Net realized investment gains totaled $1,863,000 ($0.14 per share) for the fourth quarter of 2011 compared to $1,586,000 ($0.12 per share) in 2010. For the year ended December 31, 2011, net realized investment gains totaled $6,047,000 ($0.47 per share), compared to $2,515,000 ($0.19 per share) in 2010. The large amount of realized investment gains for 2011 resulted from first quarter activity in the equity portfolio, when market prices were at elevated levels.

During the fourth quarter of 2011, the Company recognized $132,000 (less than $0.01 per share after tax) of “other-than-temporary” investment impairment losses on 2 equity securities because management determined that it would likely not hold those securities until they recovered to their cost basis. This compares to $89,000 (less than $0.01 per share after tax) of “other-than-temporary” investment impairment losses in the fourth quarter of 2010. During 2011, “other-than-temporary” investment impairment losses totaled $5,960,000 ($0.30 per share after tax), compared to $2,384,000 ($0.12 per share after tax) in 2010.

Large losses (which the Company defines as losses greater than $500,000 for the EMC Insurance Companies’ pool, excluding catastrophe losses) increased to $11,200,000 ($0.57 per share after tax) in the fourth quarter of 2011 from $6,055,000 ($0.30 per share after tax) in the fourth quarter of 2010. For the year ended December 31, 2011, large losses totaled $24,044,000 ($1.21 per share after tax) compared to $19,634,000 ($0.98 per share after tax) in 2010.

The Company’s GAAP combined ratio was 100.8 percent in the fourth quarter of 2011 compared to 99.6 percent in the fourth quarter of 2010. For the year ended December 31, 2011, the GAAP combined ratio was 115.1 percent compared to 102.3 percent in 2010.

At December 31, 2011, consolidated assets totaled $1.2 billion, including $1.1 billion in the investment portfolio, and stockholders’ equity totaled $358.8 million, a decrease of 2.7 percent from December 31, 2010. Net book value of the Company’s stock decreased to $27.86 per share from $28.52 per share at December 31, 2010. Book value excluding accumulated other comprehensive income decreased to $25.74 per share from $26.63 per share at December 31, 2010.

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