Business Model for Reinsurance Segment

Reinsurance operations are conducted through EMC Reinsurance Company and accounted for 22% of EMCI’s premiums earned in 2017. EMCC has assumed reinsurance business since the 1950s. The principal business activity of EMC Reinsurance Company is to assume, through a quota share reinsurance agreement, 100 percent of EMCC’s assumed reinsurance business, subject to certain exceptions. EMC Reinsurance Company also writes a relatively small amount of assumed reinsurance business on a direct basis (outside the quota share reinsurance agreement).

Approximately 91% of business was generated through 17 brokers, and the remaining 9% was generated through EMCC’s participation in the Mutual Reinsurance Bureau underwriting association (MRB), which is an unincorporated association through which EMCC and four other unaffiliated insurance companies participate in a voluntary reinsurance pool to meet the reinsurance needs of small-and medium-sized, unaffiliated mutual insurance companies.


EMCI Benefits From the Quota Share Agreement With EMCC

The benefits of the quota share agreement with EMCC include the following:

  • EMCC has achieved strong name recognition in the assumed reinsurance marketplace, earning the trust of clients since the 1950s. This trust is a key component of the Reinsurance Company’s success.
  • EMCC’s surplus ($1.4 billion as of December 31, 2017) and financial strength exhibits the ability to pay the claims owed to ceding companies. Brokers know they can rely on EMCC to provide the support of a strong balance sheet when it comes time to pay the claims we owe.
  • EMCC’s A (Excellent) rating from A.M. Best Co. provides an indication of our ability to meet these obligations (EMC Reinsurance Company is also rated A).
  • EMCC has a competitive advantage being licensed in all 50 states and the District of Columbia.


Diversified Book of Business


Pro rata reinsurance is a form of reinsurance in which the reinsurer assumes a stated percentage of all premiums, losses and related expenses in a given class of business. In contrast, excess of loss reinsurance provides coverage for a portion of losses incurred by an insurer which exceed predetermined retention limits.

Geographic Distribution

Geographic Distribution
Areas where we write reinsurance

Intercompany Reinsurance Program

An intercompany reinsurance program between EMCI’s reinsurance subsidiary and EMCC consists of two treaties:

  • Per occurrence catastrophe excess of loss treaty
  • Annual aggregate catastrophe excess of loss treaty

This program is intended to provide protection from both the frequency and severity of such losses. Approval by the Intercompany Committees of the Boards of Directors of EMCI and EMCC is required to ensure that the terms of the agreements are fair and equitable to both parties. In addition, the program must be approved by regulatory authorities before it becomes effective.

Reinsurance Segment Catastrophe Treaties Between EMCI and EMCC

Reinsurance Segment Catastrophe Treaties Between EMCI and EMCC Reinsurance Segment Catastrophe Treaties Between EMCI and EMCC
EMC Insurance Companies
717 Mulberry Street | P.O. Box 712 |
Des Moines, Iowa 50306-0712

800-447-2295