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Schedule II - Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2015
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)
 
2015
 
2014
ASSETS
 
 
 
 

Investment in common stock of subsidiaries (equity method)
 
$
514,309

 
$
495,288

Short-term investments
 
9,761

 
6,731

Cash
 
136

 
274

Prepaid assets
 
95

 
87

Accounts receivable
 
58

 
69

Income taxes recoverable
 
683

 
559

Total assets
 
$
525,042

 
$
503,008

 
 
 
 
 
LIABILITIES
 
 

 
 

Accounts payable
 
$
87

 
$
80

Amounts due affiliate to settle inter-company transaction balances
 
17

 
42

Total liabilities
 
104

 
122

 
 
 
 
 
STOCKHOLDERS' EQUITY
 
 
 
 
Common stock, $1 par value, authorized 30,000,000 shares; issued and outstanding, 20,780,439 shares in 2015 and 20,344,409 shares in 2014
 
20,781

 
20,344

Additional paid-in capital
 
108,747

 
99,891

Accumulated other comprehensive income
 
58,433

 
81,662

Retained earnings
 
336,977

 
300,989

Total stockholders' equity
 
524,938

 
502,886

Total liabilities and stockholders' equity
 
$
525,042

 
$
503,008

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)
 
2015
 
2014
 
2013
REVENUES
 
 
 
 

 
 

Dividends received from subsidiaries
 
$
9,180

 
$
378

 
$
9,974

Investment loss
 
(9
)
 
(12
)
 
(10
)
Total revenues
 
9,171

 
366

 
9,964

Operating expenses (affiliated $1,074, $777 and $605)
 
1,942

 
1,584

 
1,364

Income (loss) before income tax benefit and equity in undistributed net income of subsidiaries
 
7,229

 
(1,218
)
 
8,600

Income tax benefit
 
(682
)
 
(558
)
 
(481
)
Income (loss) before equity in undistributed net income of subsidiaries
 
7,911

 
(660
)
 
9,081

Equity in undistributed net income of subsidiaries
 
42,251

 
30,652

 
34,438

Net income
 
$
50,162

 
$
29,992

 
$
43,519

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)
 
2015
 
2014
 
2013
Net income
 
$
50,162

 
$
29,992

 
$
43,519

 
 
 
 
 
 
 
OTHER COMPREHENSIVE INCOME (LOSS)
 
 

 
 

 
 

Unrealized holding gains (losses) on investment securities, net of deferred income taxes
 
(13,037
)
 
34,663

 
(15,582
)
Reclassification adjustment for realized investment gains included in net income, net of income taxes
 
(4,956
)
 
(4,677
)
 
(5,848
)
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit cost (income), net of deferred income taxes:
 
 
 
 
 
 
Net actuarial loss
 
863

 
375

 
1,882

Prior service credit
 
(2,150
)
 
(2,149
)
 
(460
)
Total reclassification adjustment associated with affiliate's pension and postretirement benefit plans
 
(1,287
)
 
(1,774
)
 
1,422

Change in funded status of affiliate's pension and postretirement benefit plans, net of deferred income taxes:
 
 

 
 

 
 

Net actuarial gain (loss)
 
(3,637
)
 
(5,525
)
 
13,718

Prior service (cost) credit
 
(312
)
 
(35
)
 
17,548

Total change in funded status of affiliate's pension and postretirement benefit plans
 
(3,949
)
 
(5,560
)
 
31,266

 
 
 
 
 
 
 
Other comprehensive income (loss)
 
(23,229
)
 
22,652

 
11,258

 
 
 
 
 
 
 
Total comprehensive income
 
$
26,933

 
$
52,644

 
$
54,777

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)
 
2015
 
2014
 
2013
Net cash provided by (used in) operating activities
 
$
7,893

 
$
(738
)
 
$
9,544

 
 
 
 
 
 
 
Cash flows from investing activities
 
 

 
 

 
 

Net (purchases) sales of short-term investments
 
(3,030
)
 
5,956

 
(8,715
)
Net cash (used in) provided by investing activities
 
(3,030
)
 
5,956

 
(8,715
)
 
 
 
 
 
 
 
Cash flows from financing activities
 
 

 
 

 
 

Issuance of common stock through affiliate’s stock plans
 
9,078

 
7,392

 
10,208

Excess tax benefit associated with affiliate’s stock plans
 
95

 
103

 
96

Dividends paid to stockholders (affiliated $(8,162), $(7,377) and $(6,749))
 
(14,174
)
 
(12,588
)
 
(11,275
)
Net cash used in financing activities
 
(5,001
)
 
(5,093
)
 
(971
)
 
 
 
 
 
 
 
Net increase (decrease) in cash
 
(138
)
 
125

 
(142
)
Cash at the beginning of the year
 
274

 
149

 
291

Cash at the end of the year
 
$
136

 
$
274

 
$
149

 
 
 
 
 
 
 
Income taxes recovered
 
$
559

 
$
481

 
$
—

Interest paid
 
$
—

 
$
—

 
$
—

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