EMC Insurance Group Inc. Reports 1st Quarter Results.

DES MOINES, Iowa--(BUSINESS WIRE)--April 30, 1998--EMC Insurance Group Inc. (Nasdaq/NM:EMCI) today reported operating income of $.38 per share for the first quarter ended March 31, 1998 compared to $.16 per share for the first quarter of 1997. Net income, which includes realized gains, increased to $4,479,000 ($.39 per share) for the first quarter of 1998 from $1,748,000 ($.16 per share) for the same period in 1997.

President and CEO, Bruce G. Kelley commented, "We are pleased to report improved operating results for the first quarter of 1998 over last years first quarter. Our results reflect better loss experience in our property and casualty insurance segment, which benefitted from the mild winter weather in the Midwest and a low level of catastrophe and storm losses. The severe storms that devastated certain parts of the country had little impact on the Company's operations."

This is the first quarter of reported earnings that reflects the pooling of the nonstandard risk automobile insurance business written by Farm and City Insurance Company. As a result of this change in structure, Farm and City is now a member of the property and casualty insurance segment and the nonstandard risk automobile insurance business will no longer be presented as a separate segment of the Company's operations.

Premiums earned increased 7.6% to $45,688,000 for the three months ended March 31, 1998 from $42,458,000 in the first quarter of 1997. Kelley stated, "The insurance marketplace continues to be very competitive. Our growth has been fueled by our ability to write new business, which we attribute to our regional presence and our attractive property insurance programs. Our success in writing new business has been partially offset by intense rate competition for renewal business."

Claims and expenses for the first quarter of 1998 decreased to $46,088,000 from $46,250,000 for the first quarter of 1997. Catastrophe and storm losses amounted to $.03 per share for the first quarter of 1998 compared to $.06 per share for the same period of 1997.

The Company's GAAP combined ratio was 100.9% in the first quarter of 1998 compared to 108.8% in the first quarter of 1997.

Net book value of the Company's stock as of March 31, 1998 was $14.71 per share. This is an increase from $14.30 per share as of December 31, 1997.

EMC Insurance Group Inc. is a publicly held insurance holding company headquartered in Des Moines, Iowa. It owns subsidiaries in property and casualty insurance, reinsurance and an excess and surplus lines insurance agency. -0-

                   EMC Insurance Group Inc.

           Summary of Consolidated Financial Data

                                        Three Months Ended
                                            March 31,
                                        1998          1997

Premiums earned                      $45,688,223   $42,458,343
Net investment income                  6,277,273     5,744,736
Realized investment gains                 89,165        57,305
Other income                              46,912        59,685

Total revenues                        52,101,573    48,320,069

Losses and expenses                   46,088,246    46,249,517

Income before income taxes             6,013,327     2,070,552

Income taxes                           1,534,693       322,653

Net income                            $4,478,634    $1,747,899

Operating income per share
  - basic and diluted                      $0.38         $0.16

Net income per share
  - basic and diluted                      $0.39         $0.16

Dividend per share                         $0.15         $0.15

Average number of shares
  outstanding - basic and
  diluted                             11,356,381    11,094,730

CONTACT: EMC Insurance Group Inc., Des Moines

Mark Reese, 515/280-2902