AmCOMP Reports Fourth Quarter and Fiscal Year 2006 Results.

NORTH PALM BEACH, Fla. -- AmCOMP Incorporated (Nasdaq:AMCP) today announced results for the fourth quarter and year ended December 31, 2006.

For the year ended December 31, 2006, net income was $16.6 million, or $1.11 per diluted share, compared to net income of $16.8 million, or $1.76 per diluted share, for the year ended December 31, 2005. Weighted average diluted shares outstanding were 14,931,000 in 2006 compared to 9,562,000 in 2005. Total annual revenue increased 6.2% to $283.9 million in 2006 versus $267.3 million in the prior year.

The net combined ratio for the year ended December 31, 2006, was 95.8% compared to 92.9% for the same period in 2005. Loss and loss adjustment expenses for the year ended December 31, 2006, were $163.7 million versus $143.7 million in the same period in 2005. Total underwriting expenses for the year were $81.7 million in 2006 compared to $86.0 million in the prior year.

For the fourth quarter of 2006, net income was $1.3 million, or $0.08 per diluted share, compared to net income of $4.7 million, or $0.49 per diluted share, for the same period in 2005. Weighted average diluted shares outstanding for the fourth quarter of 2006 were 15,637,000 compared to 9,562,000 for the fourth quarter of 2005. Total revenue for the fourth quarter of 2006 was $68.7 million versus $69.0 million in the comparable period in 2005.

The net combined ratio for the fourth quarter was 103.7% compared to 93.4% for the same period in 2005. Loss and loss adjustment expenses for the fourth quarter 2006 were $44.4 million versus $35.2 million in the same period in 2005. Total underwriting expenses for the fourth quarter were $20.0 million compared to $24.3 million in the prior year period.

Book value per share was $8.93 at December 31, 2006.

Commenting on the Company's 2006 financial results, Debra Ruedisili, AmCOMP's Executive Vice President and Chief Operating Officer, said: "While we produced stellar results throughout the first three quarters of the year, we were unable to maintain our momentum in the fourth quarter of the year, which was adversely impacted by four catastrophic losses totaling $8.0 million pre-tax including IBNR as well as an exceedingly competitive marketplace with significant pricing pressure.

"We are disappointed with our fourth quarter and full-year results but remain confident in our overall business model. Despite this single quarter disappointment, our annualized average return on equity was 15.7% as of year-end 2006, which is higher than our industry's average. In 2007, we will continue to focus on producing consistent underwriting profits and we look forward to successfully executing our strategy," Ms. Ruedisili concluded.

About AmCOMP

With roots dating back to 1982, AmCOMP Incorporated is an insurance holding company whose wholly owned subsidiaries, AmCOMP Preferred and AmCOMP Assurance, are mono-line workers' compensation insurers with products that focus on value-added services to policyholders. Currently marketing insurance policies in 15 core states and targeting small to mid-sized employers in a variety of industries, AmCOMP distributes its products through independent agencies.

Conference Call

The Company will host a conference call on Friday, March 2, 2007, at 8:00 AM ET, featuring remarks by Debra Ruedisili, Executive Vice President and Chief Operating Officer, and Kumar Gursahaney, Senior Vice President, Chief Financial Officer and Treasurer. The conference call is available via webcast on the Company's website and can be accessed by visiting http://ir.amcomp.com/eventdetail.cfm?eventid=35104. The dial-in number for the conference call is 913-981-5535. Please call at least five minutes before the scheduled start time.

There will be an audio reply of the call, which will be available starting 11:00 AM ET on March 2nd through 11:59 PM ET March 5, 2007, and may be accessed by calling 888-203-1112 and using the pass code 4317750. The conference call webcast will be available on the Company's website for 60 days.

Forward-looking Statements 

Statements made in this press release, including those about the Company's financial condition and results of operations and about its future plans and objectives that are not based on historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "believe," "expect," "plans," "intend," "project," "estimate," "may," "should," "will," "continue," "potential," "forecast" and "anticipate" and similar expressions identify forward-looking statements. Any such statements involve known and unknown risks, uncertainties and other factors, including those set forth under the heading "Risk Factors" in the Company's filings with the Securities and Exchange Commission. Such factors may cause AmCOMP's actual performance, condition and achievements to be materially different than any future performance, condition and achievement discussed in this press release. All subsequent written and oral forward-looking statements attributable to us or individuals acting on our behalf are expressly qualified in their entirety by these cautionary statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Set forth in the tables below are summary results of operations for the three month and twelve month periods ended December 31, 2006 and 2005, as well as selected balance sheet data as of December 31, 2006 and 2005. The following information is preliminary and unaudited and is subject to change until final results are publicly distributed. The Company currently expects to file its audited consolidated financial statements with the Securities and Exchange Commission as part of its annual report on Form 10-K in a timely fashion on or before March 31, 2006.

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