ROSLYN, N.Y.--(BUSINESS WIRE)--
Financial, Underwriting and Operational Turnaround Began in July 2017
Physicians’ Reciprocal Insurers (“PRI”), the second largest admitted medical malpractice insurer in New York State, today announced that the organizational restructuring that began in July 2017 has resulted in a $153 million improvement to its surplus through March 31, 2019. Over the past seven quarters, PRI has fundamentally changed the way it does business through greater financial discipline and a re-underwriting of its entire book of business, focusing on the profitability and quality of the business.
PRI has made significant changes to improve the overall operations of the Company, including considerable technology and web-based upgrades. Additionally, PRI has seen significant improvements in underwriting, claims handling and general operations, all of which have contributed to a surplus improvement since the reorganization began in July 2017.
Financial results since PRIMMA took over from July 1, 2017 through March 31, 2019, reflect the positive restructuring efforts, including:
- Net income of $155.8 million for this 21-month period ($23.3 million for the six months ended December 31, 2017, $120.7 million for the year ended December 31, 2018 and $11.8 million for the period ended March 31, 2019).
- Overall surplus improvement of $153 million or 45% for this 21-month period from ($341 million) at July 1, 2017 to ($188 million) at March 31, 2019, reflecting improved underwriting results and the prominent effect of technology enhancements enabling our insureds and brokers a much more robust and enriched platform to service their needs.
“We are extremely proud of the dramatic turnaround that PRI has achieved in less than two years,” said Bruce Shulan, CEO of PRIMMA and Chief Restructuring Officer of PRI. “Through operational improvements to deliver greater efficiencies, implementing forward-looking business practices, and most importantly, continued focus on our exemplary service to our insureds, we strive towards our goal to be the premier medical malpractice insurance carrier in New York State.”
On the operations side, PRI installed a new, wholly-owned attorney-in-fact, PRIMMA, and invested in several technology upgrades to better serve insureds. The company’s new “PRI Connect” tools include electronic filing of applications, instant online price quotes, and online claims servicing.
“On behalf of the Board of Governors of PRI, I thank Bruce and the restructuring team for their contributions to the turnaround,” added Dr. Barry Fisher, Chairman of PRI. “With streamlined and enhanced operations, stronger broker relationships, and a renewed commitment to our insureds, we are confident that PRI can continue to be a leader in New York medical malpractice insurance, as we have been for more than 35 years.”
PRI Summary Financial Information ($ Millions)
|Balance Sheet as of Period End:||31-Dec-17||31-Dec-18||31-Mar-19|
|Cash and Investments||$912.1||$794.8||$784.8|
|Total Admitted Assets||$1,129.2||$1,009.1||$994.2|
|Loss & LAE Reserves||$1,415.4||$1,219.0||$1,196.6|
About Physicians' Reciprocal Insurers
Physicians' Reciprocal Insurers (PRI), is the second largest admitted medical malpractice insurer in New York State and one of the Top Ten insurers in the country providing professional liability insurance to physicians and medical facilities. Founded in 1982 by doctors to serve the healthcare industry and its professionals, PRI continues to be a leader in providing coverage and innovative products that anticipate the needs and further the financial goals of policyholders, and offers key services to help improve the liability environment for doctors, chiropractors, dentists and healthcare facilities.