MIIX Group, the troubled New Jersey-based medical professional liability insurer, announced a loss for the first quarter ended March 31, 2002, of $45.4 million, or $3.38 per share,”resulting primarily from strengthening the Company’s loss and loss adjustment expense reserves.”
MIIX has received the approval of NJ’s Department of Banking and Insurance (DOBI) of its plans to restructure its business (See IJ Website May 6). Part of that plan calls for putting the existing company “into voluntary solvent runoff in approximately 90 days.”
“MIIX will continue to renew New Jersey physician business in MIIX Insurance Company as it moves ahead with obtaining the necessary approvals to support the formation of a physician-supported insurance company that focuses on its strongest business, New Jersey physicians. It is anticipated that The MIIX Group would enter into a management contract and other financial arrangements to support the new company. MIIX Insurance Company will cease writing business in all states other than New Jersey in accordance with each state’s specific withdrawal requirements,” said the announcement.
On the financial side the company stated that, “Net income for the first quarter of 2001 was $6.5 million, or $.48 per share. Net loss reserves for prior accident years were increased by $29.5 million, or $2.20 per share, at March 31, 2002. The Company believes its $1.2 billion in reserves (of which $797 million, or 65%, are set aside for future anticipated claims) are sufficient to cover claims on existing policies for physicians, surgeons and hospitals.”
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