CONTINUITY IN REINSURANCE

Transcription

1 CONTINUITY IN REINSURANCE

2 EMC INSURANCE COMPANIES LOCATIONS Bismarck Denver Minneapolis Milwaukee Providence Des Moines Lansing Chicago Valley Forge Omaha Davenport Cincinnati Wichita Kansas City Phoenix Dallas Little Rock Jackson Birmingham Charlotte Corporate Office and Des Moines Branch Branch Offices Service Offices 2

3 EMC INSURANCE COMPANIES COMPANY STRUCTURE Employers Mutual Casualty Company Employers Mutual Casualty Company Hamilton Mutual Insurance Company EMC Risk Services, LLC EMC Insurance Group Inc. Union Insurance Company of Providence EMC Property & Casualty Company EMC National Life Mutual Holding Company EMC National Life Company EMCASCO Insurance Company Illinois EMCASCO Insurance Company Dakota Fire Insurance Company EMC Reinsurance Company EMC National Life Marketing Services, LLC EMC Underwriters, LLC 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. 3

4 EMC INSURANCE COMPANIES OVERVIEW 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, **For the latest rating, visit 4

5 EMC INSURANCE COMPANIES FINANCIALS 1,400 EMCC Written Premium/Surplus 1,200 1,000 Millions ($) Years EMCC Net Written Premiums EMCC Surplus Best's Capital Adequacy Ratio EMCC Consolidated: EMC Reinsurance:

6 EMC INSURANCE COMPANIES FINANCIALS Direct Production 12 Months Ended Dec. 31, 2016 Personal Auto 4% Personal Property 4% Bonds 2% Commercial Auto 23% Work Comp 20% Commercial Property 26% Commercial Liability 21% 6

7 EMC REINSURANCE COMPANY 7

8 OVERVIEW 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 Internal Quota Share EMC Reinsurance 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 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 8

9 TARGET BUSINESS United States Treaties Multiline XOL Property Per Risk XOL Casualty XOL Property Cat XOL Property Aggregate XOL Crop XOL/Pro Rata Limited Property Pro Rata Ceding Companies Super Regional Regional Single State County Mutuals International Treaties Property Per Risk XOL Property Cat XOL Property Aggregate XOL Crop XOL/Pro Rata Limited Property Pro Rata Regions Western Europe Central and Eastern Europe United Kingdom Australia/New Zealand Nordic/Benelux Canada China Japan 9

10 TARGET 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 10

11 EMC REINSURANCE UNDERWRITING STAFF Vicki Freese CPCU, ARe EMCC Vice President/Reinsurance EMC Re President & COO Dawn Rizzi Senior Account Underwriter Angela Baughman Special Accounts Manager Tara Inghram CPCU, ARe, AU, AIM, AIAF Senior Pricing Analyst Kent McCampbell CPCU, ARe Underwriting Manager North America Brian Kraft CPCU Account Underwriter Doug Nuehring CPCU, ARe, AIAF Underwriting Manager International Alex Denker ARe Account Underwriter Stefan Mumm CPCU Account Underwriter

12 FINANCIALS Net Written Premiums 140 Millions ($) Years 12

13 FINANCIALS North America Estimated Written Premium* Casualty XS 9% Surplus 6% Crop 2% Other 4% Quota Share 25% Catastrophe XS 13% Per Risk XS 18% Multiline XS 23% International Estimated Written Premium* Surplus 2% Other 7% Per Risk XS 7% Catastrophe XS 45% Quota Share 39% *As of Jan. 1,

14 FINANCIALS 140 Combined Ratio by Year 120 Percents Years 14

15 FINANCIALS Past Catastrophe Experience (losses in excess of $5 million) M M M Millions ($) M M M 5.90 M 9.1 M M 5.81 M 5.81 M 6.10 M 6.10 M M 6.63 M 6.67 M M M 7.80 M 7.80 M 5.18 M 5.18 M M M M M 5 0 Net Incurred Loss Gross Incurred Loss Storm Ela 2014: $4.036M Tianjin Explosion 2015: $3.018M Alberta Wildfires 2016: $3.1M 15

16 FINANCIALS Losses as a Percent of Industry Losses 0.180% 0.160% 0.140% 0.145% 0.120% 0.100% 0.080% 0.060% 0.040% 0.111% 0.078% 0.086% 0.066% 0.119% 0.110% 0.082% 0.067% 0.100% 0.020% 0.000% *PCS estimates as of Dec. 31, **EMC Re losses as of Dec. 31,

17 FINANCIALS EMC Re Outperforms RAA 7 Out of Last 10 Years Calendar EMC Re RAA Difference Year Combined Ratio Combined Ratio EMC RAA Average

18 DES MOINES FACTS 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 (108 th 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 3 rd 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,

19 IOWA FACTS Area: 56,276 square miles (26 th 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, (30 th 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 2 nd 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 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 19

20 EMC Reinsurance Company 717 Mulberry St Des Moines, IA Copyright Employers Mutual Casualty Company All rights reserved. RE0001 (8-17)