EMC's "Excellent" Ratings Affirmed by AM Best

DES MOINES, Iowa (Dec. 20, 2021)—EMC Insurance Companies announced today that rating agency AM Best has affirmed all of the "Excellent" category Financial Strength and Long-Term Issuer Credit Ratings for the following companies:

EMC Insurance Companies (EMC) and its five property/casualty subsidiaries*

• Financial Strength Rating (FSR) of A (Excellent)
• Long-Term Issuer Credit Rating (Long-Term ICR) of "a+" (Excellent)
• Outlook remains stable

EMC Reinsurance Company (EMC Re)

• Financial Strength Rating (FSR) of A (Excellent)
• Long-Term Issuer Credit Rating (Long-Term ICR) of "a" (Excellent)
• Outlook remains negative

EMC National Life Company (EMCNL)

• Financial Strength Rating (FSR) of A- (Excellent)
• Long-Term Issuer Credit Rating (Long-Term ICR) of "a-" (Excellent)
• Outlook remains stable

“We are very pleased that, once again, EMC's 'Excellent' ratings have been reaffirmed by AM Best,” said Scott Jean, EMC's President and CEO. “This is a testament to our strategic direction and the efforts of our team members to level up to serve our policyholders and agents, drive results and reach our full potential."

EMC Insurance Companies: In its review, AM Best recognized EMC's balance sheet strength, which the rating agency categorizes as "strongest," as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

EMC Reinsurance: EMC Reinsurance Company (EMC Re) was established in 1981 and writes reinsurance globally. AM Best recognized EMC Re's very strong balance sheet strength, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). The continuation of the negative outlook for EMC Re represents AM Best’s concerns with recent underwriting performance related primarily to catastrophic weather and other events. Jean noted, “The team is working diligently to execute on their strategic plan to set up EMC Re for long term profitability."

EMC National Life Company: AM Best deemed EMCNL's balance sheet very strong, its business profile neutral and its enterprise risk management appropriate. It also noted EMCNL is highly integrated into EMC, which provides diversification and cross-selling opportunities for agents and customers.

*EMC Insurance Companies refers to Employers Mutual Casualty Company (EMCC) and its five property/casualty (P/C) subsidiaries:

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

About EMC Insurance Companies

EMC Insurance Companies has more than 2,400 employees and is among the top 60 property and casualty insurance organizations in the country based on net written premium. Employers Mutual Casualty Company (EMCC) was organized in 1911 to write workers’ compensation protection in Iowa. Today, operating under the trade name EMC Insurance Companies, the company provides property and casualty and life insurance products and services throughout the United States and writes reinsurance contracts worldwide. EMCC is licensed in all 50 states and the District of Columbia. For more information, visit emcins.com.

About AM Best

AM Best, the world’s oldest insurance rating and information source, uses the following definitions for their ratings:

• Issuer Credit Rating (ICR): an independent opinion on an entity’s ability to meet its ongoing financial obligations that can be issued on either a long‐ or short‐term basis.
• Financial Strength Rating (FSR): an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations.

For more information, visit ambest.com.