EMC Insurance Group Inc. (EMCI) restated its fourth-quarter and full-year 2002 earnings lower to reflect a $2.1 million reserve hike for direct asbestos exposures.
The Des Moines, Iowa-based insurer now says it earned $5.2 million, or 45 cents a share, in the fourth quarter and $16.1 million, or $1.42 a share, for all of 2002. On an operating basis, which excludes realized investment gains and losses, it now says it earned 38 cents a share in the fourth quarter and $1.60 a share for the year.
EMC boosted its reserves by about $2.1 million as of Dec. 31 after voluntarily commissioning a consulting actuarial firm to quantify the company’s exposure to asbestos liabilities. The increase in asbestos reserves decreased net income for the quarter and year ended Dec. 31 by about $1.3 million.
Last month, the company reported fourth-quarter earnings of $6.5 million, or 57 cents a share and 2002 earnings of $17.4 million, or $1.53 a share. Operating earnings per share were 50 cents and $1.71 for the quarter and year, respectively.
In 2001, the company reported a loss of $1.3 million, or 11 cents a share, for the fourth quarter and a loss of $2.1 million, or 19 cents a share, for the year. Operating losses in 2001 were 12 cents a share for the fourth quarter and 24 cents for the year.
EMC’s shares closed Tuesday at $15.99, down $1.07, or 6.3 percent, on Nasdaq volume of 31,700 shares. Average daily volume is 2,134 shares.