SCPIE Holdings, a Los Angeles-based malpractice insurance carrier, has withdrawn its application with state authorities for an 8.9% premium hike in 2004, saying it wants to avoid lengthy public hearings and compile new evidence for a proposed increase in 2004.
In a release today, the Los Angeles-based company says it plans to file a new application in 2004.
The delay "will permit us to use data from the full 2003 year as support for rate action proposed at that time," says company President and CEO Donald Zuk in the release.
A company spokesperson says its application for a 2003 rate increase had been delayed for months. He says the company lost $3 million in the first nine months of 2003 due to the delayed rate increase.
In September, A.M. Best downgraded SCPIE from a financial strength rating from B+ (very good) to B (fair), citing depletion in the company's capitalization.