Although EMC Insurance Group Inc.’s fourth-quarter earnings fell, the company announced strong gains for 2006.

Net income in the quarter ended Dec. 31 fell 40 percent to $11.5 million, or 84 cents per share, compared with $19 million, or $1.40 per share, in the fourth quarter of 2005. However, net income for the year was a record $53.6 million, or $3.91 per share, compared with $43 million, or $3.16 per share, in 2005.

“We had a string of three consecutive record quarters and the fourth quarter was the second-best fourth quarter in our history,” EMC President and CEO Bruce Kelley said in a press release. “The result was another record-setting year.”

Revenues in the last quarter of 2006 fell 2.7 percent to $114.8 million from $118 million in 2005. For the year, revenues fell to $438.8 million compared with $457 million in 2005.

Operating income for the fourth quarter was 78 cents per share, down from $1.34 per share in the year-ago period. Operating income for the entire year was $3.70 per share, compared with $2.89 per share for 2005.

EMC expects operating earnings of $2.25 to $2.50 per share in 2007.