Iowa’s EMC Insurance: Storm Losses Lower 2008 Earnings Estimate

Des Moines, Iowa-based EMC Insurance Group Inc. says Midwest storm losses will reduce its profit for the year.

The property and casualty insurer is lowering its guidance to a range of $1.20 to $1.45 per share from the previous range of $2.10 to $2.35 per share.

Company officials say they expect catastrophe and storm losses for the second quarter and for the first half of the year to be more than double the losses recorded in the same periods a year ago.

The losses include claims resulting from a tornado that hit northeast Iowa on May 25, killing eight people and destroying or damaging more than 500 homes including many in Parkersburg.

Shares fell 1.9 percent, or 48 cents, to $24.91.