Michigan-based American Physicians Capital, Inc. announced that it is continuing with its plan to exit the workers’ compensation business.
The company has determined that non-renewing its workers’ compensation policies is the most effective way to exit the business. As a result, APCapital has ceased discussions to sell its workers’ compensation policy renewals under the terms of a previously announced non-binding letter of intent. The company is in the process of fulfilling its notification requirements to policyholders so that it may begin non-renewing workers’ compensation policies which expire beginning in February 2004, and it plans to cease writing any new workers’ comp business after June 30, 2004.
APCapital remains in discussions with interested parties on a loss portfolio transfer for its existing workers’ comp loss reserves, as previously announced. The reserves for workers’ comp totaled $68.3 million, $62.4 million net of reinsurance as of Sept. 30, 2003.
For the nine months ended Sept. 30, 2003, workers’ comp direct premiums written totaled $32.9 million, or 16.3% of APCapital’s total premiums written. APCapital wrote workers’ comp in 12 states in 2003, with Minnesota and Michigan producing more than 60 percent of the direct premiums written.
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