Kevin Leidwinger
About Kevin Leidwinger
Kevin J. Leidwinger, 61, is President and CEO of United Fire Group (UFG) and has served as a director since his appointment on August 22, 2022; he is not an independent director and serves on the Executive, Investment, and Risk Management Committees . He previously led CNA Commercial as President and COO and earlier was Global Casualty Manager at Chubb; he is a graduate of Dickinson College and served as 2021 board chair of NCCI . Under his tenure, UFG’s Net Income improved to $31.4 million in 2024 (from -$29.7 million in 2023), Adjusted ROE reached 7.9%, and company TSR rose versus 2023 (value of $100 invested: $72.60 in 2024 vs $51.49 in 2023) .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| CNA Commercial | President & Chief Operating Officer | 2015–Apr 2022 | Led P&C commercial business, positioning for profitable growth |
| Chubb | Global Casualty Manager (prior roles in casualty, liability, underwriting) | Pre-2015 | Managed worldwide casualty portfolio across lines |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| National Council on Compensation Insurance (NCCI) | Board Chair | 2021 | Industry leadership in workers’ compensation |
| 2001 Development Corporation | Director | Since Sep 2022 | External directorship noted in 2023 proxy |
Fixed Compensation
| Component | 2024 | Notes |
|---|---|---|
| Base salary | $800,000 | Increased from $750,000 in 2023, reflecting improved performance and market analysis |
| All other compensation (perqs/401k) | $43,538 | Country club dues and personal aircraft usage; 401(k) match $11,500 |
| Director fees | $0 | Does not receive separate director compensation |
Performance Compensation
Annual Incentive Plan (AIP)
- Target bonus opportunity: 125% of base salary; corporate metrics and weightings: Core Earnings 30%, Written Premium Growth 20%, Net Adjusted Loss Ratio 20%, Underwriting Expense Ratio 20%, Adjusted ROE 10% .
- 2024 outcomes: Corporate achievement 111.6%; individual performance factor 107%; paid $1,194,120 for 2024 performance (paid in 2025) .
AIP Goals and Achievement — 2024
| Performance Measure | Threshold | Target | Maximum | Results | Weighted Payout % |
|---|---|---|---|---|---|
| Adjusted ROE | 2.0% | 5.0% | 8.0% | 7.9% | 14.8% |
| Written Premium Growth ($mm) | 1,215 | 1,350 | 1,485 | 1,374.1 | 21.8% |
| Net Adjusted Loss Ratio | 70.0% | 67.5% | 65.0% | 63.5% | 30.0% |
| Underwriting Expense Ratio | 35.0% | 33.5% | 32.0% | 35.8% | 0.0% |
| Core Earnings ($mm) | 25 | 50 | 75 | 81.9 | 45.0% |
| Achievement Level | 111.6% |
| Individual Performance Factor (IPF) | 2024 |
|---|---|
| Kevin J. Leidwinger | 107% |
Notes:
- AIP metrics emphasize balanced growth, profitability, expense discipline; the IPF adjusts payout based on CEO goals (underwriting, actuarial, distribution, capital/investor relations, execution) evaluated by the Board .
Long-Term Incentive Plan (LTIP)
- 2024 grant design: 50% PSUs (3-year performance, cliff vest) and 50% RSUs (3-year ratable vest); options were eliminated from 2024 LTIP to align with market .
- 2024 CEO grant value: $1,600,000 ($800,000 PSUs; $800,000 RSUs); later corrected with an additional 9,095 PSUs and 9,095 RSUs granted Oct 29, 2024 to rectify an LTIP percentage oversight (same vesting and dates as original 2024 awards) .
- PSU performance metrics and weights (2024 grant): Core Earnings 30%, Written Premium Growth 20%, Net Adjusted Loss Ratio 20%, Underwriting Expense Ratio 20%, Adjusted ROE 10% .
LTIP Grant — 2024
| Grant | Total $ | PSUs $ | RSUs $ |
|---|---|---|---|
| 3/20/2024 award | $1,200,000 | $600,000 | $600,000 (by grant detail aggregation) |
| 10/29/2024 correction | $361,254 | $180,627 | $180,627 |
| Total 2024 LTIP | $1,600,000 | $800,000 | $800,000 |
Selected Outstanding Equity (as of 12/31/2024) — Vesting Detail
| Grant Date | Type | Shares Outstanding | Vesting Schedule |
|---|---|---|---|
| 8/22/2022 | PSUs | 6,855 | Cliff vest 8/22/2025; guaranteed minimum vesting at target per award terms (3) |
| 8/22/2022 | RSUs | 3,428 | Cliff vest 8/22/2025 (4) |
| 2/24/2023 | PSUs | 26,418 | Cliff vest 2/24/2026 (reported at target) (5) |
| 2/24/2023 | RSUs | 13,209 | Cliff vest 2/24/2026 (4) |
| 3/20/2024 | PSUs | 27,285 | Cliff vest 3/20/2027 (target) (7) |
| 3/20/2024 | RSUs | 27,285 | Ratable vest over 3 years (6) |
| 10/29/2024 | PSUs | 9,095 | Cliff vest 10/29/2027 (target) (9) |
| 10/29/2024 | RSUs | 9,095 | Ratable vest over 3 years (8) |
Executive Options (as of 12/31/2024): 6,490 options (exercisable) + 3,246 (unexercisable) at $29.45 (8/22/2022 grant) and 11,215 (exercisable) + 22,431 (unexercisable) at $28.39 (2/24/2023 grant), ten-year terms; options were removed from 2024 grants .
Equity Ownership & Alignment
| Metric | Value | Notes |
|---|---|---|
| Beneficial ownership (total) | 121,275 shares | 92,355 directly owned + 28,920 options exercisable within 60 days of 3/24/2025; <1% of shares outstanding |
| Shares pledged | 0 | None of the reported shares are pledged |
| Executive ownership guideline | 5x base salary (Tier 4) | Increased in Aug 2024; must reach target within 5 years |
| Target shares vs. held (as of record date) | Target 180,514; Held 92,355 | Trending toward goal within 5-year period |
| Anti-hedging/pledging | Prohibited | Revised Aug 18, 2023; no hedging, no margin/pledging |
Employment Terms
| Term | Detail |
|---|---|
| Employment start | August 22, 2022; at-will |
| 2022 sign-on/guarantees | Guaranteed 2022 AIP at target ($336,563 pro-rated) and 2022 PSUs minimum vest at target; initial 17,500 RSUs (5,834 immediate; 5,833 on 12/31/2023; 5,833 on 12/31/2024) |
| Change-in-control (CIC) | Double-trigger; 1.5x highest annual base salary + target annual incentive; 18 months benefits continuation; full vesting of LTI at target; outplacement; 18-month non-compete |
| Non-compete/solicit | Standard executive agreement: 1-year post-employment non-compete/non-solicit; separate 18-month non-compete under CIC agreement |
| Clawback | Revised per Dodd-Frank/Nasdaq on Aug 18, 2023 |
| Aircraft use | Permitted personal use per policy (taxable perquisite) |
Board Governance
- Role and independence: CEO/director (not independent); Board is led by an independent Chair; separation of Chair/CEO maintained to ensure independent oversight .
- Committees: Executive (Member), Investment (Member), Risk Management (Member) .
- Meetings and process: Quarterly Board meetings; independent directors hold executive sessions after each Board meeting .
- Related party transactions: None since beginning of 2024; none proposed .
- Say-on-Pay: 97% approval at 2024 meeting; 5-year average ≈98% .
Compensation Peer Group (Benchmarking)
- 2024 peer group (14 companies) included names such as American Coastal, Kinsale Capital, RLI, Safety Insurance, Universal Insurance, White Mountains; peers targeted for size/industry comparability; Mercer advised the committee .
Risk Indicators & Red Flags
- 2024 LTIP “correction” grant: Additional 9,095 PSUs and 9,095 RSUs awarded in Oct 2024 to fix an inadvertent 50-point LTIP percentage shortfall vs 2023; awards carry same vesting/performance as original 2024 LTIP .
- 2023 AIP discretion: Committee adjusted formulaic AIP result (17%) to 50% to recognize strategic actions (reserve strengthening, early retirement program, system amortization, surety impacts) during the first full CEO/CFO year; discretionary portion was paid as “Bonus” for 2023 .
- Guaranteed 2022 awards: 2022 AIP at target and 2022 PSUs minimum target vesting under employment offer letter (common for external CEO hires) .
Performance & Track Record
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income ($000s) | 15,031 | -29,689 | 31,442 |
| Adjusted ROE (%) | 3.0 | -3.8 | 7.9 |
| Company TSR (value of $100) | 68.01 | 51.49 | 72.60 |
| TSR Peer Group (value of $100) | 107.88 | 114.50 | 152.77 |
Investment Implications
- Alignment improving: 2024 AIP/PSU designs pivoted toward Core Earnings and underwriting profitability, with strong 2024 execution (Adjusted ROE 7.9%, positive Net Income) translating to above-target AIP and supportive CAP improving with stock performance .
- Retention and selling pressure: Multiple RSU/PSU cliffs and ratable tranches vest from 2025–2027 (notably Aug 2025, Feb 2026, Mar 2027, Oct 2027). Expect periodic vest-related liquidity, but anti-pledging and ownership guidelines (target 5x salary) encourage share retention rather than sales until guideline is met .
- Governance mitigants: Independent Chair; robust clawback and anti-hedging/pledging; no related-party deals; no separate director pay for CEO diminish governance concerns related to dual roles .
- Watch items: One-time 2024 LTIP correction grant and 2023 AIP discretion should be monitored for recurrence; however, Say-on-Pay support remains high (97%) and peer benchmarking is advisor-supported (Mercer) .