UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 27, 2004
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EMC INSURANCE GROUP INC.
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(Exact name of registrant as specified in its charter)
Iowa 0-10956 42-623455
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(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation) File Number) Identification No.)
717 Mulberry Street, Des Moines, Iowa 50309
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(Address of principal executive office) (Zip Code)
(515) 280-2902
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(Registrant's telephone number, including area code)
Item 7.01 Regulation FD Disclosure
On September 27, 2004 EMC Insurance Group Inc. issued the following
press release:
EMC INSURANCE GROUP INC. REPORTS
2004 THIRD QUARTER ESTIMATED HURRICANE
LOSSES AND RESERVE STRENGTHENING
DES MOINES, Iowa (September 27, 2004) - EMC Insurance Group Inc.
(Nasdaq/NM:EMCI) today reported that losses associated with three of the
four hurricanes that hit the southern United States during the third quarter
of 2004 are estimated to total approximately $6.9 million. The Company's
reinsurance segment anticipates that losses associated with Hurricanes
Charley, Frances and Ivan will be capped at $1.5 million each under the terms
of the quota share agreement with Employers Mutual Casualty Company.
Hurricane losses in the property and casualty insurance segment, the majority
of which are associated with damage caused by Hurricane Ivan in the Gulf
States, are expected to be approximately $2.4 million. On an after-tax
basis, these hurricane losses will reduce third quarter earnings by
approximately $4.5 million or $0.39 per share.
Hurricane Jeanne hit the State of Florida on September 25, 2004. The
eye of the hurricane made landfall at the same location as Hurricane Frances,
which generated an estimated $1.5 million of losses for the reinsurance
segment. The Company is not able to estimate losses associated with
Hurricane Jeanne at this time.
During the third quarter of 2004, the Company's actuaries completed
their regularly scheduled evaluation of the Company's overall loss reserves,
including Incurred But Not Reported reserves, and settlement expense
reserves. Based on the results of these evaluations, the Company will
strengthen prior years' reserves by approximately $588,000 during the third
quarter of 2004. On an after-tax basis, this increase in reserves will
reduce third quarter earnings by approximately $382,000 or $0.03 per share.
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; rating 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.
The information contained in this Current Report shall not be deemed to
be "filed" for the purposes of Section 18 of the Securities Exchange Act of
1934 (the "Exchange Act") or otherwise subject to the liabilities of that
section, nor shall it be incorporated by reference into a filing under the
Securities Act of 1933, or the Exchange Act, except as shall be expressly
set forth by specific reference in such a filing.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
EMC INSURANCE GROUP INC.
Registrant
/s/ Bruce G. Kelley
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Bruce G. Kelley
President & Chief Executive Officer
/s/ Mark E. Reese
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Mark E. Reese,
Vice President & Chief Financial Officer
September 27, 2004