Our People Our Policyholders

What Matters

Our Agents 2017 Corporate Review

Our Communities Our Future

Lisa Hamilton Chief Brand Officer Ian Asplund Chief Analytics Officer

Bob Link Chief Administrative Officer

Meyer Lehman Chief Actuarial Officer

To Our Customers

Lisa Simonetta Chief Claims Officer

Understanding 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 Kelley President, Chief Executive Officer and Treasurer Scott Jean Executive Vice President of Finance and Strategy

Mick Lovell Executive Vice President of Operations

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

Beth Nigut Chief Human Resources Officer

Todd Strother Chief Legal Officer

Jason Bogart Chief Field Officer

Brad Fredericks Chief Investment Officer

Larry Phillips Chief Business Development Officer

Rod Hanson Chief Information Technology Officer

Mark Reese Chief Financial Officer

Dan Aksamit Chief Risk Officer

3

Our Agents

Advancin g Our Partnerships Because we rely on independent agents to illustrate the benefits of our products and services to policyholders, earning the trust and business

Requesting Agent Feedback To find out what agents think of EMC and how we can improve our partnership with them, we conduct the Deep Customer Connections survey each year. We are pleased that our results outperformed the benchmark group of insurance carriers in 8 out of 13 categories. Plus, our overall rating remained high at 93, above the average competitor rating of 91.8.

“The people we work with at EMC are the best in the industry.”

“EMC is very easy to do business with and they are “The new Agent Access is much quicker, which makes my job easier.”

of these agency partners matters a great deal to

very accommodating with underwriting, claims and loss control. It is truly a team effort.”

us. It’s why we continue to innovate and launch

“Love working with EMC as they are always easy to talk to and work hard to help us.”

products and services that will help them achieve greater success. “Having the ability to conduct business online is not only the norm, but a necessity. However, we pride ourselves on our long-standing relationships with our agency partners. So, creating opportunities to communicate with them really matters to us.” Jason Bogart Senior Vice President   Chief Field Officer

4

Delivering Digital Solutions

Relying on Independent Agents

Our 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. The next phase is to fine-tune existing features and give commercial lines agents new functionalities, including a new rules-based quoting system and the ability to update quote proposals in real time. We already have a new, streamlined quoting system and client center for personal lines, making it easier for our agency partners to write and service personal lines with EMC.

Since EMC distributes products solely through the independent agency system, our success is directly tied to the success of our agents. We believe our partnership with independent agents brings a superior level of personalized service to the insurance process. To show our support of independent agents, EMC is a part of the Trusted Choice® brand initiative.

Partnering With TrustedChoice.com EMC is also a partner in the TrustedChoice.com online insurance lead generation platform for commercial lines insurance. Our participation gives local independent insurance agents access to specialty commercial insurance buyers they may not otherwise have the resources to reach. Additionally, EMC personal lines is participating in the TrustedChoice.com referral program to help our agents find potential clients.

Exemplifying Best Practices EMC Insurance Companies received the Best Practices Award from the Independent Insurance Agents & Brokers of America (Big “I”) in 2017 in recognition of our imaginative, outstanding and unique contributions in advocating best practice philosophies that enhance the independent agency system. We are proud to be one of only three companies in the nation to receive this award.

What Matters Most: Our Agents | 5

Locally Supporting Independent Agents

n o t n u o C

We 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.

! C EM

Bismarck Minneapolis

Expanding Our Reach

Providence

Today, EMC provides property and casualty insurance products and services in 41 states across the country, and writes reinsurance contracts worldwide. Our well-defined growth strategy identifies the markets and territories where we want to increase our presence. In 2017, we broadened our reach into the state of Washington to offer commercial insurance products. We successfully expanded our school program into Wyoming, and the Jackson Branch introduced our public entities program in their territory.

Milwaukee Lansing Chicago Omaha Denver

Des Moines

Davenport

Valley Forge Cincinnati

Kansas City Wichita

Charlotte

Phoenix Little Rock

Birmingham

“Because we insure a wide variety of commercial customers across the country — each with their own type of risk potential — it’s important to manage our own risk so we can pay claims when needed. This type of risk diversification protects our company while making us more stable and secure.”

Dallas

Jackson

Corporate Office Branch Offices Service Offices

Dan Aksamit Vice President  Chief Risk Officer

6

What Matters Most: Our Agents | 7

Delivering Stronger 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

“Many of the new programs and product enhancements we undertake are a direct result of the feedback we receive from agents on our annual survey. Every year we learn more about what we need to do to be more responsive to our agents.” Larry Phillips Senior Vice President Chief Business Development Officer

products and more to sell, we significantly improved our manufacturing, wholesalers, commercial property extensions, equipment breakdown, CyberSolutions and personal lines coverages. EMC Choice® Light Manufacturers We enhanced our already successful EMC Choice Light Manufacturers program by adding new coverages, enhancing existing ones and broadening the program appetite: • 10 new manufacturing coverages automatically included • Expanded eligibility to include food products manufacturers • Newly created food products industry extension

EMC Choice® Wholesalers

CyberSolutions

Our Product Research and Development team worked hard to take the EMC Choice Wholesalers Program up a notch by enhancing the program in 2017 with refreshed sales and marketing materials and increased coverages:

CyberSolutions, our robust product for commercial policyholders that combines cyber liability and data compromise coverages, is even better with the new, increased and competitive coverages added in 2017:

• 13 new wholesaler coverages

• New coverages: cyber extortion coverage,

automatically included • New delivery errors or omissions coverage • New food products industry extension

Commercial Property Extensions The commercial property Elite Extension offers 31 new or enhanced coverages. Plus, our commercial property Essential Extension has 18 new or enhanced coverages. Coverage highlights include increasable limits for water/sewer backup, expanded coverage and increased limits for multiple crime coverages, and expanded ordinance or law and utility services coverage.

Equipment Breakdown We reinvented our equipment breakdown coverage by introducing a variety of new coverages to address today’s modern equipment risks, such as electronic circuitry impairment, cloud computing services interruption and service interruption data restoration coverage.

8

electronic media liability, regulatory fines and penalties, and payment card industry fines and penalties • Increased coverages: sublimits increased for

forensic information technology, legal review, public relations and business income • More competitive coverages: lower premiums,

lower deductibles, and higher cyber and data compromise limits for all risk types

Personal Lines The personal lines underwriting team greatly improved our underwriting efficiencies by selecting a single home inspection vendor, then applying agile methodology to develop and implement an automated inspection process. The team also collaborated with personal lines operations and information technology to modernize personal lines eligibilities, guidelines and forms. This included developing and implementing new underwriting strategies for our wildfire, earthquake and highvalue home exposures.

What Matters Most: Our Agents | 9

Our Policyholders

Protecting Our Customers Providing policyholders with a superior level of service is what we strive to do each day. Every insurance company has insurance. What 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 “When people trust your brand, they’re more loyal. It goes beyond a logo or a single campaign. A strong brand should instantly communicate what matters most to your company. There’s nothing we want more than for our agents, policyholders and team members to trust us — to count on us.” Lisa Hamilton Vice President  Chief Brand Officer

value our products and services deliver. Redefining Our Brand A strong brand can almost single-handedly create the perception of trust and quality for a business. For more than a decade, “Count on EMC ®” has served as the voice of our company — communicating our commitment to providing outstanding service, financial strength and reliability. Research continues to show that our agents and team members find these essential ingredients to be powerful representations of the EMC brand. Therefore, we are taking Count on EMC a step further, giving it deeper meaning and establishing it as what makes EMC different.

Refreshing Our Web Presence Our public website, emcins.com, was refreshed in 2017 with a new design and navigation that works seamlessly and looks incredible on all devices. The homepage highlights what’s new at EMC through videos and fresh content. The site also: • Helps commercial clients find loss control resources faster • Helps policyholders find agents and report claims • Showcases our company culture and benefits to job seekers

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Taking Safety Training Online Loss Control LearningCentral, our improved learning management system introduced on our website in 2017, gives our commercial policyholders easy access to online training, and the ability to assign and track their employees’ safety training from one centralized location. We believe it’s important to provide our policyholders with safety training that can help them prevent losses and employee injuries. More than 5,000 courses have been completed through LearningCentral in just half a year.

60%

of our policyholders polled gave EMC a perfect score across all categories on the claims service survey.

“I write for multiple companies and EMC claims is hands down in a league of its own.”

“My claims representative accommodated my schedule; other insurance companies don’t come close to my representative’s efficacy and great customer service.”

Seeking Customer Insights What 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. Our claims professionals quite often receive positive comments about how they go above and beyond.

“Can I say how much I love working with EMC and your customer service team? Your office continues to give the fastest and best service to our clients.”

“We take immense pride in our ability to help customers in their times of need. Responding to each claim quickly and fairly is what matters most to our team — and we work to continuously improve this part of our business. After all, that’s why we’re here.“ Lisa Simonetta Senior Vice President Chief Claims Officer

What Matters Most: Our Policyholders | 11

Our Future

Investing in Innovation If we want to be the preferred insurance company by our agents, then we must continuously develop and deliver the products and services that will make them, and us, stand out. That’s why we’re serious about investing in and assisting insurtech companies that support our strategic priority of delivering greater value to our agents “Industry leaders are those who look beyond the way things are done now. We want to develop and invest in innovative products and services that will set us — and our agents — apart. Our commitment is to help our agents and policyholders in the best way possible.” Ian Asplund Senior Vice President Chief Analytics Officer

12

and policyholders. Deepening Our Insurtech Stake EMC 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 (GIA), a business accelerator focused on developing and growing innovative insurance-centric startups. PNP provides us with additional access to insurtech startups that are typically further along in their development than some of the earlier-stage startups participating in the GIA.

Utilizing Wearables EMC is partnering with Iowa-based tech startup MˉakuSafe to develop and pilot wearable sensors to improve workplace safety in manufacturing environments. A device worn on an employee’s arm measures workplace conditions, monitors environmental exposures and allows an employee to report incidents with the press of a button.

Monitoring Fleet Drivers Peak Fleet® was implemented as a pilot program with select agencies in partnership with several EMC branch offices in 2017. Fleet managers can get real-time insights on fuel consumption, vehicle health and driver safety on the secure Peak Fleet website. This information, paired with the right loss control services, can help decrease fuel and maintenance costs and retain good drivers — giving agents something different to offer policyholders and demonstrating a commitment to innovative loss control strategies.

Using Data, Finding Solutions Our business intelligence and advanced analytics capabilities are our conduit to innovative ways of improving the operational efficiency and decisionmaking of our team members, helping to better manage risks and reduce losses. The goal is to gain rich and meaningful business insight from data that will ultimately enhance the customer experience. We have broad expertise in emerging trends and technologies — from strategic analytics to loss control to information technology — all working together to find innovative solutions for our agents and policyholders. The proliferation of new data sources is creating opportunities to gain deeper insights into business operations, and we are using those insights to refine our product development, underwriting, pricing and risk selection, and to provide improved loss control and claims service.

Data Analytics

wins big!

EMC received a Novarica Impact Award in the Data Analytics category. This award recognized our use of drones and 3-D photography to provide agents and policyholders interactive loss control reports that have improved data and usability.

Taking Loss Control Into Flight In partnership with a Des Moines-based drone company, an independent insurance agency and an Iowa school district, EMC piloted an infrared-enabled drone project. The project was expanded in Iowa and Wisconsin, and includes the development of 3-D graphical models to share aerial survey results with policyholders. This proactive approach to facility maintenance will help the schools avoid losses by finding exposures they didn’t know were there and helping prioritize future repairs.

What Matters Most: Our Future | 13

Our People

Building the Best Team Team members do their highest quality work when they’re engaged and empowered. At EMC, we believe in creating a positive work culture and providing team members with the resources they need to be their best. Whether it’s additional training, new tools, collaborating on work methods or redesigning work spaces, we help “Our team members make EMC a great place to work and a great company to do business with. They deliver exceptional customer experiences because the customer is the focus of all that we do. We are committed to providing a healthy, balanced environment conducive to delivering excellent results.” Beth Nigut Senior Vice President Chief Human Resources Officer

14

our team members achieve their finest. Training To Be More Collaborative The EMC sales culture got a big boost this year with a revamped curriculum. The new training reemphasizes collaboration and the development of solid business relationships with agents — demonstrating to our agents that EMC wants to write business with them. Sales training was held at each branch office with underwriters and marketing representatives. Adding loss control and claims representatives to the sessions rounded out our collaborative sales approach.

Delivering Solutions Faster

Providing Award-winning Benefits

Agile development is transforming the way our information technology and business development team members work together on software development projects. By carefully aligning software development with our business needs and using the agile approach, we can develop and deliver high-quality solutions in much less time.

EMC received the Plan Sponsor of the Year Award from PLANSPONSOR magazine, the nation’s leading authority on retirement and benefits programs. This award recognizes our leadership in the total retirement offering category because of our commitment to team members’ financial health and retirement success.

Enabling Continuous Improvement

Opening 219 Eighth Street

Technology makes it easy for EMC team members to find workplace solutions that are best for them. Alternative work arrangements provide flexible solutions for team members and simultaneously help the company retain top talent. Our commitment to continuous improvement doesn’t stop there, but extends into our open, collaborative office spaces. Our redesigned work spaces in the Des Moines corporate office campus and branch offices give us modern, collaborative spaces so team members can do their best work.

EMC opened a new four-story office building in Des Moines with an architectural design that complements the other buildings on our downtown campus. This addition marks our commitment to the economic growth and success of the city. Features of the new building include: • A full-floor, state-of-the-art wellness facility • An auditorium, meeting and training rooms,

and open collaboration areas • Contemporary, open office space, underground

parking and tenant space • New skywalk concourse across Eighth Street

Recognizing Our Workplace EMC ranked No. 15 in the large company category in the Iowa Top 100 Workplaces survey conducted by The Des Moines Register and WorkplaceDynamics. Survey feedback highlighted our team members’ appreciation for our values, adherence to high ethical standards and commitment to our future direction.

Enhancing Sales With Online Tools Our online sales pipeline system provides a platform for underwriters and marketing representatives to prospect for new business and track key business opportunities. We added an agency toolbox feature to our online system that provides our branch underwriters and marketing representatives with easy access to agency data and analytics.

What Matters Most: Our People | 15

Our Communities

Making Communities Matter

United Way

Science Center of Iowa

Team members at the Des Moines campus and multiple branch office locations raised money for local United Way organizations. In 2017, our efforts raised $750,000, including funds from the EMC Insurance Foundation, toward improving the health, education and financial stability of people in those local communities.

EMC sponsored “Tyrannosaurs: Meet the Family,” an exhibit at the Science Center of Iowa. The exhibit offers visitors a look at rare fossils and reconstructed, life-sized tyrannosaurus skeletons, hands-on activities, live science programs, an IMAX movie and interactive graphics.

Advancing the Arts EMC Overlook EMC donated to the City of Des Moines Parks and Recreation Department for a new scenic overlook in MacRae Park. The EMC Overlook will offer dramatic views of downtown Des Moines.

Enhancing the quality of life in the communities we serve matters to EMC. The EMC Insurance Foundation supports numerous organizations in central Iowa and around the country. Our corporate and branch offices donate time, “When we volunteer our time and resources, it not only has a positive impact on our communities, but it has a positive impact on how we feel about ourselves and about where we work. Being of service, inside and outside the office, is what really matters.” Meyer Lehman Senior Vice President Chief Actuarial Officer

16

money and supplies to many local nonprofit organizations. By volunteering and supporting organizations in our local areas, we help create brighter, stronger communities. EMC Gives Back To further encourage community involvement, each year EMC team members are given time off to volunteer. In 2017, our corporate office and branch team members contributed thousands of hours to initiatives such as Habitat for Humanity, food pantries and food banks, and school supply drives.

EMC consistently contributes to the arts through organizations such as the Des Moines Symphony, Des Moines Community Playhouse, Civic Music Association and Des Moines Performing Arts.

History in Action Greater Des Moines Botanical Garden EMC was the presenting sponsor of the Greater Des Moines Botanical Garden’s ”Social Irrigation” summer series that featured live music, food, drinks and activities.

Iowa State University Case Competition EMC invited Iowa State University students to put their skills to the test by solving a real-world business scenario. Eight student teams were asked to develop a telematics strategy and propose their solutions to a panel of judges.

EMC partnered with the State Historical Society of Iowa and the Iowa Department of Cultural Affairs on an artifact-based, multimedia traveling exhibit, “Iowa History 101.” The exhibit engages Iowans with fascinating stories about the state’s history, and will travel to all 99 counties. EMC is the exhibit’s presenting sponsor, marking the second time we have supported a traveling exhibit from the State Historical Museum.

The Iowa History 101 exhibit stopped by the corporate office so our team members could learn more about Iowa’s rich history.

Hurricane Harvey Relief EMC launched a companywide sock drive to aid those in need after Hurricane Harvey, and collected more than 10,000 pairs of socks. The donations went to the Houston Independent School District to aid its relief efforts. In addition, the EMC Insurance Foundation donated $50,000 to the United Way Worldwide’s Harvey Recovery Fund.

What Matters Most: Our Communities | 17

Financial Analysis Continuously improving our company’s 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

Record Premium

Record Surplus

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.

Another year of record net written premium $1.775 billion + 3.9%

Another year of record surplus $1.713 billion + 4.9%

Multiple positive achievements were seen during the year: • The property and casualty insurance segment

digit rate level increase; personal lines saw a mid-single-digit rate level increase • Planned growth in targeted areas of the

Northwest and Southwest outpaced growth in the Midwest

Underwriting Operations

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

EMCI on 50 Most Trustworthy Financial Companies List For the fourth consecutive year, EMC Insurance Group Inc. (EMCI) was included on the 50 Most Trustworthy Financial Companies list announced by Forbes.

• Commercial lines policy count retention was

stable at 86.9%, and personal lines experienced a planned reduction in retention to 83.7%

“At EMC, we act with honesty and integrity. The Most Trustworthy Financial Companies recognition highlights our commitment to being credible, transparent and truthful.”

2017

2016

Net Earned Premiums

$

1,738,669,078

1,687,204,644

1,620,443,074

1,532,160,812

1,439,632,801

Losses Incurred

$

994,972,212

951,285,042

865,949,565

897,668,287

788,010,351

57.2%

56.4

53.4

58.6

54.7

216,224,105

150,064,546

195,130,914

181,631,441

164,839,384

12.4%

8.9

12.0

11.9

11.5

550,261,820

524,355,997

507,013,335

465,216,227

475,130,418

31.0%

30.7

30.8

29.6

31.9

Ratio to Earned Premiums Other Underwriting Expenses

$

Ratio to Written Premiums

$

1,646,080,754

$

2013

1,775,016,618

$

1,707,990,395

2014

$

Ratio to Earned Premiums

$

2015

Net Written Premiums

Loss Adjustment Expenses

continued to perform well • Commercial line renewals achieved a low single-

2017 Financials

1,570,453,116

$

1,487,116,330

Net Underwriting Gain (Loss)

$

(22,789,059)

61,499,059

52,349,260

(12,355,143)

11,652,648

Policyholder Dividends

$

35,550,847

31,512,691

30,453,940

26,140,179

28,092,548

2.0%

1.9

1.9

1.7

2.0

102.6%

97.9

98.1

101.8

100.1

Ratio to Earned Premiums Combined Loss & Expense Ratio

Net Investment Gains

2017

2016

2015

2014

2013

Net Investment Income Earned

$

99,006,981

98,953,027

102,201,576

109,816,471

92,683,582

Net Realized Capital Gains*

$

26,799,375

24,105,581

13,769,419

18,719,329

31,969,177

Financial Results

2017

2016

2015

2014

2013

Net Income

$

73,418,181

122,189,458

110,858,203

84,770,528

96,856,940

Net Admitted Assets

$

4,596,644,318

4,392,197,854

4,173,650,357

3,964,334,525

3,675,045,883

Liabilities

$

2,883,722,717

2,758,931,663

2,668,411,209

2,540,682,207

2,365,917,971

Surplus

$

1,712,921,601

1,633,266,191

1,505,239,148

1,423,652,318

1,309,127,912

*Net of capital gains tax

Bruce Kelley President, Chief Executive Officer and Treasurer

18

19

Branch Offices Branch Office

Branch Manager

Birmingham Paulette J. Johnson

Business Units Year Opened 1982 1957 (Dakota Fire)

Bismarck

Marilyn R. Ternes 1973 (EMC Branch)

Chicago

Cincinnati

Philip A. Goedde

Idaho, Montana, North Dakota, Oregon, Washington

58

132

67

115

2017 Commercial Lines Premium* $

$

68,913,297

130

144

$

153,715,206

1937

Illinois

51

130

$

55,997,162

Indiana, Kentucky, Ohio

75

137

$

85,710,204

1858 (Hamilton Mutual)

Operation

Management

60,517,281

1946 (Valley Forge)

Craig A. Bruder

Gary A. Kohnke

Alabama, Florida, Georgia, Tennessee

Agencies Represented

Delaware, Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina, Virginia, Washington, D.C.

1975 (Charlotte) Charlotte

Territory

Team Members

Personal Lines Operations

EMC Bond Department

Tanya R. Wentzel

James D. Clough

1997 (EMC Branch) Denver

Dennis J. Prindiville

1981

Colorado, Utah, Wyoming

52

103

$

60,804,689

Des Moines

John T. Schumacher

1911

Iowa

148

275

$

205,361,153

Jackson

Coleman W. Cummins

1966

Louisiana, Mississippi

43

64

$

66,956,853

Kansas City

Benjamin K. DeHart

1962

Arkansas, Missouri, Kansas (NE)

65

86

$

62,067,796

Lansing

Gary E. Pingel

1940

Michigan

73

88

$

81,707,001

Milwaukee

Dave R. Young

Minneapolis Jerry K. Harlow

1956

Wisconsin

86

62

$

97,468,895

1942

Minnesota

48

101

$

75,095,238

Omaha

Jay Sillau

1939

Nebraska, South Dakota

74

146

$

109,447,269

Phoenix

Douglas P. Lincoln

1958

Arizona, California, Nevada, New Mexico

76

132

$

72,273,836

Providence

William G. Arnold

1863 (Union Mutual) 1968 (EMC Branch)

Wichita

Michael L. Akin

1934

Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont

59

83

$

59,758,827

Kansas, Oklahoma, Texas

162

231

$

220,986,498

EMC Risk Services, LLC

EMC Reinsurance Company (EMC Re)

EMC Underwriters, LLC

Barbara A. Sullivan

Territory

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 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

Available in most states, depending on statutory requirements

Business

Personal lines underwriting, claims and marketing $132,483,842 direct written premium

Primarily contract surety bond business $33.36 million direct written premium (3.3% increase) 18.7% loss ratio

Multiline, third-party administrator offering claims administration, cost management and loss control services Reinsurance business through intermediaries

89% domestic U.S. business Vicki L. Freese

111.9% trade ratio 11% international $132.3 million written premium (0.9% increase)

Marcel D. Boggs

Available in select 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

*Only commercial lines net written premium is shown here. Personal lines net written premium is calculated separately (see next page).

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21

Leadership President, Chief Executive Officer and Treasurer Bruce G. Kelley, J.D., CPCU, CLU Executive Vice President of Operations Mick A. Lovell, CPCU Executive Vice President of Finance and Strategy Scott R. Jean, FCAS, MAAA

Senior Vice Presidents Ian C. Asplund, M.S., FCAS, MAAA, CERA, Chief Analytics Officer

Michael R. Boggs, CPCU

John R. Kurtz

Cheryl L. McCullough, M.S., CIA, Chief Audit Officer

James D. Boyd, M.B.A., CISSP

Traci A. Larsen, CRM, IGP

Douglas L. Brinkman, CPCU, CSP

Jerry D. Loghry, M.S., CSP, CPP, ARM

Teresa L. Miller, CCP Michael D. Morris, AIC, AIS, CIC, AIM Kelvin B. Sederburg, ACAS, MAAA, Appointed Actuary Robert G. Seiler, CEBS P. Bryon Snethen, CPCU, ARM, CSP, AU Kyle L. Warden

Jason R. Bogart, CPCU, ARM, Chief Field Officer

Meg M. Weist, J.D.

Bradley J. Fredericks, M.B.A., FLMI, Chief Investment Officer

Tanya R. Wentzel, M.P.A., CPCU, CIC, AU

Rodney D. Hanson, CPCU, Chief Information Officer

Area Vice Presidents

Meyer T. Lehman, FCAS, MAAA, Chief Actuarial Officer

Matt G. Wentzel, CPCU, AIM

Philip R. Lucca, CPCU Lonnie D. Schwab, CPCU, AU

Kenneth D. Cumpston Jr., CPCU, AFSB, ARe Derek D. Dunnagan, CPCU, FCAS Tamara L. Evans, CPCU, SCLAGold, AIM, AIC, ACS

Thomas C. McEntee

Ronald D. Herman, M.S., CPA

Patty L. Miller, J.D.

Dawn D. Johnson

Doug W. Nuehring, CPCU, ARe, AIAF

Van A. McNeal, ACAS, MAAA John W. Mitchell, CPCU James M. Moore, CPCU, AIM Sean A. Pelletier, J.D. Sanja Plynaar, M.B.A., CPCU, AU Carla A. Prather, Controller Carol A. Ratekin, CPCU, FMLI

Michael L. Akin, CPCU

Jason T. Sash, FCAS, MAAA

Elizabeth A. Nigut, J.D., Chief Human Resources Officer

William G. Arnold, M.B.A., CPCU, CIC, ARM, AIS

Lucréia M. Smith, M.B.A., API

Larry W. Phillips, CPCU, Chief Business Development Officer

Craig A. Bruder, M.B.A., CPCU, ARM, ACI, CAWC

Stephen P. Tetzloff, CPCU, AAI

Mark E. Reese, CPA, Chief Financial Officer

Coleman W. Cummins, CPCU, AU, AIM

Ron E. Zoss

Lisa A. Simonetta, J.D., Chief Claims Officer

Benjamin K. DeHart, CPCU, ARM, ARe

Todd A. Strother, J.D., Chief Legal Officer

Philip A. Goedde, CPCU, CIC

Dan D. Aksamit, CPCU, ARe, ARM, Chief Risk Officer

Gary A. Kohnke, CPCU

Barbara A. Sullivan, CPCU, AIC Chad B. Veach, CPCU, CSP, ARM

Assistant Secretaries Duane R. Adamson Steven J. Albaugh, APA Lynette S. Bent, CTP, FLMI Marcel D. Boggs, AINS Christine M. Brandenburg, CPCU, AIC, AIM, ARe, AIT, SCLA-Gold

Melissa J. Appenzeller, FCAS, MAAA

Douglas P. Lincoln, CPCU, CLU, AINS, AU, ChFC

Harold K. Capps Jr., RPA

Gary E. Pingel, CPCU, AU, CIC

Jason A. Clark, FCAS, MAAA

Alison M. Cate, CPCU, ARM, ARe, AMIM

Dennis J. Prindiville, CPCU, AU

Sydney A. Conrad, J.D., M.B.A.

John T. Schumacher, CPCU

Tammi M. Dickey, AINS

James D. Clough, ARe

Jay Sillau, CPCU

Gary J. Friess, AIC, AINS

Robert A. Coon, M.B.A.

Marilyn R. Ternes, CPCU, AU

Brian C. Fuller, AIC

Daniel C. Crew, CPCU, CIC, CRM

Dave R. Young, M.B.A., CPCU, CFA, ARM-P, AU, AIAF

Casey L. Harvey, CPCU, ARe

Assistant Vice Presidents

Tara L. Inghram, CPCU, ARe, AU, AIM, AIAF

Kenneth J. Fitzgerald, CPCU, PMP Vicki L. Freese, CPCU, ARe Rob J. Friedman, CPCU, CIC, ARe

Karey S. Anderson, CFA

Lisa L. Hamilton, M.S., M.A., ABC, Chief Brand Officer

Lisa A. Arechavaleta, J.D., CCEP

Larry G. Hamling, CPCU, CPA, AIAF

Angela M. Baughman

Monte W. Ball, CSP

Kent L. McCampbell, CPCU, ARe

Benjamin P. Herman, CPA, AFSB

Brent L. Rickabaugh, CPCU, AU

Paulette J. Johnson, CPCU, AU, AINS, AIS

Pat A. Martin, M.B.A., CPCU, PMP, AIT Daniel J. McCleary, CPCU

Resident Vice Presidents

Jerry K. Harlow, CPCU, AU

Brady J. Mallon

Jason W. Gross

Robert L. Link, CAM, CM, Chief Administrative Officer, Corporate Secretary

Vice Presidents

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Julie A. Larson, CPCU, AIM, API

John S. Osier, M.B.A., CFA, CPCU Sarah J. Paoli Lori A. Peters, CPA, AIAF Todd L. Prideaux Dawn M. Rizzi Jeffrey L. Roe Laurie A. Salz, FCLS Eric T. Smith, ACAS, MAAA Ryan J. Springer, J.D., AFSB Joni R. Summitt, CPCU, AIM, API Cheri K. Trites, J.D. Matt W. Trost, FCAS, MAAA Douglas S. Van Zanten, J.D., CPCU Steven T. Walsh, CPA Scott D. Whitaker, MCM Todd D. Witke, J.D.

Assistant Controllers Laura L. Ladd, CPA Jeffrey B. Monson, CPA, CPCU, AIAF, ARe

Chad D. Buresh, CLA

Brian L. Hendrickson, CPCU, ARM

Scott D. Jaspers, CPCU, AIT, ACS Jill M. Joss, CPCU, CIDM, AIC, API Erik J. Keninger, CPCU, API, AU, AIM

As of Jan. 6, 2018. 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.

Board of Directors

Comings and Goings

Chairman of the Board

Executive Management Changes

David J. W. Proctor, J.D. Practicing Attorney & Shareholder Bradshaw, Fowler, Proctor & Fairgrave Des Moines, Iowa

Changes were made in EMC’s executive management on Jan. 2, 2018, when Executive Vice President and Chief Operating Officer Kevin Hovick, CPCU, retired from the company. Hovick’s career spanned more than 38 years in the property/casualty business with EMC.

Board Members Thomas 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.

Mick Lovell was named Executive Vice President of Operations and assumed Hovick’s responsibilities, which include overseeing all company operations, branch offices, claims, business development and branding. Scott Jean was named Executive Vice President of Finance and Strategy, a position which oversees accounting, actuary, corporate risk management, information technology, investments, program management and strategic analytics.

New Area Vice Presidents To strengthen our branch operations team, two Area Vice President roles were added in spring 2017. Area Vice Presidents Phil Lucca and Lonnie Schwab are working to promote further profitable growth of commercial lines operations in the 16 branch offices.

Branch Manager Changes Craig Bruder was promoted to Charlotte Branch Manager (the position previously held by Lonnie Schwab who was promoted to Area Vice President). Dave R. Young became the Milwaukee Branch Manager (the position previously held by Phil Lucca, who was promoted to Area Vice President).

Corporate Office Executive Changes Cheryl McCullough was hired as Chief Audit Officer, upon the retirement of Senior Vice President and Chief Audit Officer Ron Paine. Meyer Lehman was hired as Chief Actuary of the Actuarial Department in August 2017.

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.

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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.

EMC Property & Casualty Company

Dakota Fire Insurance Company

EMC Risk Services, LLC

EMC Reinsurance Company

Union Insurance Company of Providence

EMCASCO Insurance Company EMC Underwriters, LLC

EMC National Life Company (Affiliate)

Illinois EMCASCO Insurance Company

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

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