FINANCIALS
Weather events and the ongoing pandemic circumstances continued to challenge us in 2021. And once again, everyone at EMC stepped up, showing resilience and proving we’re flexible and well prepared when faced with the unexpected. We remain focused on leveling up our efforts to deliver exceptional customer and agent experiences with a focus on profitable growth.
Our 2021 results were solid and show we’re on a positive trajectory for premium growth and expense reduction. We’re confident in the ongoing rollout of our strategic profitability initiatives and operational realignment, which will drive us to reach new levels of success.
Thank you for your continued partnership and for putting your trust in EMC. Together we will push the boundaries of our performance to achieve our strategic goals and level up our service to improve lives.
— Scott Jean, President and CEO, EMC Insurance Companies
2021 Results
The following is a summary of the company’s 2021 financial results.
The consolidated trade combined ratio (TCR) was 104.2%, which was higher than expected for the year. Key drivers of this performance included catastrophic storm losses and increased severity in some of our non-catastrophic property and casualty lines of business.
Net written premium (NWP) was $2.03 billion, which represents solid growth compared to the prior year. While this result fell slightly behind plan, we're on a positive trajectory that reflects the strength of our overall strategic direction.
Surplus grew to $1.7 billion, which is an 11% increase over 2020 results. Key drivers of this performance included positive results in capital gains and investment income.
Financial Strength
Rating agency AM Best has affirmed all of the "Excellent" category Financial Strength and Long-Term Issuer Credit Ratings for the following companies. Read the complete AM Best news release.
EMC Insurance Companies
- Financial Strength Rating (FSR) of A (Excellent)
- Long-Term Issuer Credit Rating (Long-Term ICR) of “a+” (Excellent)
- Outlook remains stable
EMC Reinsurance Company (EMC Re)
- Financial Strength Rating (FSR) of A (Excellent)
- Long-Term Issuer Credit Rating (Long-Term ICR) of “a” (Excellent)
- Outlook remains negative
EMC National Life Company (EMCNL)
- Financial Strength Rating (FSR) of A- (Excellent)
- Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent)
- Outlook remains stable
2021 Financials
UNDERWRITING OPERATIONS | 2021 | 2020 | 2019 | 2018 | 2017 |
---|---|---|---|---|---|
Net Written Premiums | $ 2,029,001,990 | $ 1,942,943,258 | $ 1,910,680,443 | $ 1,881,985,297 | $ 1,775,016,618 |
Net Earned Premiums | $ 2,012,463,101 | $ 1,922,049,983 | $ 1,908,465,942 | $ 1,830,940,895 | $ 1,738,669,078 |
Losses Incurred | $ 1,245,924,883 | $ 1,278,438,918 | $ 1,087,358,812 | $ 1,069,163,073 | $ 994,972,212 |
Ratio to Earned Premiums | 61.9% | 66.5% | 57.0% | 58.4% | 57.2% |
Loss Adjustment Expenses | $ 201,290,520 | $ 213,194,628 | $ 216,752,761 | $ 176,624,641 | $ 216,224,105 |
Ratio to Earned Premiums | 10.0% | 11.1% | 11.4% | 9.6% | 12.4% |
Other Underwriting Expenses | $ 628,056,235 | $ 606,342,198 | $ 621,027,158 | $ 593,485,367 | $ 550,261,820 |
Ratio to Written Premiums | 31.0% | 31.2% | 32.5% | 31.5% | 31.0% |
Net Underwriting Gain (Loss) | $ (62,808,537) | $ (175,925,761) | $ (16,672,789) | $ (8,332,186) | $ (22,789,059) |
Policyholder Dividends | $ 26,763,249 | $ 29,746,655 | $ 33,652,635 | $ 34,717,836 | $ 35,550,847 |
Ratio to Earned Premiums | 1.30% | 1.50% | 1.80% | 1.90% | 2.0% |
Combined Loss & Expense Ratio | 104.2% | 110.3% | 102.7% | 101.4% | 102.6% |
NET INVESTMENT GAINS | 2021 | 2020 | 2019 | 2018 | 2017 |
---|---|---|---|---|---|
Net Investment Income Earned | $ 83,314,073 | $ 83,159,223 | $ 96,613,078 | $ 98,118,667 | $ 99,006,981 |
Net Realized Capital Gains (Loss)* | $ 67,704,865 | $ 105,143,279 | $ 85,302,773 | $ (4,971,336) | $ 26,799,375 |
FINANCIAL RESULTS | 2021 | 2020 | 2019 | 2018 | 2017 |
---|---|---|---|---|---|
Net Income (Loss) | $ 88,428,286 | $ 28,920,769 | $ 124,856,728 | $ 43,353,388 | $ 73,418,181 |
Net Admitted Assets | $ 5,535,204,531 | $ 5,132,089,116 | $ 4,839,878,713 | $ 4,659,112,598 | $ 4,596,644,318 |
Liabilities | $ 3,797,906,443 | $ 3,566,566,377 | $ 3,264,703,649 | $ 2,996,709,128 | $ 2,883,722,717 |
Surplus | $ 1,737,298,088 | $ 1,565,522,739 | $ 1,575,175,064 | $ 1,662,403,470 | $ 1,712,921,601 |
*Net of tax
Branch Offices
BRANCH OFFICE | BRANCH VICE PRESIDENT | YEAR OPENED | TERRITORY | TEAM MEMBERS |
---|---|---|---|---|
Birmingham | Paulette J. Johnson, CPCU, AU, INS, AIS | 1982 | Alabama, Florida, Georgia, Tennessee |
38 |
Bismarck | Marilyn R. Ternes, CPCU, AU | 1957 (Dakota Fire) 1973 (EMC Branch) |
Idaho, Montana, North Dakota, Oregon, Washington | 54 |
Charlotte | Craig A. Bruder, M.B.A., CPCU, ARM, ACI, CAWC | 1975 | North Carolina, South Carolina, Virginia, Washington, D.C. | 73 |
Chicago | John W. Mitchell, CPCU | 1937 | Illinois | 39 |
Cincinnati | Philip A. Goedde, CPCU, CIC | 1858 (Hamilton Mutual) 1997 (EMC Branch) |
Indiana, Kentucky, Ohio | 62 |
Denver | Gary D. Alford, CPCU, ARM, AU, AIM, ARe | 1981 | Colorado, Utah, Wyoming | 54 |
Des Moines | Tanya R. Wentzel, M.P.A., CPCU, CIC, AU | 1911 | Iowa | 114 |
Jackson | Coleman W. Cummins, CPCU, AU, AIM | 1966 | Louisiana, Mississippi | 38 |
Kansas City | John W. Mitchell, CPCU | 1962 | Arkansas, Missouri, Northeast Kansas |
48 |
Lansing | Ryan Adams | 1940 | Michigan | 68 |
Milwaukee | Mark C. Neubauer | 1956 | Wisconsin | 76 |
Minneapolis | Mark C. Neubauer | 1942 | Minnesota | 49 |
Omaha | Gary D. Alford, CPCU, ARM, ARe, AIM, AU | 1939 | Nebraska, South Dakota | 56 |
Phoenix | Douglas P. Lincoln, CPCU, CLU, AINS, AU, ChFC | 1958 | Arizona, California, Nevada, New Mexico |
60 |
Providence | Paula J. Finkelman, AU | 1863 (Union Mutual) 1968 (EMC Branch) |
Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont |
46 |
Valley Forge | Greg Harrington, CPCU, CSRM | 1946 | Delaware, New Jersey, Maryland, Pennsylvania | 42 |
Wichita | Matthew J. Fellers, CPCU, AU | 1934 | Kansas, Oklahoma, Texas | 91 |
Business Units
OPERATION | MANAGEMENT | TERRITORY | BUSINESS |
---|---|---|---|
EMC Bond Department | James D. Clough, ARe | Available in most states | $35,559,454 written premium 3.9% reported loss ratio 9th consecutive year of profitability-averaging $10 million of net profit per year |
EMC Risk Services, LLC | Barbara A. Sullivan, CPCU, AIC | Available in most states, depending on statutory requirements | Multiline, third-party administrator offering claims administration for loss sensitive business 87% growth in retained earnings over 10 years $3.5 million distribution to parent EMC over 10 years 10th consecutive year of profitability |
EMC Reinsurance Company (EMC Re) | Mondale W. Smith, M.B.A., M.S., CPCU, ARe | 78.8% domestic U.S. business 21.3% international |
Reinsurance business through intermediaries 125.3% combined ratio $204,243,924 written premium 4.4% premium increase |
Affiliated Company EMC National Life (EMCNL)
EMCNL’s new business life insurance production credit was $5.8 million, which was better than planned, on net premiums of $47.6 million. EMCNL’s total profits from 2010-2021 totaled $77 million. The company’s adjusted capital and surplus grew by $1.1 million to $116 million. EMCNL has $14.5 billion of life insurance in force.