Meemic (MEMH) SC 13E3 Going private transaction

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Exhibit 99(c)(3)

MEEMIC Holdings, Inc.

Fairness Opinion Presentation
June 12, 2002

RAYMOND JAMES
& ASSOCIATES, INC.
Member New York Stock Exchange/SIPC

Table of Contents

		Pages
•	Overview	3-8
•	Valuation	9-12
•	Comparable Company Analysis	13-15
•	Merger and Acquisition Transactions Analysis	16-19
•	DCF Analysis	20-22

2

Overview

MEEMIC Holdings, Inc.

MEMH

20-Day Stock Price Average Prior to Announcement as of 3/15/02	$	22.46
Shares Outstanding		6,683,563
Average Market Capitalization:	$	150,112,825
Merger Consideration	$	29.00
Implied Equity Value	$	193,823,327

Year Ended December 31, 2001
Revenues:	$	144,607,000
Earnings per Share:	$	1.78
Average Daily Volume:		2,709

3

Historical Financial Summary—GAAP

					Year Ended December 31,
			3 Months Ended March 31, 2002
					2001			2000			1999			1998		1997
			(in 000s)
Revenues:
	Net Premiums Earned		$	34,506	$	133,252		$	118,528		$	93,034		$	64,040	$	67,830
	Net Investment Income			2,856		11,182			10,768			8,285			6,958		6,677
	Realized Gain (Loss)			0		(1,540	)		(65	)		(20	)		31		32
	Other			465		1,713			1,713			1,877			2,111		841
		Total Revenues	$	37,827	$	144,607		$	130,944		$	103,176		$	73,140	$	75,380
Expenses:
	Loss and Loss Adjustment Expense		$	26,549	$	93,702		$	77,227		$	62,858		$	43,452	$	47,302
	Policy Acquisition and Underwriting Expenses			7,549		31,679			28,127			19,132			12,658		16,690
	Amortization and Other			89		3,027			3,098			3,845			5,582		2,087
		Total Expenses	$	34,187	$	128,408		$	108,452		$	85,835		$	61,692	$	66,079
Income before Taxes				3,640		16,199			22,492			17,341			11,448		9,301
	Income Tax			939		4,180			6,773			5,531			3,296		2,672
Net Income before Extraordinary			$	2,701	$	12,019		$	15,719		$	11,810		$	8,152	$	6,629
	Extraordinary Items (net of tax)			—		—			—			1,525			214		—
Net Income			$	2,701	$	12,019		$	15,719		$	13,335		$	8,366	$	6,629
Assets
	Cash and Investments		$	226,950	$	222,667		$	198,118		$	168,432		$	128,881	$	113,747
	Intangible			30,465		30,496			33,420			36,344			39,268		42,149
	Other			91,327		88,520			77,936			69,873			71,181		58,962
		Total Assets	$	348,742	$	341,683		$	309,474		$	274,649		$	239,330	$	214,858
Liabilities & Equity
	Loss & LAE Reserves		$	127,527	$	124,361		$	107,256		$	96,009		$	92,298	$	84,921
	Unearned Premiums			43,796		41,310			36,755			34,148			31,586		29,436
	Other			14,309		14,894			18,856			17,307			63,222		57,219
		Total Liabilities	$	185,632	$	180,565		$	162,867		$	147,464		$	187,106	$	171,576
	Shareholders' Equity		$	163,110	$	161,118		$	146,607		$	127,185		$	52,224	$	43,282

4

			Year Ended December 31,
	3 Months Ended March 31, 2002
			2001		2000		1999		1998		1997
Net Loss & LAE Ratio	76.9	%	70.3	%	65.2	%	67.6	%	67.8	%	69.7	%
Expense Ratio	21.9	%	23.8	%	23.7	%	20.5	%	19.8	%	24.6	%
Combined Ratio	98.8	%	94.1	%	88.9	%	88.1	%	87.6	%	94.3	%
Investment Yield	5.1	%	5.3	%	5.8	%	5.6	%	5.8	%	6.5	%
Operating Margin	9.6	%	11.2	%	17.2	%	17.7	%	19.2	%	14.1	%
Return on Average Equity	6.7	%	7.8	%	11.5	%	14.9	%	17.5	%	16.7	%

5

MEMH Stock Performance

MEEMIC Holdings, Inc. Price/Volume Performance
March 20, 2000 — March 18, 2002

6

•

All trades above $29 per share in the target period occurred between May 9^th and July 9^th, 2001. This period coincided with MEEMIC's addition to the Russell 2000 index. Certain mutual funds were required to add MEEMIC to their portfolios at this point, which could account for the temporary spike in price and volume.

Price Histogram
March 19,2001—March 15, 2002

Note: Data represents only days during which trading took place

7

MEMH Ownership (Diluted Shares)

		Shares	%
ProAssurance Corporation		5,610,045	83.0	%
Directors and Management:
	Thomas Hoeg(1)	52,355	0.8	%
	James Wood(2)	29,655	0.4	%
	Lynn Kalinowski(3)	26,503	0.4	%
	Christine Schmitt(3)	26,503	0.4	%
	William Sabados(3)	26,503	0.4	%
	Victor Adamo(4)	21,928	0.3	%
	John Dodge Jr.	1,744	0.0	%
	Ann Putallaz	500	0.0	%
Directors and Management		185,693	2.7	%
Institutions:
	Fidelity Management	207,500	3.1	%
	Independence One Capital	90,950	1.3	%
	Barclays Global Investors	49,351	0.7	%
	Northern Trust	23,990	0.4	%
	Others	52,602	0.8	%
Institutional Shares		400,403	5.9	%
Retail Shares		566,043	8.4	%
Diluted Shares Outstanding(4)		6,762,184	100	%

(1)

Includes 30,000 vested options adjusted using the Treasury method, and 12,700 shares in the Rabbi Trust.

(2)

Includes 30,000 vested options adjusted using the Treasury method.

(3)

Includes 20,000 vested options adjusted using the Treasury method, and 12,700 shares in the Rabbi Trust.

(4)

Includes 12,700 shares in the Rabbi Trust.

(5)

Includes 120,000 vested options adjusted using the Treasury method, and 90,950 shares in the Rabbi Trust.

8

Valuation

Summary

(1)

Deals from March 2001 to February 2002 in which a majority owner purchased the remaining outstanding shares from the minority shareholders. Price based on 20-day pre-announcement average.

9

Multiple Comparison

		Multiples
Methodology
		Low		Median		High
Comparable Companies
	Tangible Equity	0.79	x	1.57	x	2.72	x
	Tangible Equity—Adjusted	0.70	x	1.59	x	3.64	x
	Reported Equity	0.55	x	1.51	x	2.72	x
	LTM Operating Earnings	12.4	x	23.8	x	37.6	x
	2002E Operating Earnings	10.0	x	14.2	x	20.1	x
	2003E Operating Earnings	7.3	x	11.8	x	29.9	x
Precedent Transactions
	STAT Net Income	6.5	x	18.2	x	35.8	x
	STAT Surplus	0.89	x	1.75	x	5.02	x
	Net Premiums Written	0.4	x	1.0	x	2.8	x
	Reported Equity	0.73	x	1.94	x	3.77	x
	LTM Operating Earnings	8.9	x	21.5	x	38.4	x
	Minority Buy-out Premium Paid(1)	(25.1	)%	25.7	%	85.4	%
Discounted Cash Flow
	Operating Earnings	13.4	x	15.9	x	18.6	x
	Equity	1.11	x	1.37	x	1.66	x

(1)

Deals from March 2001 to February 2002 in which a majority owner purchased the remaining outstanding shares of the minority. Price based on 20-day pre-announcement average.

	Offer Multiples
	$29.00
STAT Net Income	20.9	x
STAT Surplus	2.42	x
Net Premiums Written	1.3	x
Tangible Equity	1.46	x
Tangible Equity—Adjusted	1.76	x
Reported Equity	1.19	x
LTM Operating Earnings	13.7	x
2002E Operating Earnings	11.1	x
2003E Operating Earnings	10.1	x
Acquisition Premium (20-Day Average)	29.1	%

	MEEMIC Values
	(in millions, except stock price)
STAT Net Income	$	9.3
STAT Surplus		80.1
Net Premiums Written		143.7
Tangible Equity		132.6
Tangible Equity—Adjusted		139.4
Reported Equity		163.1
LTM Operating Earnings		14.1
2002E Operating Earnings		17.5
2003E Operating Earnings		19.1
20 Day Average Stock Price		22.46

10

Adjustments to MEEMIC Reported Equity for Purposes of Analysis

Reported Equity at 3/31/02—			$	163,110,000
	Adjustments(1) (tax-effected at 35%)
		Excess loss reserves—		3,371,225
		Reinsurance payables—		2,418,320
		Unrecognized gain in bond portfolio—		1,001,000
Adjusted Equity—			$	169,900,545
	Intangible Assets			30,465,000
Adjusted Tangible Equity—			$	139,435,545

(1)

See page 12 for an explanation of adjustments.

Calculation of MEEMIC Excess Capital for Purposes of Analysis

Adjusted Tangible Equity—		$	139,435,545
LTM 3/31/02 NPW—		$	143,695,000
	Target NPW/Equity Ratio(1)		2:1
Target Equity—		$	71,847,500
Excess (Undeployed) Capital—		$	67,588,045

(1)

Based on GAAP financial information

Adjustments to MEEMIC Reported Net Income for Purposes of Analysis

Reported LTM Net Income as of 3/31/02—			$	12,257,000
	Adjustments (tax-effected at 35%)
		Realized investment losses—		984,000
		Net severance—		867,400
LTM Operating Earnings—			$	14,108,400

11

Methodology for Adjustments to MEEMIC Reported Results for Purposes of Analysis

•

In connection with evaluating implied valuation multiples based on the Merger Consideration, Raymond James deemed that MEEMIC has significant excess capital. Typically, insurance companies receive a valuation multiple only on tangible "deployed" capital and are valued dollar-for-dollar on "excess" capital. In order to determine excess and deployed capital, we judgmentally assumed a net premiums written to GAAP equity ratio of 2:1. The comparable company group has a capital-use ratio ranging from 1.3x to 3.2x, with a mean of 1.8x, compared with MEEMIC's ratio of 1.1x.



•

In calculating the ratio of Value to Tangible Equity—Adjusted, Raymond James adjusted each company's capital structure and recomputed Price to Book multiples.



•

MEEMIC has established net loss and loss adjustment expense reserves approximately 21%, or $10.4 million above its actuary's best estimate. In order to adjust for potential excess reserves, Raymond James increased reported equity value for valuation purposes by half the amount of the tax-effected difference between MEEMIC's reported net loss and loss adjustment expense reserves at its actuary's best estimate.



•

MEEMIC has established a reinsurance liability of $3.7 million relating to contingent reinsurance premiums for policy years 1997 and prior. Due to a lack of any substantial loss development, it is appears unlikely that these premiums are to be paid. For valuation purposes, Raymond James increased reported equity by the tax-effected amount of this liability.



•

MEEMIC posted a realized loss of $1.5 million in the second quarter of 2001 on bonds of California-based power companies. These bonds have since recovered their value after government bail-outs and the future gain has been tax-effected and included in adjusted equity for valuation purposes.



•

The departure of Kevin Clinton and Annette Flood caused a $1.3 million severance payment charge in the second quarter of 2001. This represents a one-time occurrence that has been tax-effected and added back to LTM operating earnings for purposes of valuation.

12

COMPARABLE COMPANY ANALYSIS

Selected Financial Information—GAAP

		Income Statement							Balance Sheet
Company	Latest Quarter Reported	LTM Net Premiums Written		LTM Net Premiums Earned		LTM Net Operating Income(1)			Total Assets		Total Debt		Total Preferred Equity & Other(2)		Total Common Equity(3)		Total Tangible Equity(4)		Target Equity(5)
		($ in thousands)
Commerce Group, Inc.	03/02	$	1,137,336	$	1,070,983	$	104,819		$	2,272,482	$	0	$	4,515	$	835,098	$	832,349	$	568,668
Mercury General Corporation	03/02		1,521,175		1,443,426		108,046			2,329,045		183,658		0		1,079,583		1,079,583		760,588
Harleysville Group Inc.	03/02		755,207		735,120		47,270			2,232,464		96,055		0		591,011		591,011		377,604
Merchants Group, Inc.	03/02		92,654		93,662		1,109			280,698		600		0		65,408		65,408		46,327
Vesta Insurance Group, Inc.	03/02		396,208		333,200		5,690			1,970,977		104,752		22,445		257,960		123,871		198,104
Selective Insurance Group, Inc.	03/02		966,948		904,326		24,103			2,841,645		156,404		0		593,812		547,317		483,474
21st Century Insurance Group	03/02		855,860		864,645		(23,173	)		1,361,887		0		0		656,840		656,840		427,930
State Auto Financial Corporation	03/02		844,057		666,482		17,373			1,086,566		45,500		0		400,272		398,260		422,029
Kingsway Financial Services	03/02		774,528		654,483		25,547			1,255,106		92,686		0		354,988		305,905		387,264
MEEMIC Holdings, Inc.	03/02	$	143,695	$	136,585	$	14,108		$	348,742	$	0	$	0	$	163,110	$	132,645	$	71,848

(1)

Excludes realized gains/(losses) on securities transactions and extraordinary items.

(2)

Includes redeemable preferred equity and trust preferred equity.

(3)

Common equity NOT adjusted for net accumulated other comprehensive income/(loss), foreign currency translations or ESOPs.

(4)

Common Equity less goodwill and other intagibles

(5)

Amount of Equity required to support net preiums written at a 2:1 ratio.

Source: SNL Database

Operating Performance—GAAP

Company	Yield on Average Investments & Cash		Net Investment Income Ratio(1)		Loss Ratio		Expense Ratio		Combined Ratio		Operating Ratio(2)		Return on Average Common Equity(3)		Total Debt to Total Capital		Liquidity Ratio(4)		NPW/ Tangible Equity
Commerce Group, Inc.	6.3	%	9.1	%	74.5	%	24.4	%	98.9	%	89.8	%	13.0	%	0.0	%	114.4	%	1.4	x
Mercury General Corporation	6.1	%	8.0	%	72.6	%	26.4	%	99.0	%	91.0	%	10.2	%	14.5	%	212.0	%	1.4
Harleysville Group Inc.	5.3	%	11.7	%	70.8	%	33.4	%	104.2	%	92.5	%	8.1	%	14.0	%	127.2	%	1.3
Merchants Group, Inc.	5.4	%	13.1	%	79.3	%	32.3	%	111.6	%	98.5	%	1.6	%	0.9	%	105.7	%	1.4
Vesta Insurance Group, Inc.	5.6	%	24.1	%	60.5	%	39.2	%	99.7	%	75.6	%	2.5	%	27.2	%	84.6	%	3.2
Selective Insurance Group, Inc.	5.7	%	10.8	%	74.1	%	32.6	%	106.7	%	95.9	%	4.1	%	20.8	%	98.3	%	1.8
21st Century Insurance Group	5.5	%	5.1	%	88.1	%	14.9	%	103.0	%	97.9	%	NM		0.0	%	149.9	%	1.3
State Auto Financial Corporation	5.5	%	7.8	%	76.3	%	30.1	%	106.4	%	98.6	%	4.3	%	10.2	%	169.0	%	2.1
Kingsway Financial Services	5.3	%	5.1	%	70.6	%	28.5	%	99.1	%	89.3	%	14.4	%	22.4	%	120.6	%	2.5
Mean	5.6	%	10.5	%	74.1	%	29.1	%	103.2	%	92.1	%	7.3	%	12.2	%	131.3	%	1.8	x
Median	5.5	%	9.1	%	74.1	%	30.1	%	103.0	%	92.5	%	6.2	%	14.0	%	120.6	%	1.4
High	6.3	%	24.1	%	88.1	%	39.2	%	111.6	%	98.6	%	14.4	%	27.2	%	212.0	%	3.2
Low	5.3	%	5.1	%	60.5	%	14.9	%	98.9	%	75.6	%	1.6	%	0.0	%	84.6	%	1.3
MEEMIC Holdings, Inc.	5.1	%	8.2	%	71.4	%	23.3	%	94.7	%	86.5	%	9.0	%	0.0	%	132.5	%	1.1

(1)

(Investment income)/(Net premiums earned).

(2)

(Combined ratio)—(Net investment income ratio).

(3)

(Net operating earnings)/(Average common equity).

(4)

(Invested assets and cash)/(Policyholder liabilities).

Source: SNL Database

13

Market Valuation—GAAP

									Multiple of Price to:
Ticker	Company	6/10/2002 Closing Stock Price		Shares Out.	Equity Market Value		Est. L-T Growth Rate		LTM Net Operating EPS		CY 2002 Est. EPS		CY 2003 Est. EPS		Peg (1) Ratio CY 2002		Tangible Equity		Tangible Equity - Adjusted		Common Equity		Indicated Annual Dividend Yield
		(amounts in thousands, except stock price
CGI	Commerce Group, Inc.	$	39.54	32,950	$	1,302,861	10.0	%	12.4	x	12.5	x	11.8	x	1.2	x	1.57	x	1.83	x	1.56	x	3.16	%
MCY	Mercury General Corporation		47.38	54,226		2,569,228	13.5	%	23.8		20.1		16.8		1.2		2.38		2.96		2.38		2.56	%
HGIC	Harleysville Group Inc.		27.20	29,579		804,557	8.7	%	17.0		14.2		11.8		1.4		1.36		1.57		1.36		2.35	%
MGP	Merchants Group, Inc.		24.50	2,110		51,699	NA		NM		NM		NM		NM		0.79		0.70		0.79		1.63	%
VTA	Vesta Insurance Group, Inc.		4.01	35,323		141,645	25.0	%	24.9		10.0		7.3		0.3		1.14		1.09		0.55		2.45	%
SIGI	Selective Insurance Group, Inc.		25.98	25,787		669,955	11.0	%	27.8		16.2		11.5		1.0		1.22		1.25		1.13		2.30	%
TW	21st Century Insurance Group		20.93	85,369		1,786,771	NA		NM		NM		29.9		NM		2.72		3.64		2.72		1.60	%
STFC	State Auto Financial Corporation		16.75	38,980		652,919	9.2	%	37.6		18.2		12.3		1.3		1.64		1.60		1.63		0.78	%
KFS	Kingsway Financial Services		11.26	47,472		534,535	31.0	%	20.92		14.1		11.3		NA		1.75		1.59		1.51		0.00	%
Mean							15.5	%	23.5	x	15.0	x	14.1	x	1.08	x	1.62		1.80	x	1.51	x	1.9	%
Median							11.0	%	23.8		14.2		11.8		1.21		1.57		1.59		1.51		2.3	%
High							31.0	%	37.6		20.1		29.9		1.35		2.72		3.64		2.72		3.2	%
Low							8.7	%	12.4		10.0		7.3		0.29		0.79		0.70		0.55		0.0	%
MEMH	MEEMIC Holdings, Inc.(2)	$	22.46	6,684	$	150,113	NA		10.6	x	8.6	x	7.9	x	NA	x	1.13	x	1.15	x	0.92	x	0.00	%
	Deal Multiples(3)	$	29.00	6,684	$	193,823	NA		13.7		11.1		10.1		NA		1.46		1.76		1.19		0.00	%

(1)

(CY 2002 Est. EPS)/(Estimated long-term growth rate).

(2)

Based on MEEMIC's 20-day average trading day stock price up to and including 3/15/02.

(3)

Based on Merger Consideration of $29.00 in cash per share.

Source: SNL Database

14

Performance Comparison

Stock Performace
March 20, 2000—March 18, 2002

15

M & A TRANSACTIONS ANALYSIS

					Equity Value to:				Transaction Value to:
							GAAP Reported Common Equity
Date Announced	Date Effective	Buyer/Seller	Equity Value ($ in mils)	Debt Assumed ($ in mils)	GAAP Operating Income	STAT Net Income		STAT Surplus	Net Premium Written
7/1/93	8/31/93	St. Paul Companies/Economy Fire & Casualty Company	420.0	0.0	NA	18.7	1.38	1.79	1.0
11/19/93	12/30/93	GRE Insurance Group/American Ambassador	100.0	0.0	NA	13.1	NA	1.44	1.0
NA	12/31/93	Anthem P&C Holdings, Inc/Federal Kemper Insurance Co	100.0	0.0	NA	20.4	NA	1.60	0.8
2/9/95	5/22/95	USF&G Corporation/Victoria Financial Corporation	59.0	0.0	30.6	22.0	2.17	2.52	1.2
4/27/95	7/18/95	Guaranty National Corp./Viking Insurance Company of Wisconsin (Xerox)	102.7	0.0	NA	6.5	NA	1.18	0.7
NA	8/31/95	The Commerce Group, Inc./Western Pioneer Insurance Company	12.0	0.0	NA	20.0	NA	1.53	0.5
8/12/95	10/3/95	Trinity Universal Insurance Company (Unitrin)/Milwaukee Insurance Group, Inc.	94.2	0.0	20.8	NM	1.17	1.86	0.8
8/25/95	1/2/96	Berkshire Hathaway Inc./Geico	4,727.0	0.0	20.5	17.9	2.72	4.11	1.7
2/1/96	4/30/96	GCS Management, Inc. (Goran Capital)/Superior Insurance Company (Fortis, Inc.)	66.4	0.0	23.2	11.8	1.05	1.35	0.7
2/8/96	7/31/96	Meridian Insurance Group, Inc./Citizens Security Group, Inc.	25.0	0.0	NM	20.6	2.08	1.87	0.8
11/5/96	1/1/97	Unitrin, Inc./Union Automobile Indemnity Company	32.0	0.0	NA	22.7	NA	1.66	0.9

16

11/6/96	3/7/97	Progressive Corporation/Midland Financial Group, Inc.	50.1	20.0	NM	NM	1.07	0.89	0.4
4/24/97	6/30/97	Vesta Insurance/Anthem Casualty and Shelby Insurance	238.8	0.0	NM	19.6	2.08	1.60	0.9
6/9/97	10/1/97	Safeco Corporation/American States Financial Corporation	2,804.8	300.0	16.5	15.7	1.98	2.57	1.9
8/28/97	10/2/97	Harleysville Group/Minnesota Fire & Casualty Insurance Company	35.0	0.0	NA	NM	NA	1.71	0.9
6/23/97	10/17/97	General Motors Acceptance Corp./Integon Corp.	518.8	250.0	NM	NM	3.00	2.11	1.0
6/30/96	11/4/97	GE Capital Corp./Colonial Penn P&C Group Inc. (Leucadia National Corp.)	1,018.1	0.0	22.2	19.8	2.62	2.99	2.0
9/18/97	12/16/97	Orion Capital Corp./Guaranty National Corp.	541.4	101.1	17.1	18.2	1.94	2.13	1.2
10/20/97	12/18/97	Guaranty National Corp./Unisun Insurance (Amerisure Companies)	26.0	0.0	NA	9.6	NA	1.37	1.2
8/8/97	12/23/97	USF&G Corp. (Fidelity and Guaranty Co.)/Titan Holdings	231.2	50.0	15.9	16.8	1.90	2.88	1.4
10/20/97	12/31/97	General Accident Plc/Canadian General Insurance	433.2	99.6	NA	NA	2.43	NA	1.3
1/27/98	04/10/98	Allstate Corporation/Pembridge Inc.	266.3	20.5	38.4	NA	2.89	NA	1.5
11/24/97	04/30/98	Orion Capital Corp./Strickland Insurance Group, Inc.	40.5	9.4	NA	11.5	NA	2.70	1.1
10/16/97	2/12/98	Hartford Financial Services Group/Omni Insurance Group	184.7	0.0	34.8	NM	3.36	5.02	1.4

17

5/18/98	11/12/98	Nationwide Mutual Insurance Company/Allied Group, Inc.	1,521.8	127.7	26.0		25.2		3.77		4.05		2.8
11/03/98	1/29/99	Commerce Group Inc./Automobile Club Insurance Co. from American Automobile Association	78.5	0.0	NA		9.1		NA		0.96		0.8
1/11/99	4/8/99	American Finacial Group, Inc./Worldwide Insurance Co. (Aegon N.V.)	160.0	0.0	NA		13.0		1.17		1.89		1.3
5/11/99	9/1/99	Millers American Group Inc./Phoenix Indemnity Insurance Co. Acceptance Insurance Cos.	25.0	0.0	NA		28.2		NA		1.65		1.8
3/17/99	9/24/99	Motor Club of America/North East Insurance Co.	10.5	0.0	NM		NM		1.11		1.77		0.8
10/25/00	6/1/01	State Automobile Mutual Insurance Company/Meridian Insurance Company	235.1	7.0	NM		35.8		1.79		1.73		1.1
1/4/00	5/1/00	Prudential Insurance Company of America/St. Paul Companies	200.0	0.0	NA		NA		0.87		NA		NA
10/31/00	4/10/01	American National Insurance/ Farm Family Holdings Inc.	278.9	0.0	8.9		12.6		1.30		1.15		NA
2/27/02	4/5/02	Kingsway Finl Services Inc./ American Country Holdings Inc.	24.0	10.8	NM		NM		0.73		0.94		0.5
			Average		22.9	x	17.8	x	1.94	x	2.03	x	1.1	x
			Median		21.5		18.2		1.94		1.75		1.0
			High		38.4		35.8		3.77		5.02		2.8
			Low		8.9		6.5		0.73		0.89		0.4
			Deal Multiples		13.7		20.9		1.19		2.42		1.3

Source: SNL Database, SEC Filings, Press Releases

18

Minority Buy-out Acquisition Premiums

•

Raymond James analyzed 19 merger and acquisition transactions with a deal value in excess of $10 million, from March 2001 through February 2002, in which a majority owner purchased the remaining outstanding shares belonging to the minority shareholders.



•

The acquisition premium is calculated based on the announced purchase price compared to the seller's average closing stock price over the 20 trading-days prior to announcement. The results are shown below.

Announce Date	Buyer	Seller	Acquisition Premium		Majority Ownership Before Acquisition
05/14/01	Seneca Investments LLC	Agency.com Inc	69.4	%	65.7	%
05/23/01	Electronic Data Systems Corp	Unigraphics Solutions Inc	71.8	%	86.0	%
06/04/01	Liberty Mutual Insurance	Liberty Financial Cos Inc	(0.6	)%	70.5	%
08/21/01	Thermo Electron Corp	Spectra-Physics Inc	(4.3	)%	80.0	%
08/22/01	Berkshire Hathaway Inc	Homeservices.com Inc	38.8	%	83.5	%
09/13/01	MRV Communications Inc	Luminent Inc	(25.1	)%	92.3	%
10/01/01	Management Group	NCH Corp	25.7	%	57.0	%
10/05/01	MCSi Inc	Zengine Inc	2.2	%	58.5	%
10/08/01	Investor Group	Blimpie International Inc	85.4	%	58.0	%
10/17/01	Management Group	Market America Inc	83.7	%	77.0	%
10/23/01	American Realty Investors Inc	Transcontinental Realty Inv	49.6	%	64.5	%
10/23/01	American Realty Investors Inc	Income OPP Realty Investors	23.1	%	59.9	%
11/07/01	Aquila Inc	Aquila Inc/Old	(6.3	)%	80.0	%
11/16/01	Private Investor	Ugly Duckling Corp	50.2	%	56.0	%
02/01/02	American Real Estate Partners LP	Stratosphere Corp	13.0	%	51.0	%
02/04/02	Ltd Inc/The	Intimate Brands Inc	20.1	%	84.0	%
02/13/02	Management buyout group	Deltek Systems Inc	33.0	%	56.7	%
02/15/02	XCEL Energy Inc	NRG Energy Inc	1.0	%	74.0	%
02/19/02	Sabre Holdings Corp	Travelocity.com	27.1	%	66.1	%
		High	85.4	%	92.3	%
		Median	25.7	%	66.1	%
		Average	29.4	%	69.5	%
		Low	(25.1	)%	51.0	%
		Deal Mulitples	29.1	%(1)	83.0	%

(1)

Based on the average closing price of MEEMIC common stock over the 20 trading-days prior to and including 3/15/02, of $22.46 per share compared to the Merger Consideration of $29.00 per share.

Source: Bloomberg L.P.

19

DISCOUNTED CASH FLOW ANALYSIS

Overview

•

Discounted Cash Flow consists of two parts. The first calculates the present value of a stream of future cash flows by applying a range of discount rates. Raymond James determined this range of rates by analyzing the WACC for MEEMIC and its comparable companies. Based on adjusted asset Betas for the comparable companies ranging from 0.46 to 1.04, a risk-free rate of 4.7% and an expected risk premium of 11.1%, Raymond James judgmentally determined the range of applicable discount rates to fall between 12% and 16%.

			Equity Beta Range(1)
			0.46		0.68		1.04
Cost of Debt (Kd) (Marginal cost of debt * (1- tax rate))
	Marginal Cost of Debt(2)		8.5	%	8.5	%	8.5	%
	Tax Rate		40.0	%	40.0	%	40.0	%
		Kd	5.1	%	5.1	%	5.1	%
	Debt/Market Capitalization(3)		0.0	%	0.0	%	0.0	%
	Weighted Cost of Debt		0.0	%	0.0	%	0.0	%
Cost of Equity (Ke) (Risk Free Rate + (Beta * Expected Risk Premium))
	Risk Free Rate(4)		4.7	%	4.7	%	4.7	%
	Beta		0.46		0.68		1.04
	Expected Risk Premium(5)		11.1	%	11.1	%	11.1	%
		Ke	9.8	%	12.2	%	16.2	%
	1—Debt/Market Capitalization		100.0	%	100.0	%	100.0	%
	Weighted Cost of Equity		9.8	%	12.2	%	16.2	%
Weighted Average Cost of Capital			9.8	%	12.2	%	16.2	%

(1)

Asset Betas derived from Bloomberg. Range is low, median and high for comp group.

(2)

Cost of Debt assumes interest of 8.5% based on estimated long-term debt costs.

(3)

MEEMIC Debt/Market Capitalization.

(4)

Based on five-year Treasury Bond yield as of April 2002.

(5)

Based on Ibbotson Associates study of micro-capitalization (below $269 million) equity returns over the period from 1926 to 2001.

20

•

The second part calculates the present value of a terminal value at the end of the fifth year by applying a multiple to net income, and discounting back at the same discount rates.



•

MEEMIC's cash flow is calculated using dividends available at the end of each year after subtracting the additional surplus required to keep a premiums written to surplus ratio of 2X. MEIA's cash flow is equated to net income.



•

The DCF value of cash and investments in the Holding company is assumed to be equal to the current value of the cash.

Per Share value of MEEMIC (Insurance Company)

	Multiple of 2006 Net Income
Discount Rate
	11.0x		12.0x		13.0x		14.0x		15.0x
16%	$	17.26	$	18.35	$	19.44	$	20.52	$	21.61
15%	$	17.91	$	19.04	$	20.18	$	21.32	$	22.45
14%	$	18.59	$	19.78	$	20.96	$	22.15	$	23.34
13%	$	19.31	$	20.55	$	21.79	$	23.03	$	24.27
12%	$	20.06	$	21.36	$	22.65	$	23.95	$	25.25

Per Share value of MEIA

	Multiple of 2006 Net Income
Discount Rate
	11.0x		12.0x		13.0x		14.0x		15.0x
16%	$	6.27	$	6.68	$	7.08	$	7.49	$	7.90
15%	$	6.51	$	6.94	$	7.36	$	7.79	$	8.21
14%	$	6.77	$	7.21	$	7.66	$	8.10	$	8.54
13%	$	7.04	$	7.50	$	7.96	$	8.43	$	8.89
12%	$	7.32	$	7.80	$	8.29	$	8.77	$	9.26

MEEMIC Consolidated

		High		Median		Low
MEEMIC		$	25.25	$	20.96	$	17.26
MEIA			9.26		7.66		6.27
Cash in Holding Company			4.89		4.89		4.89
	Total	$	39.40	$	33.51	$	28.42

21

Summary of Management's Projections—GAAP

	Year Ended December 31,
	2002			2003			2004			2005			2006
Net Premiums Earned	$	145,369		$	155,172		$	164,800		$	172,229		$	181,388
Total Revenues	$	160,859		$	172,655		$	184,397		$	193,827		$	204,959
Net Income(1)	$	17,468		$	19,112		$	20,926		$	22,264		$	23,789
Shareholders' Equity	$	176,364		$	195,658		$	221,550		$	243,381		$	269,903
Net Loss & LAE Ratio		69.5	%		69.5	%		69.6	%		69.8	%		69.8	%
Expense Ratio		25.5	%		25.5	%		25.6	%		26.2	%		26.2	%
Combined Ratio		95.0	%		95.0	%		95.2	%		96.0	%		96.0	%
Investment Yield		6.0	%		6.0	%		6.0	%		6.0	%		6.0	%

(1)

Assumes no amortization of MEIA intangible except for a $75,000 expense in 2002 for the remainder of a $500,000 intangible with a discrete life.

22

QuickLinks

Exhibit 99(c)(3)

Table of Contents
Overview
Valuation
COMPARABLE COMPANY ANALYSIS
M & A TRANSACTIONS ANALYSIS
DISCOUNTED CASH FLOW ANALYSIS