2008-07-02 23:51:09 -

www.ambest.com - A.M. Best Co. has removed from under review with developing implications and affirmed the financial strength rating (FSR) of B+ (Good) and issuer credit ratings (ICR) of "bbb-" of SCPIE Companies (SCPIE) and its three pooled members, led by SCPIE Indemnity Company. The outlook assigned to the ratings is stable.

Concurrently, A.M. Best has withdrawn the ICR of "bb-" of SCPIE's publicly traded parent, SCPIE Holdings Inc. (NYSE: SKP), which was immediately delisted as a publicly traded entity. All the above named companies are located in Los Angeles, CA. (See below for a detailed listing of the companies and ratings.)

These rating actions follow the approval from California regulators on June 27th and the completed acquisition

of SCPIE Holdings Inc. by The Doctors Company, An Interinsurance Exchange (The Doctors Company) (Napa, CA), which was officially consummated on June 30th for an aggregate purchase price of approximately $281 million.

In addition to being part of The Doctors Company, the ratings of SCPIE also take into consideration management's plans to renew nearly all of SCPIE's existing professional liability business in The Doctors Company. A planned dividend also has been considered; however, capitalization is expected to remain at a level that is supportive of its ratings. The stable outlook assigned to SCPIE contemplates adequate liquidity and an orderly run-off of existing liabilities, as well as the implied support from The Doctors Company, if needed.

Prior to being acquired by The Doctors Company, SCPIE was among the leading providers of direct healthcare liability coverage for physicians in California. Cash flow is expected to be constrained, given the change in ownership and the uncertainties that exist regarding the long-term strategic implications for SCPIE following this transaction.

The FSR of B+ (Good) and ICRs of "bbb-" have been removed from under review with developing implications and affirmed for the SCPIE Companies and its following members. The assigned outlook is stable.

-- SCPIE Indemnity Company

-- American Healthcare Indemnity Company

-- American Healthcare Specialty Insurance Company

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

A.M. Best Co.
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Henry Witmer, 908-439-2200, ext. 5097
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Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
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Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com