Exhibit 99
FPIC INSURANCE GROUP, INC.
ANNOUNCES AMENDMENT TO ITS CREDIT FACILITY
Agreement Reached with Lenders Concludes Negotiations
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JACKSONVILLE, Fla., Nov. 22, 2002 (Business Wire) - FPIC Insurance Group, Inc.
(Nasdaq: FPIC) (the "Company") today announced that it has reached agreement
with its lenders and is in full compliance with the terms and conditions of its
Revolving Credit and Term Loan Agreement (the "Credit Facility") dated August
31, 2001, as amended. Negotiation of an amendment to the Credit Facility was
necessitated by the Company's noncompliance with a loan covenant following a
change in its financial strength rating by A.M. Best Company ("Best") from A-
(Excellent) with a negative outlook to B++ (Very Good) with a stable outlook on
October 23, 2002. The amendment to the Credit Facility concludes negotiations
between the Company and its lenders on this issue.
Commenting on the new terms, John R. Byers, President and Chief Executive
Officer, stated, "We are pleased to have successfully completed this important
business with our lenders. Our lenders understand the rating pressures and
circumstances surrounding the change in our Best rating, and we believe the new
terms are fair and reasonable under the circumstances."
Kim D. Thorpe, Executive Vice President and Chief Financial Officer, added, "The
new terms, which include an increase in our annual interest rate of
approximately 75 basis points, or three-quarters of 1%, and some additional
collateral requirements, are very manageable and will not have a material impact
on our liquidity."
Additional information regarding the terms of the amendment to the Credit
Facility is available in the Company's Securities and Exchange Commission
("SEC") Form 8-K filed with the SEC on November 22, 2002.
Safe Harbor Disclosure
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The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements. Any written or oral statements made by or on
behalf of the Company may include forward-looking statements, which reflect the
Company's current views with respect to future events and financial performance.
These forward-looking statements are subject to certain uncertainties and other
factors that could cause actual results to differ materially from such
statements. These uncertainties and other factors include, but are not limited
to:
(i) Uncertainties relating to government and regulatory policies
(such as subjecting the Company to insurance regulation or
taxation in additional jurisdictions or amending, revoking or
enacting any laws, regulations or treaties affecting the
Company's current operations);
(ii) The occurrence of insured or reinsured events with a frequency
or severity exceeding the Company's estimates;
(iii) Legal developments, including claims for extra-contractual
obligations or in excess of policy limits in connection with
the administration of insurance claims;
(iv) Developments in global financial markets that could affect the
Company's investment portfolio and financing plans;
(v) Developments in reinsurance markets that could affect the Company's
reinsurance program;
(vi) The impact of mergers and acquisitions, including the ability to
successfully integrate acquired businesses and achieve cost savings,
competing demands for the Company's capital and the risk of
undisclosed liabilities;
(vii) Risk factors associated with financing and refinancing,
including the willingness of credit institutions to provide
financing and the availability of credit generally;
(viii) The competitive environment in which the Company operates,
including reliance on agents to place insurance, physicians
electing to practice without insurance coverage, related
trends and associated pricing pressures and developments;
(ix) The actual amount of new and renewal business and market acceptance
of expansion plans;
(x) The impact of surplus constraints on growth;
(xi) Rates charged for insurance products, including rates on excess
policies, being subject to or mandated by regulatory approval;
(xii) The loss of the services of any of the Company's executive officers;
(xiii) Changing rates of inflation and other economic conditions;
(xiv) The uncertainties of the loss reserving process;
(xv) The ability to collect reinsurance recoverables;
(xvi) Changes in the Company's financial ratings resulting from one or
more of these uncertainties or other factors and the potential
impact on agents' ability to place insurance business on behalf of
the Company; and
other risk factors discussed in the Company's Form 10-Q for the quarter ended
September 30, 2002 filed with the SEC on November 13, 2002.
The words "believe," "anticipate," "foresee," "estimate," "project," "plan,"
"expect," "intend," "hope," "should," "will," "will likely result" or "will
continue" and variations thereof or similar expressions identify forward-looking
statements. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of their dates. The Company
undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
Corporate Profile
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FPIC Insurance Group, Inc., through its subsidiary companies, is a leading
provider of professional liability insurance for physicians, dentists and other
healthcare providers, primarily in Florida and Missouri. The Company also
provides management and administration services to Physicians' Reciprocal
Insurers, a New York medical professional liability insurance reciprocal, and
third party administration services both within and outside the healthcare
industry.
Contact
Roberta Goes Cown
Senior Vice President and Corporate Counsel
904/354-2482, Extension 3287
For all your investor needs, FPIC is on the Internet at
http://www.fpic.com
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