Personal Injury Law

SVMIC Files 2007 Annual Report

By John A. Day

State Volunteer Mutual Insurance Company , the doctor-owned medical malpractice insurance carrier, continues to enjoy profitability, according to my review of its 2007 Annual Report that was recently filed with the Tennessee Department of Commerce and Insurance.

A few highlights:

* Surplus, the insurance industry equivalent of net worth, increased almost $28,000,000 to a total of $245,000,000. This follows a $33 million dollar increase in 2006 and a $16.4 million dollar increase in 2005.

*The increase in surplus occurred even though total earned premiums dropped by $4,000,000.  Incurred losses were down by almost $20,000,000. 

* Net admitted assets now total $941,000,000, up over $70,000,000 from one year earlier.  The Company should hit a billion dollars in assets in 2008 or the first quarter of 2009.

* After tax profits were reported at $30,463,000, up  almost 30% from a year earlier.  2006 profits totaled $23,000,000  and in 2005 profits were $14,730,000. Total profits for the last 5 years are approximately $91,000,000.

*  The company paid a total of 152 claims in the entire state of Tennessee last year.  The payments totaled 62,833,000.  The average payment per claim was $413, 375.   In 2006, the company paid out money to plaintiffs in 158. The total amount paid was $56,660,652. The average payment per claim was $358,611.

* As of 12/31/07 there were 1,716 pending malpractice claims against SVMIC insureds.  Note that this is not pending lawsuits, but rather claims. 

Full post as published by Day on Torts on June 27, 2008 (boomark / email).