This story is reprinted from the FYI section of the September issue of InsuranceInvestor .
Investors hate it when a company increases reserves to pay for claims.
Investors also don't like insurers releasing reserves, adding money to its bottom line. Some think that's a tactic used to make profits look better in times when the underlying business is struggling. The market perceived that FPIC released reserves to meet analyst estimates and offset higher claims in FPIC's dentist coverage. The earnings were a penny above analysts' estimates of 70 cents a share. FPIC downplayed its actions.