United Fire and Casualty Co. Revised

March 21, 2005

S&P revised its outlook on United Fire & Casualty Co., UFCS’s wholly owned property/casualty subsidiaries and UFCS’s life subsidiary to stable from negative. S&P also affirmed its “A” counterparty credit and financial strength ratings on these companies.

S&P believes some tapering in underwriting profits and net earnings is likely to occur in 2005 because of softening in property/casualty rates and stronger competition. The group’s capital adequacy ratio is expected to remain strong and in-line with companies rated at this level.

Although the company’s management team is committed to a long-term strategy focused on profitable growth by improving on its operating efficiencies and risks underwritten, it maintains a narrow market scope. The company’s longevity in its core market of small to midsize commercial risks in rural and suburban areas partially offsets and protects its position.

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