Zacks_Analysts' Blog : AMPH Added to Russell 3000 - Analyst Blog

Last week, American Physicians Service Group, Inc. (AMPH) announced its inclusion in the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3000 U.S. companies that represents about 98% of the investable U.S. equity market. The membership in the Russell 3000 remains in place for one year.

Headquartered in Austin, Texas, AMPH is a leading provider of medical professional liability insurance services for physicians, dentists and other healthcare providers in Texas, Arkansas and Oklahoma. Its insurance subsidiary, American Physicians Insurance Exchange (API), has written business for over 30 years.

Currently, the company insures over 6,200 physicians, dentists, and other healthcare providers, the vast majority of which are in Texas. Its competitors include companies like American Physicians Capital (ACAP), Proassurance (PRA) and FPIC Insurance (FPIC).

A.M. Best has assigned a financial strength rating of A- (Excellent) and issuer credit rating (ICR) of a- to. A.M. Best also affirmed the ICR of bbb- of AMPH. The outlook for all ratings is stable.

We are encouraged by the inclusion of the company on the Russell 3000 index as this provides greater visibility. We believe that the company’s strong policyholder retention coupled with its focus on new business generation augurs well going forward. In addition, the company enjoys strong statutory capital and surplus levels. As such, our Hold recommendation on the shares of AMPH remains in place.