1. How Do We Rate? Rating Actions on Medical Malpractice Companies and Prospects for the Future Robert D. Francis Chief Operating Officer The Doctors Company

2. Effects of rating changes on the medical malpractice segment Review of ratings pattern since 1984 Track the key rating variable Postulate near term outlook

3. American Phys Assurance COPIC The Doctors Company FPIC Health Care Indemnity ISMIE LAMMICO MAG Mutual Medical Assurance MIEC (California) MLMIC Medical Mutual of NC Medical Mutual of MD Medical Protective MHA Insurance Company MICA (AZ) PIC Wisconsin Physician Insurance (WA) Preferred Professionals Insurance ProNational SCPIE State Volunteer Mutual Utah Medical Companies Analyzed

4. Average Ratings of Rated Peer Group A++ B B+ B++ A- A A+

5. Medical Malpractice Industry Cycle

6. Initial Ratings Phase 108

7. Stability and Upgrades 1125

8. Downgrades 16

9. Companies Upgraded in 2006 (for 2005) The Doctors Company American Physicians Assurance Medical Protective

10. Companies Upgraded in 2006 (for 2005) Operating RatioLeverage Ratio The Doctors Company72%3.3 American Phys73%3.6 Med Pro121%2.9 Peer Average89%4.3

11. The Doctors Company Ratings Changes A A+A A- B++ A-

12. Key Elements in Rating Decisions Operating ratio clearly leads the group of key metrics Combined ratio and leverage ratio are also important Current rating Performance relative to the industry Pattern of performance

13. Final Thoughts Medical malpractice carriers are less sensitive to rating changes though sensitivity increases with market softness and account size Few upgrades likely in 2007 Some possible in 2008