NORCAL Group 2014 Annual Report
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<strong>2014</strong> <strong>Annual</strong> <strong>Report</strong><br />
The Year of ______________
Our Mission<br />
To provide our policyholders the highest quality<br />
medical professional liability insurance products<br />
and services at the lowest responsible cost,<br />
while maintaining a financially sound company.<br />
To anticipate and influence changing industry<br />
and policyholder trends and respond to those<br />
trends in a manner which allows <strong>NORCAL</strong> Mutual<br />
to maintain its financial stability for the benefit<br />
of the policyholders.
A Message from the Chair and the CEO<br />
In Service of You, Our Policyholders<br />
Over the years, the <strong>NORCAL</strong> <strong>Group</strong> of companies has seen many changes<br />
in the practice of medicine and we have continually adapted to meet those<br />
evolving needs—introducing new products, refining operations, improving<br />
services, and now expanding to a national scale. Even as we continue our<br />
evolution, our priorities are as clear today as they were at our founding.<br />
We are a policyholder-focused company—there are no shareholders, no quarterly<br />
earnings calls, and no analysts’ projections to meet. For <strong>NORCAL</strong> it has always<br />
been and will always be about serving the best interests of you—our policyholders.<br />
StAYIng Ahead to Better Serve You<br />
The landscape of our healthcare system continues to change and become more complex.<br />
From new healthcare laws and the rise of cybercrime to the persistent threats against tort<br />
reform, the impacts to the practice of medicine are pervasive and unrelenting. <strong>NORCAL</strong><br />
works continuously to anticipate this dynamic environment by remaining at the forefront<br />
of emerging issues and adapting to meet your changing needs.<br />
For <strong>NORCAL</strong> it has always been and will always be about serving<br />
the best interests of you—our policyholders.<br />
In <strong>2014</strong>, we introduced a versatile new policy to better protect your practice with<br />
enhanced cyber liability and administrative defense coverage. We continued to be<br />
a staunch advocate for physicians’ rights and tort reform, serving as the largest<br />
contributor to the No On 46 coalition, to help defeat Proposition 46 in California<br />
along with our 700-strong coalition partners.<br />
We defend your community and we vigorously defend you. In <strong>2014</strong>, 89% of claims<br />
against our insureds were resolved without indemnity payments—one of the highest<br />
rates in the industry.<br />
* Includes physician completions only. Source: Accreditation Council for Continuing Medical Education (ACCME),<br />
List of All Currently Accredited CME Providers.<br />
4 <strong>2014</strong> <strong>NORCAL</strong> <strong>Group</strong> <strong>Annual</strong> <strong>Report</strong>
Our Risk Management services continued to be among the strongest in the industry. Our<br />
continuing medical education (CME) participation is more than double that of the closest<br />
competitor.* In <strong>2014</strong>, we awarded over 35,470 CME certificates.<br />
Strength and Stability to Better Protect You<br />
Our ability to support and defend the critical issues that impact your practice can be<br />
attributed to our years of stability, strength and solid financial position. We are proud that<br />
we were again affirmed with an “A” (Excellent) rating by A.M. Best, a rating <strong>NORCAL</strong> Mutual<br />
has held for more than 30 years. In <strong>2014</strong>, we returned more than $14 million in dividends to<br />
our members due to their practice of good medicine and the sound business practices<br />
of the <strong>NORCAL</strong> <strong>Group</strong> of companies. To date, more than $500 million in dividends have<br />
been declared and paid.<br />
We are building on the strength of our foundation and growing and changing for you,<br />
moving from three regional companies to one national medical professional liability<br />
insurance (MPLI) company that is large enough and agile enough to serve the complex and<br />
varied needs of our policyholders. From the solo practitioner to the large multi-specialty<br />
group, we are committed to you every day, and are unwavering when you need us most.<br />
We are proud that you have put your trust in us and we look forward to another great<br />
year together.<br />
Thank you very much for your business and your confidence in our company.<br />
Jaan Sidorov, MD, MHSA, FACP<br />
Chair<br />
Scott Diener<br />
President &<br />
Chief Executive Officer
Arl Van Moore, Jr., MD<br />
The year of ___________________________<br />
Arl Van Moore, Jr., MD | Chairman and CEO of Strategic Radiology | Charlotte, NC<br />
“Strategic Radiology is always looking at innovative ways to approach our business<br />
needs. <strong>NORCAL</strong> Mutual understands the complete requisite of our members. The<br />
<strong>NORCAL</strong> team crafted a progressive program that brings significant benefits at<br />
a group level, but also enough flexibility to address the needs of our individual<br />
member groups.”<br />
6 <strong>2014</strong> <strong>NORCAL</strong> <strong>Group</strong> <strong>Annual</strong> <strong>Report</strong>
<strong>2014</strong> — The Year of You<br />
Building a Better COMPAny for You<br />
We are changing because the needs of our members are changing.<br />
The complex and varied requirements for physicians, medical groups,<br />
and facilities are driving the need for flexible coverage options that<br />
meet the unique demands of each practice. Our strategic integration<br />
and expansion addresses these varied needs with the introduction of<br />
a versatile new policy, as well as improvements to our service model<br />
to further enhance our customers’ experience.<br />
Our national expansion continued throughout the year with the addition of more states<br />
to the <strong>NORCAL</strong> Mutual coverage area. We also introduced a new policy that offers greater<br />
flexibility and increased coverage of cyber liability and administrative defense. In <strong>2014</strong>,<br />
<strong>NORCAL</strong> began writing business in Illinois, Kansas, Missouri, Nevada and Texas, all states<br />
that were previously written by our subsidiary Medicus Insurance Company. Additionally,<br />
Delaware and Pennsylvania insureds were transitioned from PMSLIC Insurance Company<br />
to <strong>NORCAL</strong> Mutual in the second half of the year.<br />
We are changing because the needs of our policyholders are changing.<br />
Underpinning our expansion was the continued integration of our operations for greater<br />
efficiencies and continued service enhancements. A dedicated product development<br />
team was established to focus on new coverage offerings; our underwriting and operations<br />
processes were further streamlined; a national policyholder services strategy was<br />
implemented to provide extended support; and a mobile app to access risk management<br />
and CME benefits is under development to launch in early 2015.<br />
<strong>2014</strong> <strong>NORCAL</strong> <strong>Group</strong> <strong>Annual</strong> <strong>Report</strong> 7
<strong>2014</strong> — The Year of You<br />
A COMPAny as Diverse as You<br />
Diversity remains a strategic advantage for us. Our physician-led board of directors is<br />
one of the most diverse in the industry, ensuring a wider perspective on matters that<br />
are important to you. Across our company, we cultivate an environment that embraces<br />
diversity of thought, cultural experiences and individual differences. This is essential to<br />
better understand the wide-ranging perspectives of a growing policyholder base that<br />
may differ in geography, size, specialty or needs.<br />
Through our Supplier Diversity program we are committed to pursuing business<br />
relationships with enterprises owned by individuals of diverse backgrounds. Those<br />
enterprises include women-, LGBT-, veteran-, disabled veteran- and minority-owned<br />
businesses that share our commitment to delivering outstanding value to our customers.<br />
Our physician-led board of directors is one of the most diverse<br />
in the industry, ensuring a wider perspective on matters that are<br />
important to you.<br />
National Experience with Local Attention<br />
Even as we broaden our reach as a national organization, we are committed to honoring<br />
our roots of localized attention and service. <strong>NORCAL</strong> <strong>Group</strong> now includes multiple offices<br />
in every major U.S. time zone to best serve your needs.<br />
Our local expertise also extends to the strong partnerships with our national network<br />
of local agent/brokers. Our partners continue to be a trusted source of information<br />
and support for our policyholders and for <strong>NORCAL</strong>.<br />
8 <strong>2014</strong> <strong>NORCAL</strong> <strong>Group</strong> <strong>Annual</strong> <strong>Report</strong>
Carol Davis<br />
The year of ___________________________<br />
Carol Davis | Practice Administrator, Creekside Medical | Vancouver, WA<br />
“Clarity and openness were big selling points for moving to Medicus. Everyone has<br />
been readily available and responsive. We get prompt, thorough service from any<br />
department, and that is so important. The risk management service in particular<br />
is excellent. This is exactly what we needed from our provider.”<br />
<strong>2014</strong> <strong>NORCAL</strong> <strong>Group</strong> <strong>Annual</strong> <strong>Report</strong> 9
A Note from Our CFO<br />
In <strong>2014</strong>, the healthcare sector continued to transform and change, and we<br />
are proud that the financial condition of <strong>NORCAL</strong> Mutual and its subsidiary<br />
companies has remained consistently strong throughout. Policyholder<br />
counts and renewal retention rates have both trended favorably as we<br />
have begun to transition PMSLIC and Medicus policyholders onto <strong>NORCAL</strong><br />
Mutual paper. <strong>NORCAL</strong> <strong>Group</strong>’s “A” (Excellent) rating and stable outlook<br />
was again affirmed by A.M. Best for the 31 st consecutive year.<br />
We are very pleased to maintain a healthy policyholder surplus of<br />
$642 million, which has been consistent over the past several years.<br />
<strong>NORCAL</strong> experienced solid claim results, and written premium grew even as the competitive<br />
environment endured. The growth of our Excess & Surplus (E&S) line also helped contribute<br />
to our success in <strong>2014</strong>. We are very pleased to maintain a healthy policyholder surplus of<br />
$642 million, which has been consistent over the past several years.<br />
We remain confident and optimistic about the future and our ability to protect our<br />
policyholders for years to come.<br />
Mark D. Johnson<br />
Senior Vice President & Chief Financial Officer
$1,556,058B<br />
$1,556,058B $1,551,482B<br />
1.5B<br />
500M<br />
400M<br />
2012 2012<br />
300M 2011 2011<br />
1B<br />
200M<br />
At-a-Glance: Financial Strength 100M and Stability<br />
.5B<br />
0<br />
0<br />
$1,565M<br />
$1,551M<br />
$1,556M<br />
$642M<br />
$634M<br />
$608M<br />
2012 2013 <strong>2014</strong><br />
2012 2013 <strong>2014</strong><br />
tOtal Admitted ASSEts<br />
for <strong>NORCAL</strong> <strong>Group</strong> remained stable at<br />
$1.5 billion over the past three years.<br />
Direct Earned Premium<br />
Policyholder Surplus<br />
continued to grow to $642 million<br />
due to sound business practices<br />
and solid investment returns.<br />
Direct Earned Premium<br />
300000 $289M $285M $293M<br />
30000 <strong>2014</strong><br />
<strong>2014</strong><br />
250000<br />
25000 2013<br />
23,536<br />
25,600<br />
27,390<br />
2013<br />
200000<br />
150000<br />
100000<br />
50000<br />
20000 2012<br />
15000<br />
10000<br />
5000<br />
2012<br />
0<br />
2012<br />
2013<br />
<strong>2014</strong><br />
0<br />
2012 2013 <strong>2014</strong><br />
Direct Written Premium<br />
increased to $293 $285,236M million as<br />
policyholder counts $285,236M and new<br />
business opportunities $294,318M rose in <strong>2014</strong>.<br />
2012 2013 <strong>2014</strong><br />
Policyholder Count<br />
has exceeded 27,000 as <strong>NORCAL</strong><br />
<strong>Group</strong> has expanded into new<br />
2013<br />
markets and offered new products.<br />
2012<br />
2011<br />
<strong>2014</strong> <strong>NORCAL</strong> <strong>Group</strong> <strong>Annual</strong> <strong>Report</strong> 11
<strong>NORCAL</strong> <strong>Group</strong> Consolidated Financial Results<br />
The growth of the <strong>NORCAL</strong> <strong>Group</strong>, which includes <strong>NORCAL</strong> Mutual,<br />
Medicus and PMSLIC, has led to a better diversified MPLI option to<br />
protect physicians throughout the country. At year’s end, <strong>NORCAL</strong> <strong>Group</strong><br />
represented $295 million of MPLI premium across the nation, making<br />
<strong>NORCAL</strong> Mutual one of the largest mutual carriers.<br />
We are well capitalized with $1.56 billion in assets and have conservatively<br />
retained more than $642 million in policyholders’ surplus, ensuring the<br />
ability to protect our policyholders for many years to come. In <strong>2014</strong>, we<br />
declared more than $14 million in dividends to eligible <strong>NORCAL</strong> Mutual<br />
and PMSLIC policyholders.<br />
DoLLArs in ThouSAnDS as of 12/31<br />
StatutORY-BASIS Income Statements <strong>2014</strong> 2013<br />
Income<br />
Net premiums earned 275,523 289,187<br />
Net investment income 35,412 31,967<br />
Net realized gains on investments 30,285 45,852<br />
Total Income $ 341,220 $ 367,006<br />
Expenses<br />
Losses & loss adjustment expenses incurred 217,347 235,809<br />
Other underwriting expenses 47,756 49,553<br />
Acquisition costs, net 22,155 16,433<br />
Other expenses 3,415 3,010<br />
Total Expenses $ 290,673 $ 304,805<br />
Income before dividends & federal income taxes 50,547 62,201<br />
Dividends declared to policyholders, net 14,477 15,108<br />
Income before federal income taxes 36,070 47,093<br />
Federal income tax expense 9,844 11,644<br />
Net Income $ 26,226 $ 35,449<br />
12 <strong>2014</strong> <strong>NORCAL</strong> <strong>Group</strong> <strong>Annual</strong> <strong>Report</strong>
DoLLArs in ThouSAnDS as of 12/31<br />
StatutORY-BASIS Balance Sheets <strong>2014</strong> 2013<br />
Admitted ASSEts<br />
Debt securities 1,052,124 1,026,648<br />
Equity securities 262,558 291,713<br />
Cash, cash equivalents & short-term investments 66,570 58,012<br />
Other invested assets 64,541 62,842<br />
Total Cash & Investments $ 1,445,793 $ 1,439,215<br />
Investment income receivable 11,222 12,277<br />
Premiums receivable 57,090 48,783<br />
Reinsurance recoverables 1,060 1,825<br />
Federal income tax recoverable – 4,753<br />
Deferred tax assets 28,557 20,780<br />
Other admitted assets 21,134 23,849<br />
total Admitted Assets $ 1,564,856 $ 1,551,482<br />
Liabilities<br />
Losses & loss adjustment expenses 652,257 673,625<br />
Unearned premiums 133,615 124,462<br />
Premiums collected for future renewals 31,095 31,053<br />
Dividends payable to policyholders 15,488 16,422<br />
Reinsurance premiums payable – 70<br />
Federal income tax payable 3,907 –<br />
Funds held under reinsurance treaties 9,519 14,071<br />
Notes payable 9,375 9,155<br />
Other liabilities 67,465 48,422<br />
total Liabilities $ 922,721 $ 917,280<br />
Policyholders’ Surplus<br />
Unassigned surplus 642,135 634,202<br />
Total Policyholders’ Surplus $ 642,135 $ 634,202<br />
Total Liabilities & Policyholders’ Surplus $ 1,564,856 $ 1,551,482<br />
<strong>2014</strong> <strong>NORCAL</strong> <strong>Group</strong> <strong>Annual</strong> <strong>Report</strong> 13
<strong>NORCAL</strong> <strong>Group</strong> National Footprint<br />
WA<br />
MT<br />
ND<br />
OR<br />
Carol Davis<br />
Practice Administrator,<br />
Creekside Medical<br />
Vancouver, WA<br />
ID<br />
WY<br />
SD<br />
NE<br />
NV<br />
CA<br />
UT<br />
CO<br />
KS<br />
AZ<br />
NM<br />
TX<br />
AK<br />
HI<br />
David Pittman, JD, MBA<br />
CEO,<br />
Bay Area Surgical Specialists (BASS)<br />
Walnut Creek, CA<br />
14 <strong>2014</strong> <strong>NORCAL</strong> <strong>Group</strong> <strong>Annual</strong> <strong>Report</strong>
Ira Thal, MD<br />
Internal Medicine<br />
Paoli, PA<br />
ME<br />
MN<br />
VT<br />
NH<br />
WI<br />
MI<br />
NY<br />
MA<br />
CT<br />
RI<br />
IA<br />
IL<br />
IN<br />
OH<br />
PA<br />
MD<br />
NJ<br />
DE<br />
WV<br />
MO<br />
KY<br />
VA<br />
DC<br />
OK<br />
AR<br />
TN<br />
SC<br />
NC<br />
Arl Van Moore, Jr., MD<br />
Chairman and CEO,<br />
Strategic Radiology<br />
Charlotte, NC<br />
MS<br />
AL<br />
GA<br />
LA<br />
FL<br />
Active, Writing<br />
States with Certificate<br />
of Authority (COA)<br />
Prabhdeep Brar, MD<br />
Pediatrician<br />
Milledgeville, GA<br />
<strong>2014</strong> <strong>NORCAL</strong> <strong>Group</strong> <strong>Annual</strong> <strong>Report</strong> 15
The year of ___________________________<br />
Ira Thal, MD | Internal Medicine | Paoli, PA<br />
Ira Thal, M D<br />
“We greatly appreciated all of the efforts and support from the beginning and in the<br />
updates, preparation, and daily support during trial. We never felt alone. <strong>NORCAL</strong><br />
supported us during our darkest moments when we were losing faith. It was an<br />
emotional week and we were very glad they were there every step of the way. We felt<br />
that they went above and beyond, and we greatly appreciate everything they did for us.”<br />
16 <strong>2014</strong> <strong>NORCAL</strong> <strong>Group</strong> <strong>Annual</strong> <strong>Report</strong>
Urology 353<br />
Dermatology Plastic Surgery 461 218<br />
Policyholders by Specialty<br />
Urgent Urology Care 353 555<br />
Gastroenterology Dermatology 570<br />
Plastic Surgery 461 218<br />
Neurology Urgent 584<br />
Urology Care 353 555<br />
Orthopedics Gastroenterology 729<br />
Dermatology 570<br />
Plastic Surgery<br />
461<br />
218<br />
Emergency Neurology Medicine 818<br />
Urgent 584<br />
Urology<br />
Care<br />
353<br />
555<br />
General Orthopedics Surgery 820<br />
Gastroenterology 729<br />
Dermatology<br />
570<br />
Plastic Surgery 461 218<br />
Cardiology Emergency Medicine 907<br />
Neurology 818<br />
Urgent<br />
584<br />
Urology Care 353 555<br />
Hospitalist General Surgery 1,004<br />
Orthopedics 820<br />
Gastroenterology<br />
729<br />
570<br />
TOTAL<br />
Dermatology Plastic Surgery 461 218<br />
OB/GYN Cardiology 1,140 Policyholders<br />
Emergency 907<br />
Neurology<br />
Medicine 818<br />
Urgent Urology Care 353<br />
584 555<br />
Anesthesiology Hospitalist 1,0041,49927,390<br />
General<br />
Orthopedics<br />
Surgery 820<br />
Gastroenterology Dermatology<br />
729 570<br />
Pediatrics OB/GYN Plastic Surgery<br />
461<br />
1,140 1,636218<br />
Cardiology<br />
Emergency<br />
907<br />
Neurology Urgent 584 Medicine 818<br />
Radiology Anesthesiology Urology<br />
Care<br />
353<br />
555<br />
2,213<br />
Hospitalist 1,0041,499<br />
General Orthopedics Gastroenterology<br />
Surgery 729820<br />
Internal Pediatrics Dermatology<br />
570<br />
Medicine 1,636 2,960<br />
OB/GYN Plastic Surgery 461<br />
Cardiology<br />
1,140 218<br />
Emergency Neurology Medicine 907 818<br />
Family Radiology Urgent<br />
584<br />
Practice 2,2133,520<br />
Anesthesiology Urology Care 353 555<br />
Hospitalist 1,004<br />
1,499<br />
General Orthopedics Surgery 820<br />
Other Internal Gastroenterology<br />
729<br />
7,405<br />
Pediatrics Dermatology Medicine 1,636 2,960 570<br />
OB/GYN Plastic Surgery<br />
461<br />
Cardiology 1,140 218<br />
Emergency 907<br />
Family Neurology<br />
Medicine 818<br />
Radiology Urgent Practice 584<br />
2,2133,520<br />
Anesthesiology Urology<br />
Care<br />
353<br />
555<br />
Hospitalist General 1,0041,499<br />
Other Orthopedics<br />
Surgery 820<br />
Internal Gastroenterology 7,405 729<br />
Pediatrics Dermatology Medicine<br />
1,636 461 2,960 570<br />
OB/GYN Cardiology 1,140<br />
Emergency<br />
907<br />
Family Neurology Medicine 818<br />
Radiology Urgent Practice Care<br />
584<br />
2,213 5553,520<br />
Anesthesiology Hospitalist 1,0041,499<br />
General<br />
Other Orthopedics Surgery 820<br />
Internal Gastroenterology 7,405 729<br />
Pediatrics OB/GYN<br />
Medicine<br />
1,140 1,636 2,960 570<br />
Cardiology Emergency 907<br />
Family Neurology<br />
Radiology Anesthesiology<br />
Practice 584<br />
Medicine 818<br />
2,2133,520<br />
Hospitalist 1,004<br />
1,499<br />
General<br />
Other Orthopedics<br />
Surgery<br />
Internal Pediatrics<br />
7,405 729<br />
820<br />
Medicine 1,636 2,960<br />
OB/GYN Cardiology 1,140<br />
Emergency Medicine<br />
907<br />
818<br />
Family Radiology Practice 2,2133,520<br />
Anesthesiology Hospitalist 1,0041,499<br />
General Surgery 820<br />
Other Internal 7,405<br />
Pediatrics<br />
Medicine<br />
1,636<br />
2,960<br />
OB/GYN<br />
Cardiology<br />
1,140<br />
907<br />
Family<br />
Radiology<br />
Practice<br />
2,213<br />
3,520<br />
Anesthesiology<br />
Hospitalist 1,004<br />
1,499<br />
Other<br />
Internal<br />
7,405<br />
Pediatrics Medicine 1,636 2,960<br />
OB/GYN 1,140<br />
Family Radiology Practice 2,2133,520<br />
Anesthesiology 1,499<br />
Other Internal 7,405<br />
Pediatrics<br />
Medicine<br />
1,636<br />
2,960<br />
Family<br />
Radiology<br />
Practice<br />
2,213<br />
3,520<br />
Other<br />
Internal<br />
7,405<br />
Medicine 2,960<br />
Plastic Surgery 218<br />
Urology 353<br />
Dermatology Plastic Surgery 461 218<br />
Urgent Urology Care 353 555<br />
Gastroenterology Dermatology Plastic Surgery 461 218<br />
570<br />
Neurology Urgent Urology Care 353<br />
584 555<br />
Plastic Surger<br />
Urology 353<br />
Dermatology<br />
Urgent Care<br />
Gastroentero<br />
Neurology 58<br />
Orthopedics Gastroenterology Dermatology<br />
729 570<br />
Plastic Surgery 461 218<br />
Emergency Neurology Urgent 584 Medicine 818<br />
Urology Care 353 555<br />
General Orthopedics Gastroenterology<br />
Surgery 729820<br />
Dermatology 570<br />
Plastic Surgery 461 218<br />
Cardiology Emergency Neurology Medicine 907 818<br />
Urgent 584<br />
Urology Care 353 555<br />
Hospitalist General Orthopedics Surgery 1,004820<br />
Gastroenterology 729<br />
Dermatology Plastic Surgery 461 218<br />
570<br />
OB/GYN Cardiology Emergency<br />
1,140 907<br />
Neurology Medicine 818<br />
Urgent Urology Care 353<br />
584 555<br />
Anesthesiology Hospitalist General 1,0041,499<br />
Orthopedics Surgery 820<br />
Gastroenterology Dermatology<br />
729 570<br />
Pediatrics OB/GYN<br />
Plastic Surgery<br />
461<br />
Cardiology 1,140 1,636218<br />
Emergency 907<br />
Neurology Urgent 584 Medicine 818<br />
Radiology Anesthesiology<br />
Urology<br />
Care<br />
353<br />
555<br />
Hospitalist<br />
2,213<br />
1,0041,499<br />
General Orthopedics Gastroenterology<br />
Surgery 729820<br />
Internal Pediatrics<br />
Dermatology<br />
570<br />
OB/GYN Plastic Surgery Medicine<br />
1,140 1,636<br />
461 2182,960<br />
Cardiology Emergency Neurology Medicine 907 818<br />
Family Radiology<br />
Urgent<br />
584<br />
Anesthesiology Urology Practice Care 353 2,213<br />
5553,520<br />
Hospitalist 1,0041,499<br />
General Orthopedics Surgery 820<br />
Other Internal<br />
Gastroenterology<br />
729<br />
Pediatrics Dermatology 7,405 Medicine 1,636 2,960<br />
570<br />
OB/GYN Plastic Surgery 461<br />
Cardiology 1,140 218<br />
Emergency 907<br />
Family<br />
Neurology<br />
Medicine 818<br />
Radiology Urgent Practice<br />
584<br />
2,2133,520<br />
Anesthesiology Urology Care 353 555<br />
Hospitalist General 1,0041,499<br />
Other<br />
Orthopedics<br />
Surgery 820<br />
Internal Gastroenterology 7,405<br />
729<br />
Pediatrics Dermatology Medicine 1,636 461 2,960 570<br />
OB/GYN Cardiology 1,140<br />
Emergency<br />
907<br />
Family Neurology Medicine 818<br />
Radiology Urgent Practice Care 584<br />
2,213 5553,520<br />
Anesthesiology Hospitalist 1,0041,499<br />
General<br />
Other Orthopedics Surgery 820<br />
Internal Gastroenterology 7,405 729<br />
Pediatrics OB/GYN<br />
Medicine<br />
1,140 1,636 2,960 570<br />
Cardiology Emergency 907<br />
Family Neurology<br />
Radiology Anesthesiology<br />
Practice 584 Medicine 818<br />
3,520<br />
<strong>2014</strong> <strong>NORCAL</strong><br />
2,213<br />
Hospitalist 1,004 <strong>Group</strong> 1,499<strong>Annual</strong> <strong>Report</strong> 17<br />
General Surgery 820<br />
Other Orthopedics<br />
Internal Pediatrics<br />
7,405 729<br />
Medicine 1,636 2,960<br />
Orthopedics<br />
Emergency M<br />
General Surge<br />
Cardiology 9<br />
Hospitalist 1,<br />
OB/GYN 1,14<br />
Anesthesiolog<br />
Pediatrics 1,6<br />
Radiology 2,<br />
Internal Medic<br />
Family Practic<br />
Other 7,405
Endorsing & Sponsoring Organizations<br />
County Medical<br />
Societies<br />
California:<br />
Butte-Glenn<br />
Fresno-Madera<br />
Humboldt-Del Norte<br />
Imperial<br />
Inyo-Mono<br />
Kern<br />
Kings<br />
Lassen-Plumas-<br />
Modoc-Sierra<br />
Mendocino-Lake<br />
Merced-Mariposa<br />
Monterey<br />
Napa<br />
Placer-Nevada<br />
Riverside<br />
San Benito<br />
San Bernardino<br />
San Joaquin<br />
San Luis Obispo<br />
San Mateo<br />
Santa Clara<br />
Santa Cruz<br />
Sierra Sacramento<br />
Valley<br />
Sonoma<br />
Stanislaus<br />
Tehama<br />
Tulare<br />
Tuolumne<br />
Yuba-Sutter-Colusa<br />
PennsylVANia:<br />
Allegheny<br />
Berks<br />
Dauphin<br />
Delaware<br />
Lancaster<br />
Montgomery<br />
Philadelphia<br />
York<br />
State Medical<br />
Societies<br />
Medical Society<br />
of Delaware<br />
Pennsylvania<br />
Medical Society<br />
Rhode Island<br />
Medical Society<br />
Professional<br />
Organizations<br />
Alaska Physicians &<br />
Surgeons, Inc.<br />
American Academy<br />
of Pediatrics —<br />
Pennsylvania Chapter<br />
Osteopathic Physicians &<br />
Surgeons of California<br />
Pennsylvania Academy<br />
of Family Physicians<br />
Pennsylvania Osteopathic<br />
Medical Association<br />
Urological Association<br />
of Pennsylvania<br />
18 <strong>2014</strong> <strong>NORCAL</strong> <strong>Group</strong> <strong>Annual</strong> <strong>Report</strong>
Prabhdeep Brar, MD<br />
The year of ____________________________<br />
Prabhdeep Brar, MD | Pediatrician | Milledgeville, GA<br />
“ the policyholder services and risk management teams always know exactly what I need.<br />
Claims Rx has been a big plus, a good way of learning via real-time claims. I even share it with<br />
the medical students who rotate with me. I attended a CME event that focused on treatment<br />
methods practiced by other cultures and how I could apply them to my practice. I thought that<br />
was so interesting. That educational diversity is very important to me.”<br />
<strong>2014</strong> <strong>NORCAL</strong> <strong>Group</strong> <strong>Annual</strong> <strong>Report</strong> 19
David Pittman, JD, MBA<br />
The year of _____________________________<br />
David Pittman, JD, MBA | CEO, Bay Area Surgical Specialists (BASS) | Walnut Creek, CA<br />
“BASS grew over the last two years from a single specialty surgical group with 16 physicians<br />
to a specialty group with over 60 physicians, representing 10 surgical and non-surgical<br />
specialties. <strong>NORCAL</strong> Mutual has been able to adapt and partner with us as we have grown<br />
in size and complexity, providing us outstanding risk management and defense advice that<br />
helped BASS minimize the risks of litigation. <strong>NORCAL</strong> carries the expertise needed to work<br />
with both our group’s centralized administration and our individual providers. <strong>NORCAL</strong> is<br />
our trusted professional liability coverage provider because they work tirelessly with our<br />
organization to assure nothing slips through the cracks.”<br />
20 <strong>2014</strong> <strong>NORCAL</strong> <strong>Group</strong> <strong>Annual</strong> <strong>Report</strong>
<strong>NORCAL</strong> Mutual Officers<br />
Scott Diener<br />
President & Chief Executive<br />
Officer<br />
Julie L. Burns<br />
Vice President,<br />
Human Resources<br />
Timothy J. Friers, Jr.<br />
Senior Vice President &<br />
Chief Underwriting Officer<br />
Karen J. Frisella<br />
Vice President,<br />
Claims<br />
Douglas M. Hall<br />
Vice President,<br />
Information Technology<br />
Mark D. Johnson<br />
Senior Vice President &<br />
Chief Financial Officer<br />
Ronald C. Rumin<br />
Senior Vice President,<br />
Strategic Development<br />
Joy E. Corso<br />
Vice President,<br />
Marketing &<br />
Communications<br />
Denis J. Dillon<br />
Vice President,<br />
Finance & Treasurer<br />
Keith A. Hui<br />
Vice President,<br />
Strategic Partnerships<br />
Thomas J. Lownik<br />
Vice President,<br />
Underwriting<br />
Dennis A. Meisel<br />
Vice President,<br />
Finance & Controller<br />
Tina L. Orndorff<br />
Vice President,<br />
Associate General Counsel &<br />
Assistant Secretary<br />
Michael G. Roque<br />
Vice President,<br />
Sales & Business<br />
Development<br />
Dustin A. Shaver<br />
Vice President,<br />
Risk Management<br />
Neil E. Simons<br />
Vice President,<br />
Product Development<br />
Jeffrey J. Smith<br />
Vice President &<br />
Chief Actuary<br />
Cobie Buchman<br />
Associate Vice President,<br />
Claims<br />
Christoph L. Dugré<br />
Associate Vice President,<br />
Claims<br />
Joseph S. Giulivo<br />
Associate Vice President,<br />
Underwriting Operations<br />
Annie E. Matincheck<br />
Associate Vice President,<br />
Underwriting<br />
Michael C. Osborne<br />
Associate Vice President,<br />
Claims<br />
Lucy D. Sam<br />
Associate Vice President,<br />
Underwriting<br />
Kevin W. Smith<br />
Associate Vice President,<br />
Underwriting<br />
Bruce P. Williams<br />
Associate Vice President,<br />
Actuarial<br />
<strong>2014</strong> <strong>NORCAL</strong> <strong>Group</strong> <strong>Annual</strong> <strong>Report</strong> 21
Board of Directors<br />
A: Jaan E. Sidorov, MD, MHSA, FACP<br />
Chair — Internal Medicine<br />
Dr. Sidorov has been a Director since<br />
2009 and Chair since 2011. He serves on<br />
the Board of Trustees for the Pennsylvania<br />
Medical Society. He was a primary care<br />
physician for more than 24 years while<br />
also authoring more than 45 peerreviewed<br />
publications.<br />
D: Fabiola Cobarrubias, MD, MBA<br />
Hospitalist<br />
Dr. Cobarrubias has been a Director<br />
since 2012, and serves as a hospitalist<br />
consultant to <strong>NORCAL</strong> Mutual’s Claims<br />
Advisory Committee. She is a hospitalist<br />
at California Pacific Medical Center, and<br />
a founder/current board member of<br />
Pacific Inpatient Medical <strong>Group</strong>.<br />
B: Patricia A. Dailey, MD<br />
Vice Chair — Anesthesiology<br />
Dr. Dailey has been a Director since<br />
2004. She has served as President of the<br />
California Society of Anesthesiologists,<br />
and has practiced as an anesthesiologist<br />
in San Mateo County for more than 27<br />
years. She is a Director of the Mills-<br />
Peninsula Medical <strong>Group</strong> and Anesthesia<br />
Care Associates Medical <strong>Group</strong>.<br />
E: Alice H. Gannon, FCAS, MAAA, CPCU<br />
Actuary<br />
Ms. Gannon has been a Director since<br />
2009. As an actuary, she has worked in<br />
the insurance industry for more than<br />
39 years. She serves on the Board<br />
for the Texas Windstorm Insurance<br />
Association and the Insurance Institute<br />
of Highway Safety and Highway Loss<br />
Data Institute.<br />
C: Sandra L. Beretta, MD<br />
Secretary of the Board —<br />
Obstetrics & Gynecology<br />
Dr. Beretta has been a Director since<br />
2011, as well as a member of the Claims<br />
Advisory Committee since 2003. She<br />
is a managing partner of a private<br />
practice partnership in San Mateo, CA,<br />
and has been a practicing OB-GYN for<br />
nearly 24 years.<br />
F: Roger M. Hayashi, MD<br />
Vascular Surgery<br />
Dr. Hayashi has been a Director since<br />
2004, and served as a surgical consultant<br />
to the Claims Advisory Committee since<br />
1996. He has retired from practice as a<br />
vascular surgeon in Santa Clara County<br />
after 33 years. He served as Chair of<br />
the Department of Surgery and Chair<br />
of Cardiovascular Services at Good<br />
Samaritan Hospital.<br />
22 <strong>2014</strong> <strong>NORCAL</strong> <strong>Group</strong> <strong>Annual</strong> <strong>Report</strong>
G: M. Diane Koken, JD<br />
Legal Consultant<br />
Ms. Koken has been a Director since<br />
2009. She has been an attorney and<br />
insurance professional for more than<br />
39 years, and served as the Pennsylvania<br />
Insurance Commissioner from 1997 to<br />
2007. Ms. Koken is past President of<br />
the National Association of Insurance<br />
Commissioners and a past member of<br />
the Advisory Board for the Center for<br />
Ethics in Financial Services.<br />
H: Steven J. Packer, MD<br />
President and CEO,<br />
Community Hospital Foundation<br />
Dr. Packer has been a Director since 2013.<br />
He is President and CEO of Community<br />
Hospital Foundation and its related<br />
companies. He previously served as Chair<br />
of the California Hospital Association.<br />
I: Rebecca J. Patchin, MD<br />
Anesthesiology<br />
Dr. Patchin has been a Director since<br />
2011. She has been an anesthesiologist<br />
and pain management specialist in<br />
Riverside–San Bernardino counties for<br />
20 years. She serves on the Board for<br />
The Center for Transforming Health Care.<br />
J: Scott C. Syphax<br />
President & CEO,<br />
Nehemiah Corporation of America<br />
Mr. Syphax has been a Director since<br />
2011. He leads the Nehemiah Corporation<br />
of America (NCA), a not-for-profit<br />
community development corporation<br />
based in Sacramento, CA. Mr. Syphax<br />
also serves on the board of directors<br />
for the Federal Home Loan Bank of San<br />
Francisco and is Chair of Valley Vision.<br />
C J G D B<br />
A E H I F
Your Needs Today and Tomorrow<br />
The <strong>NORCAL</strong> <strong>Group</strong> of companies has many moving parts, and this past<br />
year we took great strides to move as one. In 2015, we will introduce our new<br />
policy into even more markets and launch new tools to help our insureds<br />
access policy, claims and risk management information. We have a solid<br />
foundation on which to grow because you have helped guide our company<br />
for nearly 40 years. We continually look for opportunities to improve our<br />
service and products to meet your needs, and we remain committed to<br />
providing the highest quality products and services at a responsible price.<br />
In 2015, we will introduce our new policy into even more markets<br />
and launch new tools to help our policyholders access policy,<br />
claims and risk management information.<br />
24 <strong>2014</strong> <strong>NORCAL</strong> <strong>Group</strong> <strong>Annual</strong> <strong>Report</strong>
A National MPLI COMPANY<br />
Large and agile enough to serve the complex<br />
and varied needs of our policyholders
norcalmutual.COM<br />
560 Davis Street, Suite 200 | San Francisco, CA 94111-1974 | 844.4<strong>NORCAL</strong><br />
©2015 <strong>NORCAL</strong> Mutual Insurance Company. All rights reserved. ng0537