Texas Passes Comprehensive Tort Reform

October 28, 2003

The Doctors Company, the nation's leading physician-owned medical malpractice carrier in the United States, commends the efforts of the Texas legislature and the citizens of Texas for taking dramatic steps in an effort to end the medical malpractice crisis in Texas. We believe that the cap on noneconomic damages, along with the other reforms contained in the legislation, will dramatically improve the Texas medical malpractice marketplace and will benefit physicians as well as provide additional protection for those injured by medical negligence.

Over the last four years, The Doctors Company's rate increases have been among the lowest of the carriers writing business in Texas. Among carriers that are rated in the A/Excellent range by A.M. Best, The Doctors Company continues to offer competitive rates in many specialties. Finally, The Doctors Company insureds are not required to supplement their premium payment with a contribution to surplus. The Doctors Company has never assessed Texas doctors.

Richard Anderson, M.D., chairman and CEO of The Doctors Company, announced today: In response to the passage of this landmark tort reform law in Texas, The Doctors Company will reduce its indicated rate increase of 19 percent to zero, will withdraw its current rate filing, and will freeze all rates at the present level for the remainder of the current calendar year. Early next year, The Doctors Company will assess the Texas marketplace and will take appropriate steps at that time. We are optimistic that these reforms will exert a beneficial effect on Texas rates for years to come.