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STOCK-BASED COMPENSATION
3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
Non-Qualified Employee Stock Award Plan

The United Fire Group, Inc. 2021 Stock Plan (the "Stock Plan") authorized the issuance of restricted and unrestricted stock awards, stock appreciation rights, incentive stock options, and non-qualified stock options for up to 4.05 million shares of UFG common stock to employees. At March 31, 2026 there were 806 thousand authorized shares remaining available for future issuance.

During the three-month period ended March 31, 2026, the Board of Directors granted 147 thousand restricted stock units ("RSUs") with a fair value of $5,706 that vest ratably over three years based on continued service with the Company. Additionally, 114 thousand performance restricted stock units ("PRSUs") were granted with a fair value of $4,410. Fair value of the RSUs & PRSUs are based on the grant date value of the underlying stock derived from
quoted market prices. PRSUs cliff vest at the end of the three year period and have performance restrictions that must be met for shares awarded to vest. If the performance restrictions are not satisfied during the measurement period, the PRSU shares that do not satisfy the performance criteria will be forfeited to the Company for no consideration. As of March 31, 2026, we had $17,504 in stock-based compensation expense that has yet to be recognized through our results of operations over a weighted average period of 1.57 years.

The RSUs and PRSUs granted during the three-month period ended March 31, 2026 include dividend equivalent awards that permit holders of the Company’s RSU and PRSU awards to receive a payment in cash in an amount equal to the ordinary dividends declared and paid by the Company in each calendar year starting in the year in which the dividend equivalent is granted through the year immediately prior to the year in which the dividend equivalent award vests. Participants will not be entitled to any accrued dividend equivalent amounts on awards which do not ultimately vest.