AP NEWS

A.M. Best Comments on Credit Ratings of Employers Mutual Casualty Company and Its Subsidiaries

November 26, 2018

OLDWICK, N.J.--(BUSINESS WIRE)--Nov 26, 2018--A.M. Best has commented that the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a+” of Employers Mutual Casualty Company (EMCC) (Des Moines, IA) and its five property/casualty (P/C) subsidiaries (collectively referred to as EMC Insurance Companies) remain unchanged following the announcement that EMCC has submitted a proposal to acquire all outstanding shares of EMC Insurance Group Inc. (EMCI). In addition, the FSR of A (Excellent) and the Long-Term ICR of “a” of EMCC’s separately rated, indirectly owned subsidiary, EMC Reinsurance Company (Des Moines, IA), also remain unchanged. The outlook of these Credit Ratings (ratings) remains stable.

EMCC owns approximately 55% of EMCI’s common stock, and has submitted a proposal to acquire the outstanding common stock for $30 per share in cash. While the proposal is being considered by a special committee of EMCI’s board of directors, business will continue as usual for EMC Insurance Companies. If the proposed transaction is eventually approved by EMCI’s special committee and shareholders, it should have no impact on the operations of EMC Insurance Companies.

A.M. Best has determined that, although capital at EMC Insurance Companies will decline slightly as a result of the proposed transaction, due to the payment of cash to minority shareholders, the overall group’s balance sheet strength will remain at the strongest level as measured by Best’s Credit Rating Methodology.

The following is a list of EMCC’s P/C subsidiaries:

Dakota Fire Insurance Company EMC Property & Casualty Company EMCASCO Insurance Company Illinois EMCASCO Insurance Company Union Insurance Company of Providence

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit for more information.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20181126005739/en/

CONTACT: Jieqiu Fan

Senior Financial Analyst

+1 908 439 2200, ext. 5372

jieqiu.fan@ambest.com

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Daniel Ryan

Senior Director

+1 908 439 2200, ext. 5325

daniel.ryan@ambest.com

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES FINANCE INSURANCE

SOURCE: A.M. Best

Copyright Business Wire 2018.

PUB: 11/26/2018 04:04 PM/DISC: 11/26/2018 04:04 PM

http://www.businesswire.com/news/home/20181126005739/en

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