United Fire Announces Preliminary Estimate for Assumed Reinsurance Losses

CEDAR RAPIDS, Iowa, April 14, 2011 (GLOBE NEWSWIRE) -- United Fire & Casualty
Company (Nasdaq:UFCS) today announced that it will record $10 million in pre-tax
losses related to certain first quarter catastrophe losses incurred in the
company's assumed reinsurance portfolio. The company plans to report final
first-quarter results on May 2, 2011. In the first quarter of 2011, United Fire
expects assumed premiums of approximately $1.5 million. The estimated losses for
these catastrophe events would be expected to contribute approximately 9.8
percentage points to the first-quarter property casualty combined ratio. The
impact on after-tax earnings would be approximately $6.5 million, or .25 cents
per share.

Randy A. Ramlo, president and CEO, said: "Most of the business United Fire
assumes from other insurance or reinsurance companies is property insurance,
with an emphasis on catastrophe coverage. The $10 million relates to the
February 2011 earthquake in New Zealand and the March 2011 earthquake and
tsunami in Japan.

"With assumed reinsurance contracts, United Fire accepts a percentage of the
risk in return for an equal percentage of the premium, which allows our company
to diversify across a broader base of business. While assumed business has not
been a significant component of our property and casualty operations over the
years, it traditionally has been a positive contributor to our bottom line."

Ramlo added: "Despite the magnitude of these events relative to our first
quarter results, these losses would contribute, on an annualized basis, less
than 1.7 percentage points to our total combined ratio."

Assumed reinsurance premiums contributed an average of $13.9 million, or 3.1% of
the total, to United Fire's net written premiums from 2005 to 2010. Over that
six-year period, the assumed reinsurance loss ratio averaged 48.7%.

About United Fire & Casualty Company

Founded in 1946, United Fire & Casualty Company and its subsidiaries offer
property and casualty insurance, life insurance and annuities. On March 28, 2011
United Fire completed its acquisition of Mercer Insurance Group, Inc. The
combined entity is licensed as a property and casualty insurer in 43 states,
plus the District of Columbia, and represented by more than 1,000 independent
agencies. United Fire is rated A (Excellent) by A.M. Best Company. For the third
consecutive year, United Fire was named a "Top 10 Ease of Doing Business
Performer" for 2010 in Deep Customer Connections, Inc.'s eighth annual Ease of
Doing Business survey of independent agents and brokers. United Fire has also
been named one of the Most Trustworthy Publicly Traded Companies in America, a
list compiled through a partnership of Forbes and Audit Integrity. Less than 5
percent of the entire U.S. stock market qualifies for inclusion on the list.

Our subsidiary, United Life Insurance Company, is licensed in 28 states,
represented by more than 900 independent life agencies, and has been named to
the Ward's 50(R) Life-Health Insurance Companies for five consecutive years
(2006-2010).

The United Fire & Casualty Company logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7089

Disclosure of Forward-looking Statements

This release may contain forward-looking statements about our operations,
anticipated performance and other similar matters. The Private Securities
Litigation Reform Act of 1995 provides a safe harbor under the Securities Act of
1933 and the Securities Exchange Act of 1934 for forward-looking statements. The
forward-looking statements are not historical facts and involve risks and
uncertainties that could cause actual results to differ materially from those
expected and/or projected. Such forward-looking statements are based on current
expectations, estimates, forecasts and projections about our company, the
industry in which we operate, and beliefs and assumptions made by management.
Words such as "expect(s)," "anticipate(s)," "intend(s)," "plan(s),"
"believe(s)," "continue(s)," "seek(s)," "estimate(s)," "goal(s)," "target(s),"
"forecast(s)," "project(s)," "predict(s)," "should," "could," "may," "will
continue," "might," "hope," "can" and other words and terms of similar meaning
or expression in connection with a discussion of future operating, financial
performance or financial condition, are intended to identify forward-looking
statements. These statements are not guarantees of future performance and
involve risks, uncertainties and assumptions that are difficult to predict.
Therefore, actual outcomes and results may differ materially from what is
expressed in such forward-looking statements. Information concerning factors
that could cause actual results to differ materially from those in the
forward-looking statements is contained in Part I Item 1A "Risk Factors" of our
annual report on Form 10-K for the year ended December, 31, 2010, filed with the
SEC on March 1, 2011. The risks identified on Form 10-K are representative of
the risks, uncertainties, and assumptions that could cause actual outcomes and
results to differ materially from what is expressed in forward-looking
statements. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this release or
as of the date they are made.

CONTACT: Dianne M. Lyons, Vice President/CFO
319-399-5700