SVMIC Files 2007 Annual Report

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. 

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