FPIC Insurance Group, Inc. Reports Recent Developments.

Business Editors

JACKSONVILLE, Fla.--(BUSINESS WIRE)--Dec. 8, 2000

FPIC Insurance Group, Inc. (Nasdaq:FPIC) today reported stock repurchases and other recent developments, including the status of filling a new directorship, reaffirmation by Standard & Poor's of the `BBBpi' financial strength rating on its insurance subsidiaries, and clarification of certain third quarter supplemental information provided for analysts and others.

Stock Repurchases

The Company reported that within the past week it has repurchased 113,000 shares of its common stock on the open market under its previously announced stock repurchase programs. John R. Byers, President and Chief Executive Officer of the Company, stated, "We believe that at the current share price our stock is undervalued and continues to be an excellent long-term investment. We have, therefore, made the repurchases reported today. As previously announced, we will continue to analyze our capital structure and the share price of our stock to determine whether to make additional repurchases." Since the commencement of the Company's stock repurchase programs, the Company has repurchased 853,500 shares at a cost of approximately $16.0 million. A total of 387,000 shares remain available to be repurchased under the programs. Shares may be repurchased, under the Company's stock repurchase programs, at such times and in such amounts as management deems appropriate.

Status of Filling a New Directorship

The Company also reported that it has begun the process of seeking an additional director to fill a new directorship on its Board. As previously disclosed, the Company is seeking to add directors for the purpose of gaining additional areas of expertise on its board. Robert O. Baratta, M.D., Chairman of the Board of the Company, stated, "We have made significant progress towards our ongoing corporate governance initiatives, which include seeking additional directors. We hope to complete the selection process for one of these directors in the very near future."

Standard & Poor's Rating Reaffirmation

The Company also noted that Standard & Poor's has recently reaffirmed the `BBBpi' financial strength rating of the Company's insurance subsidiaries, citing, among other things, the Company's strong capitalization and its operating performance. Standard & Poor's publicly announced its affirmation in a press release dated November 27, 2000. Standard & Poor's rating applies to the Company's insurance subsidiaries, including Florida Physicians Insurance Company, Inc., Anesthesiologists' Professional Assurance Company, Interlex Insurance Company, and Intermed Insurance Company. Regarding Standard & Poor's rating affirmation, Mr. Byers stated, "We are pleased that Standard & Poor's has affirmed our `BBBpi' rating, and when viewed in conjunction with the announcement on October 23, 2000 that A. M. Best Company reaffirmed our group rating of A- (Excellent) on each of these subsidiaries, we believe our commitment to maintaining the financial strength of our Companies has been recognized." Mr. Byers further stated, "Although the markets and the industries in which our businesses operate are changing rapidly, we have used the year 2000 to position our Company to adapt to these changes and remain successful. After several years of strategic growth through acquisitions, our focus this year has been adding value to our Company through the expertise of our people, the integration of our operations and the expansion of our initiatives in the core businesses we serve."

Clarification of Third Quarter Supplemental Data

In response to questions from analysts and others, the Company also reported the following information on consolidated net paid losses and loss adjustment expenses ("LAE") as a clarification to the supplemental information accompanying its third quarter 2000 earnings release issued November 7, 2000. Such information has been modified so that net paid LAE includes both allocated loss adjustment expenses (ALAE) and unallocated loss adjustment expenses (ULAE). The information presented below supercedes the supplemental information provided by the Company in its third quarter 2000 earnings release presented in the line, "Net paid losses and LAE on professional liability claims only," under the subheading, "Selected direct claim information, excluding group A&H." All amounts are net of reinsurance recoveries.

                                                Unaudited
                                            ($ in Thousands)


                              Three Months Ended    Nine Months Ended
                              9/30/00    9/30/99    9/30/00   9/30/99

Consolidated net paid losses
 and LAE on professional
 liability claims only       $ 20,798     14,612    63,957    55,212

Kim D. Thorpe, Executive Vice President and Chief Financial Officer, stated, "The supplemental information in this release is primarily for the benefit of our analysts and others who maintain financial models of our Company, and does not, in any way, affect our third quarter earnings as previously reported. We substantially revised our presentation of supplemental information during the third quarter in recognition of SEC Regulation FD and in response to requests from our analysts and others, and we've received very positive feedback. We are absolutely committed to continuously reviewing, and improving whenever appropriate, the information we publish for investors and others who follow our Company."

Corporate profile

FPIC Insurance Group, Inc., through its subsidiary companies, is a leading provider of professional liability insurance for physicians, dentists, hospitals, and other healthcare providers, and attorneys, primarily in Florida and Missouri. In addition, it provides management and administrative services to Physicians Reciprocal Insurers, a New York medical professional liability insurance reciprocal, and third party administrative services both within and outside the healthcare industry. Its insurance subsidiaries, Florida Physicians Insurance Company, Inc., Anesthesiologists' Professional Assurance Company, Intermed Insurance Company and Interlex Insurance Company, are rated A- (Excellent) by A. M. Best.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

Investors are cautioned that certain statements contained in this press release are forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by words such as, but not limited to, "believe," "expect," "intend," "anticipate," "estimate," and other analogous expressions, and are based upon the Company's estimates and anticipation of future events that are subject to certain risks and uncertainties that could cause actual results to vary materially from expected results described in the forward-looking statements. The Company's expectations regarding earnings, losses, the retention of current business, expansion of product lines, and development of business in new geographical areas depend on a variety of factors, including economic, competitive, regulatory and market conditions that may be beyond the Company's control and are thus difficult or impossible to predict. In view of the many uncertainties inherent in forward-looking statements, the inclusion of such information should not be taken as a representation by the Company or any person associated with the Company that the Company's objectives or plans will be realized. The assumptions underlying certain forward-looking statements are that the Company will continue to (i) profitably price its insurance products, (ii) maintain its underwriting standards, (iii) market its insurance products competitively, (iv) maintain its successful handling of claims, (v) retain existing agents and management personnel and (vi) reserve adequately for losses and loss adjustment expenses. Additionally, the primary risk in maintaining adequate reserves is unexpected changes in the frequency or severity of reported claims, particularly adverse development that may occur during the last three report years.

For all of your investor information needs, please visit our Company web site: http//www.fpic.com. Electronic distribution of materials is now available.