UNITED FIRE GROUP INC

Previous wording

The Company is a member of Lloyd's through its insurance subsidiary, McIntyre Cedar Corporate Member LLP. Lloyd's operates as an insurance marketplace whereby members join syndicates to underwrite property and casualty and reinsurance business through a managing agent in return for receiving premiums. The Company participates in 13 syndicates as of March 31, 2026. The Company is required to maintain capital at Lloyd's, referred to as Funds at Lloyd's ("FAL"), to support participation in these syndicates.

Current wording

The Company is a member of Lloyd's through its insurance subsidiary, McIntyre Cedar Corporate Member LLP. Lloyd's operates as an insurance marketplace whereby members join syndicates to underwrite property and casualty and reinsurance business through a managing agent in return for receiving premiums. The Company participates in 14 syndicates as of June 30, 2026. The Company is required to maintain capital at Lloyd's, referred to as Funds at Lloyd's ("FAL"), to support participation in these syndicates.

Previous wording

For the three-month period ended March 31, 2026, approximately 50 percent of our property and casualty premiums were written in Texas, California, New Jersey, Iowa, and Missouri.

Current wording

For the six-month period ended June 30, 2026, approximately 50 percent of our property and casualty premiums were written in Texas, California, New Jersey, Iowa, and Missouri.

Previous wording

Underlying loss ratio represents the net loss ratio less the impacts of catastrophes and non-catastrophe prior period reserve development. The underlying combined ratio represents the combined ratio less the impacts of catastrophes and non-catastrophe prior period reserve development. The Company believes that the underlying loss ratio and underlying combined ratio are meaningful measures to understand the underlying trends in the core business in the current accident year, removing the volatility of catastrophes and prior period impacts. Management believes separate discussions on catastrophe losses and prior period reserve development are important to understanding how the Company is managing catastrophe risk and in identifying developments in longer-tailed business.

Current wording

Underlying loss ratio represents the net loss ratio less the impacts of catastrophes and non-catastrophe prior period reserve development. The underlying combined ratio represents the combined ratio less the impacts of catastrophes and non-catastrophe prior period reserve development. The Company believes that the underlying loss ratio and underlying combined ratio are meaningful measures to understand the underlying trends in the core business in the current accident year, removing the volatility of catastrophes and prior period impacts. Management believes separate discussions on catastrophe losses and prior period reserve development are important to understanding how the Company is managing catastrophe risk and in identifying reserve developments in longer-tailed business.

Previous wording

Prior period reserve development is the increase (unfavorable) or decrease (favorable) in incurred loss and loss adjustment expense reserves at the valuation dates for losses which occurred in previous calendar years. This measure excludes development on catastrophe losses.

Current wording

Prior period reserve development is the increase (unfavorable) or decrease (favorable) in incurred loss and loss adjustment expense reserves at the valuation dates for losses which occurred in previous calendar years. This measure excludes reserve development on catastrophe losses.

Previous wording

The following table includes the consolidated results of our operations for the three-month periods ended March 31, 2026 and 2025, with more detailed components and discussion in the sections that follow. Discussions of the components of net income are presented on a pre-tax basis, unless otherwise noted.

Current wording

The following table includes the consolidated results of our operations for the three- and six-month periods ended June 30, 2026 and 2025, with more detailed components and discussion in the sections that follow. Discussions of the components of net income are presented on a pre-tax basis, unless otherwise noted.

Previous wording

Net written premium is the amount charged for insurance policy contracts issued and recognized on an annualized basis at the effective date of the policy. Net written premium is frequently used by industry analysts and other recognized reporting sources to facilitate comparisons of the performance of insurance companies. Management believes net written premium is a meaningful measure for evaluating insurance company sales performance and geographical expansion efforts. Net written premium for an insurance company consists of direct written premium and assumed premiums, less ceded premiums. The following shows our written premium for the three-month periods ended March 31, 2026 and 2025.

Current wording

Net written premium is the amount charged for insurance policy contracts issued and recognized on an annualized basis at the effective date of the policy. Net written premium is frequently used by industry analysts and other recognized reporting sources to facilitate comparisons of the performance of insurance companies. Management believes net written premium is a meaningful measure for evaluating insurance company sales performance and geographical expansion efforts. Net written premium for an insurance company consists of direct written premium and assumed premiums, less ceded premiums. The following shows our written premium for the three- and six-month periods ended June 30, 2026 and 2025.

Previous wording

Net written premium increased by 12.4% in the three-month period ended March 31, 2026 as compared to the same period in 2025. Core commercial lines net written premium increased 11.4% due to increases in new business, retention and average renewal pricing. Overall, average renewal premiums increased 6.0% with rates increasing 4.3% and exposure changes of 1.7%. Excluding the workers' compensation line of business, the overall average increase in renewal premiums was 6.5%, with 4.8% from rate increases and 1.6% from exposure changes.

Current wording

Net written premium increased by 9.0% and 10.6% in the three- and six-month periods ended June 30, 2026, respectively, as compared to the same periods in 2025. For the three-month period ended June 30, 2026, core commercial average renewal premiums increased 4.6% with rates increasing 2.9% and exposure changes of 1.7%. Excluding the workers' compensation line of business, the overall average increase in renewal premiums was 5.0%, with 3.5% from rate increases and 1.5% from exposure changes.

Previous wording

Net earned premium is calculated on a pro-rata basis over the terms of the respective policies. Unearned premium reserves are established for the portion of written premium applicable to the unexpired terms of the insurance policies in force. The difference between net earned premium and net written premium is the change in unearned premium and the change in prepaid reinsurance premiums. Direct earned premium is recognized ratably over the life of a policy and differs from direct written premium, which is recognized on the effective date of the policy. The following shows our earned premium for the three-month periods ended March 31, 2026 and 2025.

Current wording

Net earned premium is calculated on a pro-rata basis over the terms of the respective policies. Unearned premium reserves are established for the portion of written premium applicable to the unexpired terms of the insurance policies in force. The difference between net earned premium and net written premium is the change in unearned premium and the change in prepaid reinsurance premiums. Direct earned premium is recognized ratably over the life of a policy and differs from direct written premium, which is recognized on the effective date of the policy. The following shows our earned premium for the three- and six-month periods ended June 30, 2026 and 2025.

Previous wording

Net earned premium increased by 11.2% in the three-month period ended March 31, 2026 as compared to the same period in 2025. This increase in net earned premium was consistent with the trend in net written premium.

Current wording

Net earned premium increased by 12.5% and 11.9% in the three- and six-month periods ended June 30, 2026, respectively, as compared to the same periods in 2025. This increase in net earned premium was consistent with the trend in net written premium.

Previous wording

Net investment income was $27.0 million for the three-month period ended March 31, 2026, an increase of $3.6 million compared to the same period in 2025. The increase was primarily from our fixed income portfolio increase of $3.8 million as a result of portfolio growth and reinvestment at higher yields. The pre-tax average yield on fixed income securities was 4.43% as of March 31, 2026 compared to 4.34% for the same period in 2025.

Current wording

Net investment income was $28.9 million for the three-month period ended June 30, 2026, an increase of $7.3 million compared to the same period in 2025. The increase was primarily from our fixed income portfolio increase of $5.0 million as a result of portfolio growth and reinvestment at higher yields. The pre-tax average yield on fixed income securities was 4.57% as of June 30, 2026 compared to 4.32% for the same period in 2025. Income on other long-term investments increased $2.2 million due to an increase in valuation of the underlying investments.

Previous wording

Net investment losses were $0.3 million for the three-month period ended March 31, 2026 as compared to net investment losses of $0.8 million for the same period in 2025. The primary reason for the change relates to opportunistic trading within the fixed maturity portfolio.

Current wording

Net investment losses were $0.4 million and $0.7 million for the three- and six-month periods ended June 30, 2026, respectively, as compared to net investment losses of $1.0 million and $1.8 million for the same periods in 2025. The primary reason for the change relates to opportunistic trading within the fixed maturity portfolio.

Previous wording

The following is a summary of losses and loss settlement expenses for the three-month periods ended March 31, 2026 and 2025:

Current wording

The following is a summary of losses and loss settlement expenses for the three- and six-month periods ended June 30, 2026 and 2025:

Previous wording

For the three-month period ended March 31, 2026, our loss and loss settlement expenses were $18.4 million, or 9.7%, higher than the same period in 2025, and our net loss ratio improved 0.8 points compared to the same period in 2025. This loss ratio improvement was driven by improvement in the catastrophe ratio, partially offset by a slightly higher underlying loss ratio. The underlying loss ratio increase was driven by assumed business tempered some by improvement in core commercial.

Current wording

For the three-month period ended June 30, 2026, our loss and loss settlement expenses were $18.5 million, or 9.6%, higher than the same period in 2025, and our net loss ratio improved 1.6 points compared to the same period in 2025. This loss ratio improvement was driven by improvements in the underlying loss ratio and catastrophe ratio, partially offset by neutral prior year reserve development in 2026 as compared to favorable reserve development in 2025. The underlying loss ratio and catastrophe loss ratio improvements were driven by improvements in the core commercial lines.

Previous wording

The Company experienced neutral prior year reserve development, excluding catastrophe losses, during the three-month period ended March 31, 2026.

Current wording

The Company experienced neutral prior year reserve development, excluding catastrophe losses, during the three- and six-month periods ended June 30, 2026.

Previous wording

In the three-month period ended March 31, 2026, our pre-tax catastrophe losses were $12.7 million, a decrease of $2.8 million compared to the same period in 2025. Catastrophe losses in the three-month period ended March 31, 2026 added 3.7 points to the combined ratio, which is below our five-year and 10-year historical averages. Our catastrophe losses included 21 new events in the three-month period ended March 31, 2026.

Current wording

In the three- and six-month periods ended June 30, 2026, our pre-tax catastrophe losses decreased by $7.8 million and $10.6 million, respectively, compared to the same periods in 2025. Catastrophe losses in the three- and six-month periods ended June 30, 2026 added 2.7 and 3.2 points to the combined ratio, respectively, which is below our five-year and 10-year historical averages. Our catastrophe losses included 20 new events in the three-month period ended June 30, 2026.

Previous wording

DAC is amortized over the period the related premiums are earned. Amortization expense increased for the three-month period ended March 31, 2026, primarily reflecting an increase in deferred underwriting costs associated with continued premium expansion.

Current wording

DAC is amortized over the period the related premiums are earned. Amortization expense increased for the three- and six-month periods ended June 30, 2026, primarily reflecting an increase in deferred underwriting costs associated with continued premium expansion.

Previous wording

The following tables display our net loss ratio for the three-month periods ended March 31, 2026 and 2025:

Current wording

The following tables display our net loss ratio for the three- and six-month periods ended June 30, 2026 and 2025:

Previous wording

The net loss ratio in our commercial lines of business was 58.7% for the three-month period ended March 31, 2026, compared to 60.7% for the same period in 2025. This result was driven by improvement in the underlying loss ratio and favorable catastrophe experience.

Current wording

The net loss ratio in our commercial lines of business was 59.5% for the three-month period ended June 30, 2026, compared to 61.9% for the same period in 2025. This result was driven by improvement in the underlying loss ratio and favorable catastrophe experience, partially offset by less favorable prior year reserve development in 2026 compared to 2025.

Previous wording

The net loss ratio deteriorated 2.4 points in the three-month period ended March 31, 2026 as compared to the same period in 2025. The result was driven by less favorable prior year development and a higher catastrophe ratio, partially offset by improvement in the underlying loss ratio driven by rate attainment versus trends. The 2025 catastrophe ratio was impacted by favorable prior year development.

Current wording

The net loss ratio deteriorated 7.6 and 0.4 points in the three- and six-month periods ended June 30, 2026, respectively, as compared to the same periods in 2025. The result was driven by less favorable prior year reserve development and a higher catastrophe ratio, partially offset by an improved underlying loss ratio in 2026 compared to 2025.

Previous wording

The net loss ratio deteriorated 1.4 points in the three-month period ended March 31, 2026 as compared to the same period in 2025. The result was driven by less favorable prior year development in 2026 compared to 2025, partially offset by a favorable underlying result.

Current wording

The net loss ratio deteriorated 15.0 and 8.4 points in the three- and six-month periods ended June 30, 2026, respectively, as compared to the same periods in 2025. The result was driven by less favorable prior year reserve development in 2026 compared to 2025, partially offset by a favorable underlying loss ratio.

Previous wording

The net loss ratio deteriorated 16.5 points in the three-month period ended March 31, 2026 as compared to the same period in 2025. When surety losses occur, our loss is determined by estimating the cost to complete the remaining work and to pay the contractor's unpaid bills, offset by contract funds due to the contractor, reinsurance, and the value of any collateral to which we may have access. The change in loss ratio was driven by adverse prior year development in 2026 compared to favorable development in 2025. The net deterioration in 2026 was driven by ceded development on large losses from accident year 2023.

Current wording

The net loss ratio deteriorated 3.0 and 9.8 points in the three- and six-month periods ended June 30, 2026, respectively, as compared to the same periods in 2025. When surety losses occur, our loss is determined by estimating the cost to complete the remaining work and to pay the contractor's unpaid bills, offset by contract funds due to the contractor, reinsurance, and the value of any collateral to which we may have access. The change in loss ratio was driven by adverse prior year reserve development in 2026 compared to favorable prior year reserve development in 2025. The net deterioration in 2026 was driven by ceded development on large losses from accident year 2023. This was partially offset by improvement in the underlying loss ratio in 2026 compared to 2025.

Previous wording

The net loss ratio deteriorated 8.0 points in the three-month period ended March 31, 2026 as compared to the same period in 2025. The result was driven overall by higher pricing ratios on several accounts and changes in mix within the assumed book.

Current wording

The net loss ratio deteriorated 4.1 and 5.9 points in the three- and six-month periods ended June 30, 2026, respectively, as compared to the same periods in 2025. The result was driven overall by higher pricing ratios on several accounts, changes in mix within the assumed book, and adverse prior period development compared to 2025. This was partially offset by improvement in the catastrophe loss ratio in 2026 compared to 2025.

Previous wording

The expense ratio improved 3.0 points in the three-month period ended March 31, 2026 as compared to the same period in 2025. The decrease in expense ratio was driven by business growth and non-recurring expenses in the prior period associated with the final stages of development of a new policy administration system.

Current wording

The expense ratio increased 0.5 points and decreased 1.3 points in the three- and six-month periods ended June 30, 2026, respectively, as compared to the same periods in 2025. The increase in expense ratio in the second quarter of 2026 was partially driven by actions to reduce our real estate footprint and future expense ratio along with other normal variability. The decrease in the six-month period ended June 30, 2026 was driven by business growth and non-recurring expenses in the prior period associated with the final stages of development of a new policy administration system.

Previous wording

Our long term debt obligations include $50.0 million of private placement notes issued in December 2020 and $70.0 million and $30.0 million of senior unsecured notes issued in May 2024 and July 2025, respectively. Interest expense increased for the three-month period ended March 31, 2026 due to the issuance of the senior unsecured notes. Refer to Note 8 "Debt" in Part I, Item 1 for more information on our long term debt.

Current wording

Our long term debt obligations include $50.0 million of private placement notes issued in December 2020 and $70.0 million and $30.0 million of senior unsecured notes issued in May 2024 and July 2025, respectively. Interest expense increased for the three- and six-month periods ended June 30, 2026 due to the issuance of the senior unsecured notes. Refer to Note 7 "Debt" in Part I, Item 1 for more information on our long term debt.

Previous wording

The Company's effective tax rate for the three-month periods ended March 31, 2026 and 2025 is different than the federal statutory rate of 21 percent, due primarily to the net effect of tax-exempt municipal bond interest income.

Current wording

The Company's effective tax rate for the three- and six-month periods ended June 30, 2026 and 2025 is different than the federal statutory rate of 21 percent, due primarily to the net effect of tax-exempt municipal bond interest income and tax adjustments related to equity-based compensation.

Previous wording

Adjusted operating income increased in the three-month period ended March 31, 2026, primarily due to an increase in net earned premium of $34.6 million, combined with the catastrophe loss ratio improvement of 1.3 points to 3.7%, slightly offset with the underlying loss ratio increase of 0.5 points to 57.0%. In addition, net investment income increased by $3.6 million, driven by portfolio growth and reinvestment at higher yields. The underwriting expense ratio improved 3.0 points to 34.9%.

Current wording

Adjusted operating income increased in the three-month period ended June 30, 2026, primarily due to an increase in net earned premium of $39.3 million, combined with the catastrophe loss ratio improvement of 2.8 points and an underlying loss ratio improvement of 0.4 points. This was partially offset by an increase in the underwriting expense ratio of 0.5 points and less favorable prior year reserve development. In addition, net investment income increased by $7.3 million, driven by portfolio growth and reinvestment at higher yields.

Previous wording

Our invested assets increased to $2.49 billion at March 31, 2026 from $2.46 billion at December 31, 2025. We utilize a conservative investment philosophy, investing in a diversified portfolio of high-quality, intermediate-term taxable corporate bonds, taxable U.S. government and government agency bonds and tax-exempt U.S. municipal bonds. The composition of our investment portfolio at March 31, 2026 is presented at carrying value in the following table:

Current wording

Our invested assets increased to $2.53 billion at June 30, 2026 from $2.46 billion at December 31, 2025. We utilize a conservative investment philosophy, investing in a diversified portfolio of high-quality, intermediate-term taxable corporate bonds, taxable U.S. government and government agency bonds and tax-exempt U.S. municipal bonds. The composition of our investment portfolio at June 30, 2026 is presented at carrying value in the following table:

Previous wording

(2) As a member of Lloyd's, the Company participates in the syndicate results which include the fair value of the investments. The fair value of Lloyd's syndicate investments included in other long-term investments was $137.4 million at March 31, 2026. Also included in our "Other long-term investments" on the Consolidated Balance Sheets is our interest in limited liability partnerships with a current fair value of $100.1 million at March 31, 2026.

Current wording

(2) As a member of Lloyd's, the Company participates in the syndicate results which include the fair value of the investments. The fair value of Lloyd's syndicate investments included in "Other long-term investments" on the Consolidated Balance Sheets was $116.0 million at June 30, 2026. Also included in "Other long-term investments" is our interest in limited liability partnerships with a current fair value of $103.4 million at June 30, 2026.

Previous wording

The weighted average effective duration of our portfolio of fixed maturity securities was 4.4 years at March 31, 2026 compared to 4.3 years at December 31, 2025. Refer to Note 2 "Investments" in Part I, Item 1 for more information on maturities.

Current wording

The weighted average effective duration of our portfolio of fixed maturity securities was 4.2 years at June 30, 2026 compared to 4.3 years at December 31, 2025. Refer to Note 2 "Investments" in Part I, Item 1 for more information on maturities.

Previous wording

As of March 31, 2026, net unrealized investment losses, after tax, totaled $39.9 million compared to net unrealized losses, after tax, of $25.3 million as of December 31, 2025. The net unrealized investment loss position deteriorated from December 31, 2025 due to the increase in bond market interest rates during the three-month period ended March 31, 2026.

Current wording

As of June 30, 2026, net unrealized investment losses, after tax, totaled $43.7 million compared to net unrealized losses, after tax, of $25.3 million as of December 31, 2025. The net unrealized investment loss position deteriorated from December 31, 2025 due to the increase in bond market interest rates during the six-month period ended June 30, 2026.

Previous wording

The following table displays a consolidated summary of cash sources and uses for the three-month periods ended March 31, 2026 and 2025:

Current wording

The following table displays a consolidated summary of cash sources and uses for the six-month periods ended June 30, 2026 and 2025:

Previous wording

At March 31, 2026, our cash and cash equivalents included $68.6 million related to money market accounts, compared to $44.8 million at December 31, 2025.

Current wording

At June 30, 2026, our cash and cash equivalents included $24.1 million related to money market accounts, compared to $44.8 million at December 31, 2025.

Previous wording

Net cash flows provided by operating activities were $56.6 million and $35.7 million for the three-month periods ended March 31, 2026 and 2025, respectively. The primary cash inflows from operating activities include insurance premiums and net investment income. The primary cash outflows from operating activities are comprised of payment of losses and loss settlement expenses, taxes and operating expenses. Our cash flows from operating activities were sufficient to meet our liquidity needs for the three-month periods ended March 31, 2026 and 2025.

Current wording

Net cash flows provided by operating activities were $90.9 million and $89.1 million for the six-month periods ended June 30, 2026 and 2025, respectively. The primary cash inflows from operating activities include insurance premiums and net investment income. The primary cash outflows from operating activities are comprised of payment of losses and loss settlement expenses, taxes and operating expenses. Our cash flows from operating activities were sufficient to meet our liquidity needs for the six-month periods ended June 30, 2026 and 2025.

Previous wording

Sales of investments and proceeds from calls or maturities of fixed maturity securities can also provide liquidity. During the next five years, $437.1 million, or 19.2 percent, of our fixed maturity portfolio will mature.

Current wording

Sales of investments and proceeds from calls or maturities of fixed maturity securities can also provide liquidity. During the next five years, $478.0 million, or 20.4 percent, of our fixed maturity portfolio will mature.

Previous wording

Net cash flows used in investing activities were $43.4 million and $48.2 million for the three-month periods ended March 31, 2026 and 2025, respectively. For the three-month periods ended March 31, 2026 and 2025, we had cash inflows from scheduled and unscheduled investment maturities, redemptions, prepayments, and sales of investments of $148.6 million and $77.3 million, respectively. Our cash outflows for investment purchases were $191.6 million for the three-month period ended March 31, 2026, compared to $122.9 million for the same period of 2025.

Current wording

Net cash flows used in investing activities were $95.3 million and $78.5 million for the six-month periods ended June 30, 2026 and 2025, respectively. For the six-month periods ended June 30, 2026 and 2025, we had cash inflows from scheduled and unscheduled investment maturities, redemptions, prepayments, and sales of investments of $307.4 million and $141.6 million, respectively. Our cash outflows for investment purchases were $401.8 million for the six-month period ended June 30, 2026, compared to $215.9 million for the same period of 2025.

Previous wording

Net cash flows used in financing activities were $7.6 million and $4.8 million for the three-month periods ended March 31, 2026 and 2025, respectively. The net cash flows used in financing activities for the three-month periods ended March 31, 2026 and 2025 are primarily related to the payment of cash dividends of $5.1 million and $4.1 million, respectively.

Current wording

Net cash flows used in financing activities were $12.5 million and $9.4 million for the six-month periods ended June 30, 2026 and 2025, respectively. The net cash flows used in financing activities for the six-month periods ended June 30, 2026 and 2025 are primarily related to the payment of cash dividends of $10.3 million and $8.1 million, respectively.

Previous wording

Dividends paid to shareholders totaled $5.1 million and $4.1 million in each of the three-month periods ended March 31, 2026 and 2025, respectively. Payments of any future dividends and the amounts of such dividends will depend upon factors such as net income, financial condition, capital requirements, and general business conditions. We will only pay dividends if declared by our Board of Directors out of legally available funds.

Current wording

Dividends paid to shareholders totaled $10.3 million and $8.1 million in each of the six-month periods ended June 30, 2026 and 2025, respectively. Payments of any future dividends and the amounts of such dividends will depend upon factors such as net income, financial condition, capital requirements, and general business conditions. We will only pay dividends if declared by our Board of Directors out of legally available funds.

Previous wording

As a holding company with no independent operations of its own, UFG relies on dividends received from its insurance company subsidiaries in order to pay dividends to its common shareholders. Dividends payable by our insurance subsidiaries are governed by the laws in the states in which they are domiciled. In all cases, these state laws permit the payment of dividends only from earned surplus arising from business operations. For example, under Iowa law, the maximum dividend or distribution that may be paid within a 12-month period without prior approval of the Iowa Insurance Commissioner is generally restricted to the greater of 10 percent of statutory surplus as of the preceding December 31 less any dividends paid in the previous 12 months, or net income of the preceding calendar year on a statutory basis less any dividends paid in the previous 12 months, not greater than earned statutory surplus. Other states in which our insurance company subsidiaries are domiciled may impose similar restrictions on dividends and distributions. Based on these restrictions, at March 31, 2026, UFG's sole direct insurance company subsidiary, UF&C, is able to make a maximum of $66.4 million in dividend payments without prior regulatory approval. These restrictions are not expected to have a material impact in meeting our cash obligations.

Current wording

As a holding company with no independent operations of its own, UFG relies on dividends received from its insurance company subsidiaries in order to pay dividends to its common shareholders. Dividends payable by our insurance subsidiaries are governed by the laws in the states in which they are domiciled. In all cases, these state laws permit the payment of dividends only from earned surplus arising from business operations. For example, under Iowa law, the maximum dividend or distribution that may be paid within a 12-month period without prior approval of the Iowa Insurance Commissioner is generally restricted to the greater of 10 percent of statutory surplus as of the preceding December 31 less any dividends paid in the previous 12 months, or net income of the preceding calendar year on a statutory basis less any dividends paid in the previous 12 months, not greater than earned statutory surplus. Other states in which our insurance company subsidiaries are domiciled may impose similar restrictions on dividends and distributions. Based on these restrictions, at June 30, 2026, UFG's sole direct insurance company subsidiary, UF&C, is able to make a maximum of $67.8 million in dividend payments without prior regulatory approval. These restrictions are not expected to have a material impact in meeting our cash obligations.

Previous wording

Pursuant to agreements with our limited liability partnership investments, we are contractually committed through 2030 to make capital contributions upon request of the partnerships. The timing of these additional contributions is unknown and based upon the timing of when investments and agreements are executed or signed compared to when the actual commitments are funded or closed. Our remaining potential contractual obligation was $15.3 million at March 31, 2026.

Current wording

Pursuant to agreements with our limited liability partnership investments, we are contractually committed through 2030 to make capital contributions upon request of the partnerships. The timing of these additional contributions is unknown and based upon the timing of when investments and agreements are executed or signed compared to when the actual commitments are funded or closed. Our remaining potential contractual obligation was $11.0 million at June 30, 2026.

Previous wording

Stockholders' equity increased to $950.6 million at March 31, 2026, from $941.2 million at December 31, 2025. The Company's book value per share was $37.06, which is an increase of $0.18 per share, or 0.5 percent, from December 31, 2025. The increase is primarily attributable to net income of $30.1 million, partially offset by an increase in net unrealized losses of $14.6 million on fixed maturity securities and shareholder dividends of $5.1 million during the first three months of 2026.

Current wording

Stockholders' equity increased to $977.3 million at June 30, 2026, from $941.2 million at December 31, 2025. The Company's book value per share was $38.02, which is an increase of $1.14 per share, or 3.1 percent, from December 31, 2025. The increase is primarily attributable to net income of $63.4 million, partially offset by an increase in net unrealized losses, net of tax, of $18.4 million on fixed maturity securities and shareholder dividends of $10.4 million during the first six months of 2026.