United Fire Group (UFCS) will cut its quarterly dividend by 54.5 percent to $0.15 in 2020. The insurer last raised its quarterly dividend by 6.5 percent to $0.33 per share in 2019, at the time marking the company's 7th consecutive year of dividend increases.

The lower dividend will be payable December 18, 2020 to shareholders of record as of December 4, 2020. A new annualized rate of $0.60 per share yields 2.6% at a stock price of $23.33.

In the press release dated November 20, announcing this dividend hike, UFG states that the company has a long history of paying quarterly dividends, with the quarterly cash dividend declared today marking the 211th consecutive quarterly dividend paid, dating back to March 1968. UFG’s corporate strategy is focused on growth that diversifies the effects of individual underwriting perils, and the new dividend level supports these strategic capital requirements.

United Fire will now pay an estimated annual dividend of $15 million to its shareholders. The company last hiked its dividend in 2019 when a 6.5 percent increase was announced. This marked seven straight years of dividend increases.

Founded in 1946 as United Fire & Casualty Company, United Fire Group, Inc., through its insurance company subsidiaries, is engaged in the business of writing property and casualty insurance and life insurance and selling annuities. UFG has consistently paid quarterly dividends to its shareholders since 1968.