Schedule II. Condensed Financial Statements of Parent Company

12 Months Ended

Dec. 31, 2018

Condensed Financial Information Disclosure [Abstract]

Schedule II. Condensed Financial Statements of Parent Company

Schedule II. Condensed Financial Statements of Parent Company

United Fire Group, Inc. (parent company only)

Condensed Balance Sheets

	December 31,
(In thousands, except share data)	2018			2017
Assets
Fixed maturities
Held-to-maturity, at amortized cost (fair value $0 in 2018 and $150 in 2017)	$	—		$	150
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017)	150			—
Investment in subsidiary	877,893			967,590
Cash and cash equivalents	9,186			4,537
Federal income tax receivable	1,165			1,095
Accrued investment income	1			1
Total assets	$	888,395		$	973,373
Liabilities and stockholders' equity
Liabilities	$	20		$	—
Stockholders' equity
Common stock, $0.001 par value, authorized 75,000,000 shares; 25,097,408 and 24,916,806 issued and outstanding in 2018 and 2017, respectively	$	25		$	25
Additional paid-in capital	203,350			196,334
Retained earnings	715,472			608,700
Accumulated other comprehensive income, net of tax	(30,472		)	168,314
Total stockholders' equity	$	888,375		$	973,373
Total liabilities and stockholders' equity	$	888,395		$	973,373

This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8 of this Annual Report on Form 10-K.

Schedule II. Condensed Financial Statements of Parent Company (continued)

United Fire Group, Inc. (parent company only)

Condensed Statements of Income and Comprehensive Income

	For the Years Ended December 31,
(In thousands)	2018			2017			2016
Revenues
Investment income	$	396		$	133		$	66
Total revenues	396			133			66
Expenses
Other operating expenses	$	95		$	103		$	73
Total expenses	95			103			73
Income (loss) before income taxes and equity in net income of subsidiary	301			30			(7		)
Federal income tax benefit	(1,165		)	(1,060		)	(3		)
Net income (loss) before equity in net income of subsidiary	$	1,466		$	1,090		$	(4	)
Equity in net income of subsidiary	26,184			49,933			49,908
Net income	$	27,650		$	51,023		$	49,904
Other comprehensive income (loss)
Change in unrealized appreciation on investments held by subsidiary	$	(50,985	)	$	72,251		$	13,017
Change in liability for underfunded employee benefit plans of subsidiary	25,513			(26,122		)	30,045
Other comprehensive income (loss), before tax and reclassification adjustments	$	(25,472	)	$	46,129		$	43,062
Income tax effect	5,349			(17,540		)	(15,072		)
Other comprehensive income (loss), after tax, before reclassification adjustments	$	(20,123	)	$	28,589		$	27,990
Reclassification adjustment for net realized gains of the subsidiary included in income	784			(6,390		)	(4,520		)
Reclassification adjustment for employee benefit costs of the subsidiary included in expense	6,642			5,408			5,486
Total reclassification adjustments, before tax	$	7,426		$	(982	)	$	966
Income tax effect	(1,559		)	344			(338		)
Total reclassification adjustments, after tax	$	5,867		$	(638	)	$	628
Comprehensive income	$	13,394		$	78,974		$	78,522

United Fire Group, Inc. and its subsidiaries file a consolidated federal income tax return. The federal income tax provision represents an allocation under its tax allocation agreements.

This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8 of this Annual Report on Form 10-K.

Schedule II. Condensed Financial Statements of Parent Company (continued)

United Fire Group, Inc. (parent company only)

Condensed Statements of Cash Flows

	For the Years Ended December 31,
(In thousands)	2018			2017			2016
Cash flows from operating activities
Net income	$	27,650		$	51,023		$	49,904
Adjustments to reconcile net income to net cash provided by operating activities
Equity in net income of subsidiary	(26,184		)	(49,933		)	(49,908		)
Dividends received from subsidiary	105,000			40,000			24,000
Other, net	1,824			1,415			2,995
Total adjustments	$	80,640		$	(8,518	)	$	(22,913	)
Net cash provided by operating activities	$	108,290		$	42,505		$	26,991
Cash flows from investing activities
Proceeds from maturity of held-to-maturity investments	$	—		$	150		$	—
Purchase of held-to-maturity investments	—			(150		)	—
Net cash used in investing activities	$	—		$	—		$	—
Cash flows from financing activities
Payment of cash dividends	$	(105,408	)	$	(27,337	)	$	(24,591	)
Repurchase of common stock	(5,404		)	(29,784		)	(3,746		)
Issuance of common stock	7,171			4,828			9,922
Tax impact from issuance of common stock	—			—			(816		)
Net cash used in financing activities	$	(103,641	)	$	(52,293	)	$	(19,231	)
Net change in cash and cash equivalents	$	4,649		$	(9,788	)	$	7,760
Cash and cash equivalents at beginning of period	4,537			14,325			6,565
Cash and cash equivalents at end of year	$	9,186		$	4,537		$	14,325

This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8 of this Form 10-K.