Financial Strength

EMC Insurance Companies has maintained its reputation as a strong, financially stable company for nearly 100 years. We have the capital to write high-quality, well-priced business, and we are confident that our underlying book of business is sound.

Corporate Financial Results

The most recent year-end financial results for EMC Insurance Companies are published in the Corporate Review.

EMC Insurance Group Inc. (EMCI), the publicly held company traded on NASDAQ, represents about one-third of EMC Insurance Companies’ financial results. For the financial results of EMCI, visit the Investors section of our website.

Financial Strength Rating

EMC currently has a rating of A- (Excellent) with a stable outlook from A.M. Best Company. This rating is assigned to companies that have an excellent ability to meet their ongoing obligations to policyholders, in A.M. Best’s opinion.

In the 2009 evaluation, A. M. Best states: “The rating reflects the group’s [EMC’s] excellent risk-adjusted capitalization, generally improved operating profitability (albeit with weather and catastrophe losses significantly impacting 2008 results), and the continued benefits it will derive from management’s actions over the past several years associated with pricing and risk selection, claims management and reserving methodology. These factors are supported by EMC’s strong regional branch office network and long-standing agency relationships.

Over the past several years, EMC has developed and implemented predictive modeling tools and premium rate monitoring systems designed to better price and select its business and quantify and track its quality over time. These tools have been leveraged through the group’s [EMC’s] extensive regional network and supported by long-standing agency relationships. Moreover, improvements in the group’s claims systems and monitoring also have been implemented to ensure greater consistency of claims handling and reserving and to help manage its business through varying market conditions.”

Strong Balance Sheet

EMC has a Best’s Capital Adequacy Ratio (BCAR)* of over 225 percent, which indicates the company’s capitalization is excellent. This ratio compares an insurer’s surplus to the capital required to support its operating and investment risks. Companies deemed to have strong balance sheet strength generate a BCAR score over 200 percent; companies deemed to have an adequate balance sheet only have a BCAR score over 100 percent.