EMC INSURANCE GROUP INC. (NASDAQ:EMCI) Files An 8-K Regulation FD Disclosure
Item 7.01

Regulation FD Disclosure

On January 18, 2019, EMC Insurance Group Inc. (the “Company”) issued a press release announcing that the 2018 fourth quarter and year-end earnings results were negatively impacted by a record amount of catastrophe and storm losses incurred by the reinsurance segment, the decline in equity markets that occurred in December and a large amount of realized investment losses recognized during the quarter. As a result, the Company expects to report a net loss in the range of $0.33 to $0.37 per share, non-GAAP operating income* in the range of $1.07 to $1.11 per share, and a GAAP combined ratio of approximately 104.0 percent for the year ended December 31, 2018.

The Company also announced that the 2018 fourth quarter and year-end results will be released to the media before the opening of regular market hours on February 7, 2019. The press release also contained the details for the 2018 fourth quarter and year-end earnings call and webcast. The press release is furnished as Exhibit 99.

*Non-GAAP operating income: One of the primary non-GAAP financial measures utilized by management for evaluating the Company’s performance is 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.

EMC INSURANCE GROUP INC Exhibit
EX-99 2 exh994q18earningsanncmnt.htm EXHIBIT 99 Exhibit EXHIBIT 99NEWS RELEASEEMC Insurance Group Inc. Announces Record Amount of Fourth Quarter Catastrophe and Storm Losses Resulting in Decrease in 2018 Non-GAAP Operating Income Guidance*,…
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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.