On October 31, 2008, the Boards of Directors of the Registrant and Employers Mutual Casualty Company (Employers Mutual), the parent company of the Registrant, approved a long-term incentive compensation plan for the senior executive officers of the companies. This action was taken in response to a study completed in 2006 by an outside compensation consultant that indicated that the companies' long-term incentive compensation program, which has historically only utilized incentive stock options, was not competitive with industry benchmarks.

The Employers Mutual Casualty Company Senior Executive Long Term Incentive Plan (LTIP) is a bonus program based on the EMC Insurance Companies' long-term statutory-based financial results that incorporates the criteria and results of the EMC Insurance Companies' short-term statutory-based Senior Executive Compensation Bonus Program (short-term bonus plan). The LTIP uses the results of the short-term bonus plan for the latest three years, except that no minimums or maximums are applied to the annual calculations. The results for the three years are averaged and multiplied by an adjustment factor determined by Employers Mutual's Senior Executive Compensation and Stock Option Committee. The LTIP will become effective January 1, 2009, with the first bonus calculation based on the results of the short-term bonus plan for calendar years 2007, 2008 and 2009. Only those executives who have been eligible for the short-term bonus plan during those entire three years will be eligible for the first payment under the LTIP in 2010.

Due to the inherent volatility of the companies' insurance business, it is not possible to determine the amount of future bonus payments that will be made under the LTIP. Employers Mutual's Senior Executive Compensation and Stock Option Committee has initially determined that, over the long term, any bonuses paid under the LTIP should approximate 50% of the bonuses paid under the short-term incentive plan. This adjustment factor could change in future years if the committee decides to change the mix of compensation executive officers receive.

Effective November 3, 2008, the Registrant appointed American Stock Transfer & Trust Company (AST) as the Registrant's Transfer Agent and Dividend Disbursing Agent. A letter describing the services available through AST will be included with the dividend mailing on November 19, 2008. Contact information for AST is as follows:

In writing: American Stock Transfer & Trust Company

Attn: EMC Insurance Group Inc.
Operations Center
6201 15th Avenue
Brooklyn, NY 11219
By telephone: (866) 254-6502

Via e-mail: info@amstock.com

Via internet: www.amstock.com

(d) Exhibits.

Exhibit Number   Description

    10.25        Employers Mutual Casualty Company Senior Executive Long Term
                 Incentive Plan