United Fire & Casualty Co., headquartered in Cedar Rapids, Iowa, reported an increase in net income for the fourth quarter and full year 2010, but net premiums earned decreased by 1.9 percent for the year and by 0.7 percent for the quarter, compared with 2009.
Still, United Fire President and CEO Randy Ramlo said the company’s results for the quarter and the year “are a tremendous improvement over where things stood a year ago.” Ramlo attributed the drop in written premium to a continuing weak economy and a competitive insurance market.
Net premiums earned came in at $ 118,925,000 for the quarter and $469,473,000 for all of 2010. Total revenues were $150,029,000 for the fourth quarter 2010, up 0.6 percent over the same period in 2009. For the full year the company had total revenues of $591,072,000, a 3.3 percent increase from 2009.
“Despite some encouraging signs, we’re still seeing a slow recovery throughout our regions that is affecting our current and potential commercial policyholders,” Ramlo said in an statement released by the company. “Cancellations due to non-payments and/or companies going out of business also contributed to the decline in our premium writings. While our prices remain competitive in order to retain and attract business, we’re maintaining our focus on writing quality accounts and following our underwriting standards.”
He said the company has focused on reducing loss expenses and has grown its personal lines sector to offset a decrease in commercial lines.
In the property/casualty segment, the company recorded net premiums written of $90,723,000 for the fourth quarter 2010, compared with $87,652,000 in net premiums written for the same period in 2009. For the full year 2010, net premiums written in the P/C segment came in at $414,908,000 compared with $424,827,000 in net premiums written for 2009.
United Fire’s combined ratio for the fourth quarter 2010 was 104.1 percent compared with 114.1 percent for the fourth quarter 2009. The company’s combined ratio for the year 2010 was 99.9 percent compared with 115.2 percent for the previous year.
Source: United Fire & Casualty Co.
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