EMC Insurance Group Inc. has revised its full-year guidance for non-GAAP operating EPS income to a range of 95 cents to $1.15 from the previous range of $1.10 to $1.30, based on results from the first six months.
The company trimmed the load for catastrophe and storm losses to 7.7 percentage points from 9.0 percentage points. However, an increase in the amount of noncatastrophe losses expected in the property and casualty insurance segment offset that decline.
EMC Insurance expects to report a per-share net loss of between 26 cents and 22 cents, non-GAAP operating EPS figures ranging from a loss of four cents to earnings of zero cents and a combined ratio of approximately 109.8% in the second quarter due to higher-than-anticipated noncatastrophe losses in the P&C insurance segment.
The company sees catastrophe and storm losses of approximately $15.7 million in P&C and about $1.0 million in the reinsurance segment.
It anticipates favorable development on prior years' reserves of about $511,000 in the second quarter, as opposed to adverse development of $1.7 million in the prior-year quarter.
Favorable development for the company's P&C is projected to be approximately $3.2 million for P&C; adverse development of about $2.6 million for is expected for reinsurance.