EMC Insurance Group Inc. Reports 2010 First
Quarter Results
First Quarter 2010
Operating Income Per Share – $0.73
Net Income Per Share – $0.75
Catastrophe and Storm Losses Per Share – $0.17
Large Losses Per Share – $0.23
GAAP Combined Ratio – 98.1 percent
May 03, 2010 06:33 AM Eastern Daylight Time
DES MOINES, Iowa--(EON: Enhanced Online News)--EMC Insurance Group Inc. (NASDAQ: EMCI) today
reported operating income of $0.73 per share for the first quarter ended March 31, 2010 compared to operating
income of $0.86 per share for the first quarter of 20091. Net income, including realized investment gains and losses,
totaled $9,878,000 ($0.75 per share) for the first quarter of 2010 compared to $5,804,000 ($0.44 per share) for
the first quarter of 2009.
“We continue to manage through the soft market conditions,” stated Bruce G. Kelley, President and Chief Executive
Officer. “Premium income in the first quarter was relatively flat. Increases in personal lines and reinsurance premium
income were sufficient to offset most of the decline experienced in the commercial lines of business. Competition for
good commercial lines business remains very strong and is expected to continue at this level through at least the first
half of 2010. We continue to implement rate increases where they are warranted, but do not expect to see overall
rate levels improve much until the economy recovers,” continued Kelley.
Kelley went on to say that, “storm losses were significantly lower than the first quarter of 2009. This reduction in
storm losses, coupled with favorable reserve development and a significant increase in the market value of our
investment portfolio, contributed to a 4.6 percent increase in the book value of our stock during the first quarter of
2010.”
Premiums earned declined slightly (0.1 percent decline) to $92,345,000 for the first quarter of 2010 as compared to
$92,455,000 for the same period of 2009.
Investment income increased 2.0 percent to $12,517,000 for the first quarter of 20