SOURCE: American Physicians Service Group, Inc.

American Physicians Service Group, Inc.

March 18, 2010 08:00 ET

American Physicians Service Group, Inc. Announces Partial Redemption and Dividend on Preferred Stock

AUSTIN, TX--(Marketwire - March 18, 2010) - American Physicians Service Group, Inc. ("APS") (NASDAQ: AMPH) today announced that its Board of Directors had authorized the early redemption of $1 million of APS' 3% preferred stock and payment of the preferred stock dividends.

Mr. Tim LaFrey, President, said, "This stock is classified as debt on our balance sheet, due to its redemption features, and this $1 million redemption will reduce the debt to approximately $5.5 million. With APS' strong balance sheet and high level of cash flow, our Board decided to capitalize on the interest rate spread between this debt and the historically low rates on our short term investments by making the payment before it is required in December 2010. These distributions will be made on March 31, 2010 to shareholders of record on March 12, 2010."

APS is an insurance and financial services firm with subsidiaries and affiliates that provide medical malpractice insurance for physicians and other healthcare providers and brokerage and investment services to institutions and high net worth individuals. APS is headquartered in Austin, Texas.

This press release includes forward-looking statements related to APS that involve risks and uncertainties that could cause actual results to differ materially. These forward-looking statements are made in reliance on the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. For further information about these factors that could affect the future results of APS, please see the recent filings with the Securities and Exchange Commission. Prospective investors are cautioned that forward-looking statements are not guarantees of future performance. Actual results may differ materially from management expectations. Copies of the filings are available upon request to APS.

Contact Information

  • For further information, visit APS' website at www.amph.com or contact:
    Mr. Kenneth Shifrin, Chairman of the Board (or)
    Mr. Tim LaFrey, President (or) Mr. Marc Zimmermann, Vice President - Finance
    American Physicians Service Group, Inc.
    1301 S. Capital of Texas Highway, C-300
    Austin, Texas 78746 - (512) 328-0888