Press Release - July 16, 2004
EMC Insurance Group Inc. Announces Filing of Registration Statement for Stock Offering
DES MOINES, Iowa (July 16, 2004) - EMC Insurance Group Inc. (Nasdaq/NM:EMCI) today announced it has filed a registration statement with the Securities and Exchange Commission (SEC) for a proposed follow-on offering of 4.4 million shares of its common stock. The Company will sell 2.0 million shares of common stock in the offering. Additionally, 2.4 million shares of the Company’s common stock will be sold by a selling shareholder, Employers Mutual Casualty Company, thereby reducing Employers Mutual’s ownership of the Company from approximately 81.0 percent currently to approximately 51.3 percent . The underwriters will be granted an option to purchase up to an additional 660,000 shares of the Company’s common stock from Employers Mutual to cover over-allotments, if any. If this over-allotment option is exercised in full, Employers Mutual’s ownership of the Company would decline to approximately 46.5 percent. The Company will not receive any of the proceeds from the sale of shares of common stock currently owned by Employers Mutual. Exact terms of the offering will be available only by a prospectus, which is not yet available.
The lead underwriter and sole book-running manager for the offering is Keefe, Bruyette & Woods, Inc. The co-managers for the offering are A.G. Edwards & Sons, Inc. and KeyBanc Capital Markets, a division of McDonald Investments Inc.
The registration statement relating to these securities has been filed with the Securities and Exchange Commission, but has not yet become effective. The securities covered by this registration statement may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. This announcement does not constitute an offer to sell or the solicitation of an offer to buy, nor may there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Copies of the preliminary prospectus relating to the offering, when available, may be obtained by contacting the Syndicate Department of Keefe, Bruyette & Woods, Inc., 787 Seventh Avenue, 4th Floor, New York, NY 10019, or by telephone at 212-887-8908.
EMC Insurance Group Inc., the publicly-held insurance holding company of EMC Insurance Companies, owns subsidiaries with operations in property and casualty insurance and reinsurance. EMC Insurance Companies is one of the largest property and casualty entities in Iowa and among the top 60 insurance entities nationwide.
The Private Securities Litigation Reform Act of 1995 provides issuers the opportunity to make cautionary statements regarding forward-looking statements. Accordingly, any forward-looking statement contained in this report is based on management’s current expectations and actual results of the Company may differ materially from such expectations. The risks and uncertainties that may affect the actual results of the Company include but are not limited to the following: catastrophic events and the occurrence of significant severe weather conditions; state and federal legislation and regulations; rate competition; changes in interest rates and the performance of financial markets; the adequacy of loss and settlement expense reserves, including asbestos and environmental claims; rate agency actions and other risks and uncertainties inherent to the Company’s business. When we use the words “believe”, “expect”, “anticipate”, “estimate” or similar expressions, we intend to identify forward-looking statements. You should not place undue reliance on these forward-looking statements.
EMC Insurance Group Inc., Des Moines
Anita Novak (Investors)
515-280-2515
Lisa Hamilton (Media)
515-362-7589
717 Mulberry Street
Des Moines, IA 50309
