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Emc Insurance Group Inc.  (EMCI)
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Emc Insurance Group Inc's

Competitiveness


 

EMCI Sales vs. its Competitors Q2 2019



Comparing the current results to its competitors, Emc Insurance Group Inc reported Revenue increase in the 2 quarter 2019 by 12.16 % year on year.
The revenue growth was below Emc Insurance Group Inc's competitors' average revenue growth of 15.8 %, achieved in the same quarter.

List of EMCI Competitors

With a net margin of 0.69 % Emc Insurance Group Inc achieved higher profitability than its competitors.

More on EMCI Profitability Comparisons



Revenue Growth Comparisons




Net Income Comparison


Emc Insurance Group Inc. achieved net profit of $1.29 millions compared to a net loss of $-5.00 millions recorded in the same quarter a year ago.

<<  EMCI Stock Performance Comparisons


Emc Insurance Group Inc's Comment on Competitors and Industry Peers


Property and Casualty Insurance
The property and casualty insurance marketplace is very competitive. The pool participants compete in the United States insurance market with numerous insurers, many of which have substantially greater financial resources. Competition in the types of insurance in which the pool participants are engaged is based on many factors, including the perceived overall financial strength of the insurer, industry ratings, premiums charged, contract terms and conditions, services offered, speed of claim payments, reputation and experience. Because the pool participants’ insurance products are marketed exclusively through independent agencies, they face competition to retain qualified agencies, as well as competition within the agencies. The pool participants also compete with direct writers, who utilize salaried employees and generally offer their products at a lower cost; exclusive agencies, who write insurance business for only one company; and to a lesser extent, internet-based enterprises. Employers Mutual’s decentralized network of 16 branch offices allows the pool participants to enhance business relationships with agents and customers and develop products, marketing strategies and pricing parameters targeted to individual territories. The pool participants also utilize a company-paid trip for qualified agents and a profit-sharing plan as incentives for the independent agencies to place high-quality insurance business with them.

Reinsurance
Employers Mutual, in writing reinsurance business through its HORAD operation, competes in the global reinsurance market with numerous reinsurance companies, many of which have substantially greater financial resources. Competition for reinsurance business is based on many factors, including the perceived financial strength of the reinsurer, industry ratings, stability in products offered and licensing status. There is a segment of the market that favors large, highly-capitalized reinsurance companies who are able to provide “mega” line capacity for multiple lines of business.


While reinsurer competition for national and regional company business is growing, the Company believes that MRB has a competitive advantage in the smaller mutual company market that it serves due to its low operating costs. MRB understands the needs of the smaller company market and operates at a very low expense ratio, enabling it to offer reinsurance coverage (on business that generally presents less risk) to an under-served market at lower margins. However, due to growth in the reinsurance intermediary marketplace, the size of this under-served market has declined.