Florida-based FPIC Insurance Group Inc. has reported net income of $10.3 million, or $0.97 per diluted share, for the second quarter 2005, up from net income of $6.5 million, or $0.62 per diluted share, for the second quarter 2004. Operating earnings increased to $8.5 million, or $0.80 per diluted share, for the second quarter 2005, up from operating earnings of $5.6 million, or $0.54 per diluted share, for the second quarter 2004.
For the six months ended June 30, 2005, net income was $17.1 million, or $1.61 per diluted share, up from net income of $13.5 million, or $1.30 per diluted share, for the six months ended June 30, 2004. For the six months ended June 30, 2005, operating earnings increased to $15.0 million, or $1.41 per diluted share, up from operating earnings of $10.8 million, or $1.05 per diluted share, for the six months ended June 30, 2004.
“The second quarter was a strong quarter for us,” said John Byers, president and CEO. “We delivered significant growth in revenue and profits, while continuing to grow our balance sheet. We have successfully sustained in 2005 the strong momentum that we achieved in 2004.”
Financial Highlights: Second Quarter 2005 (as compared to second quarter 2004 unless otherwise indicated)
– Consolidated operating earnings up 51%;
– Fourteen consecutive quarters of positive consolidated operating earnings;
– Net premiums earned up 70% as the result of reduction of reinsurance and pricing improvements;
– Combined ratio down 1% to 89% from 90%; overall underwriting margin improved $2.9 million, or 95%;
– Twenty-six consecutive quarters of positive operating earnings from insurance management operations;
– Insurance management fees up 14% due to revenue growth of managed carriers;
– Increase in assets, reserves, shareholders’ equity and statutory surplus since year-end;
– Book value per share and tangible book value per share increased since year-end;
– 15% return on average equity for the trailing twelve months.
Operational Highlights: Second Quarter 2005
– Continued targeted market focus;
– Policyholder retention in Florida remained strong at over 90%;
– Built-in revenue growth resulting from reduction of reinsurance;
– Solid underwriting results;
– Overall claims results consistent with expectations; continued favorable trends in the number of newly reported claims and incidents;
– Over $34 million of cash flow generated by operations;
– Completed divestiture of third party administration operations.
FPIC Insurance Group Inc., through its subsidiary companies, is a provider of medical professional liability insurance for physicians, dentists and other healthcare providers, and a provider of insurance management services to other medical professional liability insurance carriers.
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