EMC INSURANCE GROUP INC. (NASDAQ:EMCI) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
Entry into a Material Definitive Agreement
On December 12, 2018, at a joint meeting, the Inter-Company Committees of the boards of directors of EMC Insurance Group Inc. (the “Company”) and Employers Mutual Casualty Company (Employers Mutual), the Company’s parent organization, approved the continuation of the terms of the 2018 inter-company reinsurance program between the Company’s reinsurance subsidiary, EMC Reinsurance Company, and Employers Mutual for calendar year 2019. The annual cost of the per occurrence catastrophe excess of loss treaty will remain at $1,630,000, and the cost of the annual aggregate catastrophe excess of loss treaty will remain at $3,620,000, with no changes in the other terms of the treaties.
Also approved at this joint meeting was the continuation of the terms of the 2018 inter-company reinsurance program between the Company’s insurance subsidiaries in the property and casualty insurance segment and Employers Mutual for calendar year 2019. The cost of the semi-annual aggregate catastrophe excess of loss treaty covering the first half of the year will remain at $5,960,000, and the cost of the semi-annual aggregate catastrophe excess of loss treaty covering the second half of the year will remain at $1,380,000, with no changes in the other terms of the treaties.
The purpose of the Inter-Company Committees is to ensure that the terms of the agreements are fair and equitable to both parties.
About EMC INSURANCE GROUP INC. (NASDAQ:EMCI)
EMC Insurance Group Inc. is an insurance holding company. The Company operates through two segments: Property and Casualty Insurance and Reinsurance segment. It conducts its property and casualty insurance operations through its subsidiaries, including EMCASCO Insurance Company, Illinois EMCASCO Insurance Company and Dakota Fire Insurance Company, and its reinsurance operations through its subsidiary, EMC Reinsurance Company. The property and casualty insurance operations are integrated with the property and casualty insurance operations of Employers Mutual Casualty Company (Employers Mutual). The principal business activity of EMC Reinsurance Company is to assume through a quota share reinsurance agreement the voluntary reinsurance business written by Employers Mutual with unaffiliated insurance companies. The Company focuses on the sale of commercial lines of property and casualty insurance to small and medium-sized businesses.