EMC Quarterly Net Is Up 18 %

NU Online News Service, Feb. 25, 1:42 p.m.EST?EMC Insurance Group Inc. said its net income for the2003 fourth quarter rose on a year-over-year basis, up 18 percentto $6.09 million from $5.17 million posted during the 2002 fourthquarter. [@@]

The Des Moines, Iowa-based insurer said higher premium rates andthe improved quality of its risks had powered the results, whichincluded a 26 percent rise in full-year 2003 net income to $20.35million, compared to $16.10 million reported in 2002.

Bruce Kelley, president and chief executive officer at EMC, saiddespite an unusually high level of catastrophe and storm losses andsome necessary reserve strengthening, EMC managed to post its "mostprofitable year since its debut as a public company in 1982."

"Over the last several years we have been diligent in ourefforts to improve both premium rate adequacy and the quality ofthe risks we insure," Mr. Kelley commented. "Those efforts havebeen successful, and we are now experiencing the financial benefitsof those initiatives."

For full-year 2003 EMC has posted $249.59 million in writtenpremiums for its property-casualty units, up from $237.63 millionreported one year ago.

Written premiums for the reinsurance operations also rose, to$90.06 million from $76.20 million for 2002. The company noted thatfor 2003, premiums earned increased 11.3 percent to $330.62 millioncompared to $297.04 million for 2002.

Company management said the gains are primarily attributed torate hikes implemented during the last two years in the p-cinsurance business as well as significant growth and improvedpricing in the assumed reinsurance business.

"The market for p-c insurance remained firm during the fourthquarter of 2003 and no significant changes are forecast for 2004,"according to EMC. The company said it will continue to implementrate increases in those lines of business as well as territories"where such action is warranted." However, the overall level ofthese rate hikes is expected to be smaller than those made during2003, it added.

EMC?through its EMCASCO Insurance, Illinois EMCASCO and DakotaFire Insurance?offers a number of p-c lines, including auto,property, liability and workers' compensation. The company alsosells high-risk private auto insurance through its Farm and CityInsurance, while its EMC Underwriters offers excess and surpluslines of insurance. Additionally, the company sells p-c treatyreinsurance through EMC Reinsurance.