Schedule II - Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule II - Condensed Financial Information of Registrant

EMC INSURANCE GROUP INC. AND SUBSIDIARIES

Schedule II – Condensed Financial Information of Registrant

Condensed Balance Sheets

	December 31,
	2013		2012
ASSETS
Investment in common stock of subsidiaries (equity method)	$	441,983,975	$	396,288,097
Short-term investments	12,686,803		3,972,400
Cash	149,544		291,417
Prepaid assets	66,665		75,831
Accounts receivable	—		167,165
Income taxes recoverable	480,756		458,197
Amounts due from affiliate to settle inter-company transaction balances	—		66,423
Total assets	$	455,367,743	$	401,319,530
LIABILITIES
Accounts payable	$	100,771	$	110,366
Amounts due affiliate to settle inter-company transaction balances	56,736		—
Total liabilities	157,507		110,366
STOCKHOLDERS' EQUITY
Common stock, $1 par value, authorized 20,000,000 shares; issued and outstanding, 13,306,027 shares in 2013 and 12,909,457 shares in 2012	13,306,027		12,909,457
Additional paid-in capital	99,308,749		89,205,881
Accumulated other comprehensive income	59,010,489		47,752,375
Retained earnings	283,584,971		251,341,451
Total stockholders' equity	455,210,236		401,209,164
Total liabilities and stockholders' equity	$	455,367,743	$	401,319,530

All affiliated balances presented above are the result of related party transactions with Employers Mutual.

EMC INSURANCE GROUP INC. AND SUBSIDIARIES

Schedule II – Condensed Financial Information of Registrant, Continued

Condensed Statements of Income

	Year ended December 31,
	2013			2012			2011
REVENUES
Dividends received from subsidiaries	$	9,973,741		$	12,050,096		$	10,000,064
Investment loss	(9,473		)	(9,754		)	(2,861		)
Total revenues	9,964,268			12,040,342			9,997,203
Operating expenses (affiliated $604,676, $584,090 and $583,609)	1,364,115			1,299,379			1,330,129
Income before income tax benefit and equity in undistributed net income (loss) of subsidiaries	8,600,153			10,740,963			8,667,074
Income tax benefit	(480,756		)	(462,178		)	(466,548		)
Income before equity in undistributed net income (loss) of subsidiaries	9,080,909			11,203,141			9,133,622
Equity in undistributed net income (loss) of subsidiaries	34,437,764			26,763,288			(11,870,901		)
Net income (loss)	$	43,518,673		$	37,966,429		$	(2,737,279	)

All affiliated balances presented above are the result of related party transactions with Employers Mutual.

EMC INSURANCE GROUP INC. AND SUBSIDIARIES

Schedule II – Condensed Financial Information of Registrant, Continued

Condensed Statements of Comprehensive Income

	Year ended December 31,
	2013			2012			2011
Net income (loss)	$	43,518,673		$	37,966,429		$	(2,737,279	)
OTHER COMPREHENSIVE INCOME (LOSS)
Change in unrealized holding gains (losses) on investment securities, net of deferred income taxes	(15,581,644		)	23,862,752			19,894,900
Reclassification adjustment for realized investment gains included in net income (loss), net of income taxes	(5,847,754		)	(5,211,069		)	(6,103,052		)
Change in unrealized holding gains on fixed maturity securities with "other-than-temporary" impairment, net of deferred income taxes	—			—			13,941
Reclassification adjustment for realized investment losses from fixed maturity securities with "other-than-temporary" impairment included in net income (loss), net of income taxes	—			—			55,911
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit cost, net of deferred income taxes:
Net actuarial loss	1,881,540			2,108,504			1,034,037
Prior service credit	(460,319		)	(344,247		)	(316,050		)
Total reclassification adjustment associated with affiliate's pension and postretirement benefit plans	1,421,221			1,764,257			717,987
Change in funded status of affiliate's pension and postretirement benefit plans, net of deferred income taxes:
Net actuarial gain (loss)	13,718,056			(735,887		)	(11,768,434		)
Prior service credit	17,548,235			731,812			33,770
Total change in funded status of affiliate's pension and postretirement benefit plans	31,266,291			(4,075		)	(11,734,664		)
Other comprehensive income	11,258,114			20,411,865			2,845,023
Total comprehensive income	$	54,776,787		$	58,378,294		$	107,744

All affiliated balances presented above are the result of related party transactions with Employers Mutual.

EMC INSURANCE GROUP INC. AND SUBSIDIARIES

Schedule II – Condensed Financial Information of Registrant, Continued

Condensed Statements of Cash Flows

	Year ended December 31, 2013
	2013			2012			2011
Net cash provided by operating activities	$	9,544,154		$	11,116,544		$	9,069,618
Cash flows from investing activities
Net (purchases) sales of short-term investments	(8,714,403		)	(1,198,077		)	1,481,321
Net cash (used in) provided by investing activities	(8,714,403		)	(1,198,077		)	1,481,321
Cash flows from financing activities
Issuance of common stock through affiliate’s stock plans	10,208,452			691,552			974,493
Excess tax benefit associated with affiliate’s stock plans	95,077			(2,221		)	6,622
Repurchase of common stock	—			—			(1,849,896		)
Dividends paid to stockholders (affiliated ($6,749,153), ($6,356,760) and ($6,042,846))	(11,275,153		)	(10,438,840		)	(9,941,317		)
Net cash used in financing activities	(971,624		)	(9,749,509		)	(10,810,098		)
Net increase (decrease) in cash	(141,873		)	168,958			(259,159		)
Cash at the beginning of the year	291,417			122,459			381,618
Cash at the end of the year	$	149,544		$	291,417		$	122,459
Income taxes recovered	$	—		$	470,528		$	467,140
Interest paid	$	—		$	—		$	—

All affiliated balances presented above are the result of related party transactions with Employers Mutual.