A.M. Best Affirms and Assigns Ratings to FPIC Insurance Group, Inc.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of B++ (Very Good) and assigned issuer credit ratings (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "bbb+" to 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. (FPIC) and its four pooled members. Concurrently, A.M. Best has assigned an ICR of "bb+" to FPIC Insurance Group, Inc. (FPIC Insurance) (NASDAQ NASDAQ
in full National Association of Securities Dealers Automated Quotations
U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : FPIC) (both of Jacksonville, FL) and affirmed its various indicative debt ratings. All ratings have a stable outlook.
The financial strength rating of FPIC and its subsidiaries reflects supportive risk-adjusted capitalization relative to current rating levels, favorable pretax operating performance in three consecutive years and a strong competitive position within the medical malpractice Improper, unskilled, or negligent treatment of a patient by a physician, dentist, nurse, pharmacist, or other health care professional. insurance markets of Florida and Missouri. Additionally, FPIC's holding company's financial flexibility is favorable as financial leverage is modest at 17.3% and interest coverage ratios are strong due to favorable earnings from both insurance and non-insurance operations. FPIC's insurance operations have benefited from significant rate increases and tighter underwriting standards.
Somewhat offsetting these strengths are FPIC's elevated underwriting leverage measures and past reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. dependence attributed to a canceled finite quota share reinsurance agreement. Additionally, A.M. Best notes upward development in loss and loss adjustment expense reserves in older accident years and the reallocation Noun 1. reallocation - a share that has been allocated again
allocation, allotment - a share set aside for a specific purpose
2. reallocation of reserves among accident years in calendar year 2004. On an overall 2004 calendar year basis, this upward development in the older years is largely offset by downward loss reserve development in the recent two accident years. Despite generating three consecutive years of positive operating results, FPIC's five-year average earnings are at break-even levels due to unfavorable results in years prior to 2002.
The rating outlook reflects FPIC's supportive capitalization in light of the prior accident year loss reserve development and the enhanced financial flexibility at FPIC Insurance. Prospectively, A.M. Best will monitor the group's loss reserve position and ability to demonstrate sustainable operating profitability.
The financial strength rating of B++ (Very Good) has been affirmed and issuer credit ratings of "bbb+" have been assigned to FPIC Insurance Group, Inc. and its following subsidiaries:
--First Professionals Insurance Company Inc.
--Anesthesiologists Professional Assurance Company
--Interlex Insurance Company
--Intermed Insurance Company
The issuer credit rating of "bb+" has been assigned to FPIC Insurance Group, Inc.
The following indicative debt ratings on securities available under shelf registration have been affirmed:
FPIC Insurance Group, Inc.--
--bb+" on senior unsecured debt Unsecured debt
Debt that does not identify specific assets that the debtholder is entitled to in case of default.
--"bb" on subordinated debt Subordinated Debt
A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan".
--"bb-" on preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders.
Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate.
FPIC Capital Statutory Trust IV and V--
--"bb-" on trust preferred securities
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A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com.