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|American Physicians Capital, Inc.

Sandler O'Neill Financial Services Conference

June 8, 2006

R. Kevin Clinton

President & Chief Executive Officer
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|Forward-Looking Statements


Certain statements made by American Physicians Capital, Inc. during this presentation may
constitute forward-looking statements within the meaning of the federal securities laws.  When we
use words such as "will," "should," "believes," "expects," "anticipates," "estimates" or similar
expressions we are making forward-looking statements.  While we believe any forward-looking
statements we will make are reasonable, they are subject to risks and uncertainties, and actual
results could differ materially.  These risks and uncertainties include, but are not limited to, the
following: increased competition could adversely affect our ability to sell our products at premium
rates we deem adequate, which may result in a decrease in premium volume, a decrease in our
profitability, or both; our reserves for unpaid losses and loss adjustment expenses are based on
estimates that may prove to be inadequate to cover our losses; our exit from various markets and
lines of business may prove more costly than originally anticipated; tort reform legislation may have
adverse or unintended consequences that could materially and adversely affect our results of
operations and financial condition; if we are unable to obtain or collect on ceded reinsurance, our
results of operations and financial condition may be adversely affected; the insurance industry is
subject to regulatory oversight that may impact the manner in which we operate our business; our
geographic concentration in certain Midwestern states and New Mexico ties our performance to the
business, economic, regulatory and legislative conditions in those states; an interruption or change in
current marketing and agency relationships could reduce the amount of premium we were able to
write; a downgrade in the financial strength rating of our insurance subsidiaries could reduce the
amount of business we were able to write; changes in interest rates could adversely impact our
results of operation, cash flows and financial condition; our status as an insurance holding company
with no direct operations could adversely affect our ability to meet our debt obligations and fund
future share repurchases; any other factors listed or discussed in the reports filed by APCapital with
the Securities and Exchange Commission under the Securities Exchange Act of 1934. APCapital
does not undertake, and expressly disclaims any obligation, to update or alter its statements whether
as a result of new information, future events or otherwise, except as required by law.
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|Snapshot of APCapital

Medical professional liability insurance carrier

Formed as mutual in 1975 by the Michigan State
Medical Society (MSMS)

Demutualized in December 2000 (IPO)

Endorsed by MSMS, Michigan Osteopathic Association
and the New Mexico Medical Society

Headquartered in East Lansing, MI

Focus on individual and small physicians groups
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|Snapshot of APCapital

Approximately 9,500 policies in-force at March 31, 2006

Marketing in primarily 5 states with a focus on the upper
Midwest region

Medical liability direct premiums written totaled $41.5
million in first quarter of 2006

Assets totaled $1.1 billion at March 31, 2006

NASDAQ: ACAP

Market cap $385 million1

1As of May 16, 2006
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|Snapshot of APCapital

Core States   DPW1
 % by state   Market Share Ranking2
Expansion
   Michigan   31%   1st *    Home State
   New Mexico   13%   1st   Merged NMPML in 1997
   Illinois   31%   2nd   Internal
   Ohio   19%   5th   Internal
   Kentucky   5%   5th   Acquired KMIC in 1996

1 Medical Professional Liability Premiums - % based on trailing 4 quarters through 1Q06

2 Based on 2005 direct premiums written from Thomson Financial/One Source

* Excludes hospital premium
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|Key Components of our Strategic Plan



Rate adequacy

Stringent and innovative underwriting practices

Strong reserves

Aggressive claims management
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|Return to Profitability via Rate Adequacy
        2002    2003    2004    2005
    Annual    0.3    0.349    0.211    0.092
    Cumulative    0.3    0.754    1.124    1.325


Average Rate Increases Since 2002
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|Performing on-site visits by risk management

Implementing unique underwriting systems

Discontinued writing OH and KY occurrence policies

Discontinued writing certain high-risk specialties in high
risk areas

Lowered maximum policy limits

98% of policies at March 31, 2006 were at or below
$1 million

Stringent and Innovative Underwriting
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|Strong Reserves
        12/1/2003    Mar-04    Jun-04    Sep-04    Dec-04    Mar-05    Jun-05    Sep-05    Dec-05    Mar-06
    East    114000    125200    136300    140400    160000    160800    167300    173900    181970    183380


23.5% CAGR
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|Favorable Trial Results
        1st Qtr    2nd Qtr    3rd Qtr    4th Qtr
    East    20.4    27.4    90    20.4
    West    30.6    38.6    34.6    31.6
    North    45.9    46.9    45    43.9

        Defense Verdict    Plaintiff Verdict
    APA    0.91    0.09


APCapital (2004, 2005 & 1Q06)
        Defense Verdict    Plaintiff Verdict
    Industry    0.84    0.16


Industry Data* (2004)


Defense Verdict

Plaintiff Verdict

Industry Data, 2004*



Mean Settlement     $311,704

Mean Verdict           $606,907

*Source:  Physician Insurers Association Data Sharing Program
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|Positive Trends

Medical Professional Liability

Reported Claim Count by Quarter

*Includes 76 claims reported by four physicians at the
end of their coverage with the company.
        1Q02    2Q02    3Q02    4Q02    1Q03*    2Q03    3Q03    4Q03    1Q04    2Q04    3Q04    4Q04    1Q05    2Q05    3Q05    4Q05    1Q06
    East    767    748    729    774    803    694    631    529    525    459    431    371    404    401    361    347    308
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|Positive Trends

Net Premiums Earned Per Reported Claim --- Excluding Florida
        1Q02    2Q02    3Q02    4Q02    1Q03    2Q03    3Q03    4Q03    1Q04    2Q04    3Q04    4Q04    1Q05    2Q05    3Q05    4Q05    1Q06
    East    41296    46554    58045    51124    57641    55209    67631    82319    81893    95498    102920    119046    104027    102648    113898    117309    121568


Medical Professional Liability
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|Financial Highlights

Pre-tax income up 74% to
$13.2 million

Continued strong investment
returns

Positive reserve development

Changes made to financial
reporting and operating practices
in first quarter 2006

All operations reported as one
business segment

No longer consolidating
results of PIC Florida

Began expensing remaining
stock options grants

Modified reinsurance
agreement effective 1/1/06

APCapital, Inc. Consolidated

APCapital, Inc. Consolidated
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|Tax-Adjusted Operating Income*
        1Q04    2Q04    3Q04    4Q04    1Q05    2Q05     3Q05    4Q05    1Q06
    East    0.26    0.35    0.39    0.43    0.56    0.72    0.82    1    1.05


*Operating income per share is adjusted for deferred tax valuation allowance changes from
1Q04 to 2Q05 and excludes net realized gains or loss, net of tax.
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|High-Quality Investment Portfolio

Investment Portfolio
Highlights

Improved average
rating of bond portfolio:
AA+ at 3/31/06 vs. AA
at 12/31/05



Average yield on
investments: 5.28% in
1Q06



Maintain a modified
duration of 4.88 years



        Corporate Bonds    Mortgage-backed Securities    U.S Government Bonds    Tax-Exempt Securities    Cash & Cash Equivalents    Other
    East    0.276    0.214    0.136    0.247    0.11    0.01


Investments totaled $854.2 million
at March 31, 2006
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|Capital Allocation

Repurchased 127,500 common shares at an average
price of $47.92 in the first quarter of 2006

Board approved SEC Rule 10b5-1 plan in April 2006
and authorized $20 million to repurchase under plan

Look to expand professional liability business in
profitable markets through acquisitions

With our innovative underwriting systems, profitable
growth opportunities exist in core and new markets

Reinsurance program - accept more risk by reducing
reliance on reinsurance
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