The MIIX Group, Inc., based in Lawrenceville NJ, a leading writer of medical malpractice liability insurance, announced that it will delay release of its 2001 financial results and the conference calls previously scheduled for February 20 and 21, until the Company has completed its year-end financial statements, which it expects to do within two weeks.
The company, which has undergone several recent management changes, indicated that the delay was “due primarily to unexpected and significant increases in loss development experienced in the second half of 2001 and required increases in the Company’s loss reserves. It went on to state that “The Company will report a loss. The extent of the loss will depend upon the results of the Company’s ongoing actuarial analysis.”
President and CEO, Patricia Costante stated that “As we have previously reported, the Company dramatically altered its business plan at the end of 1999 in recognition of the intense price competition existing at that time and the very hostile litigation environment. Over the last two years the Company’s new management team has made great progress in reducing exposures, re-underwriting the entire book of business, increasing rates, eliminating discretionary discounts and developing a strong risk-adjusted bottom line focus. It is clear, however, that the information developed from the reserve studies will require further aggressive actions to build a new operating plan around reduced resources. We are moving quickly to develop this new operating plan.”