These are challenging times for the insurance industry, and small-cap player United Fire (UFCS)
has not been immune. Healthy reserve releases have helped boost
underwriting results, but the top line remains pressured, and management
has decided to reinvest in the business by boosting its technology
platform - a decision that should pay off long term, but that will
pressure expense ratios in the near term. While United Fire has a decent
enough business focusing on smaller businesses and offering coverage
for commercial auto, fire (and allied lines), workers' comp, and product
liability, the valuation more or less already captures the positives of
the story.
Read more here:
United Fire Looks A Little Overheated In A Still-Challenging Sector
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