Schedule II. Condensed Financial Statements of Parent Company

12 Months Ended

Dec. 31, 2019

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)	2019		2018
Assets
Fixed maturities
Available-for-sale, at fair value (amortized cost $150 in 2019 and $150 in 2018)	$	150	$	150
Investment in subsidiary	880,485		877,893
Cash and cash equivalents	29,878		9,186
Federal income tax receivable	—		1,165
Accrued investment income	3		1
Total assets	$	910,516	$	888,395
Liabilities and stockholders' equity
Liabilities	$	44	$	20
Stockholders' equity
Common stock, $0.001 par value, authorized 75,000,000 shares; 25,015,963 and 25,097,408 issued and outstanding in 2019 and 2018, respectively	$	25	$	25
Additional paid-in capital	200,179		203,350
Retained earnings	697,116		715,472
Accumulated other comprehensive income, net of tax	13,152		(30,472		)
Total stockholders' equity	$	910,472	$	888,375
Total liabilities and stockholders' equity	$	910,516	$	888,395

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)	2019			2018			2017
Revenues
Investment income	$	295		$	396		$	133
Total revenues	295			396			133
Expenses
Other operating expenses	$	86		$	95		$	103
Total expenses	86			95			103
Income (loss) before income taxes and equity in net income of subsidiary	209			301			30
Federal income tax expense (benefit)	44			(1,165		)	(1,060		)
Net income before equity in net income of subsidiary	$	165		$	1,466		$	1,090
Equity in net income of subsidiary	14,655			26,184			49,933
Net income	$	14,820		$	27,650		$	51,023
Other comprehensive income (loss)
Change in unrealized appreciation on investments held by subsidiary	$	70,127		$	(50,985	)	$	72,251
Change in liability for underfunded employee benefit plans of subsidiary	(20,924		)	25,513			(26,122		)
Other comprehensive income (loss), before tax and reclassification adjustments	$	49,203		$	(25,472	)	$	46,129
Income tax effect	(10,334		)	5,349			(17,540		)
Other comprehensive income (loss), after tax, before reclassification adjustments	$	38,869		$	(20,123	)	$	28,589
Reclassification adjustment for net realized gains of the subsidiary included in income	1,521			784			(6,390		)
Reclassification adjustment for employee benefit costs of the subsidiary included in expense	4,497			6,642			5,408
Total reclassification adjustments, before tax	$	6,018		$	7,426		$	(982	)
Income tax effect	(1,263		)	(1,559		)	344
Total reclassification adjustments, after tax	$	4,755		$	5,867		$	(638	)
Comprehensive income	$	58,444		$	13,394		$	78,974

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)	2019			2018			2017
Cash flows from operating activities
Net income	$	14,820		$	27,650		$	51,023
Adjustments to reconcile net income to net cash provided by operating activities
Equity in net income of subsidiary	(14,655		)	(26,184		)	(49,933		)
Dividends received from subsidiary	57,000			105,000			40,000
Other, net	5,512			1,824			1,415
Total adjustments	$	47,857		$	80,640		$	(8,518	)
Net cash provided by operating activities	$	62,677		$	108,290		$	42,505
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	$	(32,662	)	$	(105,408	)	$	(27,337	)
Repurchase of common stock	(11,700		)	(5,404		)	(29,784		)
Issuance of common stock	2,377			7,171			4,828
Net cash used in financing activities	$	(41,985	)	$	(103,641	)	$	(52,293	)
Net change in cash and cash equivalents	$	20,692		$	4,649		$	(9,788	)
Cash and cash equivalents at beginning of period	9,186			4,537			14,325
Cash and cash equivalents at end of year	$	29,878		$	9,186		$	4,537

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.