HPIX’s financial strength enables it to protect its policyholders. At December 31, 2011, HPIX had assets and capital of $104.7 million and $36.4 million, respectively. Particular emphasis is placed on our strong capital position. Our financial strength can be measured by a common industry metric, Risk Based Capital (“RBC”). RBC is an NAIC measurement to determine the minimum amount of capital that an insurance company needs to support its overall business. As a general rule, insurance companies must maintain a minimum ratio of 2 to 1. At December 31, 2011, HPIX’s RBC exceeded 5.0 to 1.
HPIX’s disciplined financial approach and practices provide long-term stability and ensure its ability to pay claims remains strong. HPIX’s strong reserve position supported by its reinsurance programs provides additional enhancement to its financial strength. At December 31, 2011, HPIX had loss reserves of $46.2 million. Our reinsurance carriers maintain strong AM Best ratings of (A-) or higher.
The company has implemented an operational excellence initiative which has resulted in fewer expenses and enhanced operational efficiencies without compromising customer service. Additionally, HPIX has repaid over $4 million of surplus to its physician subscribers since 2009. It plans to return another $2 million in 2012.