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CONVENTUS, A PHYSICIAN-OWNED PROFESSIONAL LIABILITY INSURER, ANNOUNCES THE SIGNING OF ITS 1000TH ACTIVE MEMBERMilestone Shows Rapid Growth, Stability of this Unique Not-For-Profit Insurer
(Woodbridge, NJ) October 25, 2007 — Conventus Inter-Insurance Exchange, a not-for-profit medical professional liability insurance company that is owned and governed by member physicians, just announced the signing of its 1,000th active member. The signing marks a major milestone for the five-year-old Conventus, which was formed in 2002 in the face of New Jersey’s growing medical malpractice insurance crisis, at a time when rising rates and limited coverage options were forcing many of the state’s physicians to alter their practice or leave the state. Tired of being at the mercy of commercial insurance companies and determined to find a permanent solution, a group of private practice New Jersey physicians got together and made the bold move of forming their own company to insure themselves. Organized as a Reciprocal Exchange, one of the oldest forms of insurance, Conventus is the only company of its kind in New Jersey that is 100% owned and 100% governed by its physician members, and managed by insurance experts. As such, it allows member physicians to take control of their own medical professional liability insurance policies as owners and key decision-makers in their own company. “Conventus physicians understand the importance of choosing a company that is designed to provide long-term stability and give its members a voice,” said Conventus CEO Richard Augustyn. “New Jersey physicians are operating in a complex and challenging environment with rising costs and falling reimbursement rates. Our job is to help stabilize their professional liability costs so they have more resources to invest in providing the highest quality healthcare to their patients.” Conventus President John Karlen agreed. “We’re very excited and proud to be celebrating our 1,000th active member,” he said. “Reaching one thousand members is another indication that New Jersey’s physician community has embraced Conventus’ unique insurance model.” 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, LLC, under the direction of the Conventus 15-member Board of Governors. From the beginning, the management of Conventus has followed a conservative approach to capitalization, pricing and underwriting. The formula has proven to be a successful one. In just a few short years, Conventus has grown to become the fourth largest medical professional liability company in the state. The company also has a membership retention rate of more than 90%, has accumulated over $80 million in assets, and has built very strong support within the reinsurance community, essential to protecting those assets and securing the future of the Exchange. One physician who has seen the growth firsthand is Conventus Board of Governors Chairman Dr. Albert Talone, D.O., F.A.C.O.F.P., F.C.P.P.. As one of the founders of the Exchange, Dr. Talone holds the distinction of being Conventus policyholder #1. “I’ve said from the beginning that what we’re doing here at Conventus is very important, not only for the future of our own practices, but for all doctors practicing in New Jersey,” said Dr. Talone. “We have succeeded in creating a company that provides excellent coverage at a fair price and is focused at all times on protecting the best interests of its physician members. I’m proud to be a part of it.” Other physician-members echo this sentiment. “In the obstetrics and gynecology community, we often see huge swings in insurance costs,” noted Russell L. Harrell, M.D., F.A.C.O.G., a member of the Conventus Board of Governors. “One year, insurance companies are aggressively competing for business, the next there are big premium increases when those companies didn’t get the results they were looking for. A company like Conventus is designed to provide stability and a dependable long-term solution for insurance coverage.” Evidence of this stability is provided by the fact that Conventus policies are supported by “A” rated reinsurance companies such as Lloyd’s of London and Guy Carpenter and Company, LLC, also of London. “Our congratulations to everyone at Conventus on reaching the significant milestone of the 1,000th physician member,” said Jane Poland of MAP Re, Lloyd’s of London. “We have enjoyed watching the company’s steady growth and progress and are sure that this is just one milestone in the continuing development of the company.” “We are delighted that Conventus has reached the milestone of 1,000 insured doctors,” said Nick Gralton of Guy Carpenter. “The fact that this has been achieved within the relatively short time-frame of just five years reflects the company’s credibility among New Jersey physicians. This growth has been achieved in the best way possible: setting appropriate rates and reserves, and paying attention to risk selection so that Conventus has the financial strength to ensure its long-term future as an insurer of its physician owners.” Conventus’ achievements were also celebrated by the company’s peers. “Please accept my congratulations on Conventus reaching the 1,000th member milestone,” said Lawrence Smarr, president of the Physician Insurers Association of America (PIAA), of which Conventus is a member. “The PIAA is very proud to celebrate this accomplishment from one of our new-generation physician-owned companies. Over the years, PIAA companies across the nation have worked to bring physicians dependable coverage and rate stability in a highly volatile market, while promoting the practice of high quality medicine. We are proud that Conventus is a leader in this effort, and we wish you continued success.”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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