AHPIA Chairman’s Message
Academic was successful in 2024 in all aspects of our business.
Operating within a three-year strategic plan, we have maintained our focus on protecting physicians and other health professionals in medical education roles. Our mission is unchanged from its founding in 1990. We are proud to provide reasonably priced medical professional liability coverage to New York medical professionals where they know we strive to be their advocate.
A key to our continued success is the selection of strategic partners who align with our mission. Through the last five years, we have built a very effective network of vendor relationships that provide world class levels of service. Academic’s strategic partners provide excellent claims handling and related technology, investment management, actuarial and clinical risk management services to name a few.
On the financial front, our path forward is focused on the continued strengthening of our balance sheet. We maintain strong underwriting guidelines, continue to exceed our investment return targets and continue to manage claims well – resulting in very favorable settlement / defense metrics.
Financial highlights for 2024 include:
- Total policy liabilities continue to decline as the company runs off the old legacy book of claims and aggressively moves to settle cases where possible and prudent. (8% reduction).
- Total Contributed Capital and Surplus continues to grow (6% in 2024) and was over $48M at the end of 2024.
- Net Premiums Written experienced 6% growth in 2024.
- Investment Income performed well in 2024 exceeding the target rate of return.
- Net Income of $1,865,145 was generated in 2024.
The Board and Committee governance of Academic continues to be robust. My fellow Board members are actively engaged in the oversight of Academic and I appreciate their continued support. The same for the management team whose expertise keeps us on track.
As for looking forward, we will continue to follow our strategic plan in 2025.
Thanks to our Subscribers for their confidence in Academic’s abilities as we continue to deliver on Insuring the Future of Medicine.
Robert McCormack, MD
Board Chair