AmCOMP contests OIR claim of excessive profits
Jun 12, 2008
South Florida Business Journal--June 11, 2008
AmCOMP said it has it filed a petition requesting a hearing to review a claim by the Florida Office of Insurance Regulation that it realized $11.7 million in excessive profits.
In May, the OIR told the North Palm Beach-based insurer that a preliminary finding indicated the company had received excessive profits between 2003 and 2005. It said the money must be returned to policyholders.
AmCOMP (NASDAQ: AMCP) postponed the meeting during which its stockholders were to vote on a proposed merger with a subsidiary of Employers Holdings in order to respond to the notice.
In its petition for review, AmCOMP asks the matter be referred to the Florida Division of Administrative Hearings, and recommends OIR’s claim of excessive profits be withdrawn or rescinded.
AmCOMP does not have to return any of the profits until after a ruling is made on its petition.
Shares closed down 5 cents to $10.84. The 52-week high was $12.45 on May 23. The 52-week low was $7.32 on Aug. 9.