FINANCIALS

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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
“We are very pleased that, once again, EMC's 'Excellent' ratings have been reaffirmed by AM Best. This is a testament to our strategic direction and the efforts of our team members to level up to serve our policyholders and agents, drive results and reach our full potential." - Scott Jean, EMC President and CEO

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.