FORT WAYNE, Ind. & DALLAS--(BUSINESS WIRE)--April 7, 2005--The Medical Protective Company, a member of the GE Insurance Solutions group of companies, today announced from its Dallas regional headquarters its intention to reduce rates and expand insurance offerings in Texas. This action reflects the Company's recent internal company data updates, which suggest that 2003 tort reform measures are beginning to take hold.
Medical Protective sees positive indications in its recent loss data. As a result, it will reduce rates in many specialties, with an overall impact expected to be a 2% reduction for Texas physicians. Medical Protective also plans to accept new business applications in over 30 additional specialties.
Medical Protective President & Chief Executive Officer Tim Kenesey commented: "Of the several tort reform measures passed in various states over the last 24 months, we firmly believe that the Texas reforms will be the most effective -- in large part due to the greater constitutional certainty provided by Prop 12. We have consistently maintained our position that such reforms would, over time, stabilize the Texas market by moderating previously out-of-control loss costs and by increasing the level of insurance capital committed to the Texas market. While still very early in what is a multi-year evaluation of the effects of tort reform, Medical Protective is optimistic that early data indicates loss trends have begun to stabilize. In view of that, we have decided to implement a responsible rate decrease and to increase offerings available to Texas healthcare providers."
The president of the Texas Medical Association (TMA) commented on Medical Protective's announcement. "Medical Protective's actions are further proof that tort reform is working in Texas," said TMA President Bohn Allen, MD. "We expect the marketplace will continue to improve for Texas physicians."
Kenesey welcomed the positive remarks from the TMA leader: "Since 1916, while many medmal companies have come and gone, with some leaving policyholders unprotected, and, most tragically, legitimately injured patients uncompensated, Medical Protective has been the one constant. We have survived over three times as long as our nearest Texas competitor by (i) maintaining our industry-leading financial ratings, (ii) maintaining our industry-leading defense while paying every legitimate obligation to injured patients, and (iii) maintaining our industry-leading risk mitigation education. As the second largest provider of primary medical professional liability coverage in Texas, and only large provider with AM Best 'Excellent, Stable Outlook' and S&P 'A, Stable Outlook' ratings, Medical Protective is proud to serve our 11,000 loyal Texas healthcare provider policyholders. And today, we look forward to expanding our offerings to those Texas providers who value the best financial strength, defense and longevity."
About Medical Protective
Medical Protective Company has been protecting the assets and reputations of healthcare providers since 1899. Serving as a leading medical professional liability provider in Texas since 1916, Medical Protective today is the national leader in primary medical professional liability coverage and risk solutions, serving 11,000 policyholders in Texas and 75,000 nationwide. For more than a century, Medical Protective has remained focused on long-term financial stability so that its policyholders never have to worry whether Medical Protective will "be there down the road" to pay losses. With financial ratings of "A, Stable Outlook" from Standard & Poor's and "A- Excellent, Stable Outlook" from AM Best, Medical Protective remains one of the handful of high-rated primary medical professional liability carriers.
About GE Insurance Solutions
GE Insurance Solutions protects people, property and reputations. With more than $50 billion in combined assets, the GE Insurance Solutions group of companies is one of the world's leading providers of commercial insurance, reinsurance and risk management services. Combining deep practical risk expertise with GE's business acumen, our dedicated professionals in 28 offices around the globe help customers understand and manage risk more effectively. More information is available at www.geinsurancesolutions.com.
Contacts
GE Insurance Solutions
John Novaria, 816-448-7608
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Jeff Wilson
GE Capital Corporate Finance
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1-203-749-6340