EMC Insurance Cos. announced today they have entered into a definitive agreement to sell EMC’s ownership interest in EMC National Life Insurance Co., also known as EMC Life, to Avocet Partners.

EMC Life’s holding company, EMC National Life Mutual Holding Co., also intends to sell its ownership interest in EMC Life to Avocet Partners corresponding with the holding company’s demutualization. 

The demutualization of the holding company is a legal process where the mutual holding company is converted to a stock company through a plan of conversion and is necessary to complete the sale transaction, a spokesperson for EMC said in an email. EMC National Life Mutual Holding Co. will demutualize as a part of the transaction, but EMC Insurance will be unchanged and maintain its mutual structure. 

In a news release, EMC said this is a strategic decision that will allow the company to focus on its core insurance offerings — commercial property/casualty lines and bonds.

Avocet Partners, a firm focused on acquiring and growing insurance companies, is acquiring EMC Life to serve as the foundation of a permanent capital platform with a strategy focused on investing in and significantly growing EMC Life, including new products and distribution channels, the release said. 

“This is a significant milestone for both businesses, and we are confident this move positions both EMC and EMC Life for long-term success,” Scott Jean, EMC president and CEO, said in a prepared statement. “We are especially pleased that we were able to identify a partner in Avocet that is committed to maintaining and growing EMC Life’s Des Moines team and presence.” 

EMC Life is an affiliate of EMC parent company Employers Mutual Casualty Co. and was formed in 2003 by the merger of Employers Modern Life Co. and National Travelers Life Co.

There are no anticipated job reductions as part of the sale. The approximately 80 EMC Life team members will continue in their roles, under new ownership once the transaction closes. Avocet anticipates expanding employment as the business grows, the release said. 

About two-thirds of EMC Life employees are based in Des Moines, with the rest located around the country, the spokesperson said. All positions are unaffected by the announcement and will remain as-is after the transaction closes.

The sale, which is expected to close in 2026, is subject to regulatory approvals and the demutualization of the EMC National Life Mutual Holding Co. According to the release, Avocet is backed by leading institutional investors and expects to have access to substantial committed capital following the close of the transaction. 

Additionally, EMC Life will change its name at or shortly after the close of the transaction.

EMC’s parent company Employers Mutual Casualty Co. was organized in 1911 to write workers’ compensation protection in Iowa. Today, operating as EMC Insurance, the company is licensed in all 50 states and the District of Columbia. Headquartered in Des Moines, EMC Insurance has approximately 2,100 employees and writes commercial property and casualty insurance and bonds throughout the United States.