United Fire & Casualty Company (UFCS, Financial) filed Quarterly Report for the period ended 2009-03-31.
United Fire & Casualty Company is engaged in the business of writing property casualty and life insurance. Their property and casualty segment includes the following companies all of which are wholly owned by United Fire: Addison Insurance Company a property and casualty insurer Lafayette Insurance Company a property and casualty insurer and American Indemnity Financial Corporation a holding company. United Fire & Casualty Company has a market cap of $509.1 million; its shares were traded at around $19.12 with and P/S ratio of 0.9. The dividend yield of United Fire & Casualty Company stocks is 3.1%. United Fire & Casualty Company had an annual average earning growth of 20.9% over the past 10 years.
For the three-month period ended March 31, 2009, we reported a federal income tax benefit of $1.8 million, compared to a federal income tax expense of $6.7 million with an effective tax rate of 25.0 percent for the three-month period ended March 31, 2008. Our effective tax rate differs from the federal statutory rate of 35.0 percent due principally to the effect of tax-exempt municipal bond interest income and non-taxable dividend income. In 2008 a reduction in the valuation allowance on our deferred tax assets also had an effect on our effective tax rate.
Net investment income decreased $2.8 million in the three-month period ended March 31, 2009 due to lower market interest rates and a decrease in the fair value of our investments in limited liability partnership holdings, which we record under the equity method. We recorded realized investment losses of $.7 million in the three-month period ended March 31, 2009, compared with realized investment gains of $.1 million in the three-month period ended March 31, 2008. Investment losses for the property and casualty insurance segment were primarily due to the other-than-temporary investment write-down of $1.8 million for a fixed maturity security in the three-month period ended March 31, 2009.
Realized investment losses were $2.8 million in the three-month period ended March 31, 2009, compared with realized investment losses of $1.3 million in the three-month period ended March 31, 2008. Investment losses for first quarter 2009 were primarily attributable to other-than-temporary investment write-downs of $2.8 million in fixed maturity securities and equity securities.
During the three-month period ended March 31, 2009, we recorded $63.5 million in annuity deposits compared to $28.4 million in the three-month period ended March 31, 2008, as consumers chose to invest their money in products with guaranteed rates of return. We expect this trend to continue throughout 2009. Pursuant to GAAP, we do not report annuity deposits as net premiums earned. Rather, we record annuity deposits as liabilities for future policyholder benefits. Revenues from annuities con
Read the The complete ReportUFCS is in the portfolios of David Dreman of Dreman Value Management, David Dreman of Dreman Value Management.
United Fire & Casualty Company is engaged in the business of writing property casualty and life insurance. Their property and casualty segment includes the following companies all of which are wholly owned by United Fire: Addison Insurance Company a property and casualty insurer Lafayette Insurance Company a property and casualty insurer and American Indemnity Financial Corporation a holding company. United Fire & Casualty Company has a market cap of $509.1 million; its shares were traded at around $19.12 with and P/S ratio of 0.9. The dividend yield of United Fire & Casualty Company stocks is 3.1%. United Fire & Casualty Company had an annual average earning growth of 20.9% over the past 10 years.
Highlight of Business Operations:
Our annuity sales increased over 100.0 percent in the three-month period ended March 31, 2009, however, our life insurance sales were down. We attribute the significant increase in our annuity sales to more consumers choosing investment products that offer guaranteed rates of return. Also, because we had fewer annuities with expiring interest rate guarantees in the three-month period ended March 31, 2009, we experienced a net cash inflow of $19.4 million related to our annuity business, compared with a net cash outflow of $11.3 million related to our annuity business in the three-month period ended March 31, 2008.For the three-month period ended March 31, 2009, we reported a federal income tax benefit of $1.8 million, compared to a federal income tax expense of $6.7 million with an effective tax rate of 25.0 percent for the three-month period ended March 31, 2008. Our effective tax rate differs from the federal statutory rate of 35.0 percent due principally to the effect of tax-exempt municipal bond interest income and non-taxable dividend income. In 2008 a reduction in the valuation allowance on our deferred tax assets also had an effect on our effective tax rate.
Net investment income decreased $2.8 million in the three-month period ended March 31, 2009 due to lower market interest rates and a decrease in the fair value of our investments in limited liability partnership holdings, which we record under the equity method. We recorded realized investment losses of $.7 million in the three-month period ended March 31, 2009, compared with realized investment gains of $.1 million in the three-month period ended March 31, 2008. Investment losses for the property and casualty insurance segment were primarily due to the other-than-temporary investment write-down of $1.8 million for a fixed maturity security in the three-month period ended March 31, 2009.
Realized investment losses were $2.8 million in the three-month period ended March 31, 2009, compared with realized investment losses of $1.3 million in the three-month period ended March 31, 2008. Investment losses for first quarter 2009 were primarily attributable to other-than-temporary investment write-downs of $2.8 million in fixed maturity securities and equity securities.
During the three-month period ended March 31, 2009, we recorded $63.5 million in annuity deposits compared to $28.4 million in the three-month period ended March 31, 2008, as consumers chose to invest their money in products with guaranteed rates of return. We expect this trend to continue throughout 2009. Pursuant to GAAP, we do not report annuity deposits as net premiums earned. Rather, we record annuity deposits as liabilities for future policyholder benefits. Revenues from annuities con
Read the The complete ReportUFCS is in the portfolios of David Dreman of Dreman Value Management, David Dreman of Dreman Value Management.
