After a very rough 2003, East Lansing, Mich.-based medical liability insurer American Physicians Capital Inc. seems to have righted the ship and is finally showing a profit, albeit small.
The company reported net income of $4.5 million, or 52 cents per diluted common share, for the third quarter of 2004. This compares to a net loss of $77.1 million, or $9.03 cents per diluted common share, a year ago. Year-to-date through Sept. 30, the company has generated net income of $13.5 million, or $1.57 per diluted common share, compared to a net loss of $76.9 million or $8.97 per diluted share in 2003.
“We have completed four consecutive quarters of positive financial results and are now a full year past our reserve adjustment taken in the third quarter of 2003,” CEO R. Kevin Clinton said in a statement. “We believe APCapital has made a successful turnaround producing strong financial results and reducing balance sheet risk.
“We are very pleased with the performance of our core medical professional liability line. Year-to-date this line has produced pre-tax income totaling $23.9 million. These positive results reflect many of the business initiatives we have implemented since the beginning of 2002.”
Net premiums earned were up $3.1 million in the third quarter of 2004, or 7.6 percent compared to the third quarter of 2003 and up $11.3 million, or 9.5 percent year-to-date. The increase in premiums was the result of the company’s rate increases in all markets, partially offset by the effects of our exit from the Florida market and a reduced physician count in Kentucky and Ohio.
As of Sept. 30, the insured physician count totaled 9,746 which is down 6.6 percent from the end of last year. This decline was the result of increased price competition in selected segments in our core markets and strict underwriting standards. APCapital said it remains committed to applying strict underwriting standards and adequate pricing.
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