FPIC To Acquire Administrators For The Professions, Inc.

FPIC Insurance Group, Inc. says it has signed a definitive agreement to acquire 100 percent of the outstanding common stock of the Administrators for the Professions, Inc. (AFP). AFP is the manager and attorney in fact for Physicians' Reciprocal Insurers (PRI), the second largest medical professional liability (MPL) company for physicians in New York state. PRI insures over 7,000 physicians with direct written premiums of approximately $125 million and total assets of approximately $900 million.

The transaction was valued at approximately $50 million. The transaction will be financed with $44 million in cash and 214,286 FPIC common shares. The purchase is expected to close in early January after receiving all regulatory approvals.

William R. Russell, president/CEO of FPIC commented: "The acquisition of AFP provides FPIC a key component to its strategic plan of developing a national presence on a regional basis. AFP will become FPIC's regional platform in the Northeast. AFP and its management team are led by Anthony Bonomo, a 15-year MPL veteran and former defense attorney. Mr. Bonomo has developed strong relationships in the New York market and on a regional basis. We are very excited to add such a fine organization to our family of companies. FPIC will continue over the next 24 months to seek additional strategic MPL partners in the Northern Midwest, Northwest and Southwest United States."