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United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q

(Mark One)

|X|	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended March 31, 2004

or

|_|	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transaction period from____________to ___________.

Commission file number 1-11983

FPIC Insurance Group, Inc.
(Exact Name of Registrant as Specified in its Charter)

Florida		59-3359111
(State or Other Jurisdiction of Incorporation or Organization)		(IRS Employer Identification No.)

225 Water Street, Suite 1400, Jacksonville, Florida   32202
(Address of Principal Executive Offices)         (Zip Code)

(904) 354-2482
(Registrant’s Telephone Number, Including Area Code)

www.fpic.com
(Registrant’s Internet Address)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes |X| No |_|

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Securities Exchange Act of 1934).  Yes |X| No |_|

As of May 6, 2004, there were 9,975,534 shares of the registrant’s common stock outstanding.

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FPIC Insurance Group, Inc.
Index to Quarterly Report on Form 10-Q

Part I	Financial Information		Page
Item 1.	Condensed Consolidated Financial Statements of FPIC Insurance Group, Inc. and Subsidiaries:
	Condensed Consolidated Statements of Financial Position		3
	Condensed Consolidated Statements of Income and Comprehensive Income		4
	Condensed Consolidated Statements of Changes in Shareholders’ Equity		5
	Condensed Consolidated Statements of Cash Flows		6
	Notes to the Condensed Consolidated Financial Statements		7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		32
Item 4.	Controls and Procedures		32
Part II	Other Information		Page
Item 1.	Legal Proceedings		32
Item 2.	Changes in Securities and Use of Proceeds		32
Item 3.	Defaults Upon Senior Securities		32
Item 4.	Submission of Matters to a Vote of Security Holders		32
Item 5.	Other Information		32
Item 6.	Exhibits and Reports on Form 8-K		33
Signature			33

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FPIC INSURANCE GROUP, INC.

Condensed Consolidated Statements of Financial Position
As of March 31, 2004 and December 31, 2003
(in thousands, except common share data)

					(unaudited)
					Mar 31, 2004			Dec 31, 2003
Assets
	Cash and cash equivalents				$	84,670			85,064
	Bonds and U.S. Government securities, available for sale					538,993			528,647
	Equity securities, available for sale					10			9
	Other invested assets ((Includes related party amounts of $788 and $788) Note 11)					4,732			4,774
	Real estate, net					4,099			4,207
		Total cash and investments				632,504			622,701
	Premiums receivable, net ((Includes related party amounts of $7,994 and $8,608) Note 11)					113,718			101,262
	Accrued investment income					5,981			6,153
	Reinsurance recoverable on paid losses (Note 11)					28,827			15,950
	Due from reinsurers on unpaid losses and advance premiums ((Includes related party amounts of $90,153 and $82,474) Note 11)					294,362			275,766
	Ceded unearned premiums ((Includes related party amounts of $13,285 and $16,486) Note 11)					77,666			71,435
	Property and equipment, net					5,058			5,248
	Deferred policy acquisition costs ((Includes related party amounts of $3,271 and $3,500) Note 11)					7,167			6,209
	Deferred income taxes					33,089			34,819
	Prepaid expenses					5,807			5,363
	Goodwill					18,870			18,870
	Intangible assets					727			782
	Federal income tax receivable					—			2,179
	Other assets (Note 11)					20,453			16,393
		Total assets			$	1,244,229			1,183,130
Liabilities and Shareholders’ Equity
	Losses and loss adjustment expenses ((Includes related party amounts of $21,500 and $20,555) Note 11)				$	588,933			574,529
	Unearned premiums ((Includes related party amounts of $45,492 and $47,240) Note 11)					192,258			177,435
	Reinsurance payable ((Includes related party amounts of $12,894 and $11,761) Note 11)					155,246			138,082
	Paid in advance and unprocessed premiums					5,103			11,766
	Long term debt					46,083			46,083
	Deferred credit ((Related party) Note 11)					7,493			7,729
	Deferred ceding commission					4,651			3,126
	Federal income tax payable					1,284			—
	Accrued expenses and other liabilities (Note 11)					45,090			37,723
		Total liabilities				1,046,141			996,473
	Commitments and contingencies (Note 7)
	Common stock, $0.10 par value, 50,000,000 shares authorized; 9,960,534 and 9,770,843 shares issued and outstanding at March 31, 2004 and December 31, 2003, respectively					996			977
	Additional paid-in capital					45,527			43,705
	Accumulated other comprehensive income, net of deferred income taxes					6,856			4,276
	Retained earnings					144,709			137,699
		Total shareholders’ equity				198,088			186,657
			Total liabilities and shareholders’ equity		$	1,244,229			1,183,130

See accompanying notes to the condensed consolidated financial statements.

3

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FPIC INSURANCE GROUP, INC.

Condensed Consolidated Statements of Income and Comprehensive Income
For the Three Months Ended March 31, 2004 and 2003
(in thousands, except per common share data)

						(unaudited)
						Three Months Ended
						Mar 31, 2004			Mar 31, 2003
Revenues
	Net premiums earned (Note 11)					$	35,012			28,909
	Claims administration and management fees (Note 11)						12,084			8,665
	Net investment income						5,621			4,503
	Commission income						1,843			1,584
	Net realized investment gains (Note 2)						2,806			238
	Finance charges and other income (Note 11)						197			231
			Total revenues				57,563			44,130
Expenses
	Net losses and loss adjustment expenses (Note 11)						29,374			26,634
	Other underwriting expenses (Note 11)						3,503			2,504
	Claims administration and management expenses						10,513			8,342
	Interest expense on debt						590			1,163
	Other expenses (Note 11)						1,841			1,311
			Total expenses				45,821			39,954
Income from operations before income taxes							11,742			4,176
			Less:  Income tax expense				4,732			1,416
Net income						$	7,010			2,760
Basic earnings per common share						$	0.71			0.29
Diluted earnings per common share						$	0.68			0.29
Basic weighted average common shares outstanding							9,878			9,409
Diluted weighted average common shares outstanding							10,331			9,416
Comprehensive Income
	Net income					$	7,010			2,760
	Other comprehensive income:
		Unrealized holding gains (losses) on debt and equity securities					4,856			(344	)
		Unrealized holding (losses) gains and amortization on derivative financial instruments					(657	)		435
		Income tax expense related to unrealized gains and losses					(1,619	)		(12	)
				Other comprehensive income			2,580			79
	Comprehensive income					$	9,590			2,839

See accompanying notes to the condensed consolidated financial statements.

4

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FPIC Insurance Group, Inc.

Condensed Consolidated Statements of Changes in Shareholders’ Equity
For the Three Months Ended March 31, 2004 and the Year Ended December 31, 2003

			Common Stock			Additional Paid-in Capital			Accumulated Other Comprehensive Income			Retained Earnings			Total
Balances at December 31, 2002			$	939			38,322			5,525			121,127			165,913
	Net income			—			—			—			16,572			16,572
	Minimum pension liability adjustment, net			—			—			(140	)		—			(140	)
	Unrealized loss on debt and equity securities, net			—			—			(2,835	)		—			(2,835	)
	Unrealized gain on derivative financial instruments, net			—			—			486			—			486
	Settlement of  derivative financial instrument, net			—			—			1,532			—			1,532
	Amortization of unrealized loss on derivative financial instruments			—			—			(292	)		—			(292	)
	Issuance of shares			38			4,385			—			—			4,423
	Income tax reductions relating to exercise of stock options			—			998			—			—			998
Balances at December 31, 2003				977			43,705			4,276			137,699