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EMC Insurance Group Inc. (Nasdaq:EMCI):
Second Quarter Ended June 30, 2012Operating Loss Per Share – $0.14Net Loss Per Share – $0.20Net Realized Investment Losses Per Share – $0.06Catastrophe Losses Per Share – $1.25Large Losses Per Share – $0.31GAAP Combined Ratio – 113.9 percent
Six Months Ended June 30, 2012Operating Income Per Share – $0.90Net Income Per Share – $1.29Net Realized Investment Gains Per Share – $0.39Catastrophe Losses Per Share – $1.74Large Losses Per Share – $0.63GAAP Combined Ratio – 103.2 percent
Certain amounts previously reported in 2011 have been adjusted in conjunction with the Company’s retrospective adoption of new accounting guidance for the calculation of deferred policy acquisition costs that became effective January 1, 2012.
EMC Insurance Group Inc. (Nasdaq:EMCI) (the “Company”) today reported an operating loss of $0.14 per share for the second quarter ended June 30, 2012, compared to an operating loss of $1.08 per share for the second quarter of 2011
1. For the six months ended June 30, 2012, the Company reported operating income of $0.90 per share, compared to an operating loss of $1.05 per share for the same period in 2011.
Net loss, including realized investment gains and losses, totaled $2,576,000 ($0.20 per share) for the second quarter of 2012, compared to a net loss of $12,902,000 ($1.00 per share) for the second quarter of 2011. For the six months ended June 30, 2012, the Company reported net income of $16,647,000 ($1.29 per share), compared to a net loss of $7,162,000 ($0.55 per share) for the same period in 2011.
“We have expended a great deal of time and resources into implementing much needed rate level increases in the commercial lines of business during the first six months of the year, and those efforts have been successful. Unfortunately, the positive impact those rate increases had on second quarter operating results was overshadowed by a high level of catastrophe losses and a decline in the amount of favorable development experienced on prior years’ reserves,” stated Bruce G. Kelley, President and Chief Executive Officer. “We continue to believe that the persistent level of above-average catastrophe losses is an aberration attributed to an active weather cycle, and does not reflect a permanent change in weather patterns. Future operating results should benefit from the rate level increases we are implementing now.”