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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 June 30, 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 July 29, 2004, there were 9,993,867 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 (Loss) 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	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35
Item 4.	Controls and Procedures	35
Part II	Other Information	Page
Item 1.	Legal Proceedings	35
Item 2.	Changes in Securities and Use of Proceeds	35
Item 3.	Defaults Upon Senior Securities	35
Item 4.	Submission of Matters to a Vote of Security Holders	36
Item 5.	Other Information	36
Item 6.	Exhibits and Reports on Form 8-K	37
Signature		37

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FPIC INSURANCE GROUP, INC.
Condensed Consolidated Statements of Financial Position
As of June 30, 2004 and December 31, 2003
(in thousands, except common share data)

								(unaudited) June 30, 2004			Dec 31, 2003
Assets
	Cash and cash equivalents							$	65,657			85,064
	Bonds and U.S. Government securities, available for sale								542,273			528,647
	Equity securities, available for sale								10			9
	Other invested assets (Note 11)								3,591			4,774
	Real estate, net								4,023			4,207
		Total cash and investments							615,554			622,701
	Premiums receivable, net ((Includes related party amounts of $7,277 and $8,608) Note 11)								113,872			101,262
	Accrued investment income								6,646			6,153
	Reinsurance recoverable on paid losses (Note 11)								32,478			15,950
	Due from reinsurers on unpaid losses and advance premiums ((Includes related party amounts of $93,338 and $82,474) Note 11)								300,286			275,766
	Ceded unearned premiums ((Includes related party amounts of $11,949 and $16,486) Note 11)								76,142			71,435
	Property and equipment, net								5,155			5,248
	Deferred policy acquisition costs ((Includes related party amounts of $2,771 and $3,500) Note 11)								7,138			6,209
	Deferred income taxes								40,247			34,819
	Prepaid expenses								6,132			5,363
	Goodwill								18,870			18,870
	Intangible assets								671			782
	Federal income tax receivable								3,683			2,179
	Other assets (Note 11)								21,827			16,393
					Total assets			$	1,248,701			1,183,130
Liabilities and Shareholders’ Equity
	Losses and loss adjustment expenses ((Includes related party amounts of $23,984 and $20,555) Note 11)							$	589,177			574,529
	Unearned premiums ((Includes related party amounts of $42,992 and $47,240) Note 11)								192,393			177,435
	Reinsurance payable ((Includes related party amounts of $12,414 and $11,761) Note 11)								166,120			138,082
	Paid in advance and unprocessed premiums								7,942			11,766
	Long term debt								46,083			46,083
	Deferred credit (Note 11)								7,256			7,729
	Deferred ceding commission								5,505			3,126
	Accrued expenses and other liabilities (Note 11)								40,454			37,723
			Total liabilities						1,054,930			996,473
	Commitments and contingencies (Note 7)
	Common stock, $0.10 par value, 50,000,000 shares authorized; 9,993,867 and 9,770,843 shares issued and outstanding at June 30, 2004 and December 31, 2003, respectively								999			977
	Additional paid-in capital								46,039			43,705
	Accumulated other comprehensive (loss) income, net								(4,433	)		4,276
	Retained earnings								151,166			137,699
				Total shareholders’ equity					193,771			186,657
						Total liabilities and shareholders’ equity		$	1,248,701			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 (Loss) Income
For the Three and Six Months Ended June 30, 2004 and 2003
(in thousands, except per common share data)

						(unaudited)
						Three Months Ended						Six Months Ended
						June 30, 2004			June 30, 2003			June 30, 2004			June 30, 2003
Revenues
	Net premiums earned (Note 11)					$	31,668			31,870			66,680			60,779
	Claims administration and management fees (Note 11)						12,704			9,098			24,788			17,762
	Net investment income						4,564			4,719			10,185			9,221
	Commission income						2,298			2,789			4,141			4,373
	Net realized investment gains (Note 2)						667			418			3,473			656
	Finance charges and other income (Note 11)						164			247			362			479
			Total revenues				52,065			49,141			109,629			93,270
Expenses
	Net losses and loss adjustment expenses (Note 11)						27,258			29,666			56,632			56,300
	Other underwriting expenses (Note 11)						2,343			2,143			5,846			4,646
	Claims administration and management expenses						9,998			8,171			20,511			16,513
	Interest expense on debt						605			2,437			1,196			3,599
	Other expenses (Note 11)						2,073			1,188			3,913			2,499
			Total expenses				42,277			43,605			88,098			83,557
Income from operations before income taxes							9,788			5,536			21,531			9,713
			Less: Income tax expense				3,331			2,038			8,064			3,455
Net income						$	6,457			3,498			13,467			6,258
Basic earnings per common share						$	0.65			0.37			1.36			0.66
Diluted earnings per common share						$	0.62			0.37			1.30			0.66
Basic weighted average common shares outstanding							9,979			9,425			9,929			9,417
Diluted weighted average common shares outstanding							10,394			9,533			10,360			9,474
Comprehensive (Loss) Income
	Net income					$	6,457			3,498			13,467			6,258
	Other comprehensive (loss) income:
		Minimum pension liability adjustment, net					(392	)		—			(392	)		—
		Unrealized holding (losses) gains on debt and equity securities					(18,188	)		4,173			(13,332	)		3,829
		Unrealized holding gains (losses) and amortization on derivative financial instruments					593			(239	)		(64	)		197
		Settlement of derivative financial instruments					—			989			—			989
		Income tax benefit (expense) related to unrealized losses and gains					6,698			(1,562	)		5,079			(1,575	)
				Other comprehensive (loss) income			(11,289	)		3,361			(8,709	)		3,440