Schedule II - Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2016

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)	2016		2015
ASSETS
Investments:
Common stock of subsidiaries (equity method)	$	540,249	$	514,309
Equity securities available-for-sale, at fair value (cost $2,000 and $0)	2,000		—
Short-term investments	10,874		9,761
Total investments	553,123		524,070
Cash	184		136
Accrued investment income	3		—
Prepaid assets	154		95
Accounts receivable	—		58
Income taxes recoverable	700		683
Total assets	$	554,164	$	525,042
LIABILITIES
Accounts payable	$	46	$	87
Amounts due affiliate to settle inter-company transaction balances	740		17
Deferred income taxes	36		—
Total liabilities	822		104
STOCKHOLDERS' EQUITY
Common stock, $1 par value, authorized 30,000,000 shares; issued and outstanding, 21,222,535 shares in 2016 and 20,780,439 shares in 2015	21,223		20,781
Additional paid-in capital	119,054		108,747
Accumulated other comprehensive income	46,081		58,433
Retained earnings	366,984		336,977
Total stockholders' equity	553,342		524,938
Total liabilities and stockholders' equity	$	554,164	$	525,042

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)	2016			2015			2014
REVENUES
Dividends received from subsidiaries	$	9,707		$	9,180		$	378
Investment income (loss)	13			(9		)	(12		)
Total revenues	9,720			9,171			366
Operating expenses (affiliated $1,139, $1,074 and $777)	2,006			1,942			1,584
Income (loss) before income tax benefit and equity in undistributed net income of subsidiaries	7,714			7,229			(1,218		)
Income tax benefit	(698		)	(682		)	(558		)
Income (loss) before equity in undistributed net income of subsidiaries	8,412			7,911			(660		)
Equity in undistributed net income of subsidiaries	37,791			42,251			30,652
Net income	$	46,203		$	50,162		$	29,992

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)	2016			2015			2014
Net income	$	46,203		$	50,162		$	29,992
OTHER COMPREHENSIVE INCOME (LOSS)
Unrealized holding gains (losses) on investment securities, net of deferred income taxes	(3,885		)	(13,037		)	34,663
Reclassification adjustment for realized investment gains included in net income, net of income taxes	(6,736		)	(4,956		)	(4,677		)
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit income, net of deferred income taxes:
Net actuarial loss	1,549			863			375
Prior service credit	(2,399		)	(2,150		)	(2,149		)
Total reclassification adjustment associated with affiliate's pension and postretirement benefit plans	(850		)	(1,287		)	(1,774		)
Change in funded status of affiliate's pension and postretirement benefit plans, net of deferred income taxes:
Net actuarial loss	(542		)	(3,637		)	(5,525		)
Prior service cost	(339		)	(312		)	(35		)
Total change in funded status of affiliate's pension and postretirement benefit plans	(881		)	(3,949		)	(5,560		)
Other comprehensive income (loss)	(12,352		)	(23,229		)	22,652
Total comprehensive income	$	33,851		$	26,933		$	52,644

All balances labeled with "affiliate" above are the result of related party transactions with Employers Mutual. All other comprehensive income (loss) balances presented above are from the Registrant's subsidiaries.

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)	2016			2015			2014
Net cash provided by (used in) operating activities	$	9,170		$	7,893		$	(738	)
Cash flows from investing activities
Capital contributions to subsidiaries	(500		)	—			—
Purchases of equity securities available-for-sale	(2,000		)	—			—
Net (purchases) disposals of short-term investments	(1,113		)	(3,030		)	5,956
Net cash (used in) provided by investing activities	(3,613		)	(3,030		)	5,956
Cash flows from financing activities
Issuance of common stock through affiliate’s stock plans	11,070			9,078			7,392
Excess tax benefit associated with affiliate’s stock plans	—			95			103
Repurchase of common stock	(383		)	—			—
Dividends paid to stockholders (affiliated $(9,182), $(8,162) and $(7,377))	(16,196		)	(14,174		)	(12,588		)
Net cash used in financing activities	(5,509		)	(5,001		)	(5,093		)
Net increase (decrease) in cash	48			(138		)	125
Cash at the beginning of the year	136			274			149
Cash at the end of the year	$	184		$	136		$	274
Income taxes recovered	$	716		$	559		$	481
Interest paid	$	—		$	—		$	—

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