EMC INSURANCE GROUP INC. (NASDAQ:EMCI) Files An 8-K Regulation FD DisclosureItem 7.01
Regulation FD Disclosure
On July 26, 2018, EMC Insurance Group Inc. (the "Company") issued a press release announcing that second quarter 2018 results were negatively impacted by a higher than anticipated level of non-catastrophe losses in the property and casualty insurance segment. As a result, the Company expects to report a net loss in the range of ($0.26) to ($0.22) per share, non-GAAP operating income (loss) in the range of ($0.04) to $0.00 per share, and a GAAP combined ratio of approximately 109.8 percent for the second quarter of 2018.
The Company also announced a reduction in 2018 non-GAAP operating income guidance from the previous range of $1.10 to $1.30 per share to a revised range of $0.95 to $1.15 per share. The press release is furnished as Exhibit 99.
Non-GAAP operating income: Non-GAAP operating income is calculated by excluding net realized investment gains/losses and, beginning in 2018, the change in net unrealized investment gains/losses on equity investments from net income/loss. While realized investment gains/losses are integral to the Company’s insurance operations over the long term, the decision to realize investment gains or losses in any particular period is subject to changing market conditions and management’s discretion, and is independent of the Company’s insurance operations. Prior to 2018, investments in equity investments were classified as available-for-sale and changes in unrealized investment gains/losses on equity investments were recognized in other comprehensive income. Effective January 1, 2018, the Company adopted the updated financial instruments guidance issued by the FASB, which requires changes in the unrealized investment gains/losses on equity investments to be recognized in net income/loss rather than other comprehensive income. Changes in unrealized investment gains/losses on equity investments are not predictable due to changing market conditions and are therefore also excluded from the calculation of non-GAAP operating income.
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Item 9.01 |
Financial Statements and Exhibits. |
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Exhibit Number |
Description |
EMC INSURANCE GROUP INC ExhibitEX-99 2 exh992q18pre-announcement.htm EXHIBIT 99 Exhibit EXHIBIT 99NEWS RELEASEEMC Insurance Group Inc. Announces Second Quarter Estimates and Revises 2018 Non-GAAP Operating Income Guidance**Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP). See “Definition of Non-GAAP Information and Reconciliation to Comparable GAAP Measure” for additional information.DES MOINES,…To view the full exhibit click here
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.
