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
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
08-01-23 1433ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
Small-Cap and Value Stocks Are Undervalued
-
Why We Expect the Job Market’s Slowdown to Renew in 2024
-
5 Undervalued Stocks to Buy to Play a Little Defense
-
Markets Brief: AI Leaders Excel In Earnings Season So Far
-
What History Tells Us About the Fed’s Next Move
-
What’s Happening In the Markets This Week
-
Alphabet’s New Dividend: What Investors Need to Know
-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
SiriusXM Earnings: Decent Results With Plan for Technology and Content Investment to Drive Growth
-
Coca-Cola Earnings: Solid Volume On Innovation and Digital Engagement
-
Is Berkshire Hathaway a Buy Before the Annual Meeting?
-
Investment Opportunities in the Drug Distribution Industry
-
Why the End of Quantitative Tightening Matters
-
Eli Lilly Earnings: Strong Weight-Loss Drug Sales Expand Margins
-
After Earnings, Is Meta Stock a Buy, a Sell, or Fairly Valued?
-
After Earnings, Is Boeing Stock a Buy, a Sell, or Fairly Valued?