Q2 Net Income Rises for FPIC

FPIC Insurance Group Inc. of Jacksonville, Fla., reported net income of $3.5 million, or $0.37 per diluted share, for the second quarter 2003, compared to net income of $2.6 million, or $0.27 per diluted share, for the second quarter 2002.

The company, which provides professional liability insurance for physicians, dentists and other healthcare providers, said net income was $6.3 million, or $0.66 per diluted share, for the six months ended June 30, 2003, an increase of $30.4 million, or $3.20 per diluted share, when compared with a net loss of ($24.1) million, or ($2.54) per diluted share, for the six months ended June 30, 2002.

During the first six months of 2002, the adoption of Financial Accounting Standard No. (FAS) 142 “Goodwill and Other Intangible Assets” resulted in a one-time, non-cash charge that reduced the carrying value of goodwill by $29.6 million, net of income tax benefit. Net income before cumulative effect of accounting change was $5.5 million, or $0.57 per diluted share, for the six months ended June 30, 2002.

Operating earnings were $3.2 million, or $0.34 per diluted share, for the second quarter 2003, up from operating earnings of $2.8 million, or $0.30 per diluted share, for the second quarter 2002. For the six months ended June 30, 2003, operating earnings were $5.9 million, or $0.62 per diluted share, up from operating earnings of $5.4 million, or $0.57 per diluted share, for the six months ended June 30, 2002.

The company said it had increased revenues and profits from reciprocal management and third-party administration segments in the second quarter and it also saw increases in assets, reserves, tangible book value and consolidated statutory surplus .