Schedule II - Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2014

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,
($ in thousands, except share and per share amounts)	2014		2013
ASSETS
Investment in common stock of subsidiaries (equity method)	$	495,288	$	441,984
Short-term investments	6,731		12,687
Cash	274		149
Prepaid assets	87		67
Accounts receivable	69		—
Income taxes recoverable	559		481
Total assets	$	503,008	$	455,368
LIABILITIES
Accounts payable	$	80	$	101
Amounts due affiliate to settle inter-company transaction balances	42		57
Total liabilities	122		158
STOCKHOLDERS' EQUITY
Common stock, $1 par value, authorized 20,000,000 shares; issued and outstanding, 13,562,980 shares in 2014 and 13,306,027 shares in 2013	13,563		13,306
Additional paid-in capital	106,672		99,309
Accumulated other comprehensive income	81,662		59,010
Retained earnings	300,989		283,585
Total stockholders' equity	502,886		455,210
Total liabilities and stockholders' equity	$	503,008	$	455,368

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,
($ in thousands, except share and per share amounts)	2014			2013			2012
REVENUES
Dividends received from subsidiaries	$	378		$	9,974		$	12,050
Investment loss	(12		)	(10		)	(10		)
Total revenues	366			9,964			12,040
Operating expenses (affiliated $777, $605 and $584)	1,584			1,364			1,299
Income (loss) before income tax benefit and equity in undistributed net income of subsidiaries	(1,218		)	8,600			10,741
Income tax benefit	(558		)	(481		)	(462		)
Income (loss) before equity in undistributed net income of subsidiaries	(660		)	9,081			11,203
Equity in undistributed net income of subsidiaries	30,652			34,438			26,763
Net income	$	29,992		$	43,519		$	37,966

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,
($ in thousands, except share and per share amounts)	2014			2013			2012
Net income	$	29,992		$	43,519		$	37,966
OTHER COMPREHENSIVE INCOME (LOSS)
Change in unrealized holding gains (losses) on investment securities, net of deferred income taxes	34,663			(15,582		)	23,863
Reclassification adjustment for realized investment gains included in net income, net of income taxes	(4,677		)	(5,848		)	(5,211		)
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit cost (income), net of deferred income taxes:
Net actuarial loss	375			1,882			2,108
Prior service credit	(2,149		)	(460		)	(344		)
Total reclassification adjustment associated with affiliate's pension and postretirement benefit plans	(1,774		)	1,422			1,764
Change in funded status of affiliate's pension and postretirement benefit plans, net of deferred income taxes:
Net actuarial gain (loss)	(5,525		)	13,718			(736		)
Prior service (cost) credit	(35		)	17,548			732
Total change in funded status of affiliate's pension and postretirement benefit plans	(5,560		)	31,266			(4		)
Other comprehensive income	22,652			11,258			20,412
Total comprehensive income	$	52,644		$	54,777		$	58,378

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,
($ in thousands, except share and per share amounts)	2014			2013			2012
Net cash provided by (used in) operating activities	$	(738	)	$	9,544		$	11,117
Cash flows from investing activities
Net (purchases) sales of short-term investments	5,956			(8,715		)	(1,198		)
Net cash (used in) provided by investing activities	5,956			(8,715		)	(1,198		)
Cash flows from financing activities
Issuance of common stock through affiliate’s stock plans	7,392			10,208			692
Excess tax benefit associated with affiliate’s stock plans	103			96			(3		)
Dividends paid to stockholders (affiliated $(7,377), $(6,749) and $(6,357))	(12,588		)	(11,275		)	(10,439		)
Net cash used in financing activities	(5,093		)	(971		)	(9,750		)
Net increase (decrease) in cash	125			(142		)	169
Cash at the beginning of the year	149			291			122
Cash at the end of the year	$	274		$	149		$	291
Income taxes recovered	$	481		$	—		$	471
Interest paid	$	—		$	—		$	—

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