UPDATE 1-EMC Insurance Q3 profit beats, ups 2010 EPS view

Mon Nov 8, 2010 7:43am EST

* Q3 oper EPS $0.49 vs est $0.30

* Ups FY10 oper EPS view to $1.75-$2.00

Nov 8 (Reuters) - EMC Insurance Group (EMCI.O) posted third-quarter operating profit above market expectations, helped in part by improved earnings from its reinsurance segment, and raised its 2010 earnings view.

The company, which had cut its full-year 2010 operating earnings per share outlook in July to $1.65-$1.90, raised its view to $1.75-$2.00 a share on Monday.

Third-quarter net income was $7.5 million, or 57 cents a share, compared with net income of $5.1 million, or 38 cents a share, in the year-ago period.

Operating income was 49 cents a share for the quarter.

Analysts on average had expected the company to post earnings of 30 cents a share, according to Thomson Reuters I/B/E/S.

Premiums earned increased marginally to $97.3 million, while premiums earned from reinsurance rose 8 percent to $20.3 million.

Shares of the Des Moines, Iowa-based company closed at $21.73 Friday on Nasdaq. Their value has declined 4 percent since the company posted second-quarter results below market expectations in July. (Reporting by Rachel Chitra in Bangalore; Editing by Aradhana Aravindan)