form8k.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 8-K


CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  March 19, 2009


EMC INSURANCE GROUP INC.
(Exact name of registrant as specified in its charter)

Iowa
  
0-10956
  
42-6234555
(State or other jurisdiction of incorporation)
  
(Commission File Number)
  
(I.R.S. Employer Identification No.)

717 Mulberry Street, Des Moines, Iowa
  
50309
(Address of principal executive offices)
  
(Zip Code)

(515) 345-2902
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 
 
 

Item 2.06  Material Impairments.

On March 19, 2009, the Registrant received notice that Chemtura Corp. was seeking Chapter 11 bankruptcy protection from its creditors.  The Registrant currently holds $3.0 million of fixed maturity securities issued by Great Lakes Chemical Corporation, now known as Chemtura Corp., that were due to mature on July 15, 2009.  Management of the Registrant has been monitoring this investment closely and believed that the company would be able to carry through with its commitment to sell assets in order to meet its debt obligations; however, this course of action was obviously not successful.  Through its bankruptcy filing, it is anticipated that Chemtura Corp. will attempt to force its debt holders to take a reduction in coupon rate and/or extend the July 15, 2009 maturity date, or accept a payoff amount well below par value.  At this time, management is unable to determine the amount, if any, of impairment loss the Registrant may incur on this investment.

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 beliefs, assumptions and expectations of the Company’s future performance, taking into account all information currently available to management.  These beliefs, assumptions and expectations can change as the result of many possible events or factors, not all of which are known to management. If a change occurs, the Company’s business, financial condition, liquidity, results of operations, plans and objectives may vary materially from those expressed in the forward-looking statements. 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; the adequacy of loss and settlement expense reserves; state and federal legislation and regulations; changes in our industry, interest rates or the performance of financial markets and the general economy; rating agency actions and other risks and uncertainties inherent to the Company’s business, including those discussed under the heading “Risk Factors” in the Company’s annual report on Form 10-K.  Management intends to identify forward-looking statements when using the words “believe”, “expect”, “anticipate”, “estimate”, “project” or similar expressions.  Undue reliance should not be placed on these forward-looking statements.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized, on March 23, 2009.


 
EMC INSURANCE GROUP INC.
 
Registrant
   
   
 
/s/  Bruce G. Kelley
 
Bruce G. Kelley
 
President and Chief Executive Officer
   
   
 
/s/  Mark E. Reese
 
Mark E. Reese
 
Senior Vice President and
 
Chief Financial Officer