American Physicians Capital Notes Unwinding of Recent Trust Preferred Securities Issuance

November 24, 2003

Michigan-based American Physicians Capital, Inc. (APCapital) announced that it has unwound its participation in the Oct. 29, 2003 trust preferred pool transaction. As a result of this action, the company is eliminating $20.6 million of debt from its balance sheet and is improving its debt to equity ratio from 28 percent to 18 percent.

“Following our announcement of the significant losses earlier this month, this action, coupled with our previous announcement to exit from the healthcare and workers’ compensation businesses, keeps APCapital as a strong and financially secure company,” stated Chief Financial Officer Frank Freund.

APCapital has $204 million of shareholders’ equity as of Sept. 30, 2003, and $161 million in statutory capital, neither of which are affected by this redemption.

After redeeming the debt securities, the company will have $28 million of funds available at the holding company to support its statutory surplus. Net premiums written for professional liability for the last 12 months totaled $163 million.

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