Publicly traded medical malpractice insurer American Physicians Capital of East Lansing, Mich., has entered into a stand-still agreement with shareholder Daniel Gorman in return for the company's nomination of Gorman to the board of directors, the company has announced.
Gorman, who had filed preliminary proxy materials announcing plans to solicit proxies to elect himself to a board seat, will support the board's slate of nominees at the 2004 annual meeting on May 7 in return for company support for his own election to a three-year term.
American Physicians Capital provides medical professional liability coverage through its subsidiaries, including American Physicians Assurance Corp., formerly Mutual Insurance Corporation of America, the combination of physician-owned bedpan mutuals in Michigan, Kentucky and New Mexico.
The company "demutualized" and became publicly traded (NASDAQ: ACAP) in 2000 and writes coverage in Indiana, Illinois and Ohio as well as in its founding three states.
In January, bond rater A.M. Best lowered its financial strength ratings from B++ to B+ (both listed in the very good range, according to Best) for both American Physicians Capital subsidiaries American Physicians Assurance Corp. and APSpecialty Insurance Corp., the company's high-risk reinsurance affiliate.
Best also downgraded APA affiliate Insurance Corporation of America (ICA), which provides worker's compensation coverage, from B++ (very good) to B (fair).