What’s’ AIG, WM and LEH Got to Do with It?

Posted on October 2, 2008 by Dr. David Edward Marcinko MBA MEd CMP™

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Medical Malpractice Liability … and More

[By Staff Reporters]

With sincere apologies to Tina Turner – and perhaps more than most doctors realize – AIG, LEH and WM may indeed have something to do with “it” – when it comes to medical malpractice insurance. That is, of course, if the “it” – is your liability carrier. Why?

According to David J. Reynolds of the Dow Jones Newswires on 9/25/08, the FPIC Insurance Group www.FPIC.com recently disclosed its investment holdings in some of the financial companies hit hardest by the financial meltdown on Wall Street and in our current economic turmoil.  

The Company

FPIC Insurance Group, Inc., through its subsidiary companies, is a leading provider of medical professional liability [MPL] insurance for physicians, dentists and other healthcare providers. Its largest subsidiary, First Professionals Insurance Company [FPIC], Inc., is the largest writer of MPL insurance in Florida and has served the market for more than 30 years. Licensed in 28 states, their insurance subsidiaries currently write business in 14 states.

SEC Filings

The medical liability insurance company reported, in its filing with the Securities and Exchange Commission [SEC], that it holds securities with an amortized cost of $4.1 million in Lehman Brothers (LEH), $2.1 million in American International Group (AIG), $2.5 million in Morgan Stanley (MS), $2.1 million in Washington Mutual (WM) and $300,000 in Fannie Mae (FNM).

SEC Report

http://phx.corporate-ir.net/phoenix.zhtml?c=93296&p=irol-newsArticle&ID=1202483&highlight=

advisors

Total Assets

As of June 30, the Jacksonville, Fla., company said it had a total of $755.7 million in cash and investments.  

2007 Annual Report

http://library.corporate-ir.net/library/93/932/93296/items/287671/2007AR.pdf

Assessment

So, if you think FPIC or possibly your own medical liability carrier has not been affected by the recent stock market slump – think again. AIG, WM and LEH may just have “something to do with it”, after all!

For more analysis and story commentary, please visit:

Link: http://www.djnewsplus.com/al?rnd=AJZr27%2BhR5N7y%2BByhI1ECg%3D%3D

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