EMC to report net loss for 2018 following storm and market losses
EMC Insurance Group Inc. announced that it expects to report a net loss in the range of 33 to 37 cents per share for the year ended Dec. 31, 2018. Included in that amount is a pretax decrease of approximately $1.34 per share in unrealized investment gains on the company’s equity investments from December’s market decline. A record amount of catastrophe and storm losses in the fourth quarter had significant impact on financial results for the company’s reinsurance segment, the company said in a release. Catastrophe losses are expected to total about $18.5 million, or 68 cents per share, after tax in the fourth quarter, all attributable to the reinsurance segment. It’s the second consecutive year that catastrophe and storm losses have had a significant impact on the EMC reinsurance segment’s results, EMC President and CEO Bruce Kelley said. The Des Moines-based insurer expects to report non-GAAP operating income in the range of $1.07 to $1.11 per share, which is below its most recent guidance of $1.30 to $1.50 per share. The 2018 fourth-quarter and year-end earnings results will be released before the market opens on Feb. 7.