SCPIE Holdings Reports First-Quarter Results

May 5, 2001

For the first quarter ended March 31, SCPIE Holdings Inc., one of the nation’s major providers of healthcare liability insurance reported

net operating income (excluding realized investment gains and losses) of $1.5 million (or $0.16 per share), compared with $4.4 million (or $0.47 per share) for the same period in 2000.

Net income for the quarter totaled $2.2 million.

A year ago, net income for the first quarter totaled $3.8 million. Total revenues for the current first quarter rose 22 percent to $58.0 million compared with $47.6 million a year ago. Earned premiums rose to $47.7 million from $40.0 million. Growth in premiums earned came from the company’s assumed reinsurance segment, which produced earned premiums of $12.0 million in the quarter, compared to $3.2 million the prior year.

Premiums earned by SCPIE’s direct healthcare liability insurance segment totaled $35.6 million in the first quarter of 2001, compared to $36.8 million last year. Hospital premiums, which are part of this segment, decreased to $760,000 from $2.3 million in the 2000 quarter, reflecting the company’s actions during 2000 to cull that business to meet stricter underwriting standards and profit expectations.

SCPIE’s GAAP loss ratio was 96.2 percent for the 2001 first quarter, up from 85.3 precentin the first quarter of 2000. . The company’s combined ratio for the quarter was 116.2 percent, compared with 107.1 percent a year ago. Book value per share at March 31, 2001, excluding unrealized gains and losses, was $34.21, compared with $34.09 at December 31, 2000. Including unrealized gains and losses, book value was $34.49 at March 31, 2001 versus $33.92 at December 31, 2000.

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