A.M. Best Comments on FPIC Insurance Group, Inc.'s Planned Acquisition of Advocate, MD Financial Group, Inc.

OLDWICK, N.J. -- A.M. Best Co. has commented that the financial strength rating of A- (Excellent) and issuer credit ratings (ICR) of "a-" of FPIC Insurance Group (Jacksonville, FL) and its members are unchanged. Concurrently, A.M. Best has commented that the ICR of "bbb-" of FPIC Insurance Group's parent, FPIC Insurance Group, Inc. (FPIC) (Jacksonville, FL) [NYSE: FPIC] also is unchanged following the announcement that FPIC has entered into a definitive agreement to acquire Advocate, MD Financial Group, Inc. (Advocate, MD) (Nevada) its subsidiary, Advocate, MD Insurance of the Southwest, Inc. (Austin, TX) and Advocate, MD's other non-insurance subsidiary.

Under the terms of the agreement, FPIC will pay Advocate, MD $33.6 million in cash at the closing of the transaction and up to $12.0 million in additional consideration depending on the performance of Advocate, MD during the two-year period following the transaction.

FPIC intends to operate Advocate, MD as an independent subsidiary with its current management team in Texas, where Advocate, MD's primary subsidiary is the fourth-largest provider of medical professional liability (MPL) insurance. The company also writes MPL insurance in Mississippi.

The transaction, which is subject to regulatory approval by the Texas Insurance Commissioner and the shareholders of Advocate, MD, is expected to close prior to the end of this year.

For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.