In a trend echoed by many small business insurance providers, FPIC Insurance Group Inc. recently released an earnings statement that documented a net decline of 18.5 per cent in income for the second quarter of 2010. Profits for the company topped only 7 and a half million dollars(£4.8 million).
The US-based professional liability insurance carrier specialising in medical insurance reported that for the quarter-year ending 20 June, earnings were down 14.6 per cent. FPIC, a publicly held corporation traded on the NASDAQ, reported $7 million (£4.5 million) this year, compared with the $8.2m (£5.25 million) it reported the same time period the previous year.
Business liability insurance policyholders, which excludes alternative risk arrangement policyholders, rose to just over 18,100 by 30 June of this year, an increase of 29 per cent. The figure from last year was just under 14,000 policyholders. The growth can be attributed to the acquisition of medical professional indemnity firm Advocate MD, which closed its doors in November of last year; exclusive of the Advocate MD numbers swelling FPIC’s ranks, their growth would only be 2 per cent in regards to professional liability policyholders.
Advocate MD’s acquisition drove net premiums for the quarter up by 20 per cent; again, outside of the deal with Advocate MD, FPIC’s written net premiums only rose by 4 per cent.
President and chief executive officer of FPIC John R. Byers was quick to comment on the company’s profit margins, stating that they additionally maintained that, per growth of each share, their book value remained solid. Mr Byers also declared that FPIC remained an organisation that was financially strong as well as well-capitalised, and was dedicated to their commitment to drive shareholder value in a sustainable fashion.
When FPIC reported its earnings after the close of day for the NASDAQ recently, its shares were currently being traded at $29.88 (£19.18), which rose only nominally in trading activities occurring after the market was closed. Over the last 52 weeks, the stock fluctuated between a high of $30.74 (£19.71) to a low of $20.79 (£13.33).