EMC Insurance Group Reports Q3 Results

EMC Insurance Group Inc. reported record third quarter operating income of $0.56 per share for the quarter ended Sept. 30, 2005 compared to operating income of $0.10 per share for the third quarter of 2004. Operating income for the nine months ended Sept. 30, 2005 was $1.63 per share compared to $0.92 per share for the same period in 2004.

Net income, including realized investment gains/losses, was $8,329,000 ($0.61 per share) for the third quarter of 2005 compared to $1,858,000 ($0.16 per share) for the third quarter of 2004. Net income for the nine months ended September 30, 2005 was $23,992,000 ($1.76 per share) compared to $13,673,000 ($1.18 per share) for the same period in 2004.

Catastrophe and storm losses increased 33.5 percent to $14,402,000 ($0.69 per share after tax) in the third quarter of 2005 from $10,790,000 ($0.61 per share after tax) in the third quarter of 2004. For the first nine months of 2005, catastrophe and storm losses totaled $23,008,000 ($1.10 per share after tax) compared to $19,002,000 ($1.07 per share after tax) for the same period in 2004. Total losses attributable to Hurricanes Katrina and Rita, including the effect of reinsurance reinstatement premiums and related commissions, amounted to $9,000,000 ($0.43 per share after tax).

EMC Insurance Group Inc., the Des Moines, Iowa-based publicly-held insurance holding company of EMC Insurance Companies, owns subsidiaries with operations in property and casualty insurance and reinsurance. EMC Insurance Companies is one of the largest property and casualty entities in Iowa and among the top 60 insurance entities nationwide. For more information, see the company Web site at www.emcinsurance.com.