Financial AnalysisContinuously improving company performance is always our goal, but the increasing cost and frequency of natural disasters made that more challenging in 2017. Considering the extraordinary catastrophe and storm losses incurred by the insurance industry, EMC had good results for the year.

Positive Results EMC’s trade combined ratio for 2017 was 102.6, which was significantly better than the industry as a whole. Our 2017 results came in close to our planned trade combined ratio of 100.0. The impact of catastrophes and storms amounted to more than $200 million in losses, which accounted for 12 points of the trade combined ratio, compared to an average of 9 points in previous years.

Record Premium$1.775 billion + 3.9%

Financial Strength RatingEMC Insurance Companies is a financially stronginsurance company that has been in businessfor 107 years. In 2017, A.M. Best reaffirmed thefinancial strength rating of A (Excellent) with astable outlook and the issuer credit ratings of“a” for EMC Insurance Companies. For the latest rating information, visit ambest.com.

LeadershipBoard of DirectorsChairman of the BoardDavid J. W. Proctor, J.D. Practicing Attorney & Shareholder Bradshaw, Fowler, Proctor & Fairgrave Des Moines, Iowa

Board MembersThomas W. Booth Retired Open Innovation Leader Lennox International Inc. Lafayette, Colo.

Matthew D. Griffin, J.D. Attorney Kaplan Test Prep Brooklyn, N.Y.

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/Owner Koch Brothers Des Moines, Iowa

J. Thomas Lockhart, M.B.A. Retired Executive United Theological Seminary Golden Valley, Minn.

William A. Murray, CIC, AU Retired Executive Vice President & COO EMC Insurance Companies Concord, N.C.

Mary O’Gorman Murray Retired Executive Towers Perrin Reinsurance Media, Pa.

David S. Ziegler Owner and CEO Ziegler’s Ace Hardware Elgin, Ill.

David S. Ziegler was elected to the EMC Board of Directors in March 2017. Ziegler served on the board of directors of Ace Hardware Corporation from 2001 to 2014.

Executive ManagementPresidentPresident, Chief Executive Officer and Treasurer Bruce G. Kelley, J.D., CPCU, CLU

Executive Vice Presidents Executive Vice President of Operations Mick A. Lovell, CPCUExecutive Vice President of Finance and Strategy Scott R. Jean, FCAS, MAAA

Senior Vice Presidents Ian C. Asplund, M.S., FCAS, MAAA, CERA Jason R. Bogart, CPCU, ARM Bradley J. Fredericks, M.B.A., FLMIRodney D. Hanson, CPCUMeyer T. Lehman, FCAS, MAAARobert L. Link, CAM, CMElizabeth A. Nigut, J.D.Larry W. Phillips, CPCUMark E. Reese, CPALisa A. Simonetta, J.D.Todd A. Strother, J.D.

Area Vice PresidentsPhilip R. Lucca, CPCU Lonnie D. Schwab, CPCU, AU

Resident Vice PresidentsMichael L. Akin, CPCUWilliam G. Arnold, M.B.A., CPCU, CIC, ARM, AISCraig A. Bruder, M.B.A., CPCU, ARM, ACI, CAWCColeman W. Cummins, CPCU, AU, AIMBenjamin K. DeHart, CPCU, ARM, ARePhilip A. Goedde, CPCU, CICJerry K. Harlow, CPCU, AUPaulette J. Johnson, CPCU, AU, AINS, AISGary A. Kohnke, CPCU Douglas P. Lincoln, CPCU, CLU, AINS, AU, ChFCGary E. Pingel, CPCU, AU, CICDennis J. Prindiville, CPCU, AUJohn T. Schumacher, CPCUJay Sillau, CPCUMarilyn R. Ternes, CPCU, AUDave R. Young, M.B.A., CPCU, CFA, ARM-P, AU, AIAF

Financial StatementUnderwriting Operations

2017 2016

Net Written Premiums

$ 1,775,016,618 $ 1,707,990,395

Net Earned Premiums

$ 1,738,669,078 1,687,204,644

Losses Incurred $ 994,972,212 951,285,042

Ratio to Earned Premiums

57.2% 56.4

Loss Adjustment Expenses

$ 216,224,105 150,064,546

Ratio to Earned Premiums

12.4% 8.9

Other Underwriting Expenses

$ 550,261,820 524,355,997

Ratio to Written Premiums

31.0% 30.7

Net Underwriting Gain (Loss)

$ (22,789,059) 61,499,059

Policyholder Dividends

$ 35,550,847 31,512,691

Ratio to Earned Premiums

2.0% 1.9

Combined Loss & Expense Ratio

102.6% 97.9

Net Investment Gains

2017 2016

Net Investment Income Earned

$ 99,006,981 98,953,027

Net Realized Capital Gains*

$ 26,799,375 24,105,581

Financial Results 2017 2016

Net Income $ 73,418,181 122,189,458

Net Admitted Assets $ 4,596,644,318 4,392,197,854

Liabilities $ 2,883,722,717 2,758,931,663

Surplus $ 1,712,921,601 1,633,266,191

*Net of capital gains tax

Our CompanyWe serve our agents and policyholders through a network of branch and service offices throughout the country, allowing us to provide local underwriting, claims, marketing and loss control services. Agents and policyholders can communicate directly with an EMC representative who understands their local market and insurance needs. Our branch office structure also makes it easy to customize commercial products for businesses and associations.

717 Mulberry Street, Des Moines, IA 50309 515-280-2511 | 800-447-2295 | www.emcins.com

©Copyright Employers Mutual Casualty Company 2018. All rights reserved. MK0410 (2-18)

EMC Locations

Service OfficesBranch OfficesCorporate Office

What Matters

Our People

Our CommunitiesOur Future

Our Policyholders

Our Agents

2017 In ReviewEMCI on 50 Most TrustworthyFinancial Companies ListFor the fourth consecutive year, EMC InsuranceGroup Inc. (EMCI) was included on the 50 MostTrustworthy Financial Companies list announcedby Forbes.

Record Surplus$1.713 billion + 4.9%

Bruce Kelley President, Chief Executive Officer and Treasurer

To Our CustomersUnderstanding what matters most can sometimes be challenging. At EMC Insurance Companies, it’s simple. Our agency partners, policyholders, team members and communities are what matter most. All of these people, their livelihoods and their businesses drive our desire to deliver positive experiences and the protection they need to feel secure.

To provide the security our customers expect, we need to be a financially stable company — we are, and have been for 107 years. In 2017, our trade combined ratio was 102.6, a good result considering the remarkable catastrophe and storm losses incurred by the industry. Our net written premium increased to a record high of $1.775 billion. And EMC had another year of record surplus at $1.713 billion.

What matters most to us is that you can Count on EMC® — and focusing on that is the foundation of our success.

Bruce G. Kelley, J.D., CPCU, CLU President, Chief Executive Officer and Treasurer

Our Policyholders

Protecting Our CustomersWhat sets EMC apart is our ability to provide policyholders with the expert technical resources and innovative tools they need to reduce losses and save money. And we ensure policyholder loyalty by building on the value our products and services deliver.

Seeking Customer InsightsWhat matters most to our policyholders is that EMC is there when they have a claim. Our commitment is to investigate every claim, explain what is covered and what is not covered, and pay the claims we owe as quickly as possible.

EMC consistently receives high claims service scores on our monthly surveys. We received an overall score of 4.7 on a scale of 1-5, with 5 being the best. Furthermore, when policyholders were asked if they would recommend EMC to others, we scored 4.7.

Refreshing Our Web PresenceOur public website, emcins.com, was refreshed in 2017 with a new design and navigation that works seamlessly and looks incredible on all devices. We introduced our improved learning management system, Loss Control LearningCentral, on the website, giving our commercial policyholders easy access to online training and the ability to manage their employees’ safety training.

Our Future

Investing in InnovationWe’re serious about investing in and assistinginsurtech companies that support our strategicpriority of delivering greater value to our agentsand policyholders.

Deepening Our Insurtech StakeEMC joined in the world’s largest insurtech connected ecosystem, Plug and Play (PNP), a business accelerator that connects corporations with startups in different growth stages. PNP complements our investment in the Global Insurance Accelerator, a business accelerator focused on developing and growing innovative insurance-centric startups.

Using Pilot Tests to Find SolutionsWe are continuously developing and testing products and services that will help our policyholders and make our agents, and us, stand out. Significant pilot tests took place in 2017 in conjunction with:

• Ma-kuSafe Corp, an Iowa-based tech startup that is developing wearable sensors to improve workplace safety in manufacturing environments

• Peak Fleet®, our proprietary product that gives fleet managers real-time insights on fuel consumption, vehicle health and driver safety

• A Des Moines-based drone company, in cooperation with EMC and an independent insurance agency, which used infrared-enabled drones to develop 3-D graphical models to share with policyholders in several school districts

Our People

Building the Best TeamTeam members do their highest quality workwhen they’re engaged and empowered. At EMC,we believe in creating a positive work cultureand providing team members with the resourcesthey need to be their best. Whether it’s additionaltraining, new tools, collaborating on workmethods or redesigning work spaces, we help our team members achieve their finest.

Our Communities

Making Communities MatterEnhancing the quality of life in the communitieswe serve matters to EMC. The EMC InsuranceFoundation supports numerous organizationsin central Iowa and across the country. Ourcorporate and branch offices donate time,money and supplies to many local nonprofitorganizations. By volunteering and supportingorganizations in our local areas, we help createbrighter, stronger communities.

Mick Lovell Executive Vice President of Operations

Scott Jean Executive Vice President of Finance and Strategy

Our Agents

Advancing Our PartnershipsBecause we rely on independent agents to illustrate the benefits of our products and services to policyholders, earning the trust and business of these agency partners matters a great deal to us. It’s why we continue to innovate and launch products and services that will help them achieve greater success.

Strengthening Product Packages

The wide selection of EMC product offerings lets our agents pair potential policyholders with what fits

them best. To provide our agents with competitive products and more to sell,

we significantly improved our manufacturing, wholesalers,

commercial property extensions, equipment

breakdown, CyberSolutions and

personal lines coverages in 2017.

Expanding Our ReachOur well-defined growth strategy identifies the markets and territories where we want to increase our presence. In 2017, we broadened our reach into thestate of Washington to offer commercial insurance products. We successfully expanded our school program into Wyoming, and the Jackson Branchintroduced our public entities program in their territory.

Delivering Digital SolutionsOur new Agent Access, a secure agent site with updated navigation and a fresh look, rolled out to all EMC agents in spring 2017. We continue to improve Agent Access so all EMC agents can have an outstanding user experience.

Bruce Kelley President, Chief Executive Officer and Treasurer

To Our CustomersUnderstanding what matters most can sometimes be challenging. At EMC Insurance Companies, it’s simple. Our agency partners, policyholders, team members and communities are what matter most. All of these people, their livelihoods and their businesses drive our desire to deliver positive experiences and the protection they need to feel secure.

To provide the security our customers expect, we need to be a financially stable company — we are, and have been for 107 years. In 2017, our trade combined ratio was 102.6, a good result considering the remarkable catastrophe and storm losses incurred by the industry. Our net written premium increased to a record high of $1.775 billion. And EMC had another year of record surplus at $1.713 billion.

What matters most to us is that you can Count on EMC® — and focusing on that is the foundation of our success.

Bruce G. Kelley, J.D., CPCU, CLU President, Chief Executive Officer and Treasurer

Our Policyholders

Protecting Our CustomersWhat sets EMC apart is our ability to provide policyholders with the expert technical resources and innovative tools they need to reduce losses and save money. And we ensure policyholder loyalty by building on the value our products and services deliver.

Seeking Customer InsightsWhat matters most to our policyholders is that EMC is there when they have a claim. Our commitment is to investigate every claim, explain what is covered and what is not covered, and pay the claims we owe as quickly as possible.

EMC consistently receives high claims service scores on our monthly surveys. We received an overall score of 4.7 on a scale of 1-5, with 5 being the best. Furthermore, when policyholders were asked if they would recommend EMC to others, we scored 4.7.

Refreshing Our Web PresenceOur public website, emcins.com, was refreshed in 2017 with a new design and navigation that works seamlessly and looks incredible on all devices. We introduced our improved learning management system, Loss Control LearningCentral, on the website, giving our commercial policyholders easy access to online training and the ability to manage their employees’ safety training.

Our Future

Investing in InnovationWe’re serious about investing in and assistinginsurtech companies that support our strategicpriority of delivering greater value to our agentsand policyholders.

Deepening Our Insurtech StakeEMC joined in the world’s largest insurtech connected ecosystem, Plug and Play (PNP), a business accelerator that connects corporations with startups in different growth stages. PNP complements our investment in the Global Insurance Accelerator, a business accelerator focused on developing and growing innovative insurance-centric startups.

Using Pilot Tests to Find SolutionsWe are continuously developing and testing products and services that will help our policyholders and make our agents, and us, stand out. Significant pilot tests took place in 2017 in conjunction with:

• Ma-kuSafe Corp, an Iowa-based tech startup that is developing wearable sensors to improve workplace safety in manufacturing environments

• Peak Fleet®, our proprietary product that gives fleet managers real-time insights on fuel consumption, vehicle health and driver safety

• A Des Moines-based drone company, in cooperation with EMC and an independent insurance agency, which used infrared-enabled drones to develop 3-D graphical models to share with policyholders in several school districts

Our People

Building the Best TeamTeam members do their highest quality workwhen they’re engaged and empowered. At EMC,we believe in creating a positive work cultureand providing team members with the resourcesthey need to be their best. Whether it’s additionaltraining, new tools, collaborating on workmethods or redesigning work spaces, we help our team members achieve their finest.

Our Communities

Making Communities MatterEnhancing the quality of life in the communitieswe serve matters to EMC. The EMC InsuranceFoundation supports numerous organizationsin central Iowa and across the country. Ourcorporate and branch offices donate time,money and supplies to many local nonprofitorganizations. By volunteering and supportingorganizations in our local areas, we help createbrighter, stronger communities.

Mick Lovell Executive Vice President of Operations

Scott Jean Executive Vice President of Finance and Strategy

Our Agents

Advancing Our PartnershipsBecause we rely on independent agents to illustrate the benefits of our products and services to policyholders, earning the trust and business of these agency partners matters a great deal to us. It’s why we continue to innovate and launch products and services that will help them achieve greater success.

Strengthening Product Packages

The wide selection of EMC product offerings lets our agents pair potential policyholders with what fits

them best. To provide our agents with competitive products and more to sell,

we significantly improved our manufacturing, wholesalers,

commercial property extensions, equipment

breakdown, CyberSolutions and

personal lines coverages in 2017.

Expanding Our ReachOur well-defined growth strategy identifies the markets and territories where we want to increase our presence. In 2017, we broadened our reach into thestate of Washington to offer commercial insurance products. We successfully expanded our school program into Wyoming, and the Jackson Branchintroduced our public entities program in their territory.

Delivering Digital SolutionsOur new Agent Access, a secure agent site with updated navigation and a fresh look, rolled out to all EMC agents in spring 2017. We continue to improve Agent Access so all EMC agents can have an outstanding user experience.

Bruce Kelley President, Chief Executive Officer and Treasurer

To Our CustomersUnderstanding what matters most can sometimes be challenging. At EMC Insurance Companies, it’s simple. Our agency partners, policyholders, team members and communities are what matter most. All of these people, their livelihoods and their businesses drive our desire to deliver positive experiences and the protection they need to feel secure.

To provide the security our customers expect, we need to be a financially stable company — we are, and have been for 107 years. In 2017, our trade combined ratio was 102.6, a good result considering the remarkable catastrophe and storm losses incurred by the industry. Our net written premium increased to a record high of $1.775 billion. And EMC had another year of record surplus at $1.713 billion.

What matters most to us is that you can Count on EMC® — and focusing on that is the foundation of our success.

Bruce G. Kelley, J.D., CPCU, CLU President, Chief Executive Officer and Treasurer

Our Policyholders

Protecting Our CustomersWhat sets EMC apart is our ability to provide policyholders with the expert technical resources and innovative tools they need to reduce losses and save money. And we ensure policyholder loyalty by building on the value our products and services deliver.

Seeking Customer InsightsWhat matters most to our policyholders is that EMC is there when they have a claim. Our commitment is to investigate every claim, explain what is covered and what is not covered, and pay the claims we owe as quickly as possible.

EMC consistently receives high claims service scores on our monthly surveys. We received an overall score of 4.7 on a scale of 1-5, with 5 being the best. Furthermore, when policyholders were asked if they would recommend EMC to others, we scored 4.7.

Refreshing Our Web PresenceOur public website, emcins.com, was refreshed in 2017 with a new design and navigation that works seamlessly and looks incredible on all devices. We introduced our improved learning management system, Loss Control LearningCentral, on the website, giving our commercial policyholders easy access to online training and the ability to manage their employees’ safety training.

Our Future

Investing in InnovationWe’re serious about investing in and assistinginsurtech companies that support our strategicpriority of delivering greater value to our agentsand policyholders.

Deepening Our Insurtech StakeEMC joined in the world’s largest insurtech connected ecosystem, Plug and Play (PNP), a business accelerator that connects corporations with startups in different growth stages. PNP complements our investment in the Global Insurance Accelerator, a business accelerator focused on developing and growing innovative insurance-centric startups.

Using Pilot Tests to Find SolutionsWe are continuously developing and testing products and services that will help our policyholders and make our agents, and us, stand out. Significant pilot tests took place in 2017 in conjunction with:

• Ma-kuSafe Corp, an Iowa-based tech startup that is developing wearable sensors to improve workplace safety in manufacturing environments

• Peak Fleet®, our proprietary product that gives fleet managers real-time insights on fuel consumption, vehicle health and driver safety

• A Des Moines-based drone company, in cooperation with EMC and an independent insurance agency, which used infrared-enabled drones to develop 3-D graphical models to share with policyholders in several school districts

Our People

Building the Best TeamTeam members do their highest quality workwhen they’re engaged and empowered. At EMC,we believe in creating a positive work cultureand providing team members with the resourcesthey need to be their best. Whether it’s additionaltraining, new tools, collaborating on workmethods or redesigning work spaces, we help our team members achieve their finest.

Our Communities

Making Communities MatterEnhancing the quality of life in the communitieswe serve matters to EMC. The EMC InsuranceFoundation supports numerous organizationsin central Iowa and across the country. Ourcorporate and branch offices donate time,money and supplies to many local nonprofitorganizations. By volunteering and supportingorganizations in our local areas, we help createbrighter, stronger communities.

Mick Lovell Executive Vice President of Operations

Scott Jean Executive Vice President of Finance and Strategy

Our Agents

Advancing Our PartnershipsBecause we rely on independent agents to illustrate the benefits of our products and services to policyholders, earning the trust and business of these agency partners matters a great deal to us. It’s why we continue to innovate and launch products and services that will help them achieve greater success.

Strengthening Product Packages

The wide selection of EMC product offerings lets our agents pair potential policyholders with what fits

them best. To provide our agents with competitive products and more to sell,

we significantly improved our manufacturing, wholesalers,

commercial property extensions, equipment

breakdown, CyberSolutions and

personal lines coverages in 2017.

Expanding Our ReachOur well-defined growth strategy identifies the markets and territories where we want to increase our presence. In 2017, we broadened our reach into thestate of Washington to offer commercial insurance products. We successfully expanded our school program into Wyoming, and the Jackson Branchintroduced our public entities program in their territory.

Delivering Digital SolutionsOur new Agent Access, a secure agent site with updated navigation and a fresh look, rolled out to all EMC agents in spring 2017. We continue to improve Agent Access so all EMC agents can have an outstanding user experience.

Bruce Kelley President, Chief Executive Officer and Treasurer

To Our CustomersUnderstanding what matters most can sometimes be challenging. At EMC Insurance Companies, it’s simple. Our agency partners, policyholders, team members and communities are what matter most. All of these people, their livelihoods and their businesses drive our desire to deliver positive experiences and the protection they need to feel secure.

To provide the security our customers expect, we need to be a financially stable company — we are, and have been for 107 years. In 2017, our trade combined ratio was 102.6, a good result considering the remarkable catastrophe and storm losses incurred by the industry. Our net written premium increased to a record high of $1.775 billion. And EMC had another year of record surplus at $1.713 billion.

What matters most to us is that you can Count on EMC® — and focusing on that is the foundation of our success.

Bruce G. Kelley, J.D., CPCU, CLU President, Chief Executive Officer and Treasurer

Our Policyholders

Protecting Our CustomersWhat sets EMC apart is our ability to provide policyholders with the expert technical resources and innovative tools they need to reduce losses and save money. And we ensure policyholder loyalty by building on the value our products and services deliver.

Seeking Customer InsightsWhat matters most to our policyholders is that EMC is there when they have a claim. Our commitment is to investigate every claim, explain what is covered and what is not covered, and pay the claims we owe as quickly as possible.

EMC consistently receives high claims service scores on our monthly surveys. We received an overall score of 4.7 on a scale of 1-5, with 5 being the best. Furthermore, when policyholders were asked if they would recommend EMC to others, we scored 4.7.

Refreshing Our Web PresenceOur public website, emcins.com, was refreshed in 2017 with a new design and navigation that works seamlessly and looks incredible on all devices. We introduced our improved learning management system, Loss Control LearningCentral, on the website, giving our commercial policyholders easy access to online training and the ability to manage their employees’ safety training.

Our Future

Investing in InnovationWe’re serious about investing in and assistinginsurtech companies that support our strategicpriority of delivering greater value to our agentsand policyholders.

Deepening Our Insurtech StakeEMC joined in the world’s largest insurtech connected ecosystem, Plug and Play (PNP), a business accelerator that connects corporations with startups in different growth stages. PNP complements our investment in the Global Insurance Accelerator, a business accelerator focused on developing and growing innovative insurance-centric startups.

Using Pilot Tests to Find SolutionsWe are continuously developing and testing products and services that will help our policyholders and make our agents, and us, stand out. Significant pilot tests took place in 2017 in conjunction with:

• Ma-kuSafe Corp, an Iowa-based tech startup that is developing wearable sensors to improve workplace safety in manufacturing environments

• Peak Fleet®, our proprietary product that gives fleet managers real-time insights on fuel consumption, vehicle health and driver safety

• A Des Moines-based drone company, in cooperation with EMC and an independent insurance agency, which used infrared-enabled drones to develop 3-D graphical models to share with policyholders in several school districts

Our People

Building the Best TeamTeam members do their highest quality workwhen they’re engaged and empowered. At EMC,we believe in creating a positive work cultureand providing team members with the resourcesthey need to be their best. Whether it’s additionaltraining, new tools, collaborating on workmethods or redesigning work spaces, we help our team members achieve their finest.

Our Communities

Making Communities MatterEnhancing the quality of life in the communitieswe serve matters to EMC. The EMC InsuranceFoundation supports numerous organizationsin central Iowa and across the country. Ourcorporate and branch offices donate time,money and supplies to many local nonprofitorganizations. By volunteering and supportingorganizations in our local areas, we help createbrighter, stronger communities.

Mick Lovell Executive Vice President of Operations

Scott Jean Executive Vice President of Finance and Strategy

Our Agents

Advancing Our PartnershipsBecause we rely on independent agents to illustrate the benefits of our products and services to policyholders, earning the trust and business of these agency partners matters a great deal to us. It’s why we continue to innovate and launch products and services that will help them achieve greater success.

Strengthening Product Packages

The wide selection of EMC product offerings lets our agents pair potential policyholders with what fits

them best. To provide our agents with competitive products and more to sell,

we significantly improved our manufacturing, wholesalers,

commercial property extensions, equipment

breakdown, CyberSolutions and

personal lines coverages in 2017.

Expanding Our ReachOur well-defined growth strategy identifies the markets and territories where we want to increase our presence. In 2017, we broadened our reach into thestate of Washington to offer commercial insurance products. We successfully expanded our school program into Wyoming, and the Jackson Branchintroduced our public entities program in their territory.

Delivering Digital SolutionsOur new Agent Access, a secure agent site with updated navigation and a fresh look, rolled out to all EMC agents in spring 2017. We continue to improve Agent Access so all EMC agents can have an outstanding user experience.

Bruce Kelley President, Chief Executive Officer and Treasurer

To Our CustomersUnderstanding what matters most can sometimes be challenging. At EMC Insurance Companies, it’s simple. Our agency partners, policyholders, team members and communities are what matter most. All of these people, their livelihoods and their businesses drive our desire to deliver positive experiences and the protection they need to feel secure.

To provide the security our customers expect, we need to be a financially stable company — we are, and have been for 107 years. In 2017, our trade combined ratio was 102.6, a good result considering the remarkable catastrophe and storm losses incurred by the industry. Our net written premium increased to a record high of $1.775 billion. And EMC had another year of record surplus at $1.713 billion.

What matters most to us is that you can Count on EMC® — and focusing on that is the foundation of our success.

Bruce G. Kelley, J.D., CPCU, CLU President, Chief Executive Officer and Treasurer

Our Policyholders

Protecting Our CustomersWhat sets EMC apart is our ability to provide policyholders with the expert technical resources and innovative tools they need to reduce losses and save money. And we ensure policyholder loyalty by building on the value our products and services deliver.

Seeking Customer InsightsWhat matters most to our policyholders is that EMC is there when they have a claim. Our commitment is to investigate every claim, explain what is covered and what is not covered, and pay the claims we owe as quickly as possible.

EMC consistently receives high claims service scores on our monthly surveys. We received an overall score of 4.7 on a scale of 1-5, with 5 being the best. Furthermore, when policyholders were asked if they would recommend EMC to others, we scored 4.7.

Refreshing Our Web PresenceOur public website, emcins.com, was refreshed in 2017 with a new design and navigation that works seamlessly and looks incredible on all devices. We introduced our improved learning management system, Loss Control LearningCentral, on the website, giving our commercial policyholders easy access to online training and the ability to manage their employees’ safety training.

Our Future

Investing in InnovationWe’re serious about investing in and assistinginsurtech companies that support our strategicpriority of delivering greater value to our agentsand policyholders.

Deepening Our Insurtech StakeEMC joined in the world’s largest insurtech connected ecosystem, Plug and Play (PNP), a business accelerator that connects corporations with startups in different growth stages. PNP complements our investment in the Global Insurance Accelerator, a business accelerator focused on developing and growing innovative insurance-centric startups.

Using Pilot Tests to Find SolutionsWe are continuously developing and testing products and services that will help our policyholders and make our agents, and us, stand out. Significant pilot tests took place in 2017 in conjunction with:

• Ma-kuSafe Corp, an Iowa-based tech startup that is developing wearable sensors to improve workplace safety in manufacturing environments

• Peak Fleet®, our proprietary product that gives fleet managers real-time insights on fuel consumption, vehicle health and driver safety

• A Des Moines-based drone company, in cooperation with EMC and an independent insurance agency, which used infrared-enabled drones to develop 3-D graphical models to share with policyholders in several school districts

Our People

Building the Best TeamTeam members do their highest quality workwhen they’re engaged and empowered. At EMC,we believe in creating a positive work cultureand providing team members with the resourcesthey need to be their best. Whether it’s additionaltraining, new tools, collaborating on workmethods or redesigning work spaces, we help our team members achieve their finest.

Our Communities

Making Communities MatterEnhancing the quality of life in the communitieswe serve matters to EMC. The EMC InsuranceFoundation supports numerous organizationsin central Iowa and across the country. Ourcorporate and branch offices donate time,money and supplies to many local nonprofitorganizations. By volunteering and supportingorganizations in our local areas, we help createbrighter, stronger communities.

Mick Lovell Executive Vice President of Operations

Scott Jean Executive Vice President of Finance and Strategy

Our Agents

Advancing Our PartnershipsBecause we rely on independent agents to illustrate the benefits of our products and services to policyholders, earning the trust and business of these agency partners matters a great deal to us. It’s why we continue to innovate and launch products and services that will help them achieve greater success.

Strengthening Product Packages

The wide selection of EMC product offerings lets our agents pair potential policyholders with what fits

them best. To provide our agents with competitive products and more to sell,

we significantly improved our manufacturing, wholesalers,

commercial property extensions, equipment

breakdown, CyberSolutions and

personal lines coverages in 2017.

Expanding Our ReachOur well-defined growth strategy identifies the markets and territories where we want to increase our presence. In 2017, we broadened our reach into thestate of Washington to offer commercial insurance products. We successfully expanded our school program into Wyoming, and the Jackson Branchintroduced our public entities program in their territory.

Delivering Digital SolutionsOur new Agent Access, a secure agent site with updated navigation and a fresh look, rolled out to all EMC agents in spring 2017. We continue to improve Agent Access so all EMC agents can have an outstanding user experience.

Financial AnalysisContinuously improving company performance is always our goal, but the increasing cost and frequency of natural disasters made that more challenging in 2017. Considering the extraordinary catastrophe and storm losses incurred by the insurance industry, EMC had good results for the year.

Positive Results EMC’s trade combined ratio for 2017 was 102.6, which was significantly better than the industry as a whole. Our 2017 results came in close to our planned trade combined ratio of 100.0. The impact of catastrophes and storms amounted to more than $200 million in losses, which accounted for 12 points of the trade combined ratio, compared to an average of 9 points in previous years.

Record Premium$1.775 billion + 3.9%

Financial Strength RatingEMC Insurance Companies is a financially stronginsurance company that has been in businessfor 107 years. In 2017, A.M. Best reaffirmed thefinancial strength rating of A (Excellent) with astable outlook and the issuer credit ratings of“a” for EMC Insurance Companies. For the latest rating information, visit ambest.com.

LeadershipBoard of DirectorsChairman of the BoardDavid J. W. Proctor, J.D. Practicing Attorney & Shareholder Bradshaw, Fowler, Proctor & Fairgrave Des Moines, Iowa

Board MembersThomas W. Booth Retired Open Innovation Leader Lennox International Inc. Lafayette, Colo.

Matthew D. Griffin, J.D. Attorney Kaplan Test Prep Brooklyn, N.Y.

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/Owner Koch Brothers Des Moines, Iowa

J. Thomas Lockhart, M.B.A. Retired Executive United Theological Seminary Golden Valley, Minn.

William A. Murray, CIC, AU Retired Executive Vice President & COO EMC Insurance Companies Concord, N.C.

Mary O’Gorman Murray Retired Executive Towers Perrin Reinsurance Media, Pa.

David S. Ziegler Owner and CEO Ziegler’s Ace Hardware Elgin, Ill.

David S. Ziegler was elected to the EMC Board of Directors in March 2017. Ziegler served on the board of directors of Ace Hardware Corporation from 2001 to 2014.

Executive ManagementPresidentPresident, Chief Executive Officer and Treasurer Bruce G. Kelley, J.D., CPCU, CLU

Executive Vice Presidents Executive Vice President of Operations Mick A. Lovell, CPCUExecutive Vice President of Finance and Strategy Scott R. Jean, FCAS, MAAA

Senior Vice Presidents Ian C. Asplund, M.S., FCAS, MAAA, CERA Jason R. Bogart, CPCU, ARM Bradley J. Fredericks, M.B.A., FLMIRodney D. Hanson, CPCUMeyer T. Lehman, FCAS, MAAARobert L. Link, CAM, CMElizabeth A. Nigut, J.D.Larry W. Phillips, CPCUMark E. Reese, CPALisa A. Simonetta, J.D.Todd A. Strother, J.D.

Area Vice PresidentsPhilip R. Lucca, CPCU Lonnie D. Schwab, CPCU, AU

Resident Vice PresidentsMichael L. Akin, CPCUWilliam G. Arnold, M.B.A., CPCU, CIC, ARM, AISCraig A. Bruder, M.B.A., CPCU, ARM, ACI, CAWCColeman W. Cummins, CPCU, AU, AIMBenjamin K. DeHart, CPCU, ARM, ARePhilip A. Goedde, CPCU, CICJerry K. Harlow, CPCU, AUPaulette J. Johnson, CPCU, AU, AINS, AISGary A. Kohnke, CPCU Douglas P. Lincoln, CPCU, CLU, AINS, AU, ChFCGary E. Pingel, CPCU, AU, CICDennis J. Prindiville, CPCU, AUJohn T. Schumacher, CPCUJay Sillau, CPCUMarilyn R. Ternes, CPCU, AUDave R. Young, M.B.A., CPCU, CFA, ARM-P, AU, AIAF

Financial StatementUnderwriting Operations

2017 2016

Net Written Premiums

$ 1,775,016,618 $ 1,707,990,395

Net Earned Premiums

$ 1,738,669,078 1,687,204,644

Losses Incurred $ 994,972,212 951,285,042

Ratio to Earned Premiums

57.2% 56.4

Loss Adjustment Expenses

$ 216,224,105 150,064,546

Ratio to Earned Premiums

12.4% 8.9

Other Underwriting Expenses

$ 550,261,820 524,355,997

Ratio to Written Premiums

31.0% 30.7

Net Underwriting Gain (Loss)

$ (22,789,059) 61,499,059

Policyholder Dividends

$ 35,550,847 31,512,691

Ratio to Earned Premiums

2.0% 1.9

Combined Loss & Expense Ratio

102.6% 97.9

Net Investment Gains

2017 2016

Net Investment Income Earned

$ 99,006,981 98,953,027

Net Realized Capital Gains*

$ 26,799,375 24,105,581

Financial Results 2017 2016

Net Income $ 73,418,181 122,189,458

Net Admitted Assets $ 4,596,644,318 4,392,197,854

Liabilities $ 2,883,722,717 2,758,931,663

Surplus $ 1,712,921,601 1,633,266,191

*Net of capital gains tax

Our CompanyWe serve our agents and policyholders through a network of branch and service offices throughout the country, allowing us to provide local underwriting, claims, marketing and loss control services. Agents and policyholders can communicate directly with an EMC representative who understands their local market and insurance needs. Our branch office structure also makes it easy to customize commercial products for businesses and associations.

717 Mulberry Street, Des Moines, IA 50309 515-280-2511 | 800-447-2295 | www.emcins.com

©Copyright Employers Mutual Casualty Company 2018. All rights reserved. MK0410 (2-18)

EMC Locations

Service OfficesBranch OfficesCorporate Office

What Matters

Our People

Our CommunitiesOur Future

Our Policyholders

Our Agents

2017 In ReviewEMCI on 50 Most TrustworthyFinancial Companies ListFor the fourth consecutive year, EMC InsuranceGroup Inc. (EMCI) was included on the 50 MostTrustworthy Financial Companies list announcedby Forbes.

Record Surplus$1.713 billion + 4.9%

Financial AnalysisContinuously improving company performance is always our goal, but the increasing cost and frequency of natural disasters made that more challenging in 2017. Considering the extraordinary catastrophe and storm losses incurred by the insurance industry, EMC had good results for the year.

Positive Results EMC’s trade combined ratio for 2017 was 102.6, which was significantly better than the industry as a whole. Our 2017 results came in close to our planned trade combined ratio of 100.0. The impact of catastrophes and storms amounted to more than $200 million in losses, which accounted for 12 points of the trade combined ratio, compared to an average of 9 points in previous years.

Record Premium$1.775 billion + 3.9%

Financial Strength RatingEMC Insurance Companies is a financially stronginsurance company that has been in businessfor 107 years. In 2017, A.M. Best reaffirmed thefinancial strength rating of A (Excellent) with astable outlook and the issuer credit ratings of“a” for EMC Insurance Companies. For the latest rating information, visit ambest.com.

LeadershipBoard of DirectorsChairman of the BoardDavid J. W. Proctor, J.D. Practicing Attorney & Shareholder Bradshaw, Fowler, Proctor & Fairgrave Des Moines, Iowa

Board MembersThomas W. Booth Retired Open Innovation Leader Lennox International Inc. Lafayette, Colo.

Matthew D. Griffin, J.D. Attorney Kaplan Test Prep Brooklyn, N.Y.

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/Owner Koch Brothers Des Moines, Iowa

J. Thomas Lockhart, M.B.A. Retired Executive United Theological Seminary Golden Valley, Minn.

William A. Murray, CIC, AU Retired Executive Vice President & COO EMC Insurance Companies Concord, N.C.

Mary O’Gorman Murray Retired Executive Towers Perrin Reinsurance Media, Pa.

David S. Ziegler Owner and CEO Ziegler’s Ace Hardware Elgin, Ill.

David S. Ziegler was elected to the EMC Board of Directors in March 2017. Ziegler served on the board of directors of Ace Hardware Corporation from 2001 to 2014.

Executive ManagementPresidentPresident, Chief Executive Officer and Treasurer Bruce G. Kelley, J.D., CPCU, CLU

Executive Vice Presidents Executive Vice President of Operations Mick A. Lovell, CPCUExecutive Vice President of Finance and Strategy Scott R. Jean, FCAS, MAAA

Senior Vice Presidents Ian C. Asplund, M.S., FCAS, MAAA, CERA Jason R. Bogart, CPCU, ARM Bradley J. Fredericks, M.B.A., FLMIRodney D. Hanson, CPCUMeyer T. Lehman, FCAS, MAAARobert L. Link, CAM, CMElizabeth A. Nigut, J.D.Larry W. Phillips, CPCUMark E. Reese, CPALisa A. Simonetta, J.D.Todd A. Strother, J.D.

Area Vice PresidentsPhilip R. Lucca, CPCU Lonnie D. Schwab, CPCU, AU

Resident Vice PresidentsMichael L. Akin, CPCUWilliam G. Arnold, M.B.A., CPCU, CIC, ARM, AISCraig A. Bruder, M.B.A., CPCU, ARM, ACI, CAWCColeman W. Cummins, CPCU, AU, AIMBenjamin K. DeHart, CPCU, ARM, ARePhilip A. Goedde, CPCU, CICJerry K. Harlow, CPCU, AUPaulette J. Johnson, CPCU, AU, AINS, AISGary A. Kohnke, CPCU Douglas P. Lincoln, CPCU, CLU, AINS, AU, ChFCGary E. Pingel, CPCU, AU, CICDennis J. Prindiville, CPCU, AUJohn T. Schumacher, CPCUJay Sillau, CPCUMarilyn R. Ternes, CPCU, AUDave R. Young, M.B.A., CPCU, CFA, ARM-P, AU, AIAF

Financial StatementUnderwriting Operations

2017 2016

Net Written Premiums

$ 1,775,016,618 $ 1,707,990,395

Net Earned Premiums

$ 1,738,669,078 1,687,204,644

Losses Incurred $ 994,972,212 951,285,042

Ratio to Earned Premiums

57.2% 56.4

Loss Adjustment Expenses

$ 216,224,105 150,064,546

Ratio to Earned Premiums

12.4% 8.9

Other Underwriting Expenses

$ 550,261,820 524,355,997

Ratio to Written Premiums

31.0% 30.7

Net Underwriting Gain (Loss)

$ (22,789,059) 61,499,059

Policyholder Dividends

$ 35,550,847 31,512,691

Ratio to Earned Premiums

2.0% 1.9

Combined Loss & Expense Ratio

102.6% 97.9

Net Investment Gains

2017 2016

Net Investment Income Earned

$ 99,006,981 98,953,027

Net Realized Capital Gains*

$ 26,799,375 24,105,581

Financial Results 2017 2016

Net Income $ 73,418,181 122,189,458

Net Admitted Assets $ 4,596,644,318 4,392,197,854

Liabilities $ 2,883,722,717 2,758,931,663

Surplus $ 1,712,921,601 1,633,266,191

*Net of capital gains tax

Our CompanyWe serve our agents and policyholders through a network of branch and service offices throughout the country, allowing us to provide local underwriting, claims, marketing and loss control services. Agents and policyholders can communicate directly with an EMC representative who understands their local market and insurance needs. Our branch office structure also makes it easy to customize commercial products for businesses and associations.

717 Mulberry Street, Des Moines, IA 50309 515-280-2511 | 800-447-2295 | www.emcins.com

©Copyright Employers Mutual Casualty Company 2018. All rights reserved. MK0410 (2-18)

EMC Locations

Service OfficesBranch OfficesCorporate Office

What Matters

Our People

Our CommunitiesOur Future

Our Policyholders

Our Agents

2017 In ReviewEMCI on 50 Most TrustworthyFinancial Companies ListFor the fourth consecutive year, EMC InsuranceGroup Inc. (EMCI) was included on the 50 MostTrustworthy Financial Companies list announcedby Forbes.

Record Surplus$1.713 billion + 4.9%

Financial AnalysisContinuously improving company performance is always our goal, but the increasing cost and frequency of natural disasters made that more challenging in 2017. Considering the extraordinary catastrophe and storm losses incurred by the insurance industry, EMC had good results for the year.

Positive Results EMC’s trade combined ratio for 2017 was 102.6, which was significantly better than the industry as a whole. Our 2017 results came in close to our planned trade combined ratio of 100.0. The impact of catastrophes and storms amounted to more than $200 million in losses, which accounted for 12 points of the trade combined ratio, compared to an average of 9 points in previous years.

Record Premium$1.775 billion + 3.9%

Financial Strength RatingEMC Insurance Companies is a financially stronginsurance company that has been in businessfor 107 years. In 2017, A.M. Best reaffirmed thefinancial strength rating of A (Excellent) with astable outlook and the issuer credit ratings of“a” for EMC Insurance Companies. For the latest rating information, visit ambest.com.

LeadershipBoard of DirectorsChairman of the BoardDavid J. W. Proctor, J.D. Practicing Attorney & Shareholder Bradshaw, Fowler, Proctor & Fairgrave Des Moines, Iowa

Board MembersThomas W. Booth Retired Open Innovation Leader Lennox International Inc. Lafayette, Colo.

Matthew D. Griffin, J.D. Attorney Kaplan Test Prep Brooklyn, N.Y.

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/Owner Koch Brothers Des Moines, Iowa

J. Thomas Lockhart, M.B.A. Retired Executive United Theological Seminary Golden Valley, Minn.

William A. Murray, CIC, AU Retired Executive Vice President & COO EMC Insurance Companies Concord, N.C.

Mary O’Gorman Murray Retired Executive Towers Perrin Reinsurance Media, Pa.

David S. Ziegler Owner and CEO Ziegler’s Ace Hardware Elgin, Ill.

David S. Ziegler was elected to the EMC Board of Directors in March 2017. Ziegler served on the board of directors of Ace Hardware Corporation from 2001 to 2014.

Executive ManagementPresidentPresident, Chief Executive Officer and Treasurer Bruce G. Kelley, J.D., CPCU, CLU

Executive Vice Presidents Executive Vice President of Operations Mick A. Lovell, CPCUExecutive Vice President of Finance and Strategy Scott R. Jean, FCAS, MAAA

Senior Vice Presidents Ian C. Asplund, M.S., FCAS, MAAA, CERA Jason R. Bogart, CPCU, ARM Bradley J. Fredericks, M.B.A., FLMIRodney D. Hanson, CPCUMeyer T. Lehman, FCAS, MAAARobert L. Link, CAM, CMElizabeth A. Nigut, J.D.Larry W. Phillips, CPCUMark E. Reese, CPALisa A. Simonetta, J.D.Todd A. Strother, J.D.

Area Vice PresidentsPhilip R. Lucca, CPCU Lonnie D. Schwab, CPCU, AU

Resident Vice PresidentsMichael L. Akin, CPCUWilliam G. Arnold, M.B.A., CPCU, CIC, ARM, AISCraig A. Bruder, M.B.A., CPCU, ARM, ACI, CAWCColeman W. Cummins, CPCU, AU, AIMBenjamin K. DeHart, CPCU, ARM, ARePhilip A. Goedde, CPCU, CICJerry K. Harlow, CPCU, AUPaulette J. Johnson, CPCU, AU, AINS, AISGary A. Kohnke, CPCU Douglas P. Lincoln, CPCU, CLU, AINS, AU, ChFCGary E. Pingel, CPCU, AU, CICDennis J. Prindiville, CPCU, AUJohn T. Schumacher, CPCUJay Sillau, CPCUMarilyn R. Ternes, CPCU, AUDave R. Young, M.B.A., CPCU, CFA, ARM-P, AU, AIAF

Financial StatementUnderwriting Operations

2017 2016

Net Written Premiums

$ 1,775,016,618 $ 1,707,990,395

Net Earned Premiums

$ 1,738,669,078 1,687,204,644

Losses Incurred $ 994,972,212 951,285,042

Ratio to Earned Premiums

57.2% 56.4

Loss Adjustment Expenses

$ 216,224,105 150,064,546

Ratio to Earned Premiums

12.4% 8.9

Other Underwriting Expenses

$ 550,261,820 524,355,997

Ratio to Written Premiums

31.0% 30.7

Net Underwriting Gain (Loss)

$ (22,789,059) 61,499,059

Policyholder Dividends

$ 35,550,847 31,512,691

Ratio to Earned Premiums

2.0% 1.9

Combined Loss & Expense Ratio

102.6% 97.9

Net Investment Gains

2017 2016

Net Investment Income Earned

$ 99,006,981 98,953,027

Net Realized Capital Gains*

$ 26,799,375 24,105,581

Financial Results 2017 2016

Net Income $ 73,418,181 122,189,458

Net Admitted Assets $ 4,596,644,318 4,392,197,854

Liabilities $ 2,883,722,717 2,758,931,663

Surplus $ 1,712,921,601 1,633,266,191

*Net of capital gains tax

Our CompanyWe serve our agents and policyholders through a network of branch and service offices throughout the country, allowing us to provide local underwriting, claims, marketing and loss control services. Agents and policyholders can communicate directly with an EMC representative who understands their local market and insurance needs. Our branch office structure also makes it easy to customize commercial products for businesses and associations.

717 Mulberry Street, Des Moines, IA 50309 515-280-2511 | 800-447-2295 | www.emcins.com

©Copyright Employers Mutual Casualty Company 2018. All rights reserved. MK0410 (2-18)

EMC Locations

Service OfficesBranch OfficesCorporate Office

What Matters

Our People

Our CommunitiesOur Future

Our Policyholders

Our Agents

2017 In ReviewEMCI on 50 Most TrustworthyFinancial Companies ListFor the fourth consecutive year, EMC InsuranceGroup Inc. (EMCI) was included on the 50 MostTrustworthy Financial Companies list announcedby Forbes.

Record Surplus$1.713 billion + 4.9%

Financial AnalysisContinuously improving company performance is always our goal, but the increasing cost and frequency of natural disasters made that more challenging in 2017. Considering the extraordinary catastrophe and storm losses incurred by the insurance industry, EMC had good results for the year.

Positive Results EMC’s trade combined ratio for 2017 was 102.6, which was significantly better than the industry as a whole. Our 2017 results came in close to our planned trade combined ratio of 100.0. The impact of catastrophes and storms amounted to more than $200 million in losses, which accounted for 12 points of the trade combined ratio, compared to an average of 9 points in previous years.

Record Premium$1.775 billion + 3.9%

Financial Strength RatingEMC Insurance Companies is a financially stronginsurance company that has been in businessfor 107 years. In 2017, A.M. Best reaffirmed thefinancial strength rating of A (Excellent) with astable outlook and the issuer credit ratings of“a” for EMC Insurance Companies. For the latest rating information, visit ambest.com.

LeadershipBoard of DirectorsChairman of the BoardDavid J. W. Proctor, J.D. Practicing Attorney & Shareholder Bradshaw, Fowler, Proctor & Fairgrave Des Moines, Iowa

Board MembersThomas W. Booth Retired Open Innovation Leader Lennox International Inc. Lafayette, Colo.

Matthew D. Griffin, J.D. Attorney Kaplan Test Prep Brooklyn, N.Y.

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/Owner Koch Brothers Des Moines, Iowa

J. Thomas Lockhart, M.B.A. Retired Executive United Theological Seminary Golden Valley, Minn.

William A. Murray, CIC, AU Retired Executive Vice President & COO EMC Insurance Companies Concord, N.C.

Mary O’Gorman Murray Retired Executive Towers Perrin Reinsurance Media, Pa.

David S. Ziegler Owner and CEO Ziegler’s Ace Hardware Elgin, Ill.

David S. Ziegler was elected to the EMC Board of Directors in March 2017. Ziegler served on the board of directors of Ace Hardware Corporation from 2001 to 2014.

Executive ManagementPresidentPresident, Chief Executive Officer and Treasurer Bruce G. Kelley, J.D., CPCU, CLU

Executive Vice Presidents Executive Vice President of Operations Mick A. Lovell, CPCUExecutive Vice President of Finance and Strategy Scott R. Jean, FCAS, MAAA

Senior Vice Presidents Ian C. Asplund, M.S., FCAS, MAAA, CERA Jason R. Bogart, CPCU, ARM Bradley J. Fredericks, M.B.A., FLMIRodney D. Hanson, CPCUMeyer T. Lehman, FCAS, MAAARobert L. Link, CAM, CMElizabeth A. Nigut, J.D.Larry W. Phillips, CPCUMark E. Reese, CPALisa A. Simonetta, J.D.Todd A. Strother, J.D.

Area Vice PresidentsPhilip R. Lucca, CPCU Lonnie D. Schwab, CPCU, AU

Resident Vice PresidentsMichael L. Akin, CPCUWilliam G. Arnold, M.B.A., CPCU, CIC, ARM, AISCraig A. Bruder, M.B.A., CPCU, ARM, ACI, CAWCColeman W. Cummins, CPCU, AU, AIMBenjamin K. DeHart, CPCU, ARM, ARePhilip A. Goedde, CPCU, CICJerry K. Harlow, CPCU, AUPaulette J. Johnson, CPCU, AU, AINS, AISGary A. Kohnke, CPCU Douglas P. Lincoln, CPCU, CLU, AINS, AU, ChFCGary E. Pingel, CPCU, AU, CICDennis J. Prindiville, CPCU, AUJohn T. Schumacher, CPCUJay Sillau, CPCUMarilyn R. Ternes, CPCU, AUDave R. Young, M.B.A., CPCU, CFA, ARM-P, AU, AIAF

Financial StatementUnderwriting Operations

2017 2016

Net Written Premiums

$ 1,775,016,618 $ 1,707,990,395

Net Earned Premiums

$ 1,738,669,078 1,687,204,644

Losses Incurred $ 994,972,212 951,285,042

Ratio to Earned Premiums

57.2% 56.4

Loss Adjustment Expenses

$ 216,224,105 150,064,546

Ratio to Earned Premiums

12.4% 8.9

Other Underwriting Expenses

$ 550,261,820 524,355,997

Ratio to Written Premiums

31.0% 30.7

Net Underwriting Gain (Loss)

$ (22,789,059) 61,499,059

Policyholder Dividends

$ 35,550,847 31,512,691

Ratio to Earned Premiums

2.0% 1.9

Combined Loss & Expense Ratio

102.6% 97.9

Net Investment Gains

2017 2016

Net Investment Income Earned

$ 99,006,981 98,953,027

Net Realized Capital Gains*

$ 26,799,375 24,105,581

Financial Results 2017 2016

Net Income $ 73,418,181 122,189,458

Net Admitted Assets $ 4,596,644,318 4,392,197,854

Liabilities $ 2,883,722,717 2,758,931,663

Surplus $ 1,712,921,601 1,633,266,191

*Net of capital gains tax

Our CompanyWe serve our agents and policyholders through a network of branch and service offices throughout the country, allowing us to provide local underwriting, claims, marketing and loss control services. Agents and policyholders can communicate directly with an EMC representative who understands their local market and insurance needs. Our branch office structure also makes it easy to customize commercial products for businesses and associations.

717 Mulberry Street, Des Moines, IA 50309 515-280-2511 | 800-447-2295 | www.emcins.com

©Copyright Employers Mutual Casualty Company 2018. All rights reserved. MK0410 (2-18)

EMC Locations

Service OfficesBranch OfficesCorporate Office

What Matters

Our People

Our CommunitiesOur Future

Our Policyholders

Our Agents

2017 In ReviewEMCI on 50 Most TrustworthyFinancial Companies ListFor the fourth consecutive year, EMC InsuranceGroup Inc. (EMCI) was included on the 50 MostTrustworthy Financial Companies list announcedby Forbes.

Record Surplus$1.713 billion + 4.9%