EMC Insurance Group Inc. and its parent organisation Employers Mutual Casualty Company have approved the continuation of last year’s inter-company reinsurance program between EMC’s reinsurance subsidiary and Employers Mutual for 2019.
The terms of EMC Reinsurance Company’s 2018 program will be continued for the next calendar year, with the annual cost of the per occurrence catastrophe excess of loss treaty remaining at $1,630,000.
The cost of the annual aggregate catastrophe excess of loss treaty will also remain at $3,620,000, with no changes in the other terms of the treaties.
The continuation of the reinsurance arrangement was approved at a joint meeting of the Inter-Company Committees of the Board of Directors of EMC and Employers Mutual.
Also approved at the meeting was the continuation of inter-company reinsurance program between EMC’s insurance subsidiaries in the property and casualty (P&C) segment and Employers Mutual.
For this program, the cost of the semi-annual aggregate catastrophe excess of loss treaty covering the first half of 2019 will remain at $5,960,000, while the cost of the aggregate catastrophe excess of loss treaty covering the second half will remain at $1,380,000, with no changes in the other terms of the treaties.
EMC and Employers Mutual explained that the purpose of the Inter-Company Committees is to ensure that the terms of the agreements are fair and equitable to both parties.