United Fire Group enters change in control agreement with executive

United Fire Group Inc. (NASDAQ:UFCS) announced that its board of directors approved the company’s standard Change in Control Severance Agreement with Steven D. Hernandez, Senior Vice President and Chief Human Resources Officer. The agreement was approved at a board meeting on August 15 and became effective Thursday.

According to a statement based on the company’s SEC filing, the agreement includes an 18-month non-competition clause. If there is both a change in control of the company and Mr. Hernandez’s employment is terminated by the company without cause, he will be entitled to certain benefits. These include a severance payment equal to 1.5 times his highest annual base salary plus target annual incentive compensation, continued insurance benefits for 18 months, full vesting of all long-term incentive awards with performance measures satisfied at the target level, and outplacement services.

United Fire Group Inc. is based in Cedar Rapids, Iowa, and its common stock is listed on the NASDAQ Global Select Market under the symbol UFCS. The company has maintained dividend payments for 53 consecutive years, currently offering a 2.09% yield. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, one of 1,400+ detailed company analyses available to subscribers.

In other recent news, United Fire Group Inc. reported its Q2 2025 earnings, significantly exceeding analyst expectations. The company achieved an earnings per share of $0.87, surpassing the projected $0.47. However, its revenue came in slightly below expectations at $314.8 million, compared to the forecasted $320.59 million. Despite this revenue miss, the company’s performance was bolstered by strong premium growth and enhanced operational efficiency. Additionally, United Fire Group announced a quarterly cash dividend of $0.16 per share, marking its 230th consecutive payout. In another development, Gilda L. Spencer was appointed as an independent member of United Fire Group’s board of directors, where she will contribute her legal expertise and insurance industry experience. Spencer will serve on the board’s risk management and compensation and human capital committees. These recent developments reflect United Fire Group’s ongoing strategic initiatives and financial performance.

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