FPIC Group Pleased with Financial Numbers

Florida-based FPIC Insurance Group, Inc. reported operating earnings of $3.4 million, or $0.36 per diluted share, for the fourth quarter 2002, up from an operating loss of ($4.0) million, or ($0.43) per diluted share, for the fourth quarter 2001.

For the year ended Dec. 31, 2002, operating earnings were $12.0 million, or $1.27 per diluted share, up from operating earnings of $2.1 million, or $0.22 per diluted share, for the year ended Dec. 31, 2001.

The company reported net income of $5.0 million, or $0.53 per diluted share, for the fourth quarter 2002, compared to a net loss of ($3.3) million, or ($0.36) per diluted share, for the fourth quarter 2001. Net income for the fourth quarter 2001 included an $8.8 million increase in reserves held for claims from prior years. For the year ended Dec. 31, 2002, the company had a net loss of ($14.7) million, or ($1.56) per diluted share, compared to net income of $2.9 million, or $0.31 per diluted share, for the year ended Dec. 31, 2001.

The net loss for 2002 includes a $29.6 million cumulative effect of accounting change related to the adoption of Financial Accounting Standard No. 142 on goodwill and other intangible assets. Income before the cumulative effect of accounting change was $14.9 million, or $1.58 per diluted share, for the year ended Dec. 31, 2002.

John Byers, president and CEO, noted, “We are extremely pleased to have achieved these financial results. The year 2002 was one of strong financial and operational growth for us. Despite external pressures, we improved profitability and operational efficiencies, and we diligently worked to maintain the strength of our organization. From both a financial and operational perspective, our results were reflective of that commitment.”