AmCOMP Reports Third Quarter 2006 Financial Results.

NORTH PALM BEACH, Fla. -- AmCOMP Incorporated (Nasdaq:AMCP) today announced results for the third quarter and nine months ended September 30, 2006.

Fred R. Lowe, AmCOMP's Chairman, President and Chief Executive Officer, said: "We are pleased to report another solid quarter with an increase of $2.7 million in third quarter net income as compared to the same quarter in 2005, as well as increases of $2.4 million in net premiums earned and $1.9 million in investment income.

"For the nine month year-over-year periods ended September 30, our growth in net revenues of 8.5%, coupled with a decrease in our expense ratio, contributed to greater profitability as reflected in our 26.2% increase in net income, which we delivered despite a slight increase in our loss and dividend ratios. Year-over-year growth in gross written premiums was satisfactory, particularly in light of the 2006 13.5% rate decrease in Florida, a state which accounts for approximately 40% of our business. Our ROE for the first nine months of 2006 of 19.7% continues to exceed our target. While the price competitiveness in our market has sharpened, we believe we continue to be well positioned as an industry leading provider of value-added services in the workers' compensation industry," Mr. Lowe concluded.

For the third quarter of 2006, net income was $4.3 million, or $0.28 per diluted share, compared to net income of $1.6 million, or $0.17 per diluted share, for the third quarter of 2005. Weighted average diluted shares outstanding were 15,579,000 as of September 30, 2006, compared to 9,563,000 as of September 30, 2005. Total revenue increased 6.0% to $72.6 million in the third quarter of 2006 versus $68.5 million in the prior year's third quarter. Direct premiums written decreased 1.1% to $63.4 million for the three months ended September 30, 2006, from $64.0 million in the comparable period in 2005. Net investment income increased by $1.9 million, or 73.7%, for the same three month period in 2006 over the comparable quarter in 2005.

The net combined ratio, including policyholder dividends for the quarter ended September 30, 2006, was 94.7% compared to 99.9% for the same period in 2005. Loss and loss adjustment expenses for the third quarter of 2006 were $41.2 million versus $38.7 million in the same period in 2005. Policy acquisition expenses were $11.1 million in the third quarter of 2006 compared to $16.3 million in the same quarter of 2005. The $5.2 million decrease in policy acquisition expenses was primarily related to the rate changes in the South Carolina SDTF (Second Disability Trust Fund) assessment. Underwriting and other expenses for the third quarter of 2006 were $9.4 million compared to $8.3 million in the prior year's same quarter.

Net income for the nine months ended September 30, 2006, was $15.3 million, or $1.04 per diluted share, a 26.2% increase compared to $12.1 million, or $1.27 per diluted share, in the first nine months of 2005. Weighted average diluted shares outstanding were 14,692,000 as of September 30, 2006, compared to 9,563,000 as of September 30, 2005. Nine month revenue in 2006 was $215.2 million; an 8.5% increase from revenue of $198.3 million for the first nine months of 2005. For the first nine months of 2006, direct premiums written increased 2.4% to $213.4 million from $208.4 million in the comparable period in 2005. Florida, the largest market, was relatively flat in direct premiums written for the first nine months of 2006 compared to the same period in 2005 despite a 13.5% premium decrease; Texas increased $4.0 million in direct premiums written for the nine month comparable periods; Wisconsin had a $3.6 million increase; while Illinois and North Carolina each increased direct premiums written $2.3 million in the same nine month periods. Partially offsetting decreases in direct premiums written were $5.7 million in Indiana and $2.4 million in Tennessee.

The net combined ratio including policyholder dividends for the nine months ended September 30, 2006, was 93.3%, compared to 92.7% for the same period in 2005. Loss and loss adjustment expenses for the first nine months of 2006 were $119.2 million, versus $108.5 million in the same period in 2005. Total underwriting and other expenses for the first nine months of 2006 were $27.2 million, compared to $23.1 million in the prior year period. Policy acquisition expenses were $34.5 million for the nine months ended September 30, 2006, compared to $38.6 million in the first nine months of 2005.

Our annualized return on equity for the nine months ended September 30, 2006 is 19.7%

After consultation with its independent auditors, AmCOMP is considering whether it may be necessary to restate the balance sheets and cash flow statements included in prior period AmCOMP public filings. Such restatement, if required, would not affect any prior period income statements or statements of changes in stockholders' equity. The restatement under consideration relates to the treatment of checks issued by AmCOMP and not yet presented for payment and would involve their reclassification from a reduction in cash and cash equivalents to a separate liability account. Pending AmCOMP's conclusion, the summary balance sheet customarily included in AmCOMP's earnings releases has been omitted.

On February 10, 2006, AmCOMP completed a public offering of common stock in which the Company sold 6,000,000 primary shares, raising net proceeds of approximately $48.0 million. On February 15, 2006, AmCOMP contributed approximately $43.0 million of the net proceeds from the offering to its insurance company subsidiaries to expand its business in its core markets. Book value per share including accumulated other comprehensive loss was $8.74 per share as of September 30, 2006. Book value per share excluding accumulated other comprehensive loss was $8.90 per share as of September 30, 2006.

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 11 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, November 10, 2006, at 8:00 AM ET, featuring remarks by Fred R. Lowe, Chairman, President and Chief Executive Officer; Debra Ruedisili, Chief Operating Officer and Executive Vice President; and Kumar Gursahaney, Senior Vice President and Chief Financial Officer. The conference call is available via the Company's website and can be accessed by visiting http://ir.amcomp.com/. The dial-in number for the conference call is 913-981-5519. Please call at least five minutes before the scheduled start time.

There will be an audio replay of the call, which will be available starting 11:00 AM ET, November 10th through 11:59 PM ET November 13th, and may be accessed by calling 888-203-1112 and using the pass code 3945738. The conference call webcast will be available on the Company's website for sixty 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, which 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 set forth 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 nine month periods ended September 30, 2006 and 2005 as well as selected balance sheet data as of September 30, 2006 and 2005. The following information is preliminary and unaudited and is subject to change until final results are publicly distributed.

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