EMC Insurance Group Inc. Reports 2004 Third Quarter Estimated Hurricane Losses and Reserve Strengthening.

DES MOINES, Iowa -- EMC Insurance Group Inc. (Nasdaq:EMCI) today reported that losses associated with three of the four hurricanes that hit the southern United States during the third quarter of 2004 are estimated to total approximately $6.9 million. The Company's reinsurance segment anticipates that losses associated with Hurricanes Charley, Frances and Ivan will be capped at $1.5 million each under the terms of the quota share agreement with Employers Mutual Casualty Company. Hurricane losses in the property and casualty insurance segment, the majority of which are associated with damage caused by Hurricane Ivan in the Gulf States, are expected to be approximately $2.4 million. On an after-tax basis, these hurricane losses will reduce third quarter earnings by approximately $4.5 million or $0.39 per share.

Hurricane Jeanne hit the State of Florida on September 25, 2004. The eye of the hurricane made landfall at the same location as Hurricane Frances, which generated an estimated $1.5 million of losses for the reinsurance segment. The Company is not able to estimate losses associated with Hurricane Jeanne at this time.

During the third quarter of 2004, the Company's actuaries completed their regularly scheduled evaluation of the Company's overall loss reserves, including Incurred But Not Reported reserves, and settlement expense reserves. Based on the results of these evaluations, the Company will strengthen prior years' reserves by approximately $588,000 during the third quarter of 2004. On an after-tax basis, this increase in reserves will reduce third quarter earnings by approximately $382,000 or $0.03 per share.

EMC Insurance Group Inc., the publicly-held insurance holding company of EMC Insurance Companies, owns subsidiaries with operations in property and casualty insurance and reinsurance. EMC Insurance Companies is one of the largest property and casualty entities in Iowa and among the top 60 insurance entities nationwide.

The Private Securities Litigation Reform Act of 1995 provides issuers the opportunity to make cautionary statements regarding forward-looking statements. Accordingly, any forward-looking statement contained in this report is based on management's current expectations and actual results of the Company may differ materially from such expectations. The risks and uncertainties that may affect the actual results of the Company include but are not limited to the following: catastrophic events and the occurrence of significant severe weather conditions; state and federal legislation and regulations; rate competition; changes in interest rates and the performance of financial markets; the adequacy of loss and settlement expense reserves, including asbestos and environmental claims; rating agency actions and other risks and uncertainties inherent to the Company's business. When we use the words "believe", "expect", "anticipate", "estimate" or similar expressions, we intend to identify forward-looking statements. You should not place undue reliance on these forward-looking statements.