ROSLYN, N.Y.--(BUSINESS WIRE)--Physicians’ Reciprocal Insurers (“PRI”) and its wholly owned subsidiary, EmPRO Insurance Company (collectively “the Company”), the third largest admitted medical malpractice insurer in New York State, today announced that it recorded 2 percent earned premium growth of $3.4 million in 2020, along with a net underwriting gain of $40.8 million in 2020. This marks the first year of revenue growth for the Company since its turnaround began in July 2017 when PRIMMA LLC, PRI’s wholly owned Attorney-in-Fact, took over management of the business. In addition, PRI saw a $34.7 million improvement to its surplus in 2020, which accumulates to over $275 million of surplus improvement over the past three and a half years.
“It is incredibly rewarding for us to share these strong financial results in a period when many other insurers are struggling due to losses from COVID-19 and a challenging business environment,” said Bruce Shulan, CEO of PRI and PRIMMA. “After spending the past three years modernizing our operations, strengthening our team and optimizing our business, PRI has successfully transitioned to growth mode, and the market has taken notice.”
Strong Start for EmPRO
PRI achieved this impressive performance despite the adverse impact of the global pandemic and launched EmPRO, a new admitted insurer owned by PRI and administered by PRIMMA. PRI capitalized EmPRO with over $100 million in July 2020, with current PRI insureds transitioning to EmPRO when policies renew, and all new policies being written through EmPRO beginning October 1, 2020. In the fourth quarter of 2020, EmPRO received more new submission flow than PRI received in any prior quarter since 2017, resulting in nearly $25 million of written premium.
PRI’s results for the year ending December 31, 2020 demonstrate the positive impact of re-underwriting the book of business, implementation of new systems and other changes instituted by PRIMMA to transform the business. PRI and EmPRO have successfully transitioned into growth mode, with overall premium growth driven by a 33% increase in healthcare premiums last year.
“Our book of business continues to grow because our insureds know that we offer the best service in the industry, a robust defense, and that we are committed to innovative education to support programs that improve the quality of healthcare and physicians’ wellbeing,” said CEO Bruce Shulan.
PRI Summary Financial Information ($ Millions)
Balance Sheet as of Period End: |
31 Dec 20 |
31 Dec 19 |
31 Dec 18 |
31 Dec 17 |
30 Jun 17 |
Cash and Investments |
$685.2* |
$725.4 |
$794.8 |
$912.1 |
$936.7 |
Total Admitted Assets |
$893.3 |
$946.2 |
$1,009.1 |
$1,129.2 |
$1,167.6 |
Loss & LAE Reserves |
$851.8 |
$926.6 |
$1,096.6 |
$1,313.3 |
$1,368.0 |
Total Liabilities |
$955.4 |
$1,043.0 |
$1,214.2 |
$1,441.1 |
$1,508.6 |
Policyholders’ Surplus (Deficit) |
($62.1) |
($96.8) |
($205.1) |
($311.9) |
($341.0) |
*includes investment in PRI subsidiary EmPRO as of December 31, 2020
EmPRO Summary Financial Information ($ Millions)
Balance Sheet as of Period End: |
31 Dec 20 |
Cash and Investments |
$109.4 |
Total Admitted Assets |
$128.9 |
Loss & LAE Reserves |
$1.5 |
Total Liabilities |
$28.5 |
Policyholders’ Surplus (Deficit) |
$100.4 |
About Physicians' Reciprocal Insurers
Physicians’ Reciprocal Insurers (PRI), including its wholly owned subsidiary, EmPRO Insurance Company, is the third largest admitted medical malpractice insurer in New York State and one of the Top Fifteen 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.
About EmPRO
EmPRO Insurance Company is a licensed medical professional liability insurance carrier headquartered in New York State and dedicated to protecting New York’s physicians, healthcare facilities, and healthcare providers. A subsidiary of Physicians’ Reciprocal Insurers (PRI), EmPRO is capitalized with over $100 million and is managed by PRIMMA LLC, PRI’s wholly owned attorney-in-fact. EmPRO provides New York’s medical community with personalized underwriting services, aggressive claims defense, and effective risk management strategies. Learn more at www.myempro.com.
