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Conventus Announces Strong First Half Results
(Woodbridge, NJ) July 15, 2006 — Conventus Inter-Insurance Exchange is pleased to announce strong first half results for 2006, continuing a trend of steady growth and increased financial stability for the Exchange. Conventus is the only medical professional liability insurance company in New Jersey that is both 100% owned and governed by its physician members. As a reciprocal exchange, Conventus is completely funded by its member physicians, through premium and capital contributions. Day to day affairs of the Exchange are managed by the Attorney-in-Fact, NIP Management Company, under the direction of Conventus’ 15-member Board of Governors, composed entirely of physician members. Thanks to a conservative, fiscally-responsible approach since its inception, Conventus has built a very strong financial foundation for the company half-way through its fourth year. As of June 30, 2006, policyholder surplus has grown to $18.5 million and the company’s total assets stand at $58 million. The company’s key ratios of surplus to gross and net written premium stand at 1.12 to 1 and .77 to 1 respectively, based on 2006 year-end projections. Conventus continues to outperform the industry in this critical measure of financial stability. The company’s claims reserves stand at $25.1 million as of 6/30/06. Conventus had a net gain of more than 100 doctors in the first half, bringing total membership in the Exchange to 834 at the end of June. “We’re very proud of our financial results and consistent growth,” said Conventus President John Karlen. “That growth is remarkable when you consider two things: Conventus was founded as an unproven entity in 2003; and we have taken a very strict and conservative approach to pricing, capitalization and acceptance. Our growth is very gratifying because it shows that our value proposition continues to resonate with New Jersey physicians, who understand the importance of long-term stability.” As the medical professional liability market softens in New Jersey, Conventus remains dedicated to its strict financial approach. “Continuing to grow while maintaining an underwriting discipline is no easy task,” Karlen said. “However, it is an absolutely essential balance to strike in order to maintain, and in fact continue to build, the financial strength and stability of the Exchange. The future of the Exchange and our responsibility to Conventus’ member-owners are always our first priority.” About Conventus Inter-Insurance Exchange Conventus Inter-Insurance Exchange is a not-for-profit, non-assessable reciprocal insurance exchange providing medical professional liability insurance to New Jersey physicians in private practice. Conventus is the only company in the state that is both owned and governed by its members, but is managed by experts in the property and casualty insurance industry. The management team at NIP Management Company, the Exchange’s Attorney-in-Fact, has extensive experience in medical professional liability insurance and in managing underwriting results for companies similar to Conventus.
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