Acquisition of SCPIE by The Doctors Company
Napa, California—January 4, 2008—The Doctors Company, the nation’s leading physician-owned medical malpractice insurer, has recently announced that we have a definitive agreement to acquire SCPIE Holdings, Inc., the third largest malpractice insurer in California. While this acquisition is subject to customary closing conditions, including the receipt of regulatory approvals and approval by a majority of SCPIE’s stockholders, we have already received clearance from the Federal Trade Commission. This combination will significantly advance The Doctors Company’s leadership in California and nationally, further enhancing our ability to relentlessly protect, defend, and reward our California physicians’ practice of good medicine and deliver on our founding mission of service to physicians.
Since this agreement was announced, a barrage of misinformation has been given to Southern California physicians in an attempt to create an air of uncertainty where none exists. Much of the information communicated is erroneous; some of it is irresponsibly misleading. Therefore, we wish to set the record straight.
As part of the acquisition, The Doctors Company will honor all agreements between SCPIE and its policyholders in accordance with their terms. This includes premium rates, coverage terms, limits of liability, and retirement “tail” vesting. The Doctors Company is also committed to continuing the excellent service to policyholders that SCPIE insureds have come to expect.
Prior to approval of the transaction by SCPIE’s shareholders, The Doctors Company’s ability to make public statements about its future plans is limited by law. We expect that by early March, we will be able to communicate in more detail on our exciting plans for all of our policyholders. In the interim, I would like to assure you that The Doctors Company’s filed rates are already among the lowest rates for California physicians. We anticipate that by merging these two organizations we will create efficiencies and economies of scale resulting in premium decreases for many physicians and groups.
By combining our two great companies, California policyholders will experience even more competitive rates, unparalleled service, aggressive legal defense, and other outstanding policyholder benefits. We are genuinely pleased by the enhanced value that The Doctors Company will be able to offer California physicians and will keep you informed as we pursue this transaction to completion.
To continue the outstanding service you are currently receiving from SCPIE or The Doctors Company, we encourage you to renew with your respective carrier. If you are insured by another medical malpractice carrier, we encourage you to call us for a competitive quote at (800) 352-0320 or visit us at www.thedoctors.com to find out more about the exciting services we offer.
Founded by doctors for doctors in 1976, The Doctors Company is the leading physician-owned medical malpractice insurer in the United States. Our strength has been recognized by the industry, and we are the only California-domiciled professional liability insurer to be awarded an A- rating by A.M. Best Company and an A rating by Fitch Ratings. With $2.2 billion in assets, 34,000 physician members nationwide, and the Tribute® Plan, The Doctors Company continues on its mission to advance, protect, and reward the practice of good medicine.
