FPIC Insurance Group, Inc. Reports On Growth; Unprecedented Market Conditions Resulted In Significant Growth In Policyholder Base and Premiums.

Business Editors

JACKSONVILLE, Fla.--(BUSINESS WIRE)--June 13, 2002

FPIC Insurance Group, Inc. (the "Company") (Nasdaq:FPIC) today reported that market conditions have resulted in significant growth in its professional liability business and unprecedented opportunities for additional growth. Accordingly, the Company is exploring alternatives for increasing current capacity levels.

As of March 31, 2002, the number of policyholders at the Company's professional liability subsidiaries (excluding fronted policies) increased to 15,570, up from 11,353 at March 31, 2001, a 37% increase. Net premiums written for the first quarter of 2002 on this business were $55.9 million, as compared to $30.8 million for the first quarter of 2001, an 81% increase.

John R. Byers, President and Chief Executive Officer, stated, "Significantly improved pricing, increased demand and higher than expected retention have resulted in extraordinary growth over the last twelve months. Almost all of this growth has occurred in our core markets and notwithstanding our continued disciplined underwriting standards. We see excellent opportunities for additional growth in our core markets and, accordingly, we are actively exploring opportunities to expand our capacity to support additional growth."

Mr. Byers continued, "As we consider these alternatives for our Company, we will continue to renew our existing book of business and to accept new insureds joining existing insured groups. With the successful year we are having, we have already exceeded our new business targets for 2002 and were we to continue at the present rate of new business growth, we would exceed the capacity limits for an organization our size. Consequently, we have discontinued accepting applications for new business while we explore alternatives for increasing capacity. Nevertheless, we anticipate that we will continue to experience significant growth through the renewal of our existing book of business, as we believe improved pricing and historically high retention rates will continue."

Mr. Byers also stated, "We notified our agents and brokers of these actions this week to make them aware that the Company is committed to exploring ways to increase our capacity and to working with them to take advantage of the current favorable market conditions."

Safe Harbor Disclosure

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Any written or oral statements made by or on behalf of the Company may include forward-looking statements, which reflect the Company's current views with respect to future events and financial performance. These forward-looking statements are subject to certain uncertainties and other factors that could cause actual results to differ materially from such statements. These uncertainties and other factors (which are described in more detail in documents filed by the Company with the Securities and Exchange Commission) include, but are not limited to, (i) uncertainties relating to government and regulatory policies (such as subjecting the Company to insurance regulation or taxation in additional jurisdictions or amending, revoking or enacting any laws, regulations or treaties affecting the Company's current operations), (ii) the occurrence of insured or reinsured events with a frequency or severity exceeding the Company's estimates, (iii) legal developments, (iv) the uncertainties of the loss reserving process, (v) the actual amount of new and renewal business and market acceptance of expansion plans, (vi) the loss of the services of any of the Company's executive officers, (vii) changing rates of inflation and other economic conditions, (viii) the ability to collect reinsurance recoverables, (ix) the competitive environment in which the Company operates, related trends and associated pricing pressures and developments, (x) the impact of mergers and acquisitions, including the ability to successfully integrate acquired businesses and achieve cost savings, competing demands for the Company's capital and the risk of undisclosed liabilities, (xi) developments in global financial markets that could affect the Company's investment portfolio and financing plans, (xii) risk factors associated with financing and refinancing, including the willingness of credit institutions to provide financing and the availability of credit generally, (xiii) developments in reinsurance markets that could affect the Company's reinsurance program; and (xiv) changes in the Company's financial ratings resulting from one or more of these uncertainties and other factors. The words "believe," "anticipate," "foresee," "estimate," "project," "plan," "expect," "intend," "hope," "should," "will likely result" or "will continue" and variations thereof or similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Corporate Profile

FPIC Insurance Group, Inc., through its subsidiary companies, is a leading provider of professional liability insurance for physicians, dentists, other healthcare providers and attorneys, primarily in Florida and Missouri. In addition, the Company provides reciprocal management and administration services to Physicians' Reciprocal Insurers, the second largest medical professional liability insurance carrier in the state of New York, and third party administration services both within and outside the healthcare industry. Its insurance subsidiaries, First Professionals Insurance Company, Inc., Anesthesiologists Professional Assurance Company, Intermed Insurance Company and Interlex Insurance Company, have an A- (Excellent) group rating from A.M. Best.

For all your investor needs, FPIC is on the Internet at http://www.fpic.com. Got a Tough Question? E-mail us at [e-mail] FPIC: Providing Answers in a Changing Market