ROSLYN, N.Y.--(BUSINESS WIRE)--Physicians’ Reciprocal Insurers (“PRI”), the third largest admitted medical malpractice insurer in New York State, announced its 2019 financial results showing that the dramatic financial turnaround that began in 2017 is continuing without interruption. The impressive performance in 2019—including a $108 million improvement to surplus and net income of $95 million—has further strengthened PRI’s financial condition.
Results for the year ended December 31, 2019 reflect the ongoing positive impact of greater financial discipline and enhancements to PRI’s business operations, including:
- Net underwriting income increased 37% to $94.3 million, up from $68.7 million in 2018.
- Surplus improvement of $108 million to -$96.8 million from -$205.1 million in 2018.
- 16% premium growth of Healthcare Facility business contributed to an overall 1% growth in direct written premiums, excluding New York State pool business.
“Our third straight year of strong financial results is attributable to our focused underwriting and business approach that PRI adopted in July 2017 when PRIMMA management began the turnaround of PRI,” said Bruce Shulan, CEO of PRI and PRIMMA. “The hard work our team has put in since 2017 to build a disciplined, technologically modern and service-oriented business has led to the significant and rapid improvement of PRI’s balance sheet and market presence.”
“Rate instability in the unregulated market has resulted in an increase in new policyholder applications to PRI, which has contributed to the turnaround,” Shulan added.
Since July 2017, PRI has made significant enhancements to operations, 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 more than $244 million in surplus improvement.
PRI Summary Financial Information ($ Millions) |
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Balance Sheet as of Period End: |
31 Dec 19 |
31 Dec 18 |
31 Dec 17 |
30 Jun 17 |
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Cash and Investments |
$725.4 |
$794.8 |
$912.1 |
$936.7 |
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Total Admitted Assets |
$946.2 |
$1,009.1 |
$1,129.2 |
$1,167.6 |
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Loss & LAE Reserves |
$926.6 |
$1,096.6 |
$1,313.3 |
$1,368.0 |
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Total Liabilities |
$1,043.0 |
$1,214.2 |
$1,441.1 |
$1,508.6 |
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Policyholders’ Surplus/(Deficit) |
($96.8) |
($205.1) |
($311.9) |
($341.0) |
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About Physicians' Reciprocal Insurers
Physicians' Reciprocal Insurers (PRI), is the third 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.