SOURCE: American Physicians Capital, Inc.

March 24, 2008 09:20 ET

American Physicians Capital, Inc. Announces Upgrade to A- "Excellent" Rating From A.M. Best Co.

EAST LANSING, MI--(Marketwire - March 24, 2008) - American Physicians Capital, Inc. (APCapital) (NASDAQ: ACAP) announced today that its financial strength rating has been upgraded to A- (Excellent) from B++ (Good) for American Physicians Assurance Corporation (American Physicians), the Company's primary subsidiary, by A.M. Best Co., the insurance industry rating organization. A.M. Best also upgraded the issuer credit ratings of American Physicians to "a-" from "bbb+." The outlook for these ratings has been revised to stable from positive.

President and Chief Executive Officer R. Kevin Clinton stated A.M. Best attributed their ratings upgrade and stable outlook to APCapital's fourth quarter 2007 earnings announcement, its record earnings reported for 2007 and the long-standing benefits derived from management's strategic business initiatives, which were initially introduced in 2002. A.M. Best also recognized APCapital's improved balance sheet, financial flexibility and favorable earnings outlook.

"We have worked hard over the last four years to regain our A- rating," said Clinton. "The rating upgrade is a reflection of the successful implementation of our strategic business initiatives. Through our industry leading underwriting and risk management practices and intelligent claims handling we have experienced a dramatic reduction in reported claims leading to improved loss cost trends. This success has translated into improved financial results since 2003 and we believe will continue to add to shareholder value going forward."

American Physicians Capital, Inc. is a regional provider of medical professional liability insurance focused primarily in the Midwest markets through American Physicians Assurance Corporation and its other subsidiaries. Further information about the companies is available on the Internet at

Forward-Looking Statements

Certain statements made by American Physicians Capital, Inc. in this release may constitute forward-looking statements within the meaning of the federal securities laws. When we use words such as "will," "should," "believes," "expects," "anticipates," "estimates" or similar expressions, we are making forward-looking statements. While we believe any forward-looking statements we have made are reasonable, they are subject to risks and uncertainties, and actual results could differ materially. These risks and uncertainties include, but are not limited to, the following:

--  increased competition could adversely affect our ability to sell our
    products at premium rates we deem adequate, which may result in a decrease
    in premium volume, a decrease in our profitability, or both;
--  our reserves for unpaid losses and loss adjustment expenses are based
    on estimates that may prove to be inadequate to cover our losses;
--  tort reform legislation may have adverse or unintended consequences
    that could materially and adversely affect our results of operations and
    financial condition;
--  if we are unable to obtain or collect on ceded reinsurance, our
    results of operations and financial condition may be adversely affected;
--  the insurance industry is subject to regulatory oversight that may
    impact the manner in which we operate our business;
--  our geographic concentration in certain Midwestern states and New
    Mexico ties our performance to the business, economic, regulatory and
    legislative conditions in those states;
--  an interruption or change in current marketing and agency
    relationships could reduce the amount of premium we are able to write;
--  a downgrade in the financial strength rating of our insurance
    subsidiaries could reduce the amount of business we are able to write;
--  changes in interest rates could adversely impact our results of
    operation, cash flows and financial condition;
--  our status as an insurance holding company with no direct operations
    could adversely affect our ability to meet our debt obligations and fund
    future dividends and share repurchases;
--  the loss of one or more of our key employees could adversely affect
    our business;
--  unpredictable court decisions could have a material adverse financial
    impact on our business operations if the amount of the award is expanded
    beyond the intended insurance coverage;
--  applicable law and certain provisions in our articles and bylaws may
    prevent and discourage unsolicited attempts to acquire our Company that may
    be in the best interest of our shareholders;
--  any other factors listed or discussed in the reports filed by
    APCapital with the Securities and Exchange Commission under the Securities
    Exchange Act of 1934.

APCapital does not undertake, and expressly disclaims any obligation, to update or alter its statements whether as a result of new information, future events or otherwise, except as required by law.

Contact Information

  • Contacts:
    Ann Storberg
    Investor Relations
    (517) 324-6629