ProMutual Physician and Surgeon Policyholders to Receive Fifth Consecutive Dividend; See No Rate Change

Boston, MA - May 21, 2012 - Coverys member company Medical Professional Mutual Insurance Company (“ProMutual”) is pleased to announce that its Board of Directors has declared a seven and a half percent dividend for most physician and surgeon policyholders in Massachusetts. The dividend coincides with no increase in base rates for Massachusetts physician and surgeon policyholders. Both decisions affect over 7,500 physicians and surgeons in Massachusetts.

From January 1992 through February 2012, ProMutual has paid over $143 million in policyholder dividends. This year’s dividend announcement follows a six percent dividend in 2011, 2010 and 2009, and a five percent dividend in 2008. The dividend reflects the company’s positive past performance, meaning ProMutual’s losses were less than anticipated in prior years, allowing the company to give back funds originally allocated to pay forecasted claims. Qualified policyholders will receive the dividend beginning on July 1, 2012.

“We are pleased to be able to distribute a dividend to so many of our Massachusetts physicians and surgeon policyholders for the fifth consecutive year,” said Gregg L. Hanson, president and chief executive officer for Coverys. “It is important to recognize the efforts of our policyholders to practice safe medicine, and we are proud that their use of our services was able to contribute to both the dividend being issued and the second consecutive rate hold. We will continue to offer products and services that help our policyholders improve patient safety and provide excellent medicine.”

ProMutual was able to forgo a rate increase this year due to continued lower than expected frequency of claims and a lower than expected loss severity trend.

For more information about Coverys, visit www.coverys.com, or contact Katharine Gould, public relations specialist, at (617) 946-8665 or kgould@coverys.com.
 

About Coverys

Coverys is one of the top 10 medical professional liability insurance providers in the country based on direct written premium. Coverys member companies insure more than 20,000 physicians, surgeons, dentists, certified nurse midwives and allied healthcare providers, as well as nearly 500 hospitals, health centers and clinics in 23 states from coast to coast. Coverys is committed to financial strength and stability with net admitted assets in excess of $3.2 billion, direct written premium of $375 million and policyholder surplus of $1.1 billion, as of December 31, 2011. In addition, all Coverys insurance member companies have a Best’s Rating of A- (Excellent). Coverys emphasizes physician education and patient safety, and the company is acknowledged as a leader in providing supportive risk management services and resolute claim defense to the healthcare community. Coverys also offers a variety of interactive and relevant 101 Arch Street, P.O. Box 55178 Phone: 617.330.1755 Boston, MA 02205-5178 Toll Free: 800.225.6168 www.coverys.com Fax: 617.330.1748 continuing medical education (CME) activities to healthcare providers across the country. For more information visit the Coverys website at www.coverys.com. Timely industry and company news can also be found on the Coverys blog at coverys.wordpress.com, on Twitter (@Coverys) and on the company’s Facebook page.