United Fire Group, Inc., an insurance provider, has reported a net income of $8.73 million, or $0.34 per diluted share, for the third quarter ended September 30, 2012, compared to a net loss of $4.78 million, or $0.19 loss per diluted share, for the same quarter ended September 30, 2011.
Total revenues for the third quarter ended September 30, 2012 were $206.58 million, compared to $187.57 million for the same quarter ended September 30, 2011.
Net income for the nine months ended September 30, 2012 was $42.63 million, or $1.67 per diluted share, compared to a net loss of $16.88 million, or $0.65 loss per diluted share, for the same period ended September 30, 2011.
Total revenues for the nine months ended September 30, 2012 were $599.93 million, compared to $513.45 million for the same period ended September 30, 2011.
Randy Ramlo, president and CEO, said: "We are pleased to see another quarter of positive rate increases, continuing our fundamentally strong organic growth over the past year. Approximately half of the 11 percent increase in net premiums earned in the third quarter of 2012 is due to rate increases, which we are now seeing in all regional branches. We also continue to see an increase in new business, even as we've become more selective on the business we write. As we expected, our efforts to increase pricing have also resulted in a slight reduction in our retention rates.
"Several signs point to a slight improvement in the economy, as well. There's been a reduction in the number of out-of-business policy cancellations in most regions and we are seeing growth in premium from policy changes and increased endorsements. We are particularly encouraged by an increase in audit premium, or business policies that are audited to determine accurate premiums based on covered sales or payrolls."