Company Background / History
American Physicians Insurance Company (API) is the third largest medical malpractice insurance carrier in Texas and has been providing high quality medical malpractice coverage for over 30 years. Over 4800 policyholders currently experience the innovation and flexibility that our company consistently provides. API's founding philosophy of physicians protecting physicians, has given us a deep and clear understanding of our customer's unique needs. This physician-centric philosophy continues to permeate every aspect of our business today.
We are proud of the financial success we've been able to achieve. As of June 30, 2007 API had over $68 million of surplus and approximately $84 million in reserves.
American Physicians Service Group (APS) is API's parent company and is traded on the NASDAQ under the ticker symbol of AMPH. To learn more about APS, visit the website at www.amph.com.
Our History
Serving Texas physicians since 1976, American Physicians Insurance Company (API) was formed as a not-for-profit medical malpractice insurance carrier governed by a board of physician members. With offices in Austin and Dallas, Texas, API has long been recognized as a pioneer in the industry.
The idea for the company actually originated in the late 1960s with a visionary San Antonio physician named Dr. Jack Chandler. While other leaders ignored the signs, Dr. Chandler clearly identified the genuine threat to Texas doctors in the trend of abusive medical malpractice claims. He actually formed a physicians union - an extremely bold move at the time - to discuss solutions to the growing medical malpractice crisis and to focus industry attention on medical insurance problems.
After much analysis, union members agreed that no one could be more motivated to protect and defend Texas physicians than their fellow doctors. The union ultimately organized as a reciprocal insurance exchange, an insurance company in which the owner policyholders inter-insure one another. From Dr. Chandler's insightful vision emerged a superior solution for medical malpractice coverage: the American Physicians Insurance Exchange, Insurance for Texas physicians, by Texas physicians, was born.
API became the first physician-governed medical malpractice insurance carrier in Texas and the first company to write claims-made policies within the state. Perhaps even more important, API was formed at a time when many Texas physicians could not find insurance coverage because so many other carriers had abandoned the market. Still today, many doctors credit API with protecting Texas physicians in the face of adversity and making significant positive contributions to the State's insurance landscape through the years. API has consistently demonstrated steady and responsible growth.
During the latter part of 2005, negotiations began between API and APS with regards to a possible merger between the two organizations. There were many benefits to a merger including strengthening the insurance company, enhancing the ability to achieve a meaningful financial rating, more readily access to capital that would increase the company's underwriting capacity and further allow the company to pursue profitable business in other states, and providing equity in terms of APS stock to all the physician insureds. The transaction was effective April 1, 2007.
As part of the merger, it was important that physicians continued to remain involved in the various facets of the operations. A Physician Advisory Board was established that will work with the insurance company to continue supporting the claims, underwriting, risk management and physician liaison functions.
For more information regarding APS Group, please visit the company's website at www.amph.com.
Historical Timeline
- 1967
Respected physician Jack Chandler first perceives the looming threat to Texas doctors from abusive medical malpractice claims. - 1972
Dr. Chandler forms a physicians union to address the potential threat as medical malpractice lawsuits in Texas hit an all-time high. - 1976
API is created from Dr. Chandler's elite group of concerned physicians, emerging to support Texas doctors at a time when they are facing a crisis in insurance availability. - 1987
The Texas insurance landscape expands rapidly, with many additional carriers entering the market. - 2001
API remains strong while approximately 50% of the newer carriers in Texas abandon the market, leaving thousands of doctors without coverage. - 2007
American Physicians Insurance Exchange converts from a reciprocal exchange to a Texas stock insurance company, known as American Physicians Insurance Company (API) and merges with American Physicians Service Group (APSG), which is traded on NASDAQ under the ticker symbol AMPH.