| SCPIE Holdings, Inc. | |||
| Ticker: | SKP | 9441 West Olympic Boulevard | |
| Exchange: | New York Stock Exchange | Beverly Hills, CA 90213 | |
| Industry: | Financial (SIC Code 6321) | (310) 551-5900 | |
| Type of Shares: | Common Shares | Filing Date: | 5/6/96 | |
| U.S. Shares: | 2,000,000 | Offer Date: | 1/29/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $19.00 - $21.00 | |
| Primary Shares: | 2,000,000 | Offer Price: | $18.25 | |
| Secondary Shares: | 0 | Gross Spread: | $1.28 | |
| Offering Amount: | $40,000,000 | Selling: | $0.77 | |
| Expenses: | $700,000 | Reallowance: | $0.10 | |
| Shares Out After: | 11,994,652 |
| Manager | Tier | Phone |
| Salomon Brothers Inc. | Lead Manager | (212) 783-2947 |
| Issuer's Law Firm: | Latham & Watkins |
| Bank's Law Firm: | Lebdeuf, Lamb, Greene & Macrae |
| Auditor: | Ernst & Young |
| Registrar/Transfer Agent: | ChaseMellon Shareholder Services, L.L.C. |
Dollar amounts in U.S. millions except for per share data | |||||
| 9 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/95 | 9/30/96 | 9/30/95 | 9/30/96 | ||
| Revenue: | $165.01 | $133.06 | $125.06 | Assets: | $790.42 |
| Net Income: | $24.37 | $19.85 | $16.81 | Curr Assets: | |
| EPS: | $2.44 | $1.98 | $1.68 | Liabilities: | $518.48 |
| Prior EPS: | $2.23 | $25.96 | $8.67 | Curr Liabilities: | |
| Cash Flow/Oper: | $11.53 | Equity: | $271.94 | ||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company is a holding company that provides medical malpractice insurance. The company is the largest provider of medical malpractice insurance in California. The company is a reorganization of Southern California Physicians Insurance Exchange. The company also insures a variety of other healthcare providers, including hospitals, emergency department facilities, outpatient surgery centers and hemodialysis, clinical and pathology laboratories. The company's total revenues and net income were $165.0 million and $24.4 million, respectively, for the year ended December 31, 1995 and were $133.1 million and $19.8 million, respectively, for the nine months ended September 30, 1996. As of September 30, 1996, the company had $790.4 million of total assets and $271.9 million of total equity. Medical malpractice insurance, or medical professional liability insurance, insures the physician, hospital or other healthcare provider against liabilities arising from the rendering of or failure to render professional medical services. |
| Competition |
| The physician professional liability insurance market in California is highly competitive. The company competes principally with three physician-owned mutual or reciprocal insurance companies, Norcal Mutual Insurance Company, The Doctors' Company and Medical Insurance Exchange of California, with several commercial insurers, including CNA Insurance Companies and Fremont Indemnity Company, and also with a physicians' mutual protection trust, Mutual Protection Trust. |
| Business Plan |
| To position the company to compete and grow its business successfully in this changing environment, the company has adopted a strategy that includes: 1) expanding the company's product offerings, particularly to meet the liability insurance needs of larger, more diverse healthcare entities; 2) diversifying geographically by increasing writings of medical malpractice insurance in states other than California; 3) positioning the company to take advantage of acquisition and consolidation opportunities relating to medical malpractice insurance; 4) maintaining the company's relationship with its primary policyholder base of California physician and medical group insureds; and 5) maintaining sufficient capital to take advantage of future market opportunities and to retain strong insurance ratings. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to be contributed to insurance subsidiaries of the company to support continued growth of the company's businesses and for general corporate purposes. |