OMSNIC Releases 2014 Annual Report
The Company is Showing Continued Solid Earnings and Increased Preferred Stock Prices for Twentieth Straight Year
ROSEMONT, IL, April 30, 2015—OMS National Insurance Company, RRG, the largest provider of Professional Liability Insurance for Oral and Maxillofacial Surgeons in the United States, released their 2014 Annual Report today. The report shows solid earnings and an increase in Preferred Stock prices for the twentieth straight year. Also included is an in depth interview with featured Oral and Maxillofacial Surgeon Pat Ricalde, DDS, MD, FACS whose practice focuses on pediatric craniofacial surgery.
A Year of Achievements
At OMSNIC we are driven by our purpose to provide powerful practice protection and defense so OMS can focus on delivering excellent patient care and outcomes. We have numerous 2014 achievements to discuss, in the areas of brand image, digital communications, technology, defense, risk management, OMS practice operations support, and our partnership with AAOMS.
Our positive 2014 financial results are due to another year of strong defense outcomes despite the unpredictability of claims that often take years to resolve.
Earnings were solid, with consolidated net income of $10.4 million. This was lower than in 2013, an extraordinary year, but still a very profitable result.
OMSNIC’s preferred stock price rose for the 20th straight year to $1,583.55 per share. That’s an increase of 8.5%.
The Company’s equity was significantly increased as a result of a $19 million special preferred stock offering in spring 2014. The OMSCap™ Plan continues
to be an excellent investment for OMS while supplying the means to sustain Company growth and ensure our financial stability and strength.
In 2014, the OMSCap Plan posted stellar results once again. OMSNIC’s preferred stock price rose for the 20th straight year to $1,583.55 per share. That’s an increase of 8.5%. A $19 million special preferred stock offering in spring 2014 gave our shareholders an opportunity to increase their holdings and augmented OMSNIC’s equity significantly.
OMSCap is the OMS-only investment plan comprised of OMSNIC Common and Preferred Stock, which is owned by each of the oral and maxillofacial surgeons we insure. Stock ownership gives oral and maxillofacial surgeons control over the terms, cost and quality of their professional liability insurance. Over 83% of private practice OMS in the U.S. are OMSNIC owners.
OMSNIC’s Preferred Stock price has risen in 22 of the 23 years since first issued. While past performance is no guarantee of future results, ownership in the OMSCap Plan continues to be very rewarding for our shareholders. The OMSCap Preferred Stock value is set on April 1 of each year, with price per share determined by the prior year’s audited financial results.
OMSGuard™ Defense and Risk Management
Our record of claims defense excellence continued during 2014. OMSNIC obtained 25 verdicts with 92% favorable outcomes. At OMSNIC, success is a team effort: clinically trained OMSGuard defense attorneys, OMS peers overseeing claims, experienced OMSNIC claim analysts, and as the first line of defense, OMSGuard Risk Management to minimize liability.
It’s exciting to hear firsthand how vital our risk management program has become to many OMS practices. You can read how Dr. Ricalde has integrated OMSGuard Risk Management principles and education into her practice in our Annual Report at www.OMSNIC.com.
Technology for Improved Data Analysis
For the past year, we have been working diligently to test and implement a sophisticated policy/accounting/claims system. With our comprehensive database of over 13,000 OMS claims, OMSNIC’s intelligence for the Specialty is unmatched by any other insurance company. However, managing and harnessing this ever-growing volume of data requires advanced technology. This new system will provide us with better data collection tools and more powerful analysis opportunities. We anticipate a greater ability to spot trends, make timely recommendations to improve patient safety, offer targeted risk management education, provide insights for OMSGuard defense, respond with coverage for emerging risks, and adjust rates appropriately.
AAOMS Endorsement Extended
OMSNIC’s Endorsement Agreement with AAOMS was extended for an additional five-year period through 2021. This cooperative relationship benefits both OMSNIC and AAOMS, as well the academic and resident communities. OMSNIC provides AAOMS with data to guide recommendations and advocacy, and tools like the international informed consent forms that have recently become the standard. We work together on a range of initiaves including many that support the next generation of OMS, like the Resident Surgical Log and the benchmarking of resident programs.
OMSNIC ADA CERP Recognition
OMSNIC’s approved term as an ADA CERP Recognized Provider was extended to 2018. OMSNIC is recognized by ADA CERP (the continuing education arm of the ADA) as an organization who has demonstrated, through a comprehensive application process, that it meets all of the ADA CERP standards and criteria. Continued recognition by ADA CERP allows OMSNIC to issue CE credits for the educational programs we produce.
This article was reprinted with the permission of OMS National Insurance Company, RRG.