UFG shareholders elect new Class B directors

Published 21/05/2025, 21:06
UFG shareholders elect new Class B directors

CEDAR RAPIDS, Iowa - United Fire Group, Inc. (NASDAQ:UFCS), a property and casualty insurer with a market capitalization of $709 million, announced the election of three Class B directors during its annual shareholder meeting on Thursday. The newly elected directors are set to serve on the company’s 11-member board for three-year terms ending in 2028. According to InvestingPro data, UFCS has demonstrated strong financial health, maintaining dividend payments for an impressive 53 consecutive years.

The elected Class B directors include John-Paul Besong, a retired chief information officer executive; Matthew R. Foran, co-founder and president of Stoic Lane, Inc.; and James W. Noyce, a retired insurance and financial services executive. Their expertise spans across information technology and financial services, potentially bringing diverse perspectives to the UFG board, which oversees a company that has achieved 14.6% revenue growth over the last twelve months and maintains a healthy P/E ratio of 10.7.

In addition to the director elections, shareholders ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the year 2025. They also approved the compensation package for the company’s named executive officers on an advisory basis.

United Fire Group, Inc., with a history dating back to 1946, operates through its subsidiaries to provide property and casualty insurance. The company boasts a nationwide reach, licensed in all 50 states as well as the District of Columbia, and maintains a network of approximately 1,000 independent agencies. UFG has consistently received an "A-" (Excellent) rating from AM Best, affirming its financial strength and stability within the insurance industry. Currently trading at $27.78, the stock offers a dividend yield of 2.25% and appears slightly undervalued according to InvestingPro analysis, which provides comprehensive research reports for over 1,400 US stocks, including detailed financial health metrics and expert insights.

The information regarding the director elections and other shareholder decisions is drawn from a press release statement issued by the company. United Fire Group, Inc. has provided no further details on the strategic implications of the board changes or the future direction under the newly elected directors. For more information about UFG, interested parties can visit the company’s website.

In other recent news, United Fire Group reported its first-quarter 2025 earnings, with an earnings per share (EPS) of $0.67, slightly surpassing the forecast of $0.66. However, the company did not meet revenue expectations, reporting $308.41 million against a projected $311.90 million. Despite the EPS beat, the revenue shortfall raised concerns among investors. United Fire Group’s net written premiums grew by 4% to $335.4 million, demonstrating strong underwriting profitability with a combined ratio of 99.4%. Notably, the company has fully deployed new policy administration systems in its small business units. Analysts from Jones Trading participated in the earnings call, questioning the company’s pricing strategy and ability to manage loss expense inflation. CEO Kevin Leidwinger expressed optimism about the company’s strategic direction and noted that potential tariff impacts are being closely monitored. The company also declared a cash dividend of $0.16 per share for the first quarter.

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