United Fire Group (UFCS) 2015年年度報告「NASDAQ」.pdf

1、Its just good business.U N IT ED F IR E G R O U P,I N C.2 0 1 5 Y E A R I N R E V I E WFocused on profit,growth,service,peopleFIN2021_AnnualReport2015.indd 14/5/16 12:51 PM2About UFGInsurance can be complex but selecting coverages,issuing policies,making payments and resolving claims should be simpl

2、e,at least thats how we think at UFG.UFG has been protecting the simpleand complexthings in life since 1946.We offer commercial and personal insurance,life insurance and annuities,and surety bonds through approximately 1,200 independent property and casualty agents and 1,200 independent life insuran

3、ce agents across the country.To serve our customers,we employ more than 1,000 people,with offices in California,Colorado,Iowa(home office),Louisiana,New Jersey,Pennsylvania and Texas.A publicly traded multibillion-dollar-asset company,we hold a financial strength rating of“A”(Excellent)from A.M.Best

4、 Company.In 2015,UFG was named to Forbes“Americas 50 Most Trustworthy Financial Companies”for the second consecutive year.At UFG,we choose to go beyond the complex side of our business and focus on the people side of our businessbecause its the interactions we have with our insurance agents and poli

5、cyholders that are most rewarding to us.That,along with our commitment to ethical business practices,conservative financial management and effective risk mitigation,is the reason thousands of insurance agents and policyholders have chosen UFG since 1946 and beyond.For more information about UFG,visi

6、t .Annual MeetingUFGs annual stockholders meeting will be held at 10 a.m.CT,on Wednesday,May 18,2016,in our home office building in Cedar Rapids,Iowa.The usual notices and proxy material will be mailed to stockholders in advance of the meeting.Our 2015 Form 10-K is filed with the Securities and Exch

7、ange Commission and is available to stockholders upon request to:Corporate Secretary United Fire Group,Inc.118 Second Avenue SE Cedar Rapids,Iowa 52401 Telephone:319-399-5700Registrar and Transfer Agent Computershare Investor Services 2 North LaSalle Street Chicago,Illinois 60602OR3Because its just

8、good business.If UFG were the type of company to rest on our past successes,wed never be where we are today.After 70 years in the industry,we know our success comes from understanding that theres no place for complacency in the insurance business.Rather,the best time for strategic thinking and forwa

9、rd looking is all the timewhen business is good,bad or in-between.Our 2020 Vision was developed in 2014 to help us maintain consistent profitability in spite of the issues that challenge usand all insurance companiesfrom year to year:destructive weather-related catastrophes,tough insurance cycles an

10、d difficult investment markets.Specifically,it aims to improve how we operate in relation to our profit,growth,service and people.Were asking ourselves this:how can we be a better investment for our shareholders,a better partner for our agents,a better insurer for our policyholders and a better empl

11、oyer for our people?Our 2020 Vision brings our entire workforce to the same page of thought,offering clear direction and guidance.It empowers us to make strategic decisions with a forward-looking lens.Why a vision and why now?ProfitAchieve a three-year return on equity in the top quartile of our pee

12、rsGrowthIncrease our written premiums ServiceProvide best-in-class service for agents and policyholdersPeopleBe the best place to work by enhancing employee recruitment and retentionExpanding in downtown Cedar RapidsAt UFG,were not only expanding our business,were expanding our footprint in downtown

13、 Cedar Rapids,too.With the purchase of the 1st Avenue and 1st Street building,we now own an entire city block in downtown Cedar Rapids,as well as the historic Security Building across the street.FOCUSED ON GROWTH2020 VISION:THE GOALS202034When I consider our financial performance for 2015,a couple p

14、hrases come to mind,such as“it was a year we wouldnt mind repeating”or“we wish every year could be like this.”With above-average profits and lower-than-average losses,those phrases perfectly capture what 2015 was for UFG.It was a year that wouldnt have been possible without the support of our employ

15、ees,insurance agents and policyholders,who believe as we do,that the insurance business is simply about people and protection.Were not here to merely issue policies and process claims;were here to protect peoples businesses,lives,homes and vehicles.And,when a loss occurs,were here to help them recov

16、er.As CEO of UFG,I have the privilege of knowing and working with the most genuine,compassionate and hardworking people in this businessall right here,in our offices and out in our agencies,working to protect people every day.I thank them for their extra work(and extra hours)in 2015.The single effor

17、ts of our employees and insurance agents all contribute to the success of UFG,positively impacting our bottom line,as well as the way we do business and serve our customers.Letter to Shareholders Randy A.Ramlo President&CEO4Now lets talk numbers!In 2015,we produced earnings per share of$3.53,a combi

18、ned ratio of 92.0 percent and a return on equity(ROE)of 10.5 percent.Our book value at year end was$34.94 per share,which is an improvement of 6.9 percent,and our stock price continued to rise,closing at$38.31 per share.As much as wed love to repeat our exceptional results in 2016,the insurance cycl

19、es and weather patterns dont usually allow for repeat performances.So,well continue to focus on our 2020 Vision goals,which Im pleased to report were another year closer to achieving.During 2015,we continued to make progress toward our 2020 Vision goals for profit,growth,service and people.PROFITMax

20、imize our return on equityTo meet our goal of having a three-year ROE in the top quartile of our peers,we are striving to produce double-digit ROEs,which we achieved in 2015,producing an ROE of 10.5 percent for the year.Related to this,we also want to maintain a pure loss ratio of less than 50 perce

21、nt,underwriting expenses of less than 31 percent and loss adjustment expenses of less than 15 percent.Achievements in“profit”n In 2015,we experienced low single-digit percentage increases on renewal premiums for smaller commercial accounts,with flat to low single-digit percentage decreases on renewa

22、ls for larger commercial accounts;2015 marked the fourth straight year of commercial lines pricing increases on our overall book of business.In our personal lines division,weve experienced pricing increases on our overall book of business for more than five consecutive years,with an average increase

23、 in the mid-single digits on renewal business in 2015.n For the first time in several years,all of our regional branchesMidwest,Great Lakes,Denver,East Coast,Gulf Coast and West Coastachieved an underwriting profit in 2015,which is indicative of our efforts to implement consistent underwriting pract

24、ices and guidelines across the regions.n Catastrophe losses were less than expected in 2015,adding 3.8 percentage points to the combined ratio.In any given year,we anticipate catastrophe losses to add 6 percentage points to the combined ratio.n We experienced a decrease in our GAAP combined ratio of

25、 5.8 percentage points to 92.0 percent in 2015,a result of a 5.5 percentage point improvement in our loss ratio and a 0.3 percentage point improvement in our expense ratio.FOCUSED ON SERVICENamed one of“Americas 50 Most Trustworthy Financial Companies”If the insurance business is about peopleand we

26、believe it isthen the insurance policy is about trust.Thats why being named one of“Americas 50 Most Trustworthy Financial Companies”by Forbes for the second consecutive year is so important.It recognizes us for our transparent accounting practices and solid corporate governance,reinforcing to our cu

27、stomers that they can trust us to make good on our promise of protection.continued56GROWTHIncrease our written premiumsAs part of our 2020 Vision,our goal is to increase written premiums for our property and casualty segment by 2020.At$927 million for the property and casualty segment at year-end 20

28、15an increase of 10.5 percent from year-end 2014were continuing to make good strides.To achieve our written premiums goal,were focusing primarily on organic growth,boosting our market share in the regions where we currently operate through increases in new business premiums,renewal prices and policy

29、 retention rates.Achievements in“growth”n UFG entered into the state of Ohio on September 1,2015,and produced$1 million in written premiums during the first four months.n UFG appointed 96 new agencies in 2015 and three of our 10 target growth statesAlabama,Nevada and North Dakotahave now exceeded$10

30、 million in written premiums.n In 2015,we released seven new or updated products into production and expanded our association business and state availability,which resulted in additional written premiums.n We continued to expand our specialty division of excess and surplus lines of business,producin

31、g$21.2 million in written premiums in 2015.Our specialty insurance is currently available in the states of Arizona,California,Colorado,Idaho,New Mexico,Nevada,Oregon and Utah;we will focus on appointing additional brokers in those states in 2016.FOCUSED ON PEOPLENamed a“Top Workplace”UFG was named a

32、“Top Workplace”for 2015 by the Des Moines Register.The award is based solely on the results of employee surveys,which makes it especially meaningful.As part of our 2020 Vision,UFG is committed to giving our employees jobs that are rewarding and fulfilling,a workplace that is productive and positive,

33、and the opportunity to learn and grow to their full potential.We dont believe thats too much to ask for in a company.Focused on profit,growth,service,peoplen Our life insurance segment experienced a 29 percent increase in premiums in 2015,driven by sales of our single premium whole life policies.As

34、part of our strategy to sell more life insurance products that arent as interest-rate sensitive,we introduced a new graded benefit whole life product in 2015.We also increased sales of our long-term care coverage solution,as more consumers are seeking protection for long-term care.These life segment

35、 earnings were somewhat offset by the write-down of an energy sector security,as well as a decrease in investment income.SERVICEProvide best-in-class service for agents and policyholdersWeve always prided ourselves on our high level of customer service,but its important that were delivering an overa

36、ll great customer experience at every single touchpointfrom our emails and phone calls to our websites and printed materials.Theres no doubt that a helpful attitude and pleasant demeanor go a long way when assisting a customer,but the customer experience goes far beyond that.Our 2020 Vision encourag

37、es us to think from the viewpoint of our agents and policyholders,considering:are we easy to do business with;are we offering quality products at an affordable price;are our value-added services beneficial?Asking and answering these questions helps us provide the best customer Our people are what ma

38、kes UFG such a great company to work for and a great company to do business with.“”Randy Ramlocontinued78FOCUSED ON PEOPLEInaugural recipients of Scotty McIntyre Jr.“Go Beyond”awardIt was our former CEO Scotty McIntyre Jr.(19332009)who showed us the importance of viewing the insurance business as a

39、people business.In his interactions with agents,policyholders and employees,he always chose to go beyond the numbers.Today,the values that Scotty stood for live on at UFG through the Scotty McIntyre Jr.“Go Beyond”award,which annually recognizes our agents and employees for their exceptional communit

40、y service.In 2015,we accepted nominations for the award and proudly announced our three winners in January 2016.experience we can.This,in turn,creates loyal and supportive customersand we know those are the very best to have.Achievements in“service”n In service audits for 2015,claims employees met o

41、r exceeded their goals to set up claims on the same day as received,to contact insureds within 24 hours and to provide frequent status updates to agencies.n Our loss control efforts continued to yield positive results in 2015.On average,UFG accounts receiving regular loss control services have lower

42、 loss ratios due to significantly fewer and less severe losses,as well as improved policy retention rates.n In 2015,our service center of licensed account specialists assisted commercial policyholders with policy changes,coverage questions,billing inquiries and requests for certificates of insurance

43、 and auto ID cards.This service allows our insurance agents to devote more of their time to enhancing customer relations and prospecting new business.PEOPLEBe the best place to work!Our people are what makes UFG such a great company to work for and a great company to do business with.Their smart dec

44、isions and meaningful contributions have enabled us to grow and expand while maintaining the strong customer relationships that are so important to us.Thanks to our employees,were a big company without the big-company feel.Thats why,as an employer,we feel its essential that we do everything we can t

45、o give our employees jobs that are rewarding and fulfilling,a work environment that is positive and productive,training opportunities to learn and grow,and a work-life balance that really worksthats what our 2020 Vision is all about.Focused on profit,growth,service,people8Achievements in“people”n In

46、 2015,UFG took numerous steps to enhance our employee recruitment and retention,such as offering flexible work arrangements,a new parental leave policy and additional casual days in the office.n To improve how we evaluate employee performance,we decided to eliminate the annual review process in 2015

47、 and replace it with less formal quarterly meetings between supervisors and employees.n UFG was named a“Top Workplace”for 2015 by the Des Moines Register.This award is based solely on the results of employee surveys.CLOSINGAnd now,Ive saved our best news for last.For the first time in our history,UF

48、G ended the year at over$1.0 billion in total revenues,achieving a strong profit performance.This is a major milestone for our company,one we owe to the dedication and determination of our employees,who have embraced our 2020 Vision,and the loyalty and support of our agents and policyholders.It was

49、a great ending to a great year!UFG employee Karen Hernandez is the volunteer director of ReDirect Nuevo Camino,an organization dedicated to at-risk youth in Lincoln,California.UFG agent Garrett Jerue is the co-founder of Hope Lives Foundation,an organization that helps mentor children and young adul

50、t cancer patients in Western Wisconsin.United Life agent Mark Friese is a volunteer at Providing Advocacy,Dignity and Shelter(PADS),an organization focused on helping the homeless based in Libertyville,Illinois.Randy A.Ramlo President&CEOIn the spirit of community service and in the name of each awa

51、rd recipient,UFG proudly contributed$5,000 to these three community service organizations:Hope Lives Foundation,PADS and ReDirect Nuevo Camino.2015 RECIPIENTSUFG believes its important to give back to our communities.This is the inaugural year for the award,and UFG plans to annually recognize our ag

52、ents and employees with this award for exceptional community service and contribute to their respective causes.“”Randy Ramlo91010EARNINGS AND DIVIDENDS PER COMMON SHAREDiluted earnings per common shareCash dividends paid per common share 11 12 13 14 15$0.00$0.60$0.60$0.69$0.78$0.86$1.58$2.98$2.32$3.

53、53TOTAL ASSETS(in millions)$3,619$3,695$3,721$3,857$3,890TOTAL REVENUES(in millions)11 12 13 14 15$705$813$877$942$1,03510Financial highlights10 11 12 13 14 151111(Dollars in Thousands Except Per Share Data)Years Ended December 31 2015 2014 2013 2012 2011Total assets$3,890,376$3,856,689$3,720,672$3,

54、694,653$3,618,924Total stockholders equity$878,897$817,415$782,833$729,177$696,141Book value per share$34.94$32.67$30.87$28.90$27.29Closing stock price$38.31$29.73$28.66$21.84$20.18Revenues:Net premiums earned$930,890$828,330$754,846$694,994$586,783 Investment income,net of investment expenses$100,7

55、81 104,609 112,799 111,905 109,494 Total realized investment gains$2,846 7,270 8,695 5,453 6,440 Other income 401 1,685 702 891 2,291 Total revenues$1,034,918$941,894$877,042$813,243$705,008Net income$89,126$59,137$76,140$40,212$11Basic earnings per common share 3.56 2.34 3.01 1.58 Diluted earnings

56、per common share 3.53 2.32 2.98 1.58 Cash dividends paid per common share 0.86 0.78 0.69 0.60 0.60Combined ratio 92.0%97.8%94.8%101.2%112.1%FOCUSED ON PROFITAchieved$1 billion in revenues In 2015,UFG earned over$1.0 billion in total revenues,achieving a strong profit performance.“This milestone is t

57、he result of the hard work and dedication of our employees and agents and the loyalty of our customers,”said President and CEO Randy Ramlo.“This achievement is in line with our key objectives and demonstrates the execution of our 2020 Vision.”11Board of DirectorsJack B.Evans,ChairmanJames W.Noyce,Vi

58、ce ChairmanJohn-Paul E.BesongScott L.CarltonChristopher R.DrahozalDoug M.Hultquist*Casey D.MahonGeorge D.Milligan Mary K.QuassRandy A.RamloKyle D.SkogmanSusan E.VossLeft to right:Randy RamloChris DrahozalMary QuassJim NoyceJP BesongKyle SkogmanSusan VossDoug HultquistGeorge MilliganCasey MahonScott

59、CarltonJack Evans*Douglas Hultquist tendered his resignation from the board of directors,effective May 1,2016.Were not here to merely issue policies and process claims;were here to protect peoples businesses,lives,homes and vehicles.And,when a loss occurs,were here to help them recover.“”Randy Ramlo

60、12Executive OfficersRandy A.Ramlo President/CEO Michael T.Wilkins Executive Vice President/COO Dawn M.Jaffray Senior Vice President/CFOBarrie W.Ernst Vice President/CIO Neal R.Scharmer Vice President/General Counsel/Corporate Secretary*Persons listed here include those identified as named executive

61、officers in our proxy statement.A complete list of senior management is available at http:/ single efforts of our employees and insurance agents all contribute to the success of UFG,positively impacting our bottom line,as well as the way we do business and serve our customers.“”Randy Ramlo13FOCUSED

62、ON PEOPLEThank you to these UFG employees who represent our entire employee body in all regions of the country.They are making our 2020 Vision a reality!Rafael Jacobo Associate Business Analyst Brandi Northway Claims RepresentativeArt Reynolds Corporate PilotBrittney Wilson Intermediate AccountantJe

63、d Haycraft Claims Associate TraineeSteve Watters Senior Surety Claims RepresentativeKathy Booher United Life Claims Supervisor UNITED FIRE GROUP,INC.United Fire&Casualty CompanyUnited Life Insurance CompanyUFG Specialty Insurance CompanyUnited Fire&Indemnity CompanyUnited Fire Lloyds Addison Insurance CompanyFinancial Pacific Insurance CompanyFranklin Insurance CompanyLafayette Insurance CompanyMercer Insurance CompanyMercer Insurance Company of New Jersey,Inc.UNITED FIRE GROUP,INC.Home Office:118 Second Avenue SE Cedar Rapids,Iowa 52401 Telephone:319-399-5700 UFG 2016.All rights reserved.