Company profile

Ticker
EMCI
Exchange
CEO
Bruce Gunn Kelley
Employees
Incorporated in
Location
Fiscal year end
SEC CIK
IRS number
426234555

EMCI stock data

(
)

Calendar

8 Aug 19
23 Oct 19
31 Dec 19

News

Company financial data Financial data

Quarter (USD) Jun 19 Mar 19 Dec 18 Sep 18
Revenue 186.9M 204.24M 141.59M 189.13M
Net income 1.29M 33.53M -21.55M 19.15M
Diluted EPS 0.06 1.55 -1 0.89
Net profit margin 0.69% 16.42% -15.22% 10.12%
Net change in cash 44K -105K 35K 43K
Cash on hand 276K 232K 337K 302K
Annual (USD) Dec 18 Dec 17 Dec 16 Dec 15
Revenue 660.73M 663.96M 649.79M 623.73M
Net income -7.47M 39.24M 46.2M 50.16M
Diluted EPS -0.35 1.84 2.2 2.43
Net profit margin -1.13% 5.91% 7.11% 8.04%
Net change in cash -10K 40K 83K -159K
Cash on hand 337K 347K 307K 224K

Financial data from company earnings reports

Financial report summary

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Risks
  • The Company’s business is highly cyclical and competitive, which may make it difficult for it to market its products effectively and profitably.
  • The frequency and severity of significant catastrophe and storm activity could adversely affect the Company’s business, financial condition or results of operations.
  • The pool participants currently conduct business in all 50 states and the District of Columbia, with a large portion of business in the Midwest. The occurrence of catastrophes, or other conditions affecting losses in this region, could adversely affect the Company’s business, financial condition or results of operations.
  • The Company cannot predict the impact that changing climate conditions, including legal, regulatory, and social responses thereto, may have on the Company’s business, financial condition or results of operations.
  • Losses related to a terrorist attack could have a material adverse impact on the Company’s business, financial condition or results of operations.
  • The Company’s results of operations could suffer if the pool participants were to forecast future losses inaccurately, experience unusually severe or frequent losses, inadequately price their insurance products, or fail to control expenses.
  • An increase in asbestos and environmental claims could have a material adverse effect on the Company's financial condition or results of operations.
  • The Company’s investment portfolio is subject to economic loss, principally from changes in the market value of financial instruments.
  • The Company relies on Employer Mutual’s information technology and telecommunication systems, and the disruption or failure of these systems, or the compromise of the security of the systems that results in the misuse of confidential information, could materially and adversely affect its business.
  • The failure or material delay of Employers Mutual's digital transformation project could materially and adversely affect the Company’s business and competitive position.
  • The failure of the pool participants to maintain their current financial strength rating could materially and adversely affect the Company’s business and competitive position.
  • The profitability of the Company’s reinsurance subsidiary is dependent upon the experience of Employers Mutual, and changes to this relationship may adversely affect the reinsurance subsidiary’s operations.
  • Changes in key assumptions or a deterioration in the debt and equity markets could lead to an increase in Employers Mutual’s employee benefit plans' costs and a decline in the funded status, which could have a material adverse effect on the Company’s financial condition and/or results of operations.
  • The Company may not be successful in reducing its risks and increasing its underwriting capacity through reinsurance arrangements, which could adversely affect its business, financial condition or results of operations.
  • The Company is subject to comprehensive regulation that may restrict its ability to react to market or industry changes and earn profits.
  • The Company's assumed reinsurance business from international sources could decline from the European Union's Solvency II, Brexit or other international regulatory changes.
  • Changes in U.S. federal tax laws could adversely affect the Company's financial condition and results of operations.
  • The Company's continued success as an insurance company is substantially dependent on the reputation of EMC Insurance Companies.
  • The Company’s operations are integrated with those of Employers Mutual, the parent company, and potential and actual conflicts exist between the best interests of the Company’s stockholders and the best interests of the policyholders of Employers Mutual.
  • The Company relies on Employers Mutual to provide employees, facilities and information technology systems to conduct its operations.
  • The insolvency of Employers Mutual could result in additional liabilities for the Company’s insurance subsidiaries participating in the pooling agreement.
  • The Company is dependent on dividends from its subsidiaries for the payment of its operating expenses and dividends to stockholders; however, its subsidiaries may be unable to pay dividends to the Company.
  • New pricing, claims, coverage issues, class action litigation, and technology innovations are continually emerging in the property and casualty insurance industry, and these new issues could adversely impact the Company’s revenues or its methods of doing business.
  • The Company's results of operations or financial condition could be adversely impacted if risks are not properly underwritten and priced.
  • Changes to existing accounting standards may adversely affect the Company’s consolidated financial statements.
  • The Company's financial results could be negatively affected as a result of the proposal received from Employers Mutual to purchase all of the Company's outstanding common stock that it does not currently own, and the price of the Company's common stock could decline significantly if a transaction is not completed.
  • Employers Mutual has the ability to determine the outcome of all matters submitted to the Company’s stockholders for approval. The price of the Company’s common stock may be adversely affected because of Employers Mutual’s majority ownership of the Company’s common stock.
  • Employers Mutual’s ownership of the Company’s common stock and provisions of certain state laws make it unlikely anyone could acquire control of the Company or replace or remove its management unless Employers Mutual were in favor of such action, which could diminish the value of the Company’s common stock.
  • Although the Company has consistently paid cash dividends in the past, it may not be able to pay cash dividends in the future.
  • The Company may be adversely affected by foreign currency fluctuations.
Management Discussion
  • 1 Underlying loss and settlement expense ratio: The loss and settlement expense ratio is the ratio (expressed as a percentage) of losses and settlement expenses incurred to premiums earned, which management uses as a measure of underwriting profitability of the Company’s property and casualty insurance business. The underlying loss and settlement expense ratio is a non-GAAP financial measure which represents the loss and settlement expense ratio, excluding the impact of catastrophe and storm losses and development on prior years’ reserves. Management uses this ratio as an indicator of the property and casualty insurance segment’s underwriting discipline and performance for the current accident year. Management believes this ratio is useful for investors to understand the property and casualty insurance segment’s periodic earnings and variability of earnings caused by the unpredictable nature (i.e., the timing and amount) of catastrophe and storm losses and development on prior years’ reserves. While this measure is consistent with measures utilized by investors and analysts to evaluate performance, it is not intended as a substitute for the GAAP financial measure of loss and settlement expense ratio.
Content analysis ?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Bad
New words: appraisal, canceled, cease, dismissed, ii, merge, motion, Oak, perfected, prejudice, shareholder, surviving, Unopposed, Voluntarily, voted, wholly
Removed: energy, half, legal, negative, pretax, remaining, renewable