UFG raises $30 million through private placement of senior notes

CEDAR RAPIDS, Iowa - United Fire Group, Inc. (UFG) (Nasdaq:UFCS), a property and casualty insurer with a market capitalization of $701 million, announced Thursday it has completed a $30 million private placement of senior unsecured notes to support growth initiatives and general corporate purposes. According to InvestingPro analysis, the company currently appears undervalued based on its Fair Value calculations.

The property and casualty insurance holding company issued 9.0% Series B notes due May 31, 2039, to Ares Alternative Credit funds in a transaction exempt from registration requirements under the Securities Act of 1933.

Stonybrook Capital, LLC served as UFG’s exclusive financial advisor for the offering, according to the company’s press release statement.

The notes were offered only to qualified institutional buyers in the United States under Rule 144A and to certain non-U.S. persons in offshore transactions under Regulation S.

Founded in 1946, UFG operates through its insurance subsidiaries in all 50 states and the District of Columbia, working with approximately 1,000 independent agencies. The company currently holds an A- (Excellent) rating from AM Best.

The proceeds will be directed toward supporting the company’s anticipated growth plans and general corporate purposes, though specific details about these initiatives were not disclosed in the announcement.

In other recent news, United Fire Group Inc. reported its first-quarter 2025 earnings, exceeding expectations with earnings per share (EPS) of $0.67, slightly above the forecast of $0.66. However, the company’s revenue fell short, reaching $308.41 million compared to the anticipated $311.90 million. Despite the revenue miss, net written premiums saw a 4% increase, totaling $335.4 million, and the company maintained strong underwriting profitability with a combined ratio of 99.4%. In another development, United Fire Group shareholders elected three new Class B directors during the annual meeting. The newly elected directors, John-Paul Besong, Matthew R. Foran, and James W. Noyce, will serve three-year terms on the company’s board. Additionally, shareholders ratified Ernst & Young LLP as the independent registered public accounting firm for 2025 and approved the executive compensation package. These developments indicate a period of transition and growth for United Fire Group, as the company continues to focus on improving process efficiency and maintaining disciplined pricing and risk selection.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.