Corporate Structure

Companies, Subsidiaries, Affiliates | Business Model

EMC Insurance Companies (EMC) is the trade name used by several subsidiaries and affiliated insurance companies and insurance service corporations of which Employers Mutual Casualty Company (EMCC) is the parent company.

EMCC was organized in Iowa as a mutual insurance company in 1911 to write workers’ compensation coverage for Iowa manufacturers. Other lines of business were added over the years and additional stock and mutual insurance companies were included in the organization through formation, acquisition and affiliation. A downstream holding company, EMC Insurance Group Inc., owns five of the affiliates.

Companies, Subsidiaries, Affiliates

The following is a listing of EMC companies, subsidiaries and affiliates followed by domicile/date established/additional information.

Employers Mutual Casualty Company (EMCC)
Parent company established in Iowa in 1911

EMC Insurance Group Inc.
Iowa/1974/ became publicly held in 1982

Dakota Fire Insurance Company
North Dakota/1957/acquired in 1973
EMC Reinsurance Company
Iowa/1981
EMCASCO Insurance Company
Iowa/1958
- EMC Underwriters, LLC
  (formerly EMC Underwriters LTD) Iowa/1975
Illinois EMCASCO Insurance Company
Illinois/1976/redomesticated to Iowa in 2001

EMC Property & Casualty Company
(formerly American Liberty Insurance Company)
Alabama/1953/acquired in 1982/redomesticated to Iowa in 1996

EMC Risk Services, LLC
Iowa/1981/a third party administrator

Hamilton Mutual Insurance Company
(formerly The Hamilton Mutual Insurance Company of Cincinnati, Ohio)
Ohio/1858/affiliated in 1997/redomesticated to Iowa in 2005

Union Insurance Company of Providence
(formerly Union Mutual Insurance Company of Providence)
Rhode Island/1863/affiliated in 1968/redomesticated to Iowa in 1996

EMC National Life Company
Formed in July 2003 by the merger of Employers Modern Life Company (founded 1962) and National Travelers Life Company (founded 1907)/Iowa/2003

Business Model

All of EMC’s property and casualty insurance companies participate in a pooling arrangement. Under the pooling arrangement, each participating company transfers or “cedes” all of its insurance business* to EMCC and, in exchange, each company assumes from EMCC an amount equal to its specified participation interest in the underwriting results of the pool.

The purpose of the pooling arrangement is to spread the risk of an exposure insured by any of the participants among all of the participants. The particular benefits that our companies realize from participating in the pooling arrangement include the ability to:

Produce more uniform and stable underwriting results from year-to-year for each participant than what might otherwise be experienced on an individual company basis. This is accomplished by spreading the risks over a wide range of geographic locations, lines of insurance, rate filings, commission plans and policy forms.
Benefit from the capacity of the entire pool’s direct written premiums and statutory surplus, rather than being limited to policy exposures of a size commensurate with each participant’s own assets.
Achieve an “A-” (Excellent) rating from A.M. Best on the basis of participation in the pool.
Take advantage of a significant distribution network of independent agencies that the participants most likely could not access on an individual basis.
Negotiate and purchase reinsurance from third-party reinsurers on a combined basis, thereby achieving larger retentions and better pricing.
Achieve and benefit from economies of scale in operations.

The companies participating in the pooling arrangement are: Employers Mutual Casualty Company, Dakota Fire Insurance Company, EMC Property & Casualty Company, EMCASCO Insurance Company, Farm and City Insurance Company, Illinois EMCASCO Insurance Company, The Hamilton Mutual Insurance Company of Cincinnati, Ohio and Union Insurance Company of Providence. (EMC Reinsurance does not participate in the pooling arrangement.)

All premiums, losses, settlement expenses and other underwriting and administrative expenses* are prorated among the participants on the basis of their participation interest in the pool. EMCC negotiates reinsurance agreements that provide protection to the pool and each of its participants, including protection against losses arising from catastrophic events.

* This excludes voluntary reinsurance business assumed by EMCC from unaffiliated insurance companies.