and $14.3 million for the three- and twelve-month periods ended December 31, 2015, respectively, compared to the same periods of 2014 due to an increase in sales of single premium whole life insurance products.

Deferred annuity deposits decreased 70.2 percent and 55.7 percent in the three- and twelve-month periods ended December 31, 2015, compared with the same periods of 2014, due to the gradual lowering of our credited rate offered on our deferred annuity products during the low interest rate environment.

Net cash outflow related to the Company's annuity business was $23.2 million in the fourth quarter and $129.7 million for the full year, compared to net cash outflows of $27.1 million and $77.7 million, respectively, in the same periods of 2014. This result is attributed to the activity described in the proceeding paragraphs of the life segment discussion.

Capital Management

During the fourth quarter, we declared and paid a $0.22 per share cash dividend to stockholders of record on December 1, 2015. We have paid a quarterly dividend every quarter since March 1968.

Under our share repurchase program, we may purchase United Fire common stock from time to time on the open market or through privately negotiated transactions. The amount and timing of any purchases will be at management's discretion and will depend upon a number of factors, including the share price, general economic and market conditions, and corporate and regulatory requirements. We are authorized by the Board of Directors to purchase an additional 1,528,886 shares of common stock under our share repurchase program, which expires in August 2016. During the fourth quarter, we did not repurchase any shares of our common stock due to strong performance of our share price and management's focus on using our excess capital to invest in organic growth of our business. In the year ended December 31, 2015, we purchased 79,396 shares of our common stock for $2.4 million, at an average cost of $30.51 per share. 

Earnings Call Access Information

An earnings call will be held at 9:00 a.m. Central Time on February 18, 2016 to allow securities analysts, shareholders and other interested parties the opportunity to hear management discuss the Company's fourth quarter and year ended December 31, 2015 results.

Teleconference: Dial-in information for the call is toll-free 1-844-492-3723. The event will be archived and available for digital replay through March 3, 2016. The replay access information is toll-free 1-877-344-7529; conference ID no. 10079350.

Webcast: A webcast of the teleconference can be accessed at the Company's investor relations page at http://ir.unitedfiregroup.com/event or http://services.choruscall.com/links/ufcs160218. The archived audio webcast will be available until March 3, 2016.

Transcript: A transcript of the teleconference will be available on the Company's website soon after the completion of the teleconference.

About United Fire Group, Inc.

Founded in 1946 as United Fire & Casualty Company, United Fire Group, Inc., through its insurance company subsidiaries, is engaged in the business of writing property and casualty insurance and life insurance and selling annuities.

Through our subsidiaries, we are licensed as a property and casualty insurer in 46 states, plus the District of Columbia, and we are represented by approximately 1,200 independent agencies. The United Fire pooled group is rated "A" (Excellent) by A.M. Best Company.

Our subsidiary, United Life Insurance Company, is licensed in 37 states, represented by approximately 1,200 independent life agencies and rated "A-" (Excellent) by A.M. Best Company.

For more information about United Fire Group, Inc. visit www.unitedfiregroup.com. or contact:

Randy Patten, Director of SEC Reporting and Investor Relations, 319-286-2537 or IR@unitedfiregroup.com

Disclosure of Forward-Looking Statements

This release 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 and the Securities Exchange Act of 1934 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 our company, the industry in which we operate, and beliefs and assumptions made by management. Words such as "expect(s)," "anticipate(s)," "intends(s)," "plan(s)," "believe(s)" "continue(s)," "seek(s)," "estimate(s)," "goal(s)," "remain 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. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed in such forward-looking statements. Information concerning factors that could cause actual outcomes and results to differ materially from those expressed in the forward-looking statements is contained in Part I, Item 1A "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (the"SEC") on March 2, 2015 and in our Quarterly Reports on Form 10-Q and other filings with the SEC. The risks identified in our Form 10-K are representative of the risks, uncertainties, and assumptions that could cause actual outcomes and results to differ materially from what is expressed in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release or as of the date they are made. Except as required under the federal securities laws and the rules and regulations of the SEC, we do not have any intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

Supplemental Tables

 
Financial Highlights
 Three Months Ended December 31, Years Ended December 31,
(In Thousands Except Shares and Per Share Data)2015 2014Change % 2015 2014Change %
Revenue Highlights         
Net premiums earned$249,073  $221,141 12.6% $930,890  $828,330 12.4%
Net investment income26,576  27,407 (3.0)% 100,781  104,609 (3.7)%
Total revenues275,956  250,452 10.2% 1,034,918  941,894 9.9%
Income Statement Data                   
Operating income30,749  33,838 (9.1)% 87,276  54,412 60.4%
After-tax net realized investment gains146  958 (84.8)% 1,850  4,725 (60.8)%
Net income$30,895  $34,796 (11.2)% $89,126  $59,137 50.7%
Diluted Earnings Per Share Data                   
Operating income$1.21  $1.34 (9.7)% $3.46  $2.13 62.4%
After-tax net realized investment gains  0.04 (100.0)% 0.07  0.19 (63.2)%
Net income$1.21  $1.38 (12.3)% $3.53  $2.32 52.2%
Catastrophe Data                   
Pre-tax catastrophe losses$4,977  $2,519 97.6% $32,313  $49,679 (35.0)%
Effect on after-tax earnings per share0.13  0.06 116.7% 0.83  1.27 (34.6)%
Effect on combined ratio2.2% 1.2%83.3% 3.8% 6.5%(41.5)%
                    
Favorable reserve development experienced on prior accident years16,266  24,224 (32.9)% 40,395  56,744 (28.8)%
                    
GAAP combined ratio86.8% 83.6%3.8% 92.0% 97.8%(5.9)%
Return on equity          10.5% 7.4%41.9%
Cash dividends declared per share$0.22  $0.20 10.0% $0.86  $0.78 10.3%
Diluted weighted average shares outstanding25,499,843  25,252,185 1.0% 25,235,996  25,493,663 (1.0)%
                



 
Consolidated Income Statement
 Three Months Ended December 31, Years Ended December 31,
(In Thousands)2015 2014 2015 2014
Revenues       
Net premiums written(1)$235,416  $209,508  $967,064  $866,120 
Net premiums earned$249,073  $221,141  $930,890  $828,330 
Investment income, net of investment expenses26,576  27,407  100,781  104,609 
Net realized investment gains (losses)       
Other-than-temporary impairment charges(1,300)   (1,300)  
All other net realized gains1,524  1,474  4,146  7,270 
Net realized investment gains224  1,474  2,846  7,270 
Other income83  430  401  1,685 
Total Revenues$275,956  $250,452  $1,034,918  $941,894 
        
Benefits, Losses and Expenses       
Losses and loss settlement expenses$127,791  $113,944  $549,088  $536,243 
Increase in liability for future policy benefits18,442  10,173  50,945  36,623 
Amortization of deferred policy acquisition costs51,291  43,075  186,817  167,449 
Other underwriting expenses29,696  26,002  102,937  94,871 
Interest on policyholders' accounts5,473  6,903  23,680  30,245 
Total Benefits, Losses and Expenses$232,693  $200,097  $913,467  $865,431 
        
Income before income taxes43,263  50,355  121,451  76,463 
Federal income tax expense12,368  15,559  32,325  17,326 
Net income$30,895  $34,796  $89,126  $59,137 
(1) Data prepared in accordance with statutory accounting practices, which is a comprehensive basis of accounting other than U.S. GAAP.



Consolidated Balance Sheet
 December 31, 2015 December 31, 2014
(In Thousands) 
Total invested assets:   
Property and casualty segment$1,647,666  $1,554,637 
Life insurance segment1,495,094  1,616,324 
Total cash and investments3,249,209  3,261,535 
Total assets3,890,376  3,856,689 
Future policy benefits and losses, claims and loss settlement expenses$2,376,253  $2,417,201 
Total liabilities3,011,479  3,039,274 
Net unrealized investment gains, after-tax$128,369  $149,623 
Total stockholders' equity878,897  817,415 
    
Property and casualty insurance statutory capital and surplus (1)(2)$722,404  $685,866 
Life insurance statutory capital and surplus(1)138,855  155,667 
(1) Data prepared in accordance with statutory accounting practices, which is a comprehensive basis of accounting other than U.S. GAAP.
(2) Because United Fire & Casualty Company owns United Life Insurance Company, property and casualty insurance statutory capital and surplus includes life insurance statutory capital and surplus and therefore represents our total consolidated statutory capital and surplus.
 



 
Property & Casualty Insurance Financial Results
 Three Months Ended December 31, Years Ended December 31,
(In Thousands)2015 2014 2015 2014
Revenues       
Net premiums written(1)$209,632  $192,774  $887,874  $804,715 
Net premiums earned$223,299  $204,418  $851,695  $766,939 
Investment income, net of investment expenses12,977  13,045  46,559  44,236 
Net realized investment gains808  495  1,124  4,177 
Other income (loss)(107) 218  (107) 911 
Total Revenues$236,977  $218,176  $899,271  $816,263 
        
Benefits, Losses and Expenses       
Losses and loss settlement expenses$120,000  $106,847  $520,087  $509,811 
Amortization of deferred policy acquisition costs49,878  42,030  180,183  161,310 
Other underwriting expenses24,006  21,910  83,631  79,117 
Total Benefits, Losses and Expenses$193,884  $170,787  $783,901  $750,238 
        
Income before income taxes$43,093  $47,389  $115,370  $66,025 
Federal income tax expense12,193  14,484  30,050  13,649 
Net income$30,900  $32,905  $85,320  $52,376 
        
GAAP combined ratio:       
Net loss ratio - excluding catastrophes51.5% 51.1% 57.2% 60.0%
Catastrophes - effect on net loss ratio2.2  1.2  3.8  6.5 
Net loss ratio53.7% 52.3% 61.0% 66.5%
Expense ratio33.1  31.3  31.0  31.3 
Combined ratio86.8% 83.6% 92.0% 97.8%
                
Statutory combined ratio:(1)               
Net loss ratio - excluding catastrophes51.7% 51.3% 57.4% 60.2%
Catastrophes - effect on net loss ratio2.2  1.2  3.8  6.5 
Net loss ratio53.9% 52.5% 61.2% 66.7%
Expense ratio35.4  31.8  32.2  31.4 
Combined ratio89.3% 84.3% 93.4% 98.1%
(1) Data prepared in accordance with statutory accounting practices, which is a comprehensive basis of accounting other than U.S. GAAP.
            



 
Life Insurance Financial Results
 Three Months Ended December 31, Years Ended December 31,
(In Thousands)2015 2014 2015 2014
Revenues       
Net premiums written(1)$25,784  $16,734  $79,190  $61,405 
Net premiums earned$25,774  $16,723  $79,195  $61,391 
Investment income, net of investment expenses13,599  14,362  54,222  60,373 
Net realized investment gains (losses)       
Other-than-temporary impairment charges(1,300)   (1,300)  
All other net realized gains716  979  3,022  3,093 
Net realized investment gains (losses)(584) 979  1,722  3,093 
Other income190  212  508  774 
Total Revenues$38,979  $32,276  $135,647  $125,631 
        
Benefits, Losses and Expenses       
Losses and loss settlement expenses$7,791  $7,097  $29,001  $26,432 
Increase in liability for future policy benefits18,442  10,173  50,945  36,623 
Amortization of deferred policy acquisition costs1,413  1,045  6,634  6,139 
Other underwriting expenses5,690  4,092  19,306  15,754 
Interest on policyholders' accounts5,473  6,903  23,680  30,245 
Total Benefits, Losses and Expenses$38,809  $29,310  $129,566  $115,193 
        
Income before income taxes$170  $2,966  $6,081  $10,438 
Federal income tax expense175  1,075  2,275  3,677 
Net income (loss)$(5) $1,891  $3,806  $6,761 
(1) Net premiums written is a financial measure prepared in accordance with statutory practices, which is a comprehensive basis of accounting other than U.S. GAAP.
                



 
Net Premiums Written by Line of Business
 Three Months Ended December 31, Years Ended December 31,
 2015 2014 2015 2014
(In Thousands)   
Net Premiums Written(1)       
Commercial lines:       
Other liability(2)$64,929  $58,069  $274,961  $243,275 
Fire and allied lines(3)49,554  45,292  211,095  191,081 
Automobile48,329  42,336  196,685  173,202 
Workers' compensation21,819  19,994  97,965  91,796 
Fidelity and surety4,729  4,295  22,323  20,517 
Miscellaneous425  631  1,708  2,761 
Total commercial lines$189,785  $170,617  $804,737  $722,632 
        
Personal lines:       
Fire and allied lines(4)$10,368  $10,848  $43,727  $44,087 
Automobile5,914  5,737  24,796  23,811 
Miscellaneous236  225  1,049  993 
Total personal lines$16,518  $16,810  $69,572  $68,891 
Reinsurance assumed3,329  5,347  13,565  13,192 
Total$209,632  $192,774  $887,874  $804,715 
(1) Net premiums written is a financial measure prepared in accordance with statutory practices, which is a comprehensive basis of accounting other than U.S. GAAP.
(2) "Other liability" is business insurance covering bodily injury and property damage arising from general business operations, accidents on the insured's premises and products manufactured or sold.
(3) "Fire and allied lines" includes fire, allied lines, commercial multiple peril and inland marine.
(4) "Fire and allied lines" includes fire, allied lines, homeowners and inland marine.
 



 
Net Premiums Earned, Losses and Loss Settlement Expenses and Loss Ratio by Line of Business
Three Months Ended
December 31,
2015 2014
   Net Losses     Net Losses  
   and Loss     and Loss  
 Net Settlement Net Net Settlement Net
(In Thousands)Premiums Expenses Loss Premiums Expenses Loss
UnauditedEarned Incurred Ratio Earned Incurred Ratio
Commercial lines           
Other liability$69,578  $29,742  42.7% $60,575  $19,123  31.6%
Fire and allied lines52,643  29,877  56.8  47,908  22,238  46.4 
Automobile49,004  35,970  73.4  43,515  34,144  78.5 
Workers' compensation24,448  10,642  43.5  23,541  16,848  71.6 
Fidelity and surety6,332  (539) (8.5) 5,558  452  8.1 
Miscellaneous423  247  58.4  702  171  24.4 
Total commercial lines$202,428  $105,939  52.3% $181,799  $92,976  51.1%
            
Personal lines           
Fire and allied lines$11,085  $4,451  40.2% $11,123  $6,096  54.8%
Automobile6,203  5,010  80.8  5,927  3,983  67.2 
Miscellaneous262  68  26.0  252  262  104.0 
Total personal lines$17,550  $9,529  54.3% $17,302  $10,341  59.8%
Reinsurance assumed$3,321  $4,532  136.5% $5,317  $3,530  66.4%
Total$223,299  $120,000  53.7% $204,418  $106,847  52.3%
                      



Net Premiums Earned, Losses and Loss Settlement Expenses and Loss Ratio by Line of Business
Years Ended
December 31,
2015 2014
   Net Losses     Net Losses  
   and Loss     and Loss  
 Net Settlement Net Net Settlement Net
(In Thousands)Premiums Expenses Loss Premiums Expenses Loss
UnauditedEarned Incurred Ratio Earned Incurred Ratio
Commercial lines           
Other liability$261,303  $130,904  50.1% $228,426  $106,827  46.8%
Fire and allied lines202,375  128,479  63.5  181,710  148,856  81.9 
Automobile185,970  152,558  82.0  164,537  122,683  74.6 
Workers' compensation95,672  47,106  49.2  88,522  63,425  71.6 
Fidelity and surety21,362  2,001  9.4  19,212  1,597  8.3 
Miscellaneous2,158  428  19.8  2,741  153  5.6 
Total commercial lines$768,840  $461,476  60.0% $685,148  $443,541  64.7%
                      
Personal lines                     
Fire and allied lines$44,075  $28,815  65.4% $44,376  $38,644  87.1%
Automobile24,120  17,817  73.9  23,276  20,571  88.4 
Miscellaneous1,021  296  29.0  994  1,972  198.4 
Total personal lines$69,216  $46,928  67.8% $68,646  $61,187  89.1%
Reinsurance assumed$13,639  $11,683  85.7% $13,145  $5,083  38.7%
Total$851,695  $520,087  61.0% $766,939  $509,811  66.5%

 

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