Attached files
| file | filename |
|---|---|
| EX-99.2 - EXHIBIT 99.2 - UNITED FIRE GROUP INC | e992pressrelease180518.htm |
| 8-K - 8-K - UNITED FIRE GROUP INC | ufcs8k180518.htm |
Exhibit 99.1—Shareholder Presentation from the Annual Meeting of Shareholders on May 16, 2018
Definitions of Non-GAAP Information and Reconciliations to Comparable GAAP Measures
United Fire Group, Inc. (the “Company” or "UFG") prepares its public financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP"). Management also uses certain non-GAAP measures to evaluate its operations and profitability. As further explained below, management believes that disclosure of certain non-GAAP financial measures enhances investor understanding of our financial performance. Non-GAAP financial measures disclosed in this report include: net income per diluted share excluding the impact of the Tax Cuts and Jobs Act and adjusted operating income. The Company has provided the following definitions and reconciliations of the non-GAAP financial measures:
Adjusted operating income: Adjusted operating income is calculated by excluding net realized investment gains and losses after applicable federal and state income taxes from net income. Management believes adjusted operating income is a meaningful measure for evaluating insurance company performance. Investors and equity analysts who invest and report on the insurance industry and the Company generally focus on this metric in their analyses because it represents the results of the Company's normal, ongoing performance. The Company recognizes that adjusted operating income is not a substitute for measuring GAAP net income, but believes it is a useful supplement to GAAP information.
Net Income Reconciliation | |||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||
(In Thousands, Except Per Share Data) | 2017 | 2016 | Change % | 2017 | 2016 | Change % | |||||||||||||
Income Statement Data | |||||||||||||||||||
Net income | $ | 45,993 | $ | 11,995 | 283.4 | % | $ | 51,023 | $ | 49,904 | 2.2 | % | |||||||
Less: after-tax net realized investment gains (losses) | 693 | (90 | ) | NM | 5,241 | 3,967 | 32.1 | % | |||||||||||
Adjusted operating income | $ | 45,300 | $ | 12,085 | 274.8 | % | $ | 45,782 | $ | 45,937 | (0.3 | )% | |||||||
Diluted Earnings Per Share Data | |||||||||||||||||||
Net income | $ | 1.81 | $ | 0.46 | 293.5 | % | $ | 1.99 | $ | 1.93 | 3.1 | % | |||||||
Less: after-tax net realized investment gains | 0.03 | — | — | % | 0.20 | 0.15 | 33.3 | % | |||||||||||
Adjusted operating income | $ | 1.78 | $ | 0.46 | 287.0 | % | $ | 1.79 | $ | 1.78 | 0.6 | % | |||||||
NM=Not meaningful