TAKING ACTION Corporate Review. Taking Action 1

Transcription

1 TAKING ACTION 2016 Corporate Review Taking Action 1

2 It takes dedication. It takes innovation. It takes vision. It takes every part of EMC taking action to deliver the best value and service to our customers and stakeholders. As a result, we re making profitability, teamwork and community impact happen. EMC Executive Management Team (From left): Scott Jean, Executive Vice President for Finance and Analytics; Kevin Hovick, Executive Vice President and Chief Operating Officer; Bruce Kelley, President, Chief Executive Officer and Treasurer; Jason Bogart, Senior Vice President of Branch Operations; Mick Lovell, Executive Vice President for Corporate Development 2

3 TO OUR CUSTOMERS Once again, we surpassed our financial goals and broke new records in 2016: Record net written premium Record surplus Combined ratio 97.9 $1.707 Billion $1.633 Billion Best since 2006 We achieved these remarkable results by taking action to: Maintain strong relationships with our agents Develop new products and services using innovative solutions to set our agents apart Invest in the power of big data to understand our business and improve profitability Provide our team members with new technology, tools and training so they can deliver exceptional customer service Our goal is to offer a rich, consistent experience to every customer agents, policyholders and team members. And we know this doesn t just happen. It takes action, dedication, innovation and a vision to be the best. Bruce G. Kelley, J.D., CPCU, CLU President, Chief Executive Officer and Treasurer Taking Action 3

4 ADVANCING OUR AGENTS Record surplus We saw profitable results this year thanks to the independent insurance agents who chose to place their business with us. We also owe our success to our outstanding EMC team members and all of our policyholders who place their trust in our company. We only work through the independent agency system because we believe independent agents bring real value and knowledge to the insurance process and can best represent their clients interests. We rely on our agents to represent us, and our products and services, to their clients. CLOSE TO AGENTS Meeting the Needs of Agents and Policyholders We are always looking for ways to help our agents achieve greater success because when they are successful, we are too. Our unique branch office structure, with 20 locations throughout the country, is ideal for cultivating close relationships with our agents. We re available in person, on the phone or online anytime our agents need assistance or have questions. Our underwriting, claims, loss control and marketing team members take pride in sharing their extensive knowledge. And our agents know their underwriters on a first-name basis we re that close. LISTENING TO AGENTS Each year, through an independent consultant, we conduct a customer satisfaction survey of our agents to identify areas where we need to improve most. We listen to our agents and then put what we learn into action to improve our products, services and processes. Our focus on continuous improvement is aimed at making EMC the best company for our agents business. 4

5 EMC LOCATIONS Bismarck Denver Omaha Milwaukee Lansing Des Moines Chicago Corporate Office Kansas City Wichita Minneapolis Davenport Cincinnati Valley Forge Providence Phoenix Little Rock Charlotte Birmingham Dallas Jackson Branch offices Service offices Corporate office It takes dedication. From Our Agents I have to let you know what an AMAZING job you did for our client and our agency. EMC has great underwriters to work with friendly, personable, professional and quick with responses. Policies, endorsements, quotes are all easy to read and quick to arrive. Claims and loss control are fantastic. I always know that when our insureds have a claim with EMC they will be given top-shelf service. The depth of your loss control talent has helped us attract business to EMC. Taking Action 5

6 INVESTING IN THE FUTURE Not only are we committed to the independent agency system, we re focused on finding innovative solutions and creating products and services that can set our agents apart. That s what makes EMC different our approach to innovation gives our agents more to sell, helps our policyholders and moves the industry into the future. STRATEGIC ANALYTICS We formed our Strategic Analytics Department in late 2015, and since then those team members have been actively engaged in the development of claims triage modeling, enhanced dashboards and data reporting. In addition, we created our very own innovation lab led by team members who are empowered to collaborate, make quick decisions and take action. TELEMATICS The New Peak Fleet TM Program We are building a new platform, Peak Fleet TM, that will be agency-branded and introduced to our agents in This unique platform will help fleet managers improve maintenance and uptime, increase fuel economy and reduce costs associated with replacing drivers. Our fleet pilot program that uses telematics was launched through the innovation lab. In 2016, branch office and Corporate Office team members worked closely with an insurance agency and several vendors to explore the use of telematics for fleets. Using the data we ve gathered from the pilot test, we are enhancing the program so our agents can offer additional benefits to their fleet clients. 6

7 BIG DATA EMC is serious about using data to find innovative solutions and is willing to invest in companies that can add value for our policyholders and agents. The volume of data is exploding, and companies that can quickly obtain, understand, adapt and use data will secure a huge competitive advantage. We are enthusiastic about gaining more insight into our risks so we can more accurately underwrite and price our business, and provide a more targeted approach to our loss control services. GLOBAL INSURANCE ACCELERATOR This past year, EMC joined the Global Insurance Accelerator (GIA), a business accelerator focused on developing and growing innovative insurance-centric startups. As an investor, EMC is helping to fund the insurance technology startups accepted into the program. EMC is also committing staff and company expertise to help mentor startups through the critical early stages of growth. It is to our benefit to invest in the GIA because it fosters innovation and builds solutions to solve contemporary insurance issues such as data sharing, security and risk management. It takes innovation. Taking Action 7

8 HELPING OUR POLICYHOLDERS EMC has been an innovator of loss control services for over 90 years. We ve advocated for our policyholders, finding ways to help improve their safety and control their losses since It may have started with simple safety signs, but now we re taking action in the high-tech world of loss control, advancing into applications, simulators, sensors, drones and more. SLIP AND FALL SIMULATOR EMC donated funds to purchase an Industrial Biodynamics Slip Simulator for the Iowa-Illinois Safety Council. The Slip Simulator creates slippery and hazardous conditions for users to attempt to navigate while strapped into an overhead safety harness. Participants can learn from mistakes, gain proficiency and decrease their risk of slip, trip and fall injuries with improved stability and balance, all in the safety of a controlled environment. WALKWAY CHECK SM Walkway Check makes it easier for organizations to identify and report hazards that can lead to slip and fall incidents, the leading cause of unintentional injuries in the United States. With the Walkway Check app, organizations can easily report slip and fall hazards and conduct walkway hazard inspections at their facilities. SUPERVISION DRIVER MONITORING SERVICES EMC is giving its commercial policyholders special access to motor vehicle reports (MVRs) and driver monitoring services through SuperVision. SuperVision allows users to monitor violations, license status and MVR updates, import and manage driver rosters and more. These services can help policyholders take control of their fleets and reduce losses. Approximately 25,000 slip and fall accidents happen every day in the workplace, according to the National Safety Council. SENSORS FOR REAL-TIME MONITORING IN SCHOOLS EMC started a pilot program in late 2016 that uses a monitoring system to help schools manage risks using real-time data. The system features remote-operated sensors that monitor doors, temperature, humidity, vibration and water. These sensors are strategically placed in vulnerable areas within a school building and, if triggered, will send alerts. Based on information from these sensors, policyholders can proactively find solutions to improve their environment and safety. 8

9 EMC ONCALL NURSE This 24-hour work injury nurse hotline service is proven to improve health outcomes for injured employees while reducing workers compensation claims and costs. The injured employee calls and speaks directly to a specially trained nurse who immediately assesses the injury and recommends the best course of action. Many cases can be resolved with simple first aid, avoiding unnecessary emergency room visits. The EMC OnCall Nurse program is being piloted by policyholders in select branch office territories and will be expanded to larger commercial policyholders countrywide in TAKING TO THE SKIES WITH DRONES Drones are being used within the insurance industry, and EMC is right in the midst of the action in a unique way. Like many insurance companies, EMC will use drones to document and assess property claims, such as after a major storm. But we are also developing a program to spot problems before they turn into claims. Now we re using drones for building measurements and roof inspections. Taking Action 9

10 TEAM MEMBERS TAKE ACTION As we said before, it takes teamwork. And at EMC, it's our underwriters, marketing representatives, claims and loss control professionals who are working together at the forefront of delivering the best in customer service to our agents and policyholders. Those in the branch offices are backed up by team members in the Corporate Office, all working to provide the positive experiences our customers deserve. HIGH-SCORING CLAIMS SERVICE We rely on our team members, and they deliver. The proof is our outstanding customer service score for our claims service: 4.6 for 2016, on a five-point scale, which is a 92 percent satisfaction rate. The survey is conducted by an independent firm and asks questions about professionalism, courtesy, timeliness and whether or not the claims process was thoroughly explained. Our team members consistently give great claims service, and for five years our score has been 4.6 or above. NEW TECHNOLOGY AND INNOVATIONS We re here to help our team members through technology and innovative ideas. From our customized proprietary dashboard that gives our underwriters quick and easy access to the information they need to experiential joint training and education sessions for underwriting, claims, marketing and loss control professionals all are aimed at delivering the best possible service to our customers. EDUCATION AND TRAINING We believe in our team members and encourage their development through education and training programs. Our investment in professional development enables us to fill a majority of open management positions with internal candidates, and our knowledgeable team members help give EMC a competitive advantage over other companies. 10

11 It takes vision. We believe in the value of our communities and are committed to supporting and improving them. We put this belief into action by giving our team members the opportunity to make a positive difference through volunteering, and they take it! VISION FOR A BETTER FUTURE We encourage all EMC team members to take action and do something to improve the lives of other people. In 2016, our team members across the country took volunteer time off to support both local and global causes. Learn more about what they did to better their communities and the world on the following pages. Taking Action 11

12 Bismarck Branch Cares for the Dakota Zoo Bismarck Branch team members helped out at the Dakota Zoo in August, completing more than 100 projects during the annual Day of Caring, hosted by the Missouri Slope Areawide United Way in North Dakota. Corporate Office Claims Builds a Butterfly Garden Corporate Office Claims team members built a butterfly garden at the On With Life campus in Ankeny, Iowa. On With Life is a brain injury rehabilitation center that provides services for people who have sustained a traumatic brain injury. The butterfly garden is part of a sensory garden that will help clients during the rehabilitation process. Denver Branch Walks for Kid s Cure for Cancer The Denver Branch helped sponsor the 28 th annual Kid s Cure for Cancer walk/run event in July, raising money for Brent s Place, a children s hospital that provides housing for immune-compromised patients and their families while patients receive ongoing treatment. Des Moines Team Members Volunteer at December Market Team members volunteered at Iowa s premiere German-inspired Christkindlmarket, sponsored by the Des Moines European Heritage Association, a nonprofit group dedicated to giving Iowans experiences with European traditions, language, education and culture. 12

13 Lansing Constructs a Dream Depot 2.0 Lansing Branch team members participated in a Capital Area United Way event called Dream Depot 2.0 in September. They helped construct a new playground for a local elementary school after the original playground had to be torn down. Information Technology Department Builds for Habitat for Humanity The Corporate Office IT Database Administration team helped install outside foam, house wrap and siding on a new Habitat for Humanity house in Des Moines in November. Providence Branch Joins Flames of Hope: A Celebration of Life Providence Branch team members volunteered to help prepare for the Flames of Hope: A Celebration of Life event. The fundraising event includes educational and awareness activities for cancer survivors and their families. Volunteer Committee Sews Little Dresses for Africa Des Moines-based team members created and donated almost 50 hand-sewn dresses to Little Dresses for Africa, a nonprofit organization that provides clothing to African children in need. Taking Action 13

14 Cincinnati Branch Packs Snacks for Kids The Cincinnati Branch assembled and donated snack packs for the Boys and Girls Clubs of Greater Cincinnati and Clermont County, and the Freestore Foodbank. The activity was part of the branch office s United Way week. Team Members Go Green at Easter Lake Park A group of EMC team members volunteered for a Green Iowa AmeriCorps and Polk County Conservation Department project at Easter Lake Park in Des Moines to clear invasive plants that can damage native ecosystems. Jackson Branch Supports the Gateway Rescue Mission The Jackson Branch collected canned food items to donate to Gateway Rescue Mission, a nonprofit organization that provides food, shelter and counseling for homeless individuals in the Jackson area. Des Moines Team Members Package Meals from the Heartland EMC team members from Corporate Office Claims, the Des Moines Branch and a West Des Moines insurance agency joined together to package meals for Meals from the Heartland, a nonprofit organization that delivers packaged meals to hungry people around the world. 14

15 BENEFITS AND REWARDS Because we rely on our team members to provide exceptional service, we provide them with a robust, comprehensive total rewards package one that recognizes their need for financial security, well-being, education, recognition and contribution. We want to foster a culture of engaged, healthy, productive team members, and we have several unique programs to do just that: THRIVE This EMC program is dedicated to the overall health and well-being of team members year-round, providing fitness programs, health screenings and educational sessions. LEARNINGCENTRAL Our training and education system is used by team members to complete online courses, watch instructional videos, register for classes and track their learning history. SPOTLIGHT American Heart Association's Fit-Friendly Worksites EMC was recognized by the American Heart Association s Fit-Friendly Worksites program as a 2016 Platinum-Level recipient for the second consecutive year. Only employers that offer a comprehensive wellness program and demonstrate measurable improvements in health outcomes qualify. Our new companywide team member recognition and award program was introduced in It s all about shining the spotlight on EMC team members who stand up and stand out by going above and beyond. VOLUNTEER TIME OFF EMC team members are encouraged to donate their time and talent to charitable organizations because we believe in supporting and improving the communities in which our team members live and work. Taking Action 15

16 2016 COMPANY RECOGNITION Taking action leads to results that get noticed, both locally and nationally. In 2016, EMC was once again recognized for its accomplishments by community and industry organizations, and by national publications. BIG I BEST PRACTICES AWARD OF EXCELLENCE EMC Insurance Companies was presented with the Best Practices Award of Excellence by the Independent Insurance Agents & Brokers of America in EMC is one of only six companies in the nation to receive this award, which recognizes imaginative, outstanding and unique contributions in advocating Best Practices philosophies that enhance the independent agency system. 50 MOST TRUSTWORTHY FINANCIAL COMPANIES LIST BY FORBES Des Moines Triathlon For the second consecutive year, EMC sponsored the finish line for the Des Moines Triathlon in September. Participants swam, biked and ran through downtown and finished at the Iowa State Capitol. For the third consecutive year, EMC Insurance Group Inc. (EMCI) was listed on the 50 Most Trustworthy Financial Companies 2016 list, announced by Forbes. In 2013, EMCI was listed on the Forbes 100 Most Trustworthy Companies list. 1 NO. 2 ON 40 BEST PUBLIC COMPANIES FOR LEADERS LIST For the fourth consecutive year, EMC was listed as one of the 40 best public companies for leaders in the January/February 2016 issue of Chief Executive magazine. EMC ranked 2 nd in 2016, moving up from 4 th in

17 ECONOMIC IMPACT AWARD FROM GREATER DES MOINES PARTNERSHIP EMC Insurance Companies was honored with the Economic Impact Award from the Greater Des Moines Partnership and the Des Moines Business Record in late The Economic Impact Award recognizes EMC for having a significant impact on the local Iowa economy through job creation, capital investment and facility expansion. Facility expansion has been a focal point at EMC as construction on a new four-story office building located at 219 Eighth Street is nearing completion. (See architect's rendering above.) IOWA HISTORY 101 TRAVELING EXHIBIT EMC is the presenting sponsor of a new RV exhibit that will travel to all 99 counties in Iowa over the next three years in collaboration with the State Historical Society of Iowa. Iowa History 101, a multimedia and artifact-based traveling exhibit, will include narration by Mike Wolfe, creator and star of the hit TV show American Pickers, and a display of key Iowa artifacts. 1 In 2014, MSCI ESG Research began compiling the 50 Most Trustworthy Financial Companies list separately from the Forbes 100 Most Trustworthy Companies list. To create the list, MSCI ESG Research reviewed nearly 700 publicly-traded North American financial companies with market caps of $250 million or greater for the year ending December For more information, go to 2 The annual ranking is based on a survey of organizations worldwide conducted by Chief Executive in cooperation with GrowthPlay. For more information on the 40 Best Companies for Leaders, go to Taking Action 17

18 2016 FINANCIALS EMC had another successful year in 2016, with a 97.9 percent combined ratio and record premium and surplus levels. Despite the softening insurance market, we achieved rate increases on many accounts and finished the year with the overall rate level up 0.4 percent over the previous year. We believe our solid book of business, adequate rate levels, strong balance sheet and advanced analytics position us for continued profitability. 0.4 percent for the seven major lines of business. Included in the consolidated net written premium figures is an increase of $6.5 million (5.2 percent) for EMC Reinsurance Company to $131 million. RESERVES EMC strives to be conservative in reserving practices and consistently carries reserves at or above the actuarial central estimate. The Claims Department also promotes a consistent approach to case reserving, establishing adequate case reserves in a timely fashion and reassessing file adequacy as soon as salient information is available. COMBINED RATIO EMC s consolidated combined ratio for the 2016 calendar year was 97.9, down from 98.1 last year and exceeding our corporate objective. Catastrophe and storm losses contributed 9.2 points to the combined ratio in 2016, below the 10.2 point average for the previous 10 years. PREMIUM GROWTH Consolidated net written premiums grew to a record $1.708 billion, an increase of $61.9 million, or 3.8 percent, compared to Branch office operations saw an increase in renewal premiums driven by strong renewal retention, slight rate level increases and increased exposures on existing accounts. For all lines combined, new business premiums and policy counts were up from last year. Renewal retention based on in-force policy count remained strong at 87.0 percent for commercial lines and 84.6 percent for personal lines. Rate changes implemented during 2016 increased rate levels by roughly INVESTMENTS 2016 was a productive year for the investment portfolio with net investment income of $99 million and net realized gains of $24.1 million. OPERATING RESULTS EMC saw an overall gain from operations income. Net income increased $11.3 million, from $110.9 to $122.2 million. FINANCIAL STRENGTH RATING EMC Insurance Companies is a financially strong insurance company that has been in business for 106 years. In June 2016, A.M. Best reaffirmed the financial strength rating of A (Excellent) and the issuer credit ratings of a of EMC Insurance Companies (this includes Employers Mutual Casualty Company and its six property/casualty subsidiaries). For the latest rating, access 18

19 FINANCIAL STATEMENT Underwriting Operations Net Written Premiums $ 1,707,990,395 $1,646,080,754 $1,570,453,116 $1,487,116,330 $1,350,369,364 Net Earned Premiums $ 1,687,204,644 1,620,443,074 1,532,160,812 1,439,632,801 1,299,090,409 Losses Incurred $ 951,285, ,949, ,668, ,010, ,826,183 Ratio To Earned Premiums 56.4% Loss Adjustment Expenses $ 150,064, ,130, ,631, ,839, ,939,780 Ratio To Earned Premiums 8.9% Other Underwriting Expenses $ 524,355, ,013, ,216, ,130, ,055,178 Ratio To Written Premiums 30.7% Net Underwriting Gain (Loss) $ 61,499,059 52,349,260 (12,355,143) 11,652,648 1,269,267 Policyholder Dividends $ 31,512,691 30,453,940 26,140,179 28,092,548 25,455,430 Ratio To Earned Premiums 1.9% Combined Loss & Expense Ratio 97.9% Net Investment Gains Net Investment Income Earned $ 98,953, ,201, ,816,471 92,683, ,653,249 Net Realized Capital Gains* $ 24,105,581 13,769,419 18,719,329 31,969,177 9,400,853 Financial Results Net Income (Loss) $ 122,189, ,858,203 84,770,528 96,856,940 74,761,832 Net Admitted Assets $ 4,392,197,854 4,173,650,357 3,964,334,525 3,675,045,883 3,368,795,790 Liabilities $ 2,758,931,663 2,668,411,209 2,540,682,207 2,365,917,971 2,251,863,175 Surplus $ 1,633,266,191 1,505,239,148 1,423,652,318 1,309,127,912 1,116,932,615 *Net of capital gains tax Taking Action 19

20 BRANCH OFFICES Branch Office Branch Manager Year Opened Territory Employees Agencies Represented 2016 Commercial Lines Premium* Birmingham Paulette J. Johnson 1982 Alabama, Florida, Georgia, Tennessee $ 68,228,888 Bismarck Marilyn R. Ternes 1957 (Dakota Fire) 1973 (EMC Branch) Idaho, Montana, North Dakota, Oregon, Washington $ 61,487,188 Charlotte Lonnie D. Schwab 1975 (Charlotte) 1946 (Valley Forge) Delaware, Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina, Virginia, Washington, D.C $ 145,110,745 Chicago Gary A. Kohnke 1937 Illinois $ 53,319,694 Cincinnati Philip A. Goedde 1858 (Hamilton Mutual) 1997 (EMC Branch) Indiana, Kentucky, Ohio $ 80,426,424 Denver Dennis J. Prindiville 1981 Colorado, Utah, Wyoming $ 56,120,725 Des Moines John T. Schumacher 1911 Iowa $ 197,820,530 Jackson W. Coleman Cummins 1966 Louisiana, Mississippi $ 62,651,243 Kansas City Benjamin K. DeHart 1962 Arkansas, Missouri, Kansas (NE) $ 63,495,653 Lansing Gary E. Pingel 1940 Michigan $ 79,091,246 Milwaukee Philip R. Lucca 1956 Wisconsin $ 88,422,509 Minneapolis Jerry K. Harlow 1942 Minnesota $ 69,137,591 Omaha Jay Sillau 1939 Nebraska, South Dakota $ 106,284,786 Phoenix Douglas P. Lincoln 1958 Arizona, California, Nevada, New Mexico $ 63,771,517 Providence William G. Arnold 1863 (Union Mutual) 1968 (EMC Branch) Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont $ 54,059,959 Wichita Michael L. Akin 1934 Kansas, Oklahoma, Texas $ 217,816,219 *As of 2016, personal lines net written premium is being calculated separately (see next page). Only commercial lines net written premium is shown on this chart. 20

21 BUSINESS UNITS Operation Management Territory Business Personal Lines Operations Tanya Wentzel Alabama, Arizona, Arkansas, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Minnesota, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, Oklahoma, South Dakota, Tennessee, Wisconsin, Wyoming Personal lines underwriting, claims and marketing $131,045,485 direct written premium EMC Bond Department Jim Clough Alabama, Arizona, Arkansas, Colorado, Connecticut, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Wisconsin, Wyoming Primarily contract surety bond business $32.3 million direct written premium (6.7% increase) 3.4% loss ratio EMC Risk Services, LLC Barb Sullivan All states Multiline, third-party administrator offering claims administration, costs management and loss control services EMC Reinsurance Company (EMC Re) Vicki Freese 88% domestic U.S. business 12% international Reinsurance business through intermediaries 92.4 trade ratio $131 million written premium (5.2% increase) EMC Underwriters, LLC Marcy Boggs All states Excess and surplus lines company offering specialty coverages on a direct basis, such as for fairs, festivals, firework displays, and ambulance malpractice, along with property and casualty coverages as well as using available alternative market approaches Taking Action 21

22 LEADERSHIP President, Chief Executive Officer and Treasurer Bruce G. Kelley, J.D., CPCU, CLU Executive Vice Presidents Executive Vice President and Chief Operating Officer Kevin J. Hovick, CPCU Executive Vice President for Corporate Development Mick A. Lovell, CPCU Executive Vice President for Finance and Analytics Scott R. Jean, FCAS, MAAA Senior Vice Presidents Ian C. Asplund, M.S., FCAS, MAAA, CERA Jason R. Bogart, CPCU, ARM Rodney D. Hanson, CPCU Robert L. Link, CAM, CM, Corporate Secretary Elizabeth A. Nigut, J.D. Ronald A. Paine, CPA, CIA Larry W. Phillips, CPCU Mark E. Reese, CPA, Chief Financial Officer Lisa A. Simonetta, J.D. Regional Vice President Dennis J. Prindiville, CPCU, AU Resident Vice Presidents Michael L. Akin, CPCU William G. Arnold, M.B.A., CPCU, ARM, AIS W. Coleman Cummins, CPCU, AIM, AU Benjamin K. DeHart, CPCU, ARM, ARe Philip A. Goedde, CPCU, CIC Jerry K. Harlow, CPCU, AU Paulette J. Johnson, CPCU, AU, AIS Gary A. Kohnke, CPCU Douglas P. Lincoln, CPCU, CLU, AU, ChFC Philip R. Lucca, CPCU Gary E. Pingel, CPCU, AU John T. Schumacher, CPCU Lonnie D. Schwab, CPCU, AU Jay Sillau, CPCU Marilyn R. Ternes, CPCU, AU Vice Presidents Dan D. Aksamit, CPCU, ARe, ARM Melissa J. Appenzeller, FCAS, MAAA, Chief Actuary Harold K. Capps Jr., RPA Alison M. Cate, CPCU, ARM James D. Clough, ARe Robert A. Coon, M.B.A. Daniel C. Crew, CPCU, CIC, CRM Kenneth J. Fitzgerald, CPCU, PMP Bradley J. Fredericks, M.B.A., FLMI, Chief Investment Officer Vicki L. Freese, CPCU, ARe Rob J. Friedman, CPCU, CIC, ARe Lisa L. Hamilton, M.S., M.A., ABC Larry G. Hamling, CPCU, CPA Julie A. Larson, CPCU, AIM, API Michael D. Morris, AIC, AIS, CIC, AIM Kelvin B. Sederburg, ACAS, MAAA, Appointed Actuary P. Bryon Snethen, CPCU, ARM, CSP, AU Todd A. Strother, J.D., General Counsel Kyle L. Warden Matt G. Wentzel, CPCU, AIM Tanya R. Wentzel, M.P.A., CPCU, CIC, AU Assistant Vice Presidents Karey S. Anderson, CFA Monte W. Ball, CSP Angela M. Baughman Michael R. Boggs, CPCU Douglas L. Brinkman, CPCU, CSP Gerrad T. Clausen, CPCU Kenneth D. Cumpston Jr., CPCU, AFSB, ARe Tamara L. Evans, CPCU, SCLA- Gold, AIM, AIC, ACS Michael R. Freel, FIDM Benjamin P. Herman, CPA, AFSB Ronald D. Herman, M.S., CPA Dawn D. Johnson Teresa L. Miller, CCP James M. Moore, CPCU, AIM Gerri S. Ohde, CPCU, ARM, AIS Sean A. Pelletier, J.D. Carla A. Prather, Controller Carol A. Ratekin, CPCU, FMLI Brent L. Rickabaugh, CPCU, AU Ross A. Sales, M.B.A. Jason T. Sash, FCAS, MAAA Robert G. Seiler, CEBS Lucreia M. Smith, M.B.A., API Barbara A. Sullivan, CPCU, AIC Stephen P. Tetzloff, CPCU, AAI Meg M. Weist, J.D. Ron E. Zoss Assistant Secretaries Duane R. Adamson Steven J. Albaugh, APA Lisa A. Arechavaleta, J.D., CCEP Lynette S. Bent, CTP, FLMI Marcel D. Boggs Christine M. Brandenburg, CPCU, AIC, AIM, ARe, AIT, SCLA-Gold Chad D. Buresh, CLA Kent A. Candee, CPCU, CIH, ARM, API Jason A. Clark, FCAS, MAAA Rick A. Conoan Sydney A. Conrad, J.D., M.B.A. Tammi M. Dickey, AINS Brian C. Fuller, AIC Brian L. Hendrickson, CPCU, ARM Tara L. Inghram, CPCU, ARe, AU, AIM, AIAF Scott D. Jaspers, CPCU, AIT, ACS Jill M. Joss, CPCU, CIDM, AIC, API Erik J. Keninger, CPCU, API, AU, AIM John R. Kurtz Traci A. Larsen, CRM Lori A. Lenz, CPA Jerry D. Loghry, M.S., CSP, CPP, ARM Brady J. Mallon Pat A. Martin, M.B.A., CPCU, PMP, AIT Kent L. McCampbell, CPCU, ARe Daniel J. McCleary, CPCU Thomas C. McEntee Doug W. Nuehring, CPCU, ARe, AIAF John S. Osier, M.B.A., CPCU, CFA Dawn M. Rizzi Jeffrey L. Roe Laurie A. Salz, FCLS Karen J. Stille Joni R. Summitt, CPCU, AIM, API Cheri K. Trites, J.D. Douglas S. Van Zanten, J.D., CPCU Chad B. Veach, CPCU, CSP, ARM Steven T. Walsh, CPA Todd D. Witke, J.D. Assistant Controllers Laura L. Ladd, CPA Jeffrey B. Monson, CPA, CPCU, AIAF, ARe As of January EMC Insurance Companies (EMC) is the trade name used by Employers Mutual Casualty Company (EMCC), several subsidiaries and affiliated insurance companies, and EMC Insurance Group Inc. See the back page for a list of all EMC companies. 22

23 BOARD OF DIRECTORS RETIREMENTS Chairman of the Board David J. W. Proctor, J.D. Practicing Attorney and Shareholder Bradshaw, Fowler, Proctor & Fairgrave, P.C. Des Moines, Iowa Board Members Thomas W. Booth Retired Open Innovation Leader Lennox International, Inc. Lafayette, Colorado John C. Burgeson Owner, Chairman and CEO Iowa State Bank Des Moines, Iowa Matthew D. Griffin, J.D. Attorney Kaplan, Inc. Brooklyn, New York Steven G. Jacobs Cofounder, Principal and President BCC Advisers West Des Moines, Iowa Ronald W. Jean, FCAS, MAAA Retired Executive Vice President for Corporate Development EMC Insurance Companies Altoona, Iowa Bruce G. Kelley, J.D., CPCU, CLU President, CEO and Treasurer EMC Insurance Companies Des Moines, Iowa Richard Koch Jr. President and Owner Koch Brothers Des Moines, Iowa J. Thomas Lockhart, M.B.A. Financial and Accounting Consultant Golden Valley, Minnesota William A. Murray, CIC, AU Retired Executive Vice President and COO EMC Insurance Companies Concord, North Carolina Mary O Gorman Murray, CPCU Retired Chief Administrative Officer Towers Perrin Reinsurance Media, Pennsylvania Frankie Box CPCU, CLU, ChFC, AIM, Resident Vice President and Jackson Branch Manager, retired in December Box began his career with EMC in August 1975 at the Jackson Branch. Coleman Cummins took over his position. Carl Doot CPCU, CLU, AU, Resident Vice President and Phoenix Branch Manager, retired in March Doot was with EMC for over 42 years and served as branch manager since Doug Lincoln took over his position. Ron Hallenbeck CPCU, ARe, ARP, AIAF, President of EMC Reinsurance for nearly 22 years, retired in August Hallenbeck worked for EMC for over 42 years. Vicki Freese took over as the head of EMC Reinsurance. Kent Kochheiser CPCU, Resident Vice President and Cincinnati Branch Manager, retired in March 2016 after over 37 years with EMC. Phil Goedde took over his position. Jay Oster CPCU, ARe, ARM, AU, Vice President-Corporate Risk Manager, retired in January Oster began his EMC career at the Bismarck Branch in 1984 and moved to the Corporate Office in Dan Aksamit took over as the head of the Corporate Risk Management Department. Taking Action 23

24 Our mission is to grow profitably through partnership with independent insurance agents and to enhance the ability of our partners to deliver quality financial protection to the people and businesses we mutually serve. Employers Mutual Casualty Company EMC Insurance Group Inc. Dakota Fire Insurance Company EMC Reinsurance Company EMCASCO Insurance Company EMC Underwriters, LLC Illinois EMCASCO Insurance Company EMC Property & Casualty Company EMC Risk Services, LLC Hamilton Mutual Insurance Company Union Insurance Company of Providence EMC National Life Company (Affiliate) 717 Mulberry Street, Des Moines, IA Copyright Employers Mutual Casualty Company All rights reserved. MK0411 (2-17)