New York’s third-largest admitted medical malpractice insurer is coming off of a big year. According to EmPRO Insurance Co., it grew its surplus by $29 million in 2021, hitting $16 million in underwriting gains and achieving a combined ratio of 78.9%. And it’s that kind of success that is setting the stage for the company’s growth.

On March 22, EmPRO announced it filed to become an admitted insurer in New Jersey, with plans to start issuing policies by the middle of the this year.

“It is incredibly rewarding for us to share these strong financial results as further evidence of fiscal responsibility and our sound business strategy,” said President and CEO Bruce Shulan in a statement. “Our consistent financial performance over the past few years—generating more than $320 million in surplus improvement since 2017— gives us the confidence to implement our plan to expand operations beyond New York State and into the Northeast corridor.

“The turnaround of PRI [EmPRO’s parent company Physicians’ Reciprocal Insurers] is a model of how to turn around a troubled company, demonstrating a keen strategic vision, a bold plan, and innovative solutions,” Shulan added.

According to EmPRO, the company saw a client retention rate of 90% in the previous year. EmPRO also posted growth in controlled premium — or policies sold through broker distribution — of $4 million.

“We have taken a very conservative approach to ensure that we continue to strengthen our underlying financials, are well-positioned to weather economic uncertainty from inflation, and to support continued investment in our growth,” said Chief Operating Officer Brian Nolan. “EmPRO’s significantly improved balance sheet, superb client service and strong underwriting results underscore the strengths we bring to the marketplace as we continue to serve clients in New York and begin our geographic expansion.”

The company reported a slight decrease in net premium income to $166.4 million, but said it was primarily due to a downtick in insureds covered via the New York State Medical Malpractice Insurance Pool, which offers coverage for physicians and health care providers who are not able to get coverage in the voluntary market.