A report from Florida's insurance department finds the state'smedical malpractice market to be in healthy shape, with claims paidtotaling close to $677 million in 2005.

In an annual report from the Florida Office of InsuranceRegulation, the department declared that solvency risk does notappear to be an issue among medical malpractice insurers and thatadverse reserve trend developments seen in 2001 have reversed, fornow.

"The 2003 legislative reforms made some substantial reformsgeared toward improving Florida's medical malpractice market,"Florida Insurance Commissioner Kevin McCarty said in astatement.

He said the report "is reflective of the improvements thereforms brought about and of the Legislature's dedication toensuring Florida's physicians have the coverage they need tocontinue practicing in Florida."

The report examined 15 of the state's insurers, making up 80percent of the Florida market, and found that compared to the fivelargest markets--California, Texas, Illinois, Pennsylvania and NewYork--the state is the third largest market in terms of directwritten premium at more than $849 million.

The state ranks fourth highest in losses to earned premium ratioat 40.2 percent. It ranks third highest in terms of defense andcontainment costs to earned premium ratio at 21.3 percent and isnumber one when measuring the combined non-loss costs (commissions,licenses and taxes) to earned premium at a ratio of 29 percent.

In 2005, 33 percent of medical malpractice filings with rateimpact were approved by the department, with companies receivingrate approvals ranging from a decrease of 29.2 percent to increaseof 130 percent.

On claims, 3,753 were closed in 2005 and hospital inpatientfacilities were the most common reported location for claims. Atotal of $676.9 million was paid out in 2005, $449 million ineconomic damages and the remainder in non-economic damages.

Of the fifteen insurers, First Professional Insurance Companyhad the biggest market presence with a share exceeding 25 percent,or $216 million in direct written premium; followed by Health CareIndemnity Inc. with more than 13 percent of the market and $112million direct written premium.

MAG Mutual Insurance Co. stood third with more than 10 percentand $88.6 million in premium; Pronational Insurance Co. had lessthan 7 percent of the market with $57.5 premium; and LexingtonInsurance Co. stood fifth on the list with more than 5 percent and$43 million in premium.