News
Oct 3rd 2006 - Phyhealth Finalizes Agreement Securing Capital and Surplus for Physhield Insurance Exchange
MIAMI--(BUSINESS WIRE)--Physicians Healthcare Management Group, Inc. (Pink Sheets:PHYH - News) announced today that it has finalized an agreement with Atlas Insurance Management (Atlas), a leading independent manager of captive insurance companies, to secure the required capital and surplus for Physhield Insurance Exchange, a Risk Retention Group (Physhield). Under the agreement, Atlas contributes the full capital and surplus required to meet state regulations in exchange for equal ownership of Phyhealth Underwriters, Inc., and a Surplus Note from Physhield. Also, Phyhealth has the opportunity to profit from Atlas's operation of offshore captives and segregated cells serving Phyhealth Plans. While the terms of the agreement were not fully disclosed, Phyhealth management has asserted that the agreement is not dilutive to shareholder equity, in that no equity or convertible debt instruments were issued pursuant to the agreement.
Phyhealth's CEO, Robert Trinka, stated, "We are absolutely delighted with our relationship with Atlas and the confidence in our business model its significant cash investment in Physhield demonstrates. Additionally, Atlas's management team contributes their knowledge of international insurance and reinsurance markets, valuable relationships within the physician and financial management communities, unique asset protection tools for our member physicians, and their best-in-class expertise in managing offshore captives and segregated cells." He added, "Atlas's managers are all proven innovators who can help us introduce the new, 21st century healthcare risk management solutions that our physician partners, their patients, and the US healthcare system so urgently need."
Martin Eveleigh, Chairman of Atlas Insurance Management commented, "We are convinced that Phyhealth, with its emphasis on physician ownership and management, is an excellent strategic partner for us as we seek to provide unique solutions enabling physicians to take control of their medical liability risk while protecting their practice and personal assets. We have worked with Phyhealth for over a year and are very excited about this investment and the opportunities that holding a solid stake in the US healthcare industry gives to our organization."
About Atlas Insurance Management
Atlas Insurance Management is a leading international insurance management and consulting company managing over 110 captive insurance companies in 5 jurisdictions. Atlas provides captive insurance company formation and management services in The Bahamas, the Cayman Islands, British Virgin Islands, Anguilla, and Nevis. Atlas Insurance Management has its group headquarters in the Cayman Islands, the fifth largest financial centre in the world.
Atlas is always seeking new ways to make Alternative Risk Transfer techniques and captives available to an ever-wider user group. Atlas focuses on solutions and provides them by combining creative thinking with its unrivalled access to no fewer than eight general and life insurance companies.
Atlas Insurance Management serves healthcare industry clients in the US and Caribbean. Please visit www.atlascaptives.com for additional information.
About Physicians Healthcare Management Group, Inc.
Phyhealth develops and operates fully integrated healthcare organizations in partnership with physicians. Phyhealth Plans preserve the physician-patient relationship and deliver high-quality affordable healthcare within its selected communities. Phyhealth offers a turnkey, prepaid health plan solution to physicians for their Medicare and other individual patients who prefer to choose their own doctor and who make their own healthcare insurance purchasing decisions. Phyhealth Plans are unique in integrating all aspects of the delivery and financing of care, including providing medical liability insurance protection through Physhield Insurance Exchange, Phyhealth's exclusive risk retention group. The Phyhealth model empowers physicians to proactively manage their patient's general health and medical care and enhances physician financial rewards by increasing practice revenues, reducing expenses and restoring the economic value (equity) of their medical practices.
Forward-Looking Statements
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Physicians Healthcare Management Group, Inc., and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
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