A.M. Best Affirms A- Rating On FPIC Insurance Group.OLDWICK, N.J.--(BUSINESS WIRE)--Nov. 9, 1999-- A.M. Best Co. today affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. its A- (Excellent) rating on FPIC FPIC First Professionals Insurance Company (Jacksonville, FL) FPIC Field Programmable Interconnect FPIC Federal Partnership for Interoperable Communications FPIC Field Programmable Interconnect Chip Insurance Group Inc., Jacksonville, Fla. The rating applies to the group's four inter-company pool members, led by Florida Physicians Insurance Co. (FPIC). The other pool members are Anesthesiologists Professional Assurance Co., Intermed Insurance Co. and Interlex Insurance Co. The rating reflects the group's excellent profitability, sound overall financial condition and leadership position in its principal market. The group specializes in providing medical professional liability coverages in Florida, with an estimated 18% market share based on direct malpractice malpractice, failure to provide professional services with the skill usually exhibited by responsible and careful members of the profession, resulting in injury, loss, or damage to the party contracting those services. premiums written. Through recent expansion and acquisition activity, the group has broadened its reach into new territories and products, and its core Florida business now represents approximately 80% of total direct business, compared with nearly 98% in 1997. The group benefits from its ability to offer a wide range of products and services to the medical community through its network of subsidiaries. Offsetting these factors is the group's strong premium growth in recent years, despite the abundance Abundance See also Fertility. Amalthea’s horn horn of Zeus’s nurse-goat which became a cornucopia. [Gk. Myth.: Walsh Classical, 19] cornucopia conical receptacle which symbolizes abundance. [Rom. Myth. of competition, integration and financial performance issues related to the acquisition of a significant amount of new business. Uncertainties related to managed-care developments is another offsetting factor. Insured counts have increased substantially over the past three years, partly as a result of management's efforts to strengthen various relationships, acquire existing books of business and expand its product line into hospitals, managed-care entities and other lines of business. Though some of the business has provided good economic diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. , other new business has not proved as successful as FPIC's traditional writings. For example, as part of the diversification plan, FPIC agreed to underwrite To insure; to sell an issue of stocks and bonds or to guarantee the purchase of unsold stocks and bonds after a public issue. The word underwrite has two meanings. and administer the Florida Dental Association The Florida Dental Association (also abbreviated as FDA) is a organization of dentists in Florida, USA, and it was established in 1884. Currently, there are approximately 7,000 members in the FDA. External links
The amount of the health business compared to FPIC's overall book is small; however, loss development on this piece has emerged adversely and more rapidly than anticipated. In response, management has worked with the Florida Dental Association and the Department of Insurance to address the premium rate level and will look to substantially reduce its retained risk. In the interim, however, the book continues to be a drag on Verb 1. drag on - last unnecessarily long drag out last, endure - persist for a specified period of time; "The bad weather lasted for three days" 2. earnings. A.M. Best will continue to monitor this development and the group's overall growth and underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. results to ensure that the new and acquired business develops in a manner consistent with the historically profitable book. The rating also recognizes the recent developments related to FPIC's financial flexibility and market profile. FPIC Insurance Group Inc. lost more than half of its market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. following its 1998 second-quarter earnings announcement. This volatility limits the group's strategic flexibility and ability to use stock in potential acquisitions or business combinations. Furthermore, changes have been made in senior management, and time will be needed to re-establish continuity amid FPIC's operations. Due to these issues and the general uncertainty related to market conditions, the stable rating outlook has been removed. A.M. Best Co., established in 1899, is the world's oldest and most widely recognized insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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