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Insurer United Fire's stock slides 14% after extreme weather events spark profit warning

Insurer United Fire Group Inc.'s stock (UFCS) was down 14% Tuesday, after the company issued a profit warning for its second quarter amid elevated catastrophe claims. The Cedar Rapids, Iowa-based company said it expects a loss of $2.23 a share and an adjusted loss of $2.27 a share. Two analysts that provided estimates to FactSet were expecting a loss of $1.11 a share before Monday's announcement. The company said the quarter would include pretax reserve strengthening for prior accident years of $53 million and pretax catastrophe losses of $33 million. That's after 18 separate weather events. The U.S. has been beset by weather events this year, from severe flooding in California that started after Christmas and lasted into March, dumping rain and record snowfall in parts of the Sierra and Southern California. That was followed by a cold wave in the Northeast in early February that downed trees and power lines in New England. The Southeast and Midwest were hammered by tornadoes and severe thunderstorms and hail in March and April. United Fire will report second-quarter earnings on Aug. 7. The stock has fallen 24% in the year to date, while the S&P 500 has gained 19%.

-Ciara Linnane

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08-01-23 1433ET

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