FPIC Group Unveils Q3 Numbers

Florida-based FPIC Insurance Group, Inc. reported net income of $5.4 million, or $0.55 per diluted share, for the third quarter 2003, compared to net income of $4.4 million, or $0.47 per diluted share, for the third quarter 2002.

Net income was $11.6 million, or $1.22 per diluted share, for the nine months ended Sept. 30, 2003, an increase of $31.3 million, or $3.30 per diluted share, when compared with a net loss of ($19.7) million, or ($2.08) per diluted share, for the nine months ended Sept. 30, 2002. During the first nine months of 2002, the adoption of Financial Accounting Standard No. 142 “Goodwill and Other Intangible Assets” resulted in a one-time, non-cash charge of $29.6 million, net of income taxes. Income before the cumulative effect of accounting change was $9.9 million, or $1.04 per diluted share, for the nine months ended Sept. 30, 2002.

“The third quarter was another strong quarter for us,” stated John Byers, president and CEO, “as positive operating earnings continued for the seventh consecutive quarter.” Commenting on operational performance, Byers said, “Operational momentum continues as we maintain our focus on pricing, selective underwriting, strong claims management and streamlining the management structure in our insurance segment.” Further commenting on financial performance, Byers added, “Along with the results from our insurance operations, fee and commission income from our reciprocal management segment have been key drivers of our financial performance throughout 2003. We are pleased with our progress,” stated Byers.

Operating earnings were $4.6 million, or $0.47 per diluted share, for the third quarter 2003, up from operating earnings of $3.2 million, or $0.34 per diluted share, for the third quarter 2002. For the nine months ended Sept. 30, 2003, operating earnings were $10.4 million, or $1.09 per diluted share, up from operating earnings of $8.6 million, or $0.91 per diluted share, for the nine months ended Sept. 30, 2002.