
UFCS Stock Forecast & Price Target
UFCS Analyst Ratings
Bulls say
United Fire Group Inc. has demonstrated substantial growth in investment income, achieving an annual rate of approximately 29% since the first quarter of 2022, with a remarkable 50% increase in net investment income reported since the first quarter of 2024 due to a strategic shift towards higher quality assets. The company exhibits strong performance in its core commercial lines business, with a retention rate exceeding 80% and a premium expansion rate in the low-teens, indicating effective customer engagement and growth potential. Additionally, UFCS's net written premiums rose by 12.8% to $278.5 million, bolstered by an extensive distribution network of over 1,000 agencies, positioning the company favorably for continued revenue growth amid reduced competition in the property and casualty insurance sector.
Bears say
United Fire Group Inc. has experienced a significant revenue decline of approximately 20% from FY19 to FY22, largely attributed to the shuttering of multiple business lines and a slow response in right-sizing its workforce and expenses. Although the company's combined ratio has improved, dropping to around 94% for 2024, this improvement primarily stems from declining loss ratios rather than revenue growth, indicating ongoing challenges in underwriting profitability. Furthermore, the firm faces leverage risks due to fluctuations in interest rates impacting returns to common shareholders and potential instability in dividend payments, suggesting fundamental vulnerabilities that may hinder long-term financial stability.
This aggregate rating is based on analysts' research of United Fire Group and is not a guaranteed prediction by Public.com or investment advice.
UFCS Analyst Forecast & Price Prediction
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