State Volunteer Mutual Insurance Company , the doctor-owned medical malpractice insurance carrier, continues to enjoy profitability, according to my review of its 2007 Annual Report that was recently filed with the Tennessee Department of Commerce and Insurance.
A few highlights:
* Surplus, the insurance industry equivalent of net worth, increased almost $28,000,000 to a total of $245,000,000. This follows a $33 million dollar increase in 2006 and a $16.4 million dollar increase in 2005.
*The increase in surplus occurred even though total earned premiums dropped by $4,000,000. Incurred losses were down by almost $20,000,000.
* Net admitted assets now total $941,000,000, up over $70,000,000 from one year earlier. The Company should hit a billion dollars in assets in 2008 or the first quarter of 2009.
* After tax profits were reported at $30,463,000, up almost 30% from a year earlier. 2006 profits totaled $23,000,000 and in 2005 profits were $14,730,000. Total profits for the last 5 years are approximately $91,000,000.
* The company paid a total of 152 claims in the entire state of Tennessee last year. The payments totaled 62,833,000. The average payment per claim was $413, 375. In 2006, the company paid out money to plaintiffs in 158. The total amount paid was $56,660,652. The average payment per claim was $358,611.
* As of 12/31/07 there were 1,716 pending malpractice claims against SVMIC insureds. Note that this is not pending lawsuits, but rather claims.