Fitch Upgrades The Doctors Company Group's Ratings; Outlook Stable

CHICAGO--(Business Wire)--Fitch Ratings has upgraded the Insurer Financial Strength (IFS)
ratings to 'A' from 'A-' on The Doctor's Company, an Intercompany
Insurance Exchange (Doctors) and its wholly owned insurance
subsidiaries, see list below, collectively referred to as The Doctors
Company Group (TDC). The Rating Outlook for all ratings is Stable.

Fitch, On Oct. 16, 2007, placed the ratings of TDC on Positive
Rating Watch following the company's announcement of its proposed
acquisition of SCPIE Holdings, Inc (SCPIE) for $281 million. Fitch
noted at this time that there was positive rating pressure on TDC's
ratings from the company's strong performance under Fitch's economic
capital model, Prism, above-average underwriting profitability
relative to peers, adequate loss reserve levels, and an experienced
management team, however, a further analysis of SCPIE, its loss
reserve position, and a pro forma capital adequacy analysis of the
combined entities was warranted to resolve the Rating Watch status.

Fitch's rating action today is predicated on its belief that the
acquisition of SCPIE will enhance TDC's operating profile and will not
materially alter TDC's above average capital position. Fitch believes
SCPIE's overall reserve position is likely deficient to adequate. In
particular, SCPIE's run-off assumed reinsurance reserves is likely
deficient but the company's core medical malpractice reserves are
likely redundant. On balance and when combined with TDC's strong
reserve position Fitch believes reserve quality of the combined
entities is supportive of today's rating action.

Fitch believes that TDC is in a good position to leverage
potential synergies from SCPIE due to the significant overlap in the
companies' geographical footprints and operating profiles. However,
Fitch also notes that the proposed acquisition creates potential
integration and execution risk. The proposed acquisition will likely
close near the end of the first quarter 2008.

Doctors is a California domiciled reciprocal insurer with
operating subsidiaries engaged in medical malpractice insurance. The
company ranks among the top five U.S. writers of medical malpractice
insurance.

Founded in 1976, California-based TDC insures over 33,600
physicians and is endorsed by numerous medical societies. As of Sept
30, 2007, TDC reported $425 million of net premiums written, and
shareholders equity of $811 million. TDC is licensed as an admitted
carrier in 48 states, the District of Columbia, and the Territory of
Guam.

Fitch has upgraded the IFS ratings of the following TDC insurance
subsidiaries to 'A' with a Stable Outlook from 'A-' Positive Rating
Watch:

--The Doctors' Company an Intercompany Insurance Exchange;

--Professional Underwriters Liability Insurance Company (PULIC);

--Underwriter for the Professions Insurance Company (UPIC);

--Northwest Physicians Insurance Company (NPIC).

--OHIC Insurance Company (OHIC)

Fitch's rating definitions and the terms of use of such ratings
are available on the agency's public site, www.fitchratings.com.
Published ratings, criteria and methodologies are available from this
site, at all times. Fitch's code of conduct, confidentiality,
conflicts of interest, affiliate firewall, compliance and other
relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings, Chicago
Gerald B. Glombicki, 312-606-2354
James B. Auden, 312-368-3146
Kenneth Reed, 212-908-0540
(Media Relations, New York)

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