United Fire Group posted its best second-quarter combined ratio in more than 15 years in Q2 2026. The result is a clear signal of carrier health at a time when underwriting discipline is separating the field.
The Cedar Rapids, Iowa-based property and casualty insurer reported a combined ratio of 95.3% for the three months ending in June 30, a 1.1-point improvement over the prior-year quarter. Net written premium climbed 9% to $406.4 million, while net income rose 45% to $33.4 million.
The result behind the combined ratio is the more important number for brokers. UFG's underlying loss ratio, which strips out catastrophe losses and prior year reserve development, came in at 57.2% with zero adverse reserve development on prior year claims. A carrier posting a sub-60% underlying loss ratio with no reserve surprises is one that is managing its book without leaning on favorable development to mask current-year problems.
Catastrophe losses landed at 2.7%, well below UFG's five-year and 10-year historical averages. The company said the improvement came from sustained lower frequency and earned rate achievement across core commercial lines, not just a benign weather quarter. Net investment income rose 33% to $28.9 million, driven by portfolio growth and reinvestment at higher yields.
The line-by-line net written premium breakdown tells brokers more than the headline figure. Commercial other liability, which covers bodily injury and property damage from general business operations, grew 12% to $130.8 million. Commercial auto increased 13% to $97.7 million, while workers' compensation jumped 27% to $28.3 million.
UFG's other liability growth comes as social inflation continues to keep casualty conditions hard across much of the US commercial insurance market. A carrier still growing that line at a 65.7% loss ratio is one that is pricing and selecting risk carefully in a segment where many competitors are pulling back.
Surety posted the sharpest gain in the quarter, up 48% to $23.4 million, a move that may indicate expanded appetite or capacity in that line. The one contraction worth noting is commercial fire and allied lines, which declined 9% to $67.9 million. Brokers placing commercial property with UFG should factor that into renewal conversations, as it may point to tighter underwriting appetite in that segment.
The rate story is what brokers placing commercial renewals will find most useful. UFG's core commercial average renewal premium increased 4.6% in Q2 2026, composed of 2.9% in rate increases and 1.7% from exposure changes. Workers' compensation excluded, the average was 5%, with 3.5% from rate and 1.5% from exposure.
Those figures tell brokers that UFG is growing its book through pricing discipline rather than rate concessions. A carrier adding 9% in net written premium while holding a 95.3% combined ratio and raising rates at renewal is not chasing volume. It is selecting risk carefully and pricing for it.
UFG is distributed exclusively through independent agencies. Independent agents wrote 87.7% of US commercial lines premiums in 2025, according to the Big "I" 2026 Market Share Report, a channel share that has held steady for several years. AM Best rates members of the United Fire and Casualty Group at A- (Excellent), a carrier stability signal brokers can use in client conversations.
President and CEO Kevin Leidwinger said the quarter's results were the company's strongest year-to-date financial performance in two decades. He attributed the performance to deeper underwriting expertise and stronger alignment with distribution partners.
