United Fire Group, Inc. (UFCS) has reported a 61.17 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $12 million, or $0.46 a share in the quarter, compared with $30.90 million, or $1.21 a share for the same period last year.
Revenue during the quarter grew 9.44 percent to $302 million from $275.96 million in the previous year period. Net premium earned for the quarter increased 7.82 percent or $19.47 million to $268.55 million. During the quarter, the company has written premium worth $243.90 million on net basis, up 3.60 percent or $8.48 million.
Total expenses move up
Benefits, losses and expenses for the quarter were at $288.14 million, or 107.30 percent of premium earned from $232.69 million or 93.42 percent of premium earned in the last year period. Operating income for the quarter was $13.85 million, compared with $43.26 million in the previous year period.
Net investment income was at $33.40 million for the quarter, up 25.68 percent or $6.83 million from year-ago period. The company has booked a loss on investments of $0.14 million in the quarter compared with a gain of $0.22 million for the previous year period.
"In 2016, for the first time in our Company's history, we earned over $1.0 billion in net premiums for the full year with consolidated net premiums earned increasing 7.8 percent and 9.9 percent, respectively, in the fourth quarter and full year 2016 as compared to the same periods of 2015," stated Randy A. Ramlo, president and chief executive officer. "However, looking ahead to 2017 and where we are in the current softening market cycle, our expectation is that the pace of our premium growth will slow moderately compared to the level of growth we have experienced over the last 3 years."
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