Eastern Insurance Holdings Inc (EIHI US) - Adjusted

In Millions of USD except Per Share FY 2006 FY 2007 FY 2008 FY 2009

12 Months Ending 12/31/2006 12/31/2007 12/31/2008 12/31/2009
Revenue 87.0 145.5 131.2 104.1
+ Net Premiums Earned 74.9 129.5 135.8 97.9
+ Net Premiums Earned (NL) 41.5 93.6 99.1 97.9
+ Net Premiums Earned (L) 33.5 35.9 36.7 —
+ Other Premiums Earned (NL & L) — — — 0.0
+ Investment Income — — — 5.5
+ Income from Real Estate 0.0 0.0 0.0 0.0
+ Other Operating Income 0.3 0.7 0.9 0.6
+ Policy Charges & Fees — — — 0.0
+ Other Income — — — 0.6
- Claims & Losses — — — 58.8
+ Claims & Losses (NL) — — — 59.2
+ Claims & Losses (L) 20.6 23.3 24.4 —
+ LT Charges (L) — — — —
+ Oth Claims & Losses (NL & L) — — — -0.4
- Underwriting Expense & Acq Cost — — — 33.1
+ Underwriting & Acq Cost (NL) — — — 32.6
+ Underwriting Cost (NL) — — — 32.6
+ Other Cost (NL) — — — —
+ Other Cost (NL & L) — — — 0.4
- Other Operating Expense — — — 2.9
Operating Income (Loss) 13.2 26.3 -16.3 9.4
- Interest Expense 0.0 — — —
- Other Non-Op (Income) Loss — — — 0.0
Pretax Income (Loss), Adjusted 13.2 26.3 -16.3 9.4
- Abnormal Losses (Gains) — — — 0.9
+ Merger/Acquisition Expense — — — 0.1
+ Net Investment Gains/Losses — — — 0.8
Pretax Income (Loss), GAAP 13.2 26.3 -16.3 8.4
- Income Tax Expense (Benefit) 4.9 7.7 1.1 2.5
+ Current Income Tax — — — 1.6
+ Deferred Income Tax — — — 0.9
+ Tax Allowance/Credit — — — 0.0
Income (Loss) from Cont Ops 8.3 18.7 -17.4 5.9
- Net Extraordinary Losses (Gains) 0.0 0.0 0.0 -2.5
+ Discontinued Operations — — — -2.5
+ XO & Accounting Changes — — — 0.0
Income (Loss) Incl. MI 8.3 18.7 -17.4 8.4
- Minority Interest 0.0 0.0 0.0 0.0
Net Income, GAAP 8.3 18.7 -17.4 8.4
 - Preferred Dividends 0.0 0.0 0.0 0.0
- Other Adjustments 0.0 0.0 0.0 0.0
Net Income Avail to Common, GAAP 8.3 18.7 -17.4 8.4

Net Income Avail to Common, Adj 8.3 18.7 -17.4 6.5

Net Abnormal Losses (Gains) — — — 0.6
Net Extraordinary Losses (Gains) 0.0 0.0 0.0 -2.5

Basic Weighted Avg Shares 10.6 10.3 9.0 9.0

Basic EPS, GAAP 0.67 1.82 -1.94 0.94
Basic EPS from Cont Ops 0.67 1.82 -1.94 0.64
Basic EPS from Cont Ops, Adjusted 0.50 1.64 -0.70 0.73

Diluted Weighted Avg Shares 10.9 10.6 9.0 9.1

Diluted EPS, GAAP 0.65 1.76 -1.94 0.93
Diluted EPS from Cont Ops 0.65 1.76 -1.94 0.64
Diluted EPS from Cont Ops, Adjusted 0.49 1.58 -0.70 0.71

Reference Items
Accounting Standard US GAAP US GAAP US GAAP US GAAP
Profit Margin 9.52 12.84 -13.25 6.29
Loss Ratio (Non-Life) 66.44 56.80 73.00 60.00
Expense Ratio (Non-Life) 24.65 35.20 33.60 35.50
Combined Ratio (Non-Life) 91.09 92.00 106.60 95.50
Cost Ratio (Life) 34.10 29.64 30.77 —
Benefit Ratio (Life) 61.58 64.84 66.56 —
Basic EPS Before XO Growth — 171.64 — —
Sales per Employee 639,566.18 892,601.23 633,835.75 525,646.46
Dividends per Share 0.00 0.20 0.28 0.28
Total Cash Common Dividends 0.0 2.2 2.5 2.5
Source: Bloomberg
 FY 2010 FY 2011 FY 2012 Current FY 2013 Est FY 2014 Est
12/31/2010 12/31/2011 12/31/2012 02/17/2018 12/31/2013 12/31/2014
114.2 136.3 164.8 190.0 209.0
109.2 132.2 159.6
109.2 132.2 159.6
— — —
0.0 0.0 0.0
4.4 3.7 4.9
0.0 0.0 0.0
0.6 0.4 0.3
0.0 0.0 0.0
0.6 0.4 0.3
77.6 83.7 105.4
77.6 83.7 105.4
— — —
— — —
— — —
34.4 39.9 46.0
34.4 39.9 46.0
33.3 38.6 45.2
1.0 1.4 0.8
— — —
1.5 4.5 2.3
0.7 8.1 11.2
— — —
0.0 0.0 0.0
0.7 8.1 11.2 17.1 18.8
-3.5 -1.7 -3.2
— — —
-3.5 -1.7 -3.2
4.2 9.8 14.4 17.1 18.8
1.2 2.4 4.1
0.4 2.8 5.3
0.9 -0.4 -1.2
0.0 0.0 0.0
2.9 7.4 10.4 12.9 13.4
12.1 -0.4 0.0
12.1 -0.4 0.0
0.0 0.0 0.0
-9.2 7.7 10.4
0.0 0.0 0.0
-9.2 7.7 10.4 12.9 13.4
 0.0 0.0 0.0
0.0 0.0 0.0
-9.2 7.7 10.4 12.9 13.4

2.2 6.3 8.2 12.0 13.0

-0.7 -1.1 -2.1
12.1 -0.4 0.0

8.5 7.9 7.5 7.6

-1.09 0.98 1.35 1.69 1.75
0.36 0.93 1.35 1.69 1.75
0.27 0.80 1.09 1.50 1.70

8.5 8.0 7.7 7.6

-1.09 0.97 1.32 1.69 1.75
0.36 0.91 1.32 1.69 1.75
0.27 0.78 1.05 1.50 1.70

US GAAP US GAAP US GAAP

1.97 4.61 5.00 6.29 6.20
71.10 63.30 66.00 64.14
32.70 31.00 29.30 25.73
103.80 94.30 95.30 89.87
— — —
— — —
-43.75 158.33 45.16 29.73
667,549.71 728,882.35 749,190.91
0.28 0.28 0.28 0.35 0.36
2.5 2.2 2.1
EMC Insurance Group Inc (EMCI US) - Adj Highlights
In Millions of USD FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
12 Months Ending 12/31/2011 12/31/2012 12/31/2013 12/31/2014 12/31/2015
Market Capitalization 264.9 308.3 407.4 480.9 525.7
- Cash & Equivalents 0.3 0.3 0.2 0.4 0.2
+ Preferred & Other 0.0 0.0 0.0 0.0 0.0
+ Total Debt 25.0 25.0 25.0 25.0 25.0
Enterprise Value 289.6 332.9 432.2 505.6 550.5

Revenue, Adj 463.3 503.9 559.0 590.1 616.7

Growth %, YoY 5.4 8.7 10.9 5.6 4.5
Net Prem Earned, Adj 416.4 458.8 515.5 540.7 570.3
Growth %, YoY 7.0 10.2 12.3 4.9 5.5
Operating Income, Adj -18.8 44.5 52.6 34.7 64.9
Margin % -4.1 8.8 9.4 5.9 10.5
Net Income, Adj -8.4 32.8 37.9 25.7 45.6
Margin % -1.8 6.5 6.8 4.4 7.4
EPS, Adj -0.43 1.70 1.93 1.27 2.21
Growth %, YoY — — 13.9 -34.0 73.3

Combined Ratio (NL) 115.30 99.60 97.90 101.90 96.30

Loss Ratio 82.40 66.10 64.70 71.30 65.00
Expense Ratio 32.90 33.50 33.20 30.60 31.30
Source: Bloomberg
 FY 2016 FY 2017 Current/LTM FY 2018 Est FY 2019 Est
12/31/2016 12/31/2017 12/31/2017 12/31/2018 12/31/2019
636.9 615.6 578.0
0.3 0.3 0.3
0.0 0.0 0.0
25.0 25.0 25.0
661.6 640.2 602.7

640.9 652.3 652.3 670.5 684.0

3.9 1.8 1.8 2.8 2.0
592.4 607.2 607.2
3.9 2.5 2.5
59.8 33.6 33.6
9.3 5.2 5.2
43.8 25.9 25.9 32.9 36.3
6.8 4.0 4.0 4.9 5.3
2.08 1.22 1.21 1.53 1.65
-5.6 -41.7 -41.8 25.5 8.2

97.70 101.30 94.20

65.30 69.50 62.70
32.40 31.80 31.50
EMC Insurance Group Inc (EMCI US) - Adjusted
In Millions of USD except Per Share FY 2011 FY 2012 FY 2013 FY 2014
12 Months Ending 12/31/2011 12/31/2012 12/31/2013 12/31/2014
Revenue 463.3 503.9 559.0 590.1
+ Net Premiums Earned 416.4 458.8 515.5 540.7
+ Net Premiums Earned (NL) 416.4 458.8 515.5 540.7
+ Other Premiums Earned (NL & L) 0.0 0.0 0.0 0.0
+ Investment Income 46.1 44.1 43.0 46.5
+ Income from Real Estate 0.0 0.0 0.0 0.0
+ Other Operating Income 0.8 0.9 0.5 2.9
+ Policy Charges & Fees 0.0 0.0 0.0 0.0
+ Other Income 0.8 0.9 0.5 2.9
- Claims & Losses 343.0 303.4 333.3 385.5
+ Claims & Losses (NL) 343.0 303.4 333.3 385.5
+ Claims & Losses (L) — — — —
+ LT Charges (L) — — — —
- Underwriting Expense & Acq Cost 137.1 153.8 171.3 165.4
+ Underwriting & Acq Cost (NL) 137.1 153.8 171.3 165.4
+ Underwriting Cost (NL) 54.5 60.9 65.8 56.8
+ Amort Def Acq Cost (NL) 77.3 84.3 94.7 99.0
+ Other Cost (NL) 5.3 8.6 10.9 9.5
- Other Operating Expense 2.1 2.1 1.7 4.6
Operating Income (Loss) -18.8 44.5 52.6 34.7
- Interest Expense 0.9 0.9 0.4 0.3
- Other Non-Op (Income) Loss 0.0 0.0 0.0 0.0
Pretax Income (Loss), Adjusted -19.7 43.6 52.2 34.4
- Abnormal Losses (Gains) -8.7 -8.0 -8.6 -6.5
+ Net Investment Gains/Losses -9.3 -8.0 -9.0 -4.3
+ Foreign Exchange 0.6 0.0 0.4 -2.2
+ Other Abnormal Items — — — —
Pretax Income (Loss), GAAP -11.0 51.6 60.9 40.9
- Income Tax Expense (Benefit) -8.3 13.7 17.3 10.9
+ Current Income Tax -9.8 11.6 16.9 7.3
+ Deferred Income Tax 1.6 2.1 0.4 3.6
+ Tax Allowance/Credit 0.0 0.0 0.0 0.0
Income (Loss) from Cont Ops -2.7 38.0 43.5 30.0
- Net Extraordinary Losses (Gains) 0.0 0.0 0.0 0.0
+ Discontinued Operations 0.0 0.0 0.0 0.0
+ XO & Accounting Changes 0.0 0.0 0.0 0.0
Income (Loss) Incl. MI -2.7 38.0 43.5 30.0
- Minority Interest 0.0 0.0 0.0 0.0
Net Income, GAAP -2.7 38.0 43.5 30.0
- Preferred Dividends 0.0 0.0 0.0 0.0
 - Other Adjustments 0.0 0.0 0.0 0.0
Net Income Avail to Common, GAAP -2.7 38.0 43.5 30.0

Net Income Avail to Common, Adj -8.4 32.8 37.9 25.7

Net Abnormal Losses (Gains) -5.7 -5.2 -5.6 -4.2
Net Extraordinary Losses (Gains) 0.0 0.0 0.0 0.0

Basic Weighted Avg Shares 19.4 19.3 19.6 20.2

Basic EPS, GAAP -0.14 1.97 2.22 1.49
Basic EPS from Cont Ops -0.14 1.97 2.22 1.49
Basic EPS from Cont Ops, Adjusted -0.43 1.70 1.93 1.27

Diluted Weighted Avg Shares 19.4 19.3 19.6 20.2

Diluted EPS, GAAP -0.14 1.97 2.22 1.49
Diluted EPS from Cont Ops -0.14 1.97 2.22 1.49
Diluted EPS from Cont Ops, Adjusted -0.43 1.70 1.93 1.27

Reference Items
Accounting Standard US GAAP US GAAP US GAAP US GAAP
Profit Margin -1.81 6.50 6.78 4.36
Loss Ratio (Non-Life) 82.40 66.10 64.70 71.30
Expense Ratio (Non-Life) 32.90 33.50 33.20 30.60
Combined Ratio (Non-Life) 115.30 99.60 97.90 101.90
Basic EPS Before XO Growth — — 12.88 -33.03
Sales per Employee 219,073.92 238,565.58 262,312.53 275,370.04
Dividends per Share 0.51 0.54 0.57 0.63
Total Cash Common Dividends 9.9 10.4 11.3 12.7
Source: Bloomberg
 FY 2015 FY 2016 FY 2017 Last 12M FY 2018 Est FY 2019 Est
12/31/2015 12/31/2016 12/31/2017 12/31/2017 12/31/2018 12/31/2019
616.7 640.9 652.3 652.3 670.5 684.0
570.3 592.4 607.2 607.2
570.3 592.4 607.2 607.2
0.0 0.0 0.0 0.0
45.6 47.5 45.5 45.5
0.0 0.0 0.0 0.0
0.8 1.0 -0.3 -0.3
0.0 0.0 0.0 0.0
0.8 1.0 -0.3 -0.3
370.7 386.9 422.0 422.0
370.7 386.9 422.0 422.0
— — —
— — —
178.3 191.8 193.3 193.3
178.3 191.8 193.3 193.3
68.4 69.6 76.8 76.8
102.2 108.4 108.9 108.9
7.7 13.8 7.6 7.6
2.7 2.4 3.4 3.4
64.9 59.8 33.6 33.6
0.3 0.3 0.3 0.3
0.0 0.0 0.0 0.0
64.6 59.5 33.3 33.3 40.5 44.6
-7.1 -3.7 -6.6 -6.5
-6.2 -4.1 -6.6 -6.6
— — —
-0.9 0.4 —
71.7 63.2 39.8 39.8 40.5 44.6
21.5 17.0 0.6 0.6
18.6 18.1 8.0 8.0
2.9 -1.1 -7.4 -7.4
— — —
50.2 46.2 39.2 39.2 32.9 36.3
0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0
50.2 46.2 39.2 39.2
0.0 0.0 0.0 0.0
50.2 46.2 39.2 39.2 32.9 36.3
0.0 0.0 0.0 0.0
 0.0 0.0 0.0 0.0
50.2 46.2 39.2 39.2 32.9 36.3

45.6 43.8 25.9 25.9 32.9 36.3

-4.6 -2.4 -13.3 -13.3
0.0 0.0 0.0 0.0

20.6 21.0 21.3 21.4

2.43 2.20 1.84 1.84 1.53 1.65
2.43 2.20 1.84 1.84 1.53 1.65
2.21 2.08 1.22 1.22 1.53 1.65

20.6 21.0 21.3 21.4

2.43 2.20 1.84 1.84 1.53 1.65
2.43 2.20 1.84 1.84 1.53 1.65
2.21 2.08 1.22 1.21 1.53 1.65

US GAAP US GAAP US GAAP

7.39 6.83 3.97 3.98 4.91 5.30
65.00 65.30 69.50 62.70
31.30 32.40 31.80 31.50
96.30 97.70 101.30 94.20
63.45 -9.47 -16.36 21.78
285,497.69 284,848.44 —
0.69 0.78 0.85 0.85 0.89 0.93
14.3 16.4 18.1 18.1
EMC Insurance Group Inc (EMCI US) - Standardized
In Millions of USD except Per Share FY 2008 FY 2009 FY 2010 FY 2011
12 Months Ending 12/31/2008 12/31/2009 12/31/2010 12/31/2011
Assets
+ Total Investments 965.2 1,045.2 1,079.7 1,112.1
+ Fixed Income-Trading/AFS & ST Inv 876.2 954.6 978.2 1,000.8
+ Loans & Mortgages 0.0 — 0.0 0.0
+ Fixed Income Securities-HTM 0.5 0.4 0.3 0.0
+ Equity Securities 88.4 90.2 101.1 111.3
+ Real Estate Investments 0.0 — 0.0 0.0
+ Other Investments 0.1 0.0 0.0 0.0
+ Cash & Near Cash Items 0.2 0.3 0.5 0.3
+ Net Receivables 60.3 43.2 45.2 61.1
+ Deferred Policy Acquisition Costs 34.6 36.7 37.6 30.8
+ Other Assets 47.8 40.4 24.8 19.7
Total Assets 1,108.1 1,165.8 1,187.8 1,224.0

Liabilities & Shareholders' Equity

+ Reserve for Outstanding Claim & Loss 573.0 556.2 556.1 593.3
+ Premium Reserve (Unearned) 154.4 159.5 167.9 180.7
+ Life Policy Benefits — — 0.0 0.0
+ Other Insurance Reserves 6.4 7.9 8.3 5.1
+ Total Insurance Reserves 733.9 723.6 732.4 779.1
+ Short-Term Borrowings 0.0 0.0 0.0 0.0
+ Other Short-Term Liabilities 9.3 20.4 18.4 21.0
+ Long-Term Borrowings 45.7 38.5 25.0 25.0
+ Other Long-Term Liabilities 36.3 40.9 43.4 46.6
Total Liabilities 825.2 823.4 819.2 871.7
+ Total Preferred Equity 0.0 — 0.0 0.0
+ Minority Interest 0.0 — 0.0 0.0
+ Policyholders' Equity 0.0 — 0.0 0.0
+ Share Capital & APIC 108.9 105.9 101.9 101.2
+ Retained Earnings & Other Equity 174.0 236.5 266.8 251.2
Total Equity 282.9 342.4 368.6 352.3
Total Liabilities & Equity 1,108.1 1,165.8 1,187.8 1,224.0

Reference Items
Accounting Standard US GAAP US GAAP US GAAP US GAAP
Shares Outstanding 19.9 19.7 19.4 19.3
Number of Treasury Shares 0.0 0.0 0.0 0.0
Amount of Treasury Shares 0.0 0.0 0.0 0.0
Pension Obligations 19.3 18.2 20.4 29.7
Operating Leases 7.1 7.5 9.3 8.1
Capital Leases - Short Term — 0.0 0.0 0.0
Capital Leases - Long Term — 0.0 0.0 0.0
Capital Leases - Total — 0.0 0.0 0.0
Options Granted During Period 0.3 0.5 0.3 0.4
Options Outstanding at Period End 1.4 1.8 1.9 2.2
Book Value per Share 14.22 17.41 19.01 18.24
Reinsurance Receivables 36.4 30.5 30.3 39.5
Net Debt 45.5 38.2 24.5 24.7
Tangible Common Equity Ratio 25.47 29.32 30.98 28.73
Statutory Capital 284.5 327.2 347.1 325.2
Number of Employees 2,169.00 2,157.00 2,152.00 2,115.00
Source: Bloomberg
 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017

1,194.4 1,256.4 1,384.0 1,415.8 1,465.7 1,540.4

1,053.2 1,084.2 1,180.8 1,199.6 1,239.4 1,298.6
0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0
140.3 169.8 197.0 206.2 213.8 228.1
0.0 0.0 0.0 0.0 0.0 0.0
0.9 2.4 6.2 9.9 12.5 13.6
0.3 0.2 0.4 0.2 0.3 0.3
48.2 41.4 40.7 37.6 34.5 44.5
34.4 37.8 39.3 40.7 40.9 41.1
13.4 38.7 33.4 41.7 47.4 55.5
1,290.7 1,374.5 1,497.8 1,536.0 1,588.8 1,681.9

583.1 610.2 661.3 678.8 690.5 732.6

196.2 220.6 232.1 239.4 244.9 257.8
0.0 0.0 0.0 0.0 0.0 0.0
6.1 8.5 10.2 8.7 13.1 10.0
785.4 839.3 903.6 926.9 948.5 1,000.4
0.0 0.0 0.0 0.0 0.0 0.0
19.1 10.6 8.6 6.4 13.6 0.9
25.0 25.0 25.0 25.0 25.0 25.0
60.0 44.4 57.8 52.7 48.4 51.8
889.5 919.3 994.9 1,011.0 1,035.5 1,078.1
0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0
102.1 112.6 120.2 129.5 140.3 146.0
299.1 342.6 382.7 395.4 413.1 457.8
401.2 455.2 502.9 524.9 553.3 603.8
1,290.7 1,374.5 1,497.8 1,536.0 1,588.8 1,681.9

US GAAP US GAAP US GAAP US GAAP US GAAP US GAAP

19.4 20.0 20.3 20.8 21.2 21.5
0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0
30.7 3.4 — — — —
7.6 7.6 8.6 2.5 2.6 —
 0.0 0.0 0.0 0.0 0.0 —
0.0 0.0 0.0 0.0 0.0 —
0.0 0.0 0.0 0.0 0.0 —
0.4 0.0 0.0 0.0 — —
2.4 1.7 1.4 1.0 0.6 —
20.72 22.81 24.72 25.26 26.07 28.14
34.3 30.3 28.6 24.2 21.3 31.7
24.7 24.8 24.6 24.8 24.7 24.7
31.03 33.07 33.53 34.14 34.79 35.87
354.6 416.7 454.8 485.2 526.8 —
2,112.00 2,131.00 2,143.00 2,160.00 2,250.00 —
EMC Insurance Group Inc (EMCI US) - Standardized
In Millions of USD except Per Share FY 2008 FY 2009 FY 2010 FY 2011
12 Months Ending 12/31/2008 12/31/2009 12/31/2010 12/31/2011
Cash From Operating Activities
Net Income -1.7 45.4 31.3 -2.7
+ Other Non-Cash Adjustments 30.6 -22.4 -7.7 -13.9
+ Changes in Non-Cash Capital 1.8 11.1 6.7 28.4
Cash From Operating Activities 30.7 34.1 30.3 11.8

Cash From Investing Activities

+ Disposal of Fixed Assets 0.0 — 0.0 0.0
+ Capital Expenditures 0.0 — 0.0 0.0
+ Increase in Investments -385.3 -453.7 -247.6 -320.5
+ Decrease in Investments 377.4 432.5 231.2 319.3
+ Other Investing Activities 0.0 — 0.0 0.0
Cash From Investing Activities -7.9 -21.2 -16.4 -1.2

Cash from Financing Activities

+ Dividends Paid -4.1 -3.9 -9.5 -9.9
+ Change in Short-Term Borrowings 0.0 — 0.0 0.0
+ Increase in Long-Term Borrowings 0.0 — 0.0 0.0
+ Decrease In Long-Term Borrowings 0.0 — 0.0 0.0
+ Increase in Capital Stocks 1.1 0.3 1.1 1.0
+ Decrease in Capital Stocks -14.3 -3.6 -5.3 -1.8
+ Change in Insurance Reserves 0.0 — 0.0 0.0
+ Other Financing Activities -5.7 -5.7 0.0 0.0
Cash from Financing Activities -22.9 -12.8 -13.7 -10.8
Net Changes in Cash -0.1 0.1 0.2 -0.2

Reference Items
Cash Paid for Taxes 0.2 -1.6 15.1 1.8
Cash Paid for Interest 0.8 0.9 0.9 0.9
Net Cash Paid for Acquisitions 0.0 — 0.0 —
Free Cash Flow 30.7 — 30.3 11.8
Free Cash Flow to Firm — — 31.0 —
Free Cash Flow to Equity 30.7 — — 11.8
Free Cash Flow per Basic Share 1.51 — 1.55 0.61
Cash Flow per Share 1.51 1.72 1.55 0.61
Cashflow to Net Income — 0.75 0.97 —
Source: Bloomberg
 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Current
12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016 02/17/2018

38.0 43.5 30.0 50.2 46.2

-7.0 -5.4 -2.3 6.4 4.1
24.1 48.7 64.2 29.0 33.1
55.0 86.8 91.8 85.6 83.4

0.0 0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0 0.0
-342.9 -309.3 -267.7 -343.6 -478.7
297.7 223.4 181.1 262.8 400.8
0.0 0.0 0.0 0.0 0.0
-45.2 -86.0 -86.6 -80.8 -77.8

-10.4 -11.3 -12.6 -14.2 -16.2

0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
0.7 10.3 7.5 9.2 11.1
0.0 — 0.0 0.0 -0.4
0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
-9.7 -1.0 -5.1 -5.0 -5.5
0.1 -0.1 0.1 -0.2 0.1

-3.5 -13.7 -8.7 -20.3 -14.0

0.9 0.9 0.4 0.3 0.3
— — — — —
55.0 86.8 91.8 85.6 83.4
55.7 87.1 92.1 85.8 83.7
55.0 86.8 91.8 85.6 83.4
2.85 4.42 4.54 4.15 3.97
2.85 4.42 4.54 4.15 3.97
1.45 2.00 3.06 1.71 1.81 37.17
EMC Insurance Group Inc (EMCI US) - Profitability
In Millions of USD except Per Share FY 2008 FY 2009 FY 2010 FY 2011
12 Months Ending 12/31/2008 12/31/2009 12/31/2010 12/31/2011
Returns
Return on Common Equity -0.53 14.51 8.82 -0.76
Return on Assets -0.15 3.99 2.66 -0.23
Return on Capital — 12.97 8.27 -0.56
Return on Invested Capital — 3.91 3.89 3.86

Margins
Operating Margin -2.27 14.08 9.78 -2.01
Incremental Operating Margin -217.53 199.22 -279.50 —
Pretax Margin -2.49 13.88 9.58 -2.33
Income before XO Margin -0.41 10.07 7.07 -0.58
Net Income Margin -0.41 10.07 7.07 -0.58
Net Income to Common Margin -0.41 10.07 7.07 -0.58

Additional
Effective Tax Rate — 27.44 26.15 —
Dvd Payout Ratio — 20.95 30.35 —
Sustainable Growth Rate — 11.47 6.14 —
Source: Bloomberg
 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017

10.08 10.16 6.26 9.76 8.57 6.78

3.02 3.27 2.09 3.31 2.96 2.40
9.61 9.66 6.00 9.35 8.23 6.56
3.88 7.56 6.14 4.53 4.16 5.75

10.27 10.85 6.57 11.54 9.85 6.09

158.22 16.12 — 112.54 — —
10.09 10.71 6.88 11.49 9.80 6.04
7.42 7.66 5.05 8.04 7.16 5.96
7.42 7.66 5.05 8.04 7.16 5.96
7.42 7.66 5.05 8.04 7.16 5.96

26.47 28.49 26.68 30.00 26.90 1.45

27.49 25.86 42.22 28.49 35.46 46.20
7.31 7.53 3.62 6.98 5.53 3.65
EMC Insurance Group Inc (EMCI US) - By Measure
In Millions of USD except Per Share FY 2008 FY 2009 FY 2010
12 Months Ending 12/31/2008 12/31/2009 12/31/2010
Revenue 413.9 100.0% 450.4 100.0% 443.3 100.0%
Property and Casualty Insurance 335.7 81.1% 364.1 80.8% 346.5 78.2%
Net premiums earned 315.6 76.3% 308.1 68.4% 305.6 69.0%
Commercial lines 272.7 65.9% 265.1 58.9% 260.6 58.8%
Automobile 68.9 16.7% 65.7 14.6% 65.1 14.7%
Property 61.3 14.8% 62.1 13.8% 65.4 14.7%
Workers' compensation 65.2 15.8% 65.6 14.6% 63.5 14.3%
Liability 68.3 16.5% 62.9 14.0% 58.2 13.1%
Other 9.0 2.2% 8.8 2.0% 8.4 1.9%
Personal lines 42.9 10.4% 42.9 9.5% 45.0 10.2%
Liability 0.6 0.2% 0.6 0.1% 0.5 0.1%
Property 19.4 4.7% 18.8 4.2% 19.1 4.3%
Automobile 22.8 5.5% 23.5 5.2% 25.4 5.7%
Net investment income 36.3 8.8% 35.7 7.9% 37.0 8.3%
Realized investment gains -16.8 -4.1% 19.6 4.3% 3.1 0.7%
Other income 0.6 0.2% 0.8 0.2% 0.8 0.2%
Reinsurance 78.0 18.9% 86.3 19.2% 96.8 21.8%
Net premiums earned 73.7 17.8% 75.9 16.9% 83.5 18.8%
Excess-of-loss reinsurance 40.6 9.8% 44.9 10.0% 56.5 12.7%
Surety 0.0 0.0% 0.0 0.0% 0.0 0.0%
Casualty 11.2 2.7% 9.7 2.2% 10.9 2.5%
Property 29.4 7.1% 35.2 7.8% 45.5 10.3%
Pro rata reinsurance 33.1 8.0% 31.0 6.9% 27.0 6.1%
Crop 4.2 1.0% 2.2 0.5% 3.2 0.7%
Property and casualty 8.7 2.1% 7.4 1.6% 7.8 1.7%
Casualty 1.3 0.3% 1.1 0.2% 0.7 0.2%
Marine/Aviation 0.6 0.1% 0.4 0.1% 0.7 0.2%
Property 18.2 4.4% 20.0 4.4% 14.7 3.3%
Net investment income 11.9 2.9% 12.1 2.7% 12.5 2.8%
Realized investment gains -7.6 -1.8% -1.7 -0.4% 0.8 0.2%
Other income — — —
Parent Company 0.2 0.0 0.0
Pretax Income — — 42.4 100.0%
Property and Casualty Insurance — — 20.2 46.2%
Parent Company — — -1.3
Reinsurance — — 23.6 53.8%
Income Taxes — — —
Property and Casualty Insurance — — —
Parent Company — — —
Reinsurance — — —
Net Income — — —
Property and Casualty Insurance — — —
Reinsurance — — —
Parent Company — — —
Assets 1,108.1 100.0% 1,165.8 100.0% 1,187.8 100.0%
Property and Casualty Insurance 850.3 77.0% 883.4 75.9% 876.0 74.1%
Reinsurance 254.1 23.0% 280.3 24.1% 306.6 25.9%
Parent Company 3.7 2.2 5.2
Net Premiums Written (Non-life) 386.6 100.0% 76.2 100.0% 394.8 100.0%
Property and Casualty Insurance 313.0 81.0% 0.3 0.4% 310.8 78.7%
Property and Casualty Reinsurance 73.6 19.0% 75.9 99.6% 84.1 21.3%
Property Reinsurance 47.7 12.3% 55.1 72.3% 60.5 15.3%
Property CAT 29.4 7.6% 35.3 46.4% 45.4 11.5%
Property Non-CAT 18.3 4.7% 19.8 25.9% 15.1 3.8%
Casualty Reinsurance 17.3 4.5% 13.3 17.5% 15.6 4.0%
Surety 0.0 0.0% 0.0 0.0% 0.0 0.0%
Crop 4.2 1.1% 2.2 2.8% 3.6 0.9%
Casualty 12.5 3.2% 10.8 14.2% 11.3 2.9%
Marine/ Aviation 0.6 0.2% 0.4 0.5% 0.7 0.2%
Property and Casualty 8.7 2.2% 7.4 9.8% 8.0 2.0%
Net Premiums earned — — 389.1 100.0%
Property and Casualty Insurance — — 305.6 78.5%
Reinsurance — — 83.5 21.5%
Net Premiums Earned (Non-Life) 389.3 100.0% 384.0 100.0% 415.4 100.0%
Property and Casualty Insurance 315.6 81.1% 308.1 80.2% 305.6 73.6%
Commercial Line 272.7 70.0% 265.1 69.0% 260.6 62.7%
Automobile 68.9 17.7% 65.7 17.1% 65.1 15.7%
Property 61.3 15.7% 62.1 16.2% 65.4 15.7%
Workers' compensation 65.2 16.8% 65.6 17.1% 63.5 15.3%
Liability 68.3 17.5% 62.9 16.4% 58.2 14.0%
Other 9.0 2.3% 8.8 2.3% 8.4 2.0%
Personal Line 42.9 11.0% 42.9 11.2% 45.0 10.8%
Liability 0.6 0.2% 0.6 0.2% 0.5 0.1%
Property 19.4 5.0% 18.8 4.9% 19.1 4.6%
Automobile 22.8 5.9% 23.5 6.1% 25.4 6.1%
Property and Casualty Reinsurance 73.7 18.9% 75.9 19.8% 109.8 26.4%
Property Reinsurance 47.6 12.2% 55.2 14.4% 60.2 14.5%
Property CAT 29.4 7.5% 35.2 9.2% 45.5 11.0%
Property Non-CAT 18.2 4.7% 20.0 5.2% 14.7 3.5%
Casualty Reinsurance 17.4 4.5% 13.4 3.5% 41.8 10.1%
Surety 0.0 0.0% 0.0 0.0% 0.0 0.0%
Crop 4.2 1.1% 2.2 0.6% 3.2 0.8%
Casualty 12.6 3.2% 10.8 2.8% 11.6 2.8%
Marine/ Aviation 0.6 0.2% 0.4 0.1% 27.0 6.5%
Property and Casualty 8.7 2.2% 7.4 1.9% 7.8 1.9%
Underwriting Profit (Loss) -32.3 -0.8 -9.1
Property and Casualty Reinsurance -5.5 17.1% 9.5 ### 9.9 ###
Property and Casualty Insurance -26.8 82.9% -10.4 ### -19.0 209.4%
Loss Ratio — — —
Property and Casualty Reinsurance 83.70 65.40 55.70
Property and Casualty Insurance 73.70 64.60 68.10
Combined Ratio — — —
Property and Casualty Reinsurance 107.50 87.40 88.10
Property and Casualty Insurance 108.50 103.40 106.20
Expense Ratio — — —
Property and Casualty Insurance 34.80 38.80 38.10
Property and Casualty Reinsurance 23.80 22.00 32.40
Gross Loss and LAE Reserves 571.9 100.0% 556.2 100.0% 556.1 100.0%
Property and Casualty Insurance 428.3 74.9% 410.5 73.8% 402.7 72.4%
Commercial Line 393.4 68.8% 378.6 68.1% 373.9 67.2%
Liability 147.8 25.8% 140.6 25.3% 138.5 24.9%
Cases 56.5 9.9% 52.0 9.4% 53.1 9.5%
IBNR 91.3 16.0% 88.6 15.9% 85.5 15.4%
Workers' compensation 148.7 26.0% 148.9 26.8% 149.3 26.8%
Cases 115.1 20.1% 115.3 20.7% 116.4 20.9%
IBNR 33.6 5.9% 33.6 6.0% 32.9 5.9%
Automobile 68.5 12.0% 65.3 11.7% 63.8 11.5%
Cases 48.3 8.4% 45.4 8.2% 44.4 8.0%
IBNR 20.1 3.5% 19.9 3.6% 19.3 3.5%
Property 26.1 4.6% 21.4 3.9% 19.2 3.4%
Cases 18.4 3.2% 15.3 2.8% 15.3 2.7%
IBNR 7.7 1.3% 6.1 1.1% 3.9 0.7%
Bonds 2.3 0.4% 2.4 0.4% 3.2 0.6%
Cases 1.3 0.2% 3.4 0.6% 2.8 0.5%
IBNR 1.0 0.2% -1.0 -0.2% 0.4 0.1%
Personal Line 35.0 6.1% 31.9 5.7% 28.8 5.2%
Property 11.5 2.0% 9.3 1.7% 8.0 1.4%
IBNR 4.4 0.8% 3.2 0.6% 2.2 0.4%
Cases 7.1 1.2% 6.1 1.1% 5.8 1.0%
Automobile 23.4 4.1% 22.6 4.1% 20.8 3.7%
IBNR 4.9 0.9% 4.7 0.8% 3.4 0.6%
Cases 18.6 3.2% 17.9 3.2% 17.4 3.1%
Property and Casualty Reinsurance 143.5 25.1% 145.7 26.2% 153.4 27.6%
Casualty Reinsurance 85.5 15.0% 89.5 16.1% 91.0 16.4%
Surety 1.2 0.2% 1.2 0.2% 1.2 0.2%
IBNR 0.3 0.1% 0.4 0.1% 0.3 0.1%
Cases 0.9 0.2% 0.9 0.2% 0.9 0.2%
Marine/ Aviation 2.9 0.5% 2.8 0.5% 2.9 0.5%
Cases 1.5 0.3% 1.1 0.2% 1.0 0.2%
IBNR 1.4 0.3% 1.7 0.3% 1.9 0.3%
 Casualty 80.6 14.1% 84.7 15.2% 85.7 15.4%
Cases 21.0 3.7% 23.6 4.2% 26.0 4.7%
IBNR 59.6 10.4% 61.1 11.0% 59.8 10.7%
Crop 0.8 0.1% 0.8 0.1% 1.2 0.2%
IBNR 0.0 0.0% 0.0 0.0% 0.1 0.0%
Cases 0.7 0.1% 0.7 0.1% 1.0 0.2%
Property Reinsurance 53.1 9.3% 51.3 9.2% 58.2 10.5%
Property CAT 25.9 4.5% 25.6 4.6% 34.2 6.1%
IBNR 10.7 1.9% 12.6 2.3% 17.7 3.2%
Cases 15.2 2.7% 13.0 2.3% 16.4 3.0%
Property Non-CAT 27.3 4.8% 25.7 4.6% 24.0 4.3%
IBNR 14.9 2.6% 14.1 2.5% 12.4 2.2%
Cases 12.3 2.2% 11.5 2.1% 11.6 2.1%
Property and Casualty 4.9 0.9% 4.9 0.9% 4.2 0.8%
IBNR 1.8 0.3% 1.8 0.3% 1.4 0.3%
Cases 3.0 0.5% 3.0 0.5% 2.8 0.5%
Policy Renewal Rate — — —
Property and Casualty Insurance 86.11 86.00 86.00
Commercial Line 86.20 — —
Personal Line 85.54 — —
Property 87.50 — —
Automobile 86.20 — —
Source: Bloomberg
 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
12/31/2011 12/31/2012 12/31/2013 12/31/2014 12/31/2015
— 511.9 100.0% 568.0 100.0% 594.5 100.0% 623.7
— 397.5 77.7% 432.4 76.1% 459.5 77.3% 484.8
— 357.1 69.8% 392.7 69.1% 422.4 71.1% 447.2
— 306.1 59.8% 342.3 60.3% 375.9 63.2% 403.8
— 76.4 14.9% 86.2 15.2% 96.9 16.3% 105.9
— 77.7 15.2% 87.4 15.4% 97.2 16.3% 104.3
— 75.7 14.8% 83.2 14.6% 88.4 14.9% 92.8
— 68.7 13.4% 78.0 13.7% 86.1 14.5% 92.7
— 7.6 1.5% 7.5 1.3% 7.4 1.2% 8.1
— 51.1 10.0% 50.4 8.9% 46.4 7.8% 43.4
— 0.6 0.1% 0.7 0.1% 0.8 0.1% —
— 22.0 4.3% 22.3 3.9% 20.6 3.5% 20.6
— 28.4 5.6% 27.4 4.8% 25.1 4.2% 22.9
— 32.2 6.3% 31.4 5.5% 33.5 5.6% 32.7
— 7.3 1.4% 7.5 1.3% 2.9 0.5% 4.2
— 0.8 0.2% 0.8 0.1% 0.7 0.1% 0.8
— 114.4 22.3% 135.6 23.9% 135.0 22.7% 138.9
— 101.7 19.9% 122.8 21.6% 118.3 19.9% 123.1
— 71.2 13.9% 75.1 13.2% 76.5 12.9% 75.6
— 0.0 0.0% 0.0 0.1 0.0% —
— 11.7 2.3% 11.1 1.9% 11.4 1.9% 12.2
— 59.5 11.6% 64.1 11.3% 65.0 10.9% 63.4
— 30.5 6.0% 47.6 8.4% 41.9 7.0% 47.4
— 3.8 0.8% 4.5 0.8% 3.6 0.6% 7.1
— 6.2 1.2% 7.5 1.3% 8.6 1.4% 20.6
— 1.2 0.2% 5.2 0.9% 9.9 1.7% —
— 5.7 1.1% 14.8 2.6% 15.0 2.5% 4.4
— 13.5 2.6% 15.8 2.8% 4.8 0.8% 15.3
— 11.9 2.3% 11.6 2.0% 13.0 2.2% 12.9
— 0.7 0.1% 1.5 0.3% 1.4 0.2% 2.0
— 0.1 0.0% -0.3 -0.1% 2.2 0.4% 1.0
— 0.0 0.0 0.0 0.0
-10.0 51.6 100.0% 60.9 100.0% 40.9 100.0% 71.7
-5.7 65.9% 30.4 57.5% 28.1 45.2% 23.7 55.8% 44.5
-1.3 -1.3 -1.4 -1.6 -2.0
-3.0 34.1% 22.5 42.5% 34.1 54.8% 18.8 44.2% 29.1
— — 17.3 100.0% 10.9 100.0% 21.5
— — 7.0 39.2% 5.8 50.8% 13.0
— — -0.5 -0.6 -0.7
— — 10.8 60.8% 5.6 49.2% 9.2
 — — 43.5 100.0% 30.0 100.0% 50.2
— — 21.1 47.6% 17.9 57.6% 31.5
— — 23.3 52.4% 13.2 42.4% 20.0
— — -0.9 -1.0 -1.3
— 1,290.7 100.0% 1,374.5 100.0% 1,497.8 100.0% 1,536.0
— 934.9 72.7% 974.7 71.6% 1,056.5 70.9% 1,092.8
— 350.9 27.3% 386.9 28.4% 434.1 29.1% 432.4
— 5.0 12.9 7.2 10.7
429.8 100.0% 478.5 100.0% 534.1 100.0% 552.6 100.0% 578.9
333.3 77.5% 371.2 77.6% 405.0 75.8% 433.7 78.5% 454.4
96.5 22.5% 107.2 22.4% 129.0 24.2% 118.9 21.5% 124.5
— 74.2 15.5% 80.9 15.2% 69.1 12.5% 79.0
— 59.9 12.5% 64.0 12.0% 64.8 11.7% 63.5
— 14.3 3.0% 16.9 3.2% 4.3 0.8% 15.4
— 29.6 6.2% 39.7 7.4% 40.4 7.3% 45.5
— 0.0 0.0% 0.0 0.1 0.0% —
— 4.2 0.9% 4.7 0.9% 3.2 0.6% 12.3
— 13.1 2.7% 19.5 3.7% 23.5 4.3% 26.5
— 12.3 2.6% 15.4 2.9% 13.6 2.5% 6.7
— 3.5 0.7% 8.4 1.6% 9.5 1.7% —
— 458.8 100.0% 515.5 100.0% 540.7 100.0% 570.3
— 357.1 77.8% 392.7 76.2% 422.4 78.1% 447.2
— 101.7 22.2% 122.8 23.8% 118.3 21.9% 123.1
— 458.8 100.0% 515.5 100.0% 540.7 100.0% 570.3
— 357.1 77.8% 392.7 76.2% 422.4 78.1% 447.2
— 306.1 66.7% 342.3 66.4% 375.9 69.5% 403.8
— 76.4 16.6% 86.2 16.7% 96.9 17.9% 105.9
— 77.7 16.9% 87.4 17.0% 97.2 18.0% 104.3
— 75.7 16.5% 83.2 16.1% 88.4 16.3% 92.8
— 68.7 15.0% 78.0 15.1% 86.1 15.9% 92.7
— 7.6 1.7% 7.5 1.5% 7.4 1.4% 8.1
— 51.1 11.1% 50.4 9.8% 46.4 8.6% 43.4
— 0.6 0.1% 0.7 0.1% 0.8 0.1% —
— 22.0 4.8% 22.3 4.3% 20.6 3.8% 20.6
— 28.4 6.2% 27.4 5.3% 25.1 4.6% 22.9
— 101.7 22.2% 122.8 23.8% 118.3 21.9% 123.1
— 73.0 15.9% 79.8 15.5% 69.7 12.9% 75.6
— 59.5 13.0% 64.1 12.4% 65.0 12.0% 63.4
— 13.5 2.9% 15.8 3.1% 4.8 0.9% 12.2
— 22.4 4.9% 35.5 6.9% 40.0 7.4% 40.3
— 0.0 0.0% 0.0 0.1 0.0% —
— 3.8 0.8% 4.5 0.9% 3.6 0.7% 15.3
— 12.9 2.8% 16.2 3.2% 21.3 3.9% 20.6
— 5.7 1.2% 14.8 2.9% 15.0 2.8% 4.4
— 6.2 1.4% 7.5 1.5% 8.6 1.6% 7.1
 — 1.6 100.0% 10.9 100.0% -10.1 21.2
— 9.8 602.3% 21.3 196.0% 2.2 -21.6% 13.3
— -8.2 ### -10.4 -96.0% -12.3 121.6% 8.0
— — — — —
96.60 68.30 58.90 73.90 64.10
78.20 65.50 66.40 70.60 65.30
— — — — —
118.10 90.30 82.60 98.20 89.20
114.20 102.30 102.70 102.90 98.20
— — — — —
36.00 36.80 977.00 32.30 32.90
21.50 22.00 23.70 24.30 25.10
— 493.7 100.0% 516.9 100.0% 560.0 100.0% 491.6
— 326.3 66.1% 337.5 65.3% 367.4 65.6% 377.5
— 304.1 61.6% 314.7 60.9% 349.1 62.3% 360.5
— 99.3 20.1% 103.2 20.0% 113.3 20.2% 111.7
— 57.4 11.6% 61.0 11.8% 69.9 12.5% 67.4
— 41.9 8.5% 42.3 8.2% 43.4 7.8% 44.4
— 138.3 28.0% 138.7 26.8% 136.5 24.4% 139.1
— 118.1 23.9% 120.0 23.2% 119.8 21.4% 122.9
— 20.3 4.1% 18.7 3.6% 16.7 3.0% 16.3
— 48.5 9.8% 52.2 10.1% 70.5 12.6% 79.1
— 41.4 8.4% 45.1 8.7% 63.4 11.3% 72.5
— 7.1 1.4% 7.2 1.4% 7.1 1.3% 6.7
— 15.4 3.1% 18.8 3.6% 25.9 4.6% 29.0
— 14.8 3.0% 18.0 3.5% 24.3 4.3% 26.5
— 0.6 0.1% 0.8 0.1% 1.6 0.3% 2.5
— 2.5 0.5% 1.8 0.3% 2.8 0.5% 1.4
— 4.0 0.8% 1.0 0.2% 2.0 0.4% 0.4
— -1.4 -0.3% 0.8 0.2% 0.8 0.1% 1.1
— 22.2 4.5% 22.8 4.4% 18.3 3.3% 17.0
— 4.7 1.0% 4.8 0.9% 4.7 0.8% 4.4
— 0.6 0.1% 0.8 0.2% 1.0 0.2% 0.9
— 4.1 0.8% 4.0 0.8% 3.7 0.7% 3.5
— 17.5 3.5% 18.0 3.5% 13.6 2.4% 12.6
— 1.3 0.3% 1.0 0.2% 0.8 0.2% 0.7
— 16.2 3.3% 17.0 3.3% 12.7 2.3% 11.9
— 167.4 33.9% 179.5 34.7% 192.6 34.4% 114.2
— 97.1 19.7% 111.3 21.5% 116.8 20.9% 34.1
— 0.9 0.2% 0.9 0.2% 0.0 0.0% —
— 0.3 0.1% 0.3 0.1% 0.0 —
— 0.6 0.1% 0.6 0.1% 0.0 0.0% —
— 6.1 1.2% 9.8 1.9% 21.2 3.8% 15.9
— 1.5 0.3% 2.0 0.4% 7.6 1.4% 10.2
— 4.6 0.9% 7.9 1.5% 13.6 2.4% 5.7
— 87.7 17.8% 98.1 19.0% 93.6 16.7% 18.2
— 30.3 6.1% 32.0 6.2% 30.8 5.5% 3.4
— 57.4 11.6% 66.2 12.8% 62.8 11.2% 14.8
— 2.4 0.5% 2.5 0.5% 2.0 0.4% —
— 0.8 0.2% 1.1 0.2% 1.1 0.2% —
— 1.6 0.3% 1.4 0.3% 1.0 0.2% —
— 65.5 13.3% 62.1 12.0% 67.3 12.0% 72.9
— 44.7 9.1% 44.6 8.6% 51.8 9.2% 55.1
— 18.8 3.8% 16.8 3.3% 17.4 3.1% 22.8
— 25.9 5.3% 27.8 5.4% 34.4 6.1% 32.3
— 20.7 4.2% 17.5 3.4% 15.5 2.8% 17.8
— 9.9 2.0% 8.9 1.7% 6.2 1.1% 9.1
— 10.8 2.2% 8.6 1.7% 9.3 1.7% 8.7
— 4.9 1.0% 6.0 1.2% 8.5 1.5% 7.2
— 0.6 0.1% 0.8 0.2% 0.8 0.1% 1.1
— 4.2 0.9% 5.2 1.0% 7.7 1.4% 6.1
— — — — —
— 87.00 85.00 85.90 —
— — — — —
— — — — —
— — — — —
— — — — —
 FY 2015 FY 2016 FY 2017
12/31/2015 12/31/2016 12/31/2017
100.0% 645.0 100.0% 658.8 100.0%
77.7% 495.0 76.8% 511.1 77.6%
71.7% 456.5 70.8% 472.4 71.7%
64.7% 417.5 64.7% 434.3 65.9%
17.0% 110.9 17.2% 118.2 17.9%
16.7% 105.0 16.3% 108.2 16.4%
14.9% 96.5 15.0% 100.6 15.3%
14.9% 96.6 15.0% 98.7 15.0%
1.3% 8.4 1.3% 8.7 1.3%
7.0% 39.0 6.0% 38.0 5.8%
— —
3.3% — —
3.7% — —
5.2% 33.9 5.3% 32.7 5.0%
0.7% 4.1 0.6% 4.9 0.7%
0.1% 0.6 0.1% 1.2 0.2%
22.3% 149.9 23.2% 147.7 22.4%
19.7% 135.9 21.1% 134.8 20.5%
12.1% 79.6 12.3% 90.2 13.7%
— —
2.0% — —
10.2% — —
7.6% 56.3 8.7% 44.6 6.8%
1.1% — —
3.3% — —
— —
0.7% — —
2.5% — —
2.1% 13.6 2.1% 12.8 1.9%
0.3% 0.0 0.0% 1.7 0.3%
0.2% 0.4 0.1% -1.5 -0.2%
0.0 0.0
100.0% 63.2 100.0% 39.8 100.0%
60.4% 40.8 62.6% 45.2 107.5%
-2.0 -2.2
39.6% 24.4 37.4% -3.1 -7.5%
100.0% 17.0 100.0% 0.6 100.0%
58.6% 11.6 65.5% 7.4 541.2%
-0.7 -0.8
41.4% 6.1 34.5% -6.1 ###
100.0% 46.2 100.0% 39.2 100.0%
61.2% 29.2 61.6% 37.8 92.8%
38.8% 18.3 38.4% 2.9 7.2%
-1.3 -1.4
100.0% 1,588.8 100.0% —
71.6% 1,122.0 71.2% —
28.4% 453.6 28.8% —
13.2 —
100.0% 594.7 100.0% 616.3 100.0%
78.5% 463.7 78.0% 484.0 78.5%
21.5% 131.0 22.0% 132.3 21.5%
13.6% 78.0 13.1% —
11.0% — —
2.7% — —
7.9% 53.0 8.9% —
— —
2.1% — —
4.6% — —
1.2% — —
— —
100.0% 592.4 100.0% 607.2 100.0%
78.4% 456.5 77.1% 472.4 77.8%
21.6% 135.9 22.9% 134.8 22.2%
100.0% 592.4 100.0% 607.2 100.0%
78.4% 456.5 77.1% 472.4 77.8%
70.8% 417.5 70.5% 434.3 71.5%
18.6% 110.9 18.7% 118.2 19.5%
18.3% 105.0 17.7% 108.2 17.8%
16.3% 96.5 16.3% 100.6 16.6%
16.2% 96.6 16.3% 98.7 16.3%
1.4% 8.4 1.4% 8.7 1.4%
7.6% 39.0 6.6% 38.0 6.3%
— —
3.6% — —
4.0% — —
21.6% 135.9 22.9% 134.8 22.2%
13.3% 79.6 13.4% —
11.1% — —
2.1% — —
7.1% 56.3 9.5% —
— —
2.7% — —
3.6% — —
0.8% — —
1.2% — —
100.0% 13.7 100.0% —
62.5% 10.4 75.6% —
37.5% 3.3 24.4% —
— —
68.10 88.30
64.50 64.10
— —
92.40 111.90
99.30 98.30
— —
34.80 34.20
24.30 23.60
100.0% 486.4 100.0% —
76.8% 486.4 100.0% —
73.3% 470.8 96.8% —
22.7% 170.6 35.1% —
13.7% 170.6 35.1% —
9.0% — —
28.3% 154.4 31.8% —
25.0% 154.4 31.8% —
3.3% — —
16.1% 107.3 22.1% —
14.7% 107.3 22.1% —
1.4% — —
5.9% 36.3 7.5% —
5.4% 36.3 7.5% —
0.5% — —
0.3% 2.2 0.5% —
0.1% 2.2 0.5% —
0.2% — —
3.5% 15.5 3.2% —
0.9% — —
0.2% — —
0.7% — —
2.6% — —
0.1% — —
2.4% — —
23.2% — —
6.9% — —
— —
— —
— —
3.2% — —
2.1% — —
1.2% — —
3.7% — —
0.7% — —
3.0% — —
— —
— —
— —
14.8% — —
11.2% — —
4.6% — —
6.6% — —
3.6% — —
1.8% — —
1.8% — —
1.5% — —
0.2% — —
1.2% — —
— —
— —
— —
— —
— —
— —
EMC Insurance Group Inc (EMCI US) - Insurance
In Millions of USD except Per Share FY 2008 FY 2009 FY 2010 FY 2011
12 Months Ending 12/31/2008 12/31/2009 12/31/2010 12/31/2011
Underwriting Factors
Net Premiums Written (Non-Life) 386.6 388.7 394.8 429.8
Net Premiums Earned Non - Life 389.3 384.0 389.1 416.4
Catastrophe Losses 50.8 31.5 42.1 80.3
Catastrophe Loss as % of Net Premiums E 13.04 8.19 10.83 19.29
Combined Ratio (Non-Life) - Income Statem 108.30 100.20 102.30 115.30

Investment Income
Trading Acct. Profits (Losses) -24.5 17.9 3.9 9.3
Investment Income 48.4 47.8 49.5 46.1

Investment Factors
Portfolio Credit Quality
US Govts 290.1 155.4 172.9 157.2
AAA 118.2 132.1 159.8 155.7
AA 237.4 328.5 356.6 384.9
A 141.3 207.4 211.0 227.7
BBB 30.9 64.8 29.5 25.6
Investment Grade — 888.3 929.8 951.1
Below Investment Grade 4.0 11.3 12.0 7.2

Portfolio Credit Quality (NAICS)

Portfolio by Type of Security

US Treasury and Agency AFS 290.1 155.4 172.9 157.2
Foreign Government Investments 6.6 — — —
Corporate Bonds Available for Sale 155.8 228.7 237.1 266.9
Non-GSE Guar CMO and MBS AFS 69.4 113.4 127.5 121.0
Non-GSE Guar CMO and MBS HTM 0.6 0.5 0.4 0.0
Asset Backed Securities AFS — 9.9 13.1 11.9
Municipal Bonds 300.1 391.8 390.9 401.1
Other Fixed Income Invt AFS — — — —
Equity Securities 88.4 90.2 101.1 111.3
Short-Term Investments 54.4 55.4 36.6 42.6
Cash and Cash Equivalents 0.2 0.3 0.5 0.3
Other Investment Portfolio Assets 0.0 0.0 0.0 0.0

Fair Value of Assets

Recurring - Level 1 127.8 145.6 137.8 153.9
Recurring - Level 2 821.8 899.2 941.5 958.2
Recurring - Level 3 15.0 0.0 0.0 0.0
Recurring - Total 964.6 1,044.8 1,079.3 1,112.1
Ex Separate Accounts - Level 1 127.8 145.6 137.8 153.9
Ex Separate Accounts - Level 2 821.8 899.2 941.5 958.2
Ex Separate Accounts - Level 3 15.0 0.0 0.0 0.0
Ex Separate Accounts - Total 964.6 1,044.8 1,079.3 1,112.1

Earnings Quality
Current Year Reserve Development 2.0 1.5 -50.7 0.0
Reserve Development as % of Net Premiu 0.52 0.38 -13.04 -0.01
Diluted EPS Volatility 0.06 0.12 0.07 0.13
Diluted EPS from Cont Ops Volatility 0.06 0.32 0.28 0.41

Premiums & Expenses

Net Prem Earned NL 389.3 384.0 389.1 416.4
Ins Claims & Losses (Non-Life) 294.3 248.7 254.6 343.0
Ins Claims & Losses (Life) 0.0 — — —
Undwrit&Pol Acq.Cost(Non-Life) 127.4 136.1 143.5 137.1
Underwrit&Pol Acq.Costs(Life) 0.0 — — —

Loss Ratio (Non-Life) 75.60 64.80 65.40 82.40

Expense Ratio (Non-Life) 32.70 35.40 36.90 32.90
Combined Ratio (Non-life) 108.30 100.20 102.30 115.30

Policyholders Benefit 0.0 — — —

Net Prem Earn To Shareholders Equity 137.61 112.15 105.56 118.18

Net Prem Earned to Tot Rev 94.06 85.25 87.79 88.10

Insurance Claims/Charges To Total Revenu 71.10 55.22 57.45 72.56

Underwriting Costs to Tot Rev 30.78 30.21 32.38 29.00

Reserves
Reserve For Outstanding Claim&Loss 573.0 556.2 556.1 593.3
Premium Reserve (Unearned Premiums) 154.4 159.5 167.9 180.7
Life Policy Benefits — — 0.0 0.0
Other Operating Reserves 6.4 7.9 8.3 5.1
Total Insurance Reserves 733.9 723.6 732.4 779.1
Tot Ins Res to Tot Capital 223.35 189.96 186.05 206.46
Tot Ins Res to Tot Assets 66.23 62.07 61.66 63.65

Adjusted Operating Income After Tax - As R 14.2 33.7 28.8 -8.8

Diluted EPS from Continuing Operations - A 0.70 1.70 1.51 -0.43
Oper Inc to Total Capital -2.61 17.88 11.19 -2.46
Price Earnings Ratio (P/E) 24.43 8.42 9.98 —
Price to Book Ratio 1.20 0.82 0.79 0.75
Op Inc to Net Prem Earned -2.41 16.52 11.14 -2.28

Statutory Capital 284.5 327.2 347.1 325.2

Statutory Net Income -4.0 46.8 34.5 -5.3

Growth
Investment Income - 1 Yr Growth -0.16 -1.33 3.62 -6.83
Insurance Reserves - 1 Yr Growth 2.21 -1.41 1.22 6.38
EBIT Growth Year over Year — — -31.66 —
Underwriting Costs - 1 Yr Growth -6.12 6.84 — —
Insurance Claims / Charges - 1 Yr Growth 18.73 -15.47 2.37 34.69

Embedded Value
Source: Bloomberg
 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017

478.5 534.1 552.6 578.9 594.7 616.3

458.8 515.5 540.7 570.3 592.4 607.2
53.5 48.6 57.3 44.4 47.9 59.8
11.65 9.42 10.59 7.78 8.09 9.85
99.60 97.90 101.90 96.30 97.70 101.30

8.0 9.0 4.3 6.2 4.1 6.6

44.1 43.0 46.5 45.6 47.5 45.5

167.4 156.4 225.3 215.1 247.0 —

128.7 193.9 179.1 189.5 214.9 —
376.0 345.8 369.6 372.6 346.1 —
291.0 271.9 267.9 312.6 313.4 —
30.4 56.2 77.9 67.8 75.3 —
993.6 1,024.2 1,119.7 1,157.6 1,196.7 —
6.2 3.8 7.8 3.2 3.0 —

167.4 156.4 225.3 215.3 247.0 —

— — — — — —
322.0 338.8 415.4 448.9 456.5 —
128.1 163.1 144.7 134.7 134.0 —
0.0 — — — — —
11.3 12.6 16.0 17.8 26.4 —
371.0 357.1 326.1 344.4 335.8 —
— — — — — 1,275.0
140.3 169.8 197.0 206.2 213.8 228.1
53.4 56.2 53.3 38.6 39.7 23.6
0.3 0.2 0.4 0.2 0.3 0.3
0.9 2.4 6.2 9.9 12.5 13.6

182.4 221.6 245.6 237.5 244.2 —

1,011.2 1,030.5 1,130.5 1,167.0 1,206.0 —
 0.0 2.0 1.7 1.3 3.0 —
1,193.5 1,254.0 1,377.8 1,405.9 1,453.2 —
182.4 221.6 245.6 237.5 244.2 —
1,011.2 1,030.5 1,130.5 1,167.0 1,206.0 —
0.0 2.0 1.7 1.3 3.0 —
1,193.5 1,254.0 1,377.8 1,405.9 1,453.2 —

0.0 — -76.2 -57.8 — —

-0.01 — -14.09 -10.13 — —
0.05 0.00 0.13 0.51 0.09 0.00
0.00 0.01 0.10 0.54 0.20 0.04

458.8 515.5 540.7 570.3 592.4 607.2

303.4 333.3 385.5 370.7 386.9 422.0
— — — — — —
153.8 171.3 165.4 178.3 191.8 193.3
— — — — — —

66.10 64.70 71.30 65.00 65.30 69.50

33.50 33.20 30.60 31.30 32.40 31.80
99.60 97.90 101.90 96.30 97.70 101.30

— — — — — —

114.37 113.25 107.52 108.63 107.06 100.55

89.64 90.76 90.96 91.43 91.85 92.15

59.27 58.68 64.84 59.44 59.99 64.05

30.05 30.17 27.82 28.59 29.74 29.34

583.1 610.2 661.3 678.8 690.5 732.6

196.2 220.6 232.1 239.4 244.9 257.8
0.0 0.0 0.0 0.0 0.0 0.0
6.1 8.5 10.2 8.7 13.1 10.0
785.4 839.3 903.6 926.9 948.5 1,000.4
184.27 174.78 171.16 168.55 164.00 159.09
60.85 61.06 60.32 60.35 59.70 59.48

32.8 37.7 27.2 45.6 43.8 25.9

1.70 1.93 1.27 2.21 2.08 1.22
13.08 13.59 7.75 13.36 11.26 6.65
9.39 10.57 18.55 11.46 14.40 23.61
 0.77 0.90 0.96 1.00 1.15 1.02
11.45 11.95 7.22 12.62 10.73 6.61

354.6 416.7 454.8 485.2 526.8 —

38.1 41.2 32.2 48.8 48.3 —

-4.26 -2.54 8.00 -1.90 4.19 -4.23

0.81 6.87 7.66 2.59 2.33 5.48
— 17.21 -36.59 84.30 -11.74 -36.81
— — — — — —
-11.54 9.86 15.66 -3.82 4.36 9.06
EMC Insurance Group Inc (EMCI US) - Overview
In Millions of USD except Per Share FY 2010 FY 2011 FY 2012 FY 2013
12 Months Ending 12/31/2010 12/31/2011 12/31/2012 12/31/2013
ESG Disclosure Score 11.84 11.84 12.72 12.72

Environmental

Social
Social Disclosure Score — — 3.33 3.33
Number of Employees — — 0.00 0.00

Governance
Governance Disclosure Score 48.21 48.21 48.21 48.21
Size of the Board 7.00 6.00 6.00 5.00
Indep Directors 6.00 5.00 5.00 4.00
% Indep Directors 85.71 83.33 83.33 80.00
Board Duration (Years) 1.00 1.00 1.00 1.00
# Board Meetings 4.00 4.00 4.00 4.00
Board Mtg Attendance 100.00 100.00 100.00 100.00
Source: Bloomberg
 FY 2014 FY 2015 FY 2016
12/31/2014 12/31/2015 12/31/2016
12.72 12.72 13.60

3.33 3.33 3.33

0.00 0.00 0.00

48.21 48.21 51.79

5.00 5.00 5.00
4.00 4.00 4.00
80.00 80.00 80.00
1.00 1.00 1.00
4.00 4.00 4.00
100.00 100.00 100.00