continuity in reinsurance august 2017 · 3rd largest insurance center worldwide (after london,...

CONTINUITY IN REINSURANCE

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Bismarck

Phoenix

Jackson

Charlotte

Wichita

Birmingham

Denver

MinneapolisMilwaukee

Des Moines

Kansas City

DavenportValley Forge

Little Rock

Dallas

Omaha

Chicago

Cincinnati

Providence

Lansing

Corporate Office and Des Moines Branch

Branch Offices

Service Offices

EMC INSURANCE COMPANIESLOCATIONS

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EMC INSURANCE COMPANIESCOMPANY STRUCTURE

Employers Mutual Casualty

Company

EMC Property & Casualty Company

Illinois EMCASCO Insurance Company

EMCASCO Insurance Company

EMC Underwriters,

LLC

Union Insurance Company of Providence

EMC Risk Services, LLC

EMC Insurance Group Inc.

EMC National Life Mutual

Holding Company

EMC National Life Marketing Services, LLC

EMC National Life

Company

EMC Reinsurance

Company

Dakota Fire Insurance Company

Hamilton Mutual Insurance Company

Employers Mutual Casualty Company and its affiliated companies operate under the trade name EMC Insurance Companies. EMC Insurance Group Inc. (EMCI) is a publicly held holding company that generates results from property and casualty insurance and reinsurance through subsidiary companies, including EMC Reinsurance Company.

Employers Mutual Casualty Company

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EMC INSURANCE COMPANIESOVERVIEW

• Organized in 1911

• Writing voluntary assumed business since the 1950s with a continuous and ongoing reinsurance arrangement with our oldest client

• Licensed in all 50 states

• $1.39 billion EMCC surplus*

• A (Excellent) A.M. Best rating**

• Primary operations consist of 90% commercial lines and 10% personal lines

• More than 2,300 employees countrywide, including more than 1,200 in Des Moines and 26 in EMC Reinsurance

• EMC Insurance Group Inc. named one of the 50 Most Trustworthy Financial Companies by Forbes in 2016

• Assumed Reinsurance represents 8% of EMC consolidated earned premium and 23% EMC Insurance Group Inc. premium*

• One of the top 50 insurance companies in the United States based on net written premium

• One of the largest property and casualty insurance entities in Iowa

• Member of the Independent Insurance Agents & Brokers of America (Big “I”) Trusted Choice® brand initiative

*As of June 30, 2017.

**For the latest rating, visit www.ambest.com.

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EMC INSURANCE COMPANIESFINANCIALS

Best's Capital Adequacy RatioEMCC Consolidated: 300.5EMC Reinsurance: 271.2

0

200

400

600

800

1,000

1,200

1,400

Years2015

Mill

ions

($)

2016

EMCC Written Premium/Surplus

EMCC Net Written Premiums EMCC Surplus

6

Bonds2%Personal

Auto 4%

Work Comp20%

Personal Property

4%

Commercial Property

26%

Commercial Liability

21%

Commercial Auto23%

Direct Production 12 Months Ended Dec. 31, 2016

EMC INSURANCE COMPANIESFINANCIALS

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EMCREINSURANCE

COMPANY

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EMC REINSURANCE COMPANYOVERVIEW

Our mission is to be a stable, secure and committed market, especially during times of adversity, by delivering service that enables

our partners and EMC Reinsurance to be mutually successful.

Employers Mutual

Casualty Company

Employers Mutual Casualty Company (EMCC) paper is used to write assumed reinsurance business

EMCC has been assuming reinsurance since the 1950s

EMCC surplus at Dec. 31, 2016: $1.4 billion

A (Excellent) A.M. Best rating*

EMC Reinsurance

Company

EMC Re established in 1981

EMC Re written premium volume at Dec. 31, 2016: $131 million

EMC Re Surplus at Dec. 31, 2016: $208.6 million

A (Excellent) A.M. Best rating*

• Reinsurance business is produced primarily through intermediaries

• Over 600 contracts written for more than 300 ceding companies

*For the latest rating, visit www.ambest.com.

Internal Quota Share

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EMC REINSURANCE COMPANYTARGET BUSINESS

Treaties Ceding Companies

Multiline XOL Super RegionalProperty Per Risk XOL RegionalCasualty XOL Single StateProperty Cat XOL County MutualsProperty Aggregate XOLCrop XOL/Pro RataLimited Property Pro Rata

International

Treaties Regions

Property Per Risk XOL Western Europe Property Cat XOL Central and Eastern EuropeProperty Aggregate XOL United Kingdom Crop XOL/Pro Rata Australia/New ZealandLimited Property Pro Rata Nordic/Benelux Canada China Japan

United States

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EMC REINSURANCE COMPANYTARGET BUSINESS

We Provide• Quoting market for U.S. multiline XOL, property per risk XOL and casualty XOL

• Highly experienced reinsurance professionals who provide exceptional service

• Financial strength and security

• Stability - We value our long-term relationships with our business partners throughout the world

• Underwriting and claims audits

• Quick payments on valid claims

• United States and international electronic funds transfer (EFT) capability

• Capacity - Guideline maximum on any one program is $2.5-$5 million

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Vicki Freese CPCU, AReEMCC Vice President/ReinsuranceEMC Re President & [email protected]

Doug Nuehring CPCU, ARe, AIAFUnderwriting Manager International [email protected]

Dawn RizziSenior Account Underwriter [email protected]

Angela BaughmanSpecial Accounts [email protected]

Kent McCampbell CPCU, AReUnderwriting Manager North [email protected]

Tara Inghram CPCU, ARe, AU, AIM, AIAFSenior Pricing [email protected]

Alex Denker AReAccount [email protected]

EMC REINSURANCEUNDERWRITING STAFF

Brian Kraft CPCUAccount [email protected]

Stefan Mumm CPCUAccount [email protected]

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EMC REINSURANCE COMPANYFINANCIALS

0

20

40

60

80

100

120

140

71.0

73.6 75.9 84

.0

96.5 10

7.2

129.

0

118.

9

Years2015

124.

5

Mill

ions

($)

131.

0

2016

Net Written Premiums

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Property Catastrophe XS45%

Quota Share39%

Property Per Risk XS7%

Surplus2%

Other7%


North AmericaEstimated Written Premium*

InternationalEstimated Written Premium*

*As of Jan. 1, 2017.

Quota Share25%

Multiline XS23%Property Per Risk XS

18%

Property Catastrophe XS13%

Casualty XS9%

Surplus6%

Crop 2%

Other4%

Quota Share25%

Casualty XS9%

Surplus6%

Multiline XS23%Per Risk XS

18%

Other4%

Crop2%

Catastrophe XS13%

Other7%Surplus

2%

Per Risk XS7%

Quota Share39%

Catastrophe XS45%

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Combined Ratio by Year

0

20

40

60

80

100

120

140

107.

5

87.4

88.1

118.

1

90.2

87.2

98.4

Years2015

89.0

Perc

ents 92

.5

2016

89.9

15


Past Catastrophe Experience (losses in excess of $5 million)

0

5

10

15

20

25

30

7.11

M

12.9

9 M

5.90

M

13.3

0 M

5.81

M

6.10

M

12.0

6 M

6.63

M

11.5

6 M

7.80

M

5.18

M

10.0

0 M

11.7

9 M

13.0

8 M

20.5

9 M

9.1

M

20.8

0 M

5.81

M

6.10

M

26.9

3 M

6.67

M

13.7

5 M

7.80

M

5.18

M

10.0

0 M

16.5

0 M

Net Incurred Loss Gross Incurred Loss

Mill

ions

($)

• Storm Ela – 2014: $4.036M

• Tianjin Explosion – 2015: $3.018M

• Alberta Wildfires – 2016: $3.1M

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0.000%

0.020%

0.040%

0.060%

0.080%

0.100%

0.120%

0.140%

0.160%

0.180%

0.11

1%

0.07

8%

0.08

6%

0.06

6%

0.11

9%

0.11

0%

0.14

5%

0.08

2%

0.10

0%

0.06

7%

Tianjin Explosio

n

*PCS estimates as of Dec. 31, 2016.

**EMC Re losses as of Dec. 31, 2016.

Losses as a Percent of Industry Losses


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EMC Re Outperforms RAA 7 Out of Last 10 Years


Calendar EMC Re RAA Difference Year Combined Ratio Combined Ratio EMC–RAA

2007 89.9 94.7 -4.8

2008 107.5 101.8 +5.7

2009 87.5 95.5 -8.0

2010 88.0 95.4 -7.4

2011 118.1 107.2 +10.9

2012 90.2 96.2 -6.0

2013 82.7 86.8 -4.1

2014 98.5 91.1 +7.4

2015 89.0 92.6 -3.6

2016 92.4 95.2 -2.8

Average 94.4 95.7 -1.3

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The early settlers of Des Moines first named the area “Moingona,” which is a Native American word meaning “river of the mound.” French settlers changed the name to “Des Moines,” which means “the middle.” The term is commonly understood to refer to the principal river between the Mississippi and the Missouri rivers.

Area: 77.2 square miles

Population: 207,510 (108th largest city in the United States)

611,549 (Des Moines metro area)

Unemployment rate: 3.1% (April 2017)

Major industries: Finance and insurance, government, manufacturing, trade and service

66 insurance companies’ headquarters

3rd largest insurance center worldwide (after London, England, and Hartford, Conn.)

3.7-mile skywalk system started in 1980s and is one of the largest in the United States

Located in the Midwest, 326 miles west of Chicago, Ill.; 189 miles north of Kansas City, Mo.; and 264 miles south of Minneapolis, Minn.

Ranked No. 1 Best Place for Millennials to Live in the Midwest—Growella, 2017

Ranked No. 3 Best Place to Live With a Low Cost of Living—Business Insider, 2017

Ranked No. 4 Best Place for Children—Smart Asset, 2017

Top 25 Community for Well-Being—Gallup-Healthways Well-Being Index, 2017

EMC REINSURANCE COMPANYDES MOINES FACTS

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• Area: 56,276 square miles (26th largest state); 324 miles wide from east to west; 210 miles long from north to south; Highest point: 1,670 ft.; Lowest point: 480 ft.

• Population: 3,135,000—2016 (30th largest state)

• Admitted as a state in 1846; became U.S. property in 1803 as part of the Louisiana Purchase

• Nickname: Hawkeye State• No. 1 state in corn, soybean, egg and

hog production• Ranks 2nd in total livestock sales

(TX No. 1, USDA)• 60 public and private colleges• 28 community college campuses• Ranks No. 3 in golf courses per capita

(18 holes), 446 golf courses in the state• Ranks No. 9 for quality of life

(CNBC 2015)• Ranks No. 6 - Best U.S. States for Young

Adults (MoneyRates 2017)• Ranks No. 14 - Best States for Business

(Forbes 2016)Iowa Firsts• First Basketball Game

(Intercollegiate)—1893• First Can of Beer—1935• First U.S. Fast-Food Franchise—1926• First Home Microwave Oven—1967

• First Train Robbery in History (Jesse James)—1873

Famous Iowans• Herbert Hoover—President• William Edwards Deming—Statistician

and educator• John Atanasoff/Clifford Berry—Inventors

of the digital computer• Bill Bryson—Author of Thunderbolt Kid• George Gallup—Pollster• Zach Johnson—Pro golfer• Johnny Carson—Noted talk show host• George Washington Carver—Acclaimed

botanist and humanitarian• Kurt Warner—NFL quarterback• Ashton Kutcher—Actor• Dan Gable—Kingpin of wrestling• Fred Maytag—Developed the agitator

washing machine• Salvatore A. Giunta—Medal of Honor

winner• John Wayne—Academy Award-winning

actor• Elijah Wood—Actor• Lolo Jones—Professional track athlete &

Olympic bobsledder• Tom Arnold—Actor• Glenn Miller—Orchestra leader• Cloris Leachman—Actress• Shawn Johnson—Olympic gymnast

EMC REINSURANCE COMPANYIOWA FACTS

continuity in reinsurance august 2017 · 3rd largest insurance center worldwide (after london,...

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