Positive Physicians Holdings, Inc. · OTC:PPHI
Positive Physicians — Investor Presentation (September 2024)
26 slides from Positive Physicians's investor presentation, September 2024
Slide 1: Positive Physicians Holdings
850 Cassatt Road positivephysicians.com 100 Berwyn Park, Suite 220 Berwyn, PA 19312
Slide 2: CEO Update: Welcome to Positive
CEO Update: WELCOME to Positive Michael G. Roque
Slide 3: MPL Market Update - 2023 Industry Results
MPL Market Update- 2023 Industry Results Premium growth was moderate. DWP for MPL/HPL sector was up 3.6% to approximately $11.8B after rising 5.7% in 2022 and 7.9% in 2021 (MPL alone was about $9.1B) Rising rates began to decrease and less top line growth, increasing loss cost and expenses along
Slide 4: MPL Market Update - US MPL Market
MPL Market Update- US MPL Market 12 10 8 DPW ($B) 6 4 2 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Physicians Hospitals Other HC Professionals Other HC Facilities Source: A.M. Best
Slide 5: MPL Market Update - Industry Reserve Positioning
MPL Market Update- Industry Reserve Positioning The MPL industry’s reserve position has stabilized over the past couple of years AM Best believes that 2023 calendar year-end booked net loss and LAE reserves will ultimately prove to be redundant by $2.4B, including the effect of $0.6B in statutor
Slide 6: MPL Market Update
MPL Market Update In November 2023, AM Best Revised its Outlook on the US MPL Segment to Stable from Negative, reflecting the MPL segments: + Robust balance sheets supported by strongest levels of risk-adjusted capital + Improved rate adequacy and diminishing pandemic-related exposure + Persistently
Slide 7: MPL Market Update - Rating Changes 2019-2023
MPL Market Update- Rating Changes 2019-2023 Issuer Credit Rating Changes Issuer Credit Rating Outlooks 1 1 2 1 1 1 1 1 1 38 38 38 36 35 40 39 41 39 37 2 2 2 4 4 3 2 1 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Downgrades Affirmations Upgrades Negative Stable Developing Positive Downgrades Upg
Slide 8: MPL Market Update - M&A Amongst MPL Carriers
MPL Market Update- M&A Amongst MPL Carriers Year Acquirer Acquiree 2016 National Indemnity Company MLMIC DSN Holdings, Inc. Positive Physicians Insurance Exchange Enstar Group Limited DSN Holdings, Inc. NORCAL Preferred Physicians Medical RRG MagMutual Tift Area Captive Insurance Company 2017 The De
Slide 9: MPL Market Update: Top 25 Market Share 2023
MPL Market Update: Top 25 Market Share 2023 Company Name 2023 DPW ($000) Market Share % Berkshire Hathaway Inc. 2,174,706 18.0% MPL Direct Premium Written Distribution The Doctors Co. 1,207,488 10.0% 50% CNA 698,133 5.8% ProAssurance Corp. 691,934 5.7% 45% MagMutual 581,131 4.8% Coverys 507,981 4.2%
Slide 10: MPL Market Update: Top 25 Combined Ratios
MPL Market Update: Top 25 Combined Ratios All Lines Combined MPL Combined All Lines Loss & LAE MPL Loss & MPL DPW % of total MPL NPW % of total Company Name Ratio Ratio Ratio LAE Ratio DPW NPW Berkshire Hathaway Inc. 89% 93% 72% 69% 4% 3% The Doctors Co. 95% 93% 72% 71% 85% 88% CNA 106% 107% 77% 70%
Slide 11: U.S. P&C Industry Combined Ratio vs MPL Combined Ratio
U.S. P&C Industry Combined Ratio vs MPL Combined Ratio 160% 150% 140% 130% 120% Underperform 110% 100% Outperform 90% 80% 70% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 MPL Combined Ratio All Lines Combi
Slide 12: MPL Market Update - DPW Growth by Segment
MPL Market Update- DPW Growth by Segment 300% 250% 200% 150% 100% 50% 0% -50% -100% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Physicians Hospitals Other HC Professionals Other HC Facilities U.S. P&C Industry All MPL Lines Source: S&P Market Intelligenc
Slide 13: MPL Sector Headwinds
MPL Sector Headwinds • Social inflation and the growing frequency of high severity losses • Erosion of tort reforms in some jurisdictions • Consolidation of healthcare continues, driven by PE investments • Trends towards larger physician groups & integrated healthcare systems • Escalating burnout ra
Slide 14: CFO Update
CFO Update Brian J. Durkin POSITIVE PHYSICIANS _
Slide 15: Company Structure
Company Structure • Positive Physicians Holdings, Inc. (PPHI) • Positive Physicians Insurance Company (PPIC) • Positive Physicians Captive Insurance Company (PPCIC) • Positive Professionals Management LLC (PPM) • Gateway Risk Services LLC (Gateway) • Positive Professionals Insurance Agency LLC (PPIA
Slide 16: Balance Sheet Highlights PPIC - Year-end 2023
Balance Sheet Highlights Admitted Assets Available-for-sale bond securities 12/31/23 95,107,547 PPIC - Year-end 2023 Equity securities Equity securities (PPCIC common stock) Short-term investments 493,300 519,219 - Total investments 96,120,066 Cash and cash equivalents 3,147,482 • $114.9M Total admi
Slide 17: Investment Portfolio
Investment Portfolio TOTAL CASH AND INVESTED ASSETS – 12/31/23 Cash US Gov’t • $99.3M Cash and Invested Asset balance 3% 2% Equities at 12/31/23 1% Municipal • Primarily comprised of investment grade bonds available-for-sale bond securities 7% • Average credit quality of A2 • Well laddered portfolio
Slide 18: A "Positive" Trajectory
A “Positive” Trajectory Direct Premiums Written 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - 2019 2020 2021 2022 2023 2024 PROJ
Slide 19: Q&A
Q&A POSITIVE PHYSICIANS _
Slide 20: CEO Update (cont'd)
CEO Update (cont’d): Michael G. Roque
Slide 21: State Distribution
State Distribution • Admitted in 11 states • Certificate of Authority in 4 additional states Massachusetts Rhode Island New Hampshire North Carolina
Slide 22: Company Updates - Marketing
Company Updates - Marketing External Communications Company Culture Upcoming Projects • Launched email campaigns • Distributed Positive Core Values • Plan and execute agency event promoting free CME training • Fostered collaboration through team- • Continual website enhancements • Sent Save-the-date
Slide 23: Positive Core Values
Positive Core Values Excellence Commit to delivering the highest quality in customer service and insurance solutions, ensuring that our policyholders and agency partners receive reliable, efficient, and personalized assistance. Adaptability Embrace the dynamic nature of the insurance industry by con
Slide 24: Vision for the Future
Vision for the Future 1. Transform Positive Physicians Insurance Company into a medical professional liability carrier that blends a deep knowledge of the MPL insurance sector with industry savvy (Insurtech) solutions that help physicians, healthcare professionals and brokers minimize professional l
Slide 25: Strengthening the Partnership
Strengthening the Partnership • Exploring Emerging Market Opportunities 1. Industry Trends to Watch: - Growth in telemedicine, digital health and large group consolidation - Increased demand for data when targeting new business (mid to large size groups) - Evolving healthcare dynamics and regulation
Slide 26: Q&A
Q&A POSITIVE PHYSICIANS _
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