ProAssurance Corporation (NYSE: PRA) reports net income of $4.6
million, or $0.09 per diluted share, and operating income(1) of
$4.2 million, or $0.08 per diluted share, for the three months
ended March 31, 2024.
First Quarter 2024(2)
- Gross premiums written: $311 million (-1%)
- New business written: $20 million (+7%)
- Strong renewal pricing increases in medical professional
liability business (+8%)
- Consolidated current accident year loss ratio of 79.9% (3 point
improvement)
- Consolidated combined ratio of 111.6% (2 point
improvement)
- Net investment income of $34 million (+12%)
- Consolidated operating ratio of 97.7%, (4 point
improvement)
- Book value per share of $21.82 as of March 31, 2024
(1)
Represents a Non-GAAP financial measure.
See a reconciliation to its GAAP counterpart under the heading
“Non-GAAP Financial Measures” that follows.
(2)
Comparisons are to the first quarter of
2023 unless otherwise noted
Management Commentary & Results of Operations
“Operating earnings this quarter reflected improved results in
our Specialty P&C segment and a 12 percent increase in
investment income. We are encouraged by the sequential improvement
in the current accident year loss ratio across all operating
segments. We continue to focus on disciplined underwriting, gaining
rate where appropriate and managing claims in a loss environment
that continues to be challenging. We are also retaining existing
insureds and selectively adding new business at pricing levels
that, while reflecting market realities, also helps us make
progress toward our sustained profitability goals. We continue to
forgo renewal and new business opportunities that we believe do not
meet our expectation of rate adequacy in the current loss
environment,” said Ned Rand, President and Chief Executive Officer
of ProAssurance. He added, “We have not wavered from our belief
that our ultimate success in our core lines of insurance - medical
professional liability and workers’ compensation - will come about
through the conservative strategies we have and continue to
implement.”
Our consolidated combined ratio also improved 2.3 points year
over year, reflecting the better current accident year loss ratio.
In last year’s first quarter, the combined ratio included the
impact of unfavorable prior accident year development partially
offset by one-time or infrequent beneficial items affecting our
Specialty P&C segment’s expense ratio. Our pricing and
underwriting discipline in the face of both challenging market
conditions and an adverse legal environment has positioned us to
build on the progress we saw in underwriting results this
quarter.
Book value per share at quarter end was $21.82, essentially
unchanged from year-end. Adjusted book value per share, which
excludes our Accumulated Other Comprehensive Loss, improved from
year end to $25.88.
CONSOLIDATED INCOME STATEMENT
HIGHLIGHTS
Selected consolidated financial data for
each period is summarized in the table below.
Three Months Ended March
31
($ in thousands, except per share
data)
2024
2023
Change
Revenues
Gross premiums written(1)
$
311,341
$
315,794
(1.4
%)
Net premiums written
$
282,673
$
284,909
(0.8
%)
Net premiums earned
$
244,150
$
239,787
1.8
%
Net investment income
33,897
30,310
11.8
%
Equity in earnings (loss) of
unconsolidated subsidiaries
2,963
(1,121
)
364.3
%
Net investment gains (losses)(2)
(268
)
2,912
(109.2
%)
Other income (loss)(1)
3,955
787
402.5
%
Total revenues(1)
284,697
272,675
4.4
%
Expenses
Net losses and loss adjustment
expenses
194,694
205,296
(5.2
%)
Underwriting, policy acquisition and
operating expenses(1)
78,005
67,788
15.1
%
SPC U.S. federal income tax expense
(benefit)
416
532
(21.8
%)
SPC dividend expense (income)
607
1,942
(68.7
%)
Interest expense
5,657
5,463
3.6
%
Total expenses(1)
279,379
281,021
(0.6
%)
Income (loss) before income taxes
5,318
(8,346
)
163.7
%
Income tax expense (benefit)
692
(2,172
)
131.9
%
Net income (loss)
$
4,626
$
(6,174
)
174.9
%
Non-GAAP operating income (loss)
$
4,177
$
(7,418
)
156.3
%
Weighted average number of common
shares outstanding
Basic
51,013
53,987
Diluted
51,149
54,117
Earnings (loss) per share
Net income (loss) per diluted share
$
0.09
$
(0.11
)
$
0.20
Non-GAAP operating income (loss) per
diluted share
$
0.08
$
(0.14
)
$
0.22
(1)
Consolidated totals include inter-segment
eliminations. The eliminations affect individual line items only
and have no effect on net income (loss). See Note 12 of the Notes
to Condensed Consolidated Financial Statements in our March 31,
2024 report on Form 10-Q for amounts by line item.
(2)
This line item typically includes both
realized and unrealized investment gains and losses, investment
impairments losses, and the change in the fair value of the
contingent consideration in relation to the NORCAL acquisition.
Detailed information regarding the components of net investment
gains (losses) are included in Note 3 of the Notes to Condensed
Consolidated Financial Statements in our March 31, 2024 report on
Form 10-Q.
The abbreviation “nm” indicates that the
information or the percentage change is not meaningful.
BALANCE SHEET HIGHLIGHTS
($ in thousands, except per share
data)
March
31, 2024
December
31, 2023
Total investments
$
4,333,542
$
4,349,781
Total assets
$
5,650,036
$
5,631,925
Total liabilities
$
4,536,971
$
4,519,945
Common shares (par value $0.01)
$
636
$
636
Retained earnings
$
1,386,607
$
1,381,981
Treasury shares
$
(469,702
)
$
(469,702
)
Shareholders’ equity
$
1,113,065
$
1,111,980
Book value per share
$
21.82
$
21.82
Non-GAAP adjusted book value per
share(1)
$
25.88
$
25.83
(1)
Adjusted book value per share is a
Non-GAAP financial measure. See a reconciliation of book value per
share to Non-GAAP adjusted book value per share under the heading
“Non-GAAP Financial Measures” that follows.
CONSOLIDATED KEY RATIOS
Three Months Ended March
31
2024
2023
Current accident year net loss ratio
79.9
%
82.7
%
Effect of prior accident years’ reserve
development
(0.2
%)
2.9
%
Net loss ratio
79.7
%
85.6
%
Underwriting expense ratio
31.9
%
28.3
%
Combined ratio
111.6
%
113.9
%
Operating ratio
97.7
%
101.3
%
Return on equity(1)
1.7
%
(2.5
%)
Non-GAAP operating return on
equity(1)(2)
1.5
%
(2.6
%)
(1)
Quarterly amounts are annualized. Refer to
our March 31, 2024 report on Form 10-Q under the heading “Non-GAAP
Operating ROE” in the Executive Summary of Operations section for
details on our calculation.
(2)
See a reconciliation of ROE to Non-GAAP
operating ROE under the heading “Non-GAAP Financial Measures” that
follows.
We operate in four segments: Specialty P&C, Workers'
Compensation Insurance, Segregated Portfolio Cell Reinsurance, and
Corporate. Additional information on ProAssurance's four segments
is included in Note 12 of the Notes to Condensed Consolidated
Financial Statements in our March 31, 2024 report on Form 10-Q and
in the Segment Results sections below.
SPECIALTY P&C SEGMENT RESULTS
Three Months Ended March
31
($ in thousands)
2024
2023
%
Change
Gross premiums written
$
238,718
$
242,363
(1.5
%)
Net premiums written
$
218,699
$
217,390
0.6
%
Net premiums earned
$
188,888
$
183,684
2.8
%
Other income
1,353
990
36.7
%
Total revenues
190,241
184,674
3.0
%
Net losses and loss adjustment
expenses
(152,994
)
(166,029
)
(7.9
%)
Underwriting, policy acquisition and
operating expenses
(51,049
)
(42,681
)
19.6
%
Total expenses
(204,043
)
(208,710
)
(2.2
%)
Segment results
$
(13,802
)
$
(24,036
)
42.6
%
SPECIALTY P&C SEGMENT KEY
RATIOS
Three Months Ended March
31
2024
2023
Current accident year net loss ratio
81.7
%
86.4
%
Effect of prior accident years’ reserve
development
(0.7
%)
4.0
%
Net loss ratio
81.0
%
90.4
%
Underwriting expense ratio
27.0
%
23.2
%
Combined ratio
108.0
%
113.6
%
The results for the Specialty P&C segment improved over
first quarter 2023, primarily reflecting our cautious underwriting
and pricing decisions and our ability to target segments within
healthcare where there are opportunities to write business
profitably. However, competitive market conditions and the
challenging loss environment in our MPL line of business continued
unabated.
Our ability to write new business at better pricing than the
business it replaces, coupled with strong renewal pricing and
retention, continues to underscore our position of leadership in a
very competitive market. We achieved renewal pricing increases of
7% and new business of $10.4 million despite the continuation of
competitive market conditions. Retention in the segment was 86%, a
one-point increase over the prior year quarter. Earned premium
increased 2.8% due to the pro rata effect of an increase in the
volume of premium written during the preceding twelve months.
The current accident year net loss ratio improved 4.7 points,
primarily due to the underwriting actions taken and pricing we have
achieved over the course of the past year. We recognized net
favorable prior accident year reserve development of $1.3 million
in the first quarter, compared to $7.4 million in unfavorable prior
accident year development in the same period of 2023. The favorable
development in the current period was attributable to purchase
accounting amortization, partially offset by unfavorable
development of $0.4 million attributable to our Lloyd’s Syndicates
operations. The unfavorable development in the prior year period
was attributable to several large verdicts, reflecting social
inflation and higher than anticipated loss severity trends.
The first quarter 2024 expense ratio was 3.8 points above the
prior year first quarter. This was largely due to a $3.8 million
payroll tax refund from the Employee Retention Credit program in
connection with the CARES Act in the year ago period that
contributed 2.1 points of the year-over-year increase. Last year,
we also recognized unfavorable development in NORCAL’s 2020 and
prior accident year reserves that resulted in a decrease in the
fair value of the contingent consideration liability, which
accounted for 0.5 points of the increase. The remaining increase in
the ratio was primarily attributable to increasing
compensation-related costs and higher DPAC amortization.
WORKERS’ COMPENSATION INSURANCE SEGMENT
RESULTS
Three Months Ended March
31
($ in thousands)
2024
2023
%
Change
Gross premiums written
$
72,615
$
73,431
(1.1
%)
Net premiums written
$
50,353
$
47,572
5.8
%
Net premiums earned
$
41,094
$
40,803
0.7
%
Other income
477
581
(17.9
%)
Total revenues
41,571
41,384
0.5
%
Net losses and loss adjustment
expenses
(31,636
)
(30,844
)
2.6
%
Underwriting, policy acquisition and
operating expenses
(14,490
)
(12,980
)
11.6
%
Total expenses
(46,126
)
(43,824
)
5.3
%
Segment results
$
(4,555
)
$
(2,440
)
(86.7
%)
WORKERS’ COMPENSATION INSURANCE SEGMENT
KEY RATIOS
Three Months Ended March
31
2024
2023
Current accident year net loss ratio
77.0%
72.6%
Effect of prior accident years’ reserve
development
0.0%
3.0%
Net loss ratio
77.0%
75.6%
Underwriting expense ratio
35.3%
31.8%
Combined ratio
112.3%
107.4%
The Workers’ Compensation Insurance segment underwriting results
for the first quarter of 2024 reflect an increase in the current
accident year net loss ratio driven by the continuation of higher
average claim costs, the impact of compounded premium rate
decreases related to the continuation of state loss cost reductions
and the competitive workers' compensation market.
Gross premiums in our traditional business increased 7% in the
first quarter compared to the same period of 2023, despite a slight
reduction in policy count. The increase was primarily due to higher
reported insured payrolls at renewal, positive mid-term policy
endorsements, selective new business writings and the renewal of
certain policies from a captive program as traditional business
that were previously written in our Segregated Portfolio Cell
Reinsurance segment. New business was $8.2 million in the first
quarter. Premium retention in our traditional business was 87%,
four points higher than the year-ago period. Gross premiums in our
alternative market business decreased 18% in the first quarter
compared to the same period of 2023 mainly due to our non-renewal
of two large programs (see further discussion in the Segregated
Portfolio Cell Reinsurance section that follows). The level of
audit premium has begun to normalize with audit premium billed to
policyholders totaling $1.9 million in the current period as
compared to $2.5 million for the same period of 2023. Renewal
pricing in this segment declined 4% vs 6% a year ago, driven by the
continuation of state loss cost reductions and the competitive
workers' compensation market.
The current accident year net loss ratio for the first quarter
of 2024 increased to 77.0%, from 72.6% as of March 31, 2023;
however, the current accident year net loss ratio improved 4.3
points from the full year loss ratio as of December 31, 2024 of
81.3%. The loss ratio for the current period reflected our
underwriting actions as well as the continuation of higher medical
loss trends, albeit at levels slightly below full-year 2023. We
believe that our early intervention and case management strategies,
which are an integral part of our claims management process, allow
us to recognize the higher medical trends ahead of our competitors.
Reported claim frequency trends continue to be lower compared to
historical results.
There was no change in prior accident year reserve estimates in
the first quarter of 2024, compared to $1.2 million of unfavorable
development for the same period in 2023, primarily driven by a
large claim from the 1997 accident year.
The underwriting expense ratio for the first quarter of 2024 was
3.5 points higher than the prior year quarter, reflecting an
increase in compensation-related costs, as well as decreases in
audit premium, ceding commissions received from SPCs, and ULAE
allocated to net losses and loss adjustment expenses.
SEGREGATED PORTFOLIO CELL REINSURANCE
SEGMENT RESULTS
Three Months Ended March
31
($ in thousands)
2024
2023
%
Change
Gross premiums written
$
15,934
$
22,881
(30.4
%)
Net premiums written
$
13,621
$
19,947
(31.7
%)
Net premiums earned
$
14,168
$
15,300
(7.4
%)
Net investment income
693
420
65.0
%
Net investment gains (losses)
1,471
1,160
26.8
%
Other income (expense)
(1
)
1
(200.0
%)
Net losses and loss adjustment
expenses
(10,064
)
(8,423
)
19.5
%
Underwriting, policy acquisition and
operating expenses
(4,713
)
(5,035
)
(6.4
%)
SPC U.S. federal income tax (expense)
benefit(1)
(416
)
(532
)
(21.8
%)
SPC net results
1,138
2,891
(60.6
%)
SPC dividend (expense) income (2)
(607
)
(1,942
)
(68.7
%)
Segment results (3)
$
531
$
949
(44.0
%)
(1)
Represents the provision for U.S. federal
income taxes for SPCs at Inova Re, which have elected to be taxed
as a U.S. corporation under Section 953(d) of the Internal Revenue
Code. U.S. federal income taxes are included in the total SPC net
results and are paid by the individual SPCs.
(2)
Represents the net (profit) loss
attributable to external cell participants.
(3)
Represents our share of the net profit
(loss) and OCI of the SPCs in which we participate.
SEGREGATED PORTFOLIO CELL REINSURANCE SEGMENT KEY RATIOS
Three Months Ended March
31
2024
2023
Current accident year net loss ratio
65.1
%
64.9
%
Effect of prior accident years’ reserve
development
5.9
%
(9.8
%)
Net loss ratio
71.0
%
55.1
%
Underwriting expense ratio
33.3
%
32.9
%
Combined ratio
104.3
%
88.0
%
Premiums in our Segregated Portfolio Cell Reinsurance segment
are primarily comprised of workers' compensation coverages assumed
from our Workers' Compensation Insurance segment and, to a lesser
extent, medical professional liability coverages from our Specialty
P&C segment.
Gross premiums written decreased in the first quarter compared
to the same period in 2023, primarily due to the non-renewal of two
Segregated Portfolio Cell (SPC) programs effective January 1, 2024.
As the underlying policies expire that were previously written in
one of the programs, we expect those policies to be renewed as
traditional business in our Workers' Compensation Insurance
segment. The other SPC, in which we do not participate in the
underwriting results, was non-renewed.
Renewal premium reflected rate decreases of 1.7% and renewal
retention of 76.4% in the quarter. Audit premium increased to $1.4
million in 2024, compared to $1.2 million in 2023. New business was
relatively flat in the quarter.
The current accident year net loss ratio was essentially
unchanged quarter-over-quarter.
We recognized $0.9 million in net unfavorable prior accident
year reserve development in the quarter compared to favorable prior
year reserve development $1.5 million for the same period of 2023.
There was net favorable development in the workers' compensation
business of $0.5 million that was offset by net unfavorable
development of $1.4 million in the medical professional liability
business. The net unfavorable development in the medical
professional liability business primarily reflected higher than
expected claim frequency in the aforementioned non-renewed program;
we do not participate in the underwriting results and therefore
this unfavorable development had no impact on our segment
results.
CORPORATE SEGMENT
Three Months Ended March
31
($ in thousands)
2024
2023
%
Change
Net investment income
$
33,204
$
29,890
11.1
%
Equity in earnings (loss) of
unconsolidated subsidiaries:
All other investments, primarily
investment fund LPs/LLCs
3,066
(767
)
499.7
%
Tax credit partnerships
(103
)
(354
)
(70.9
%)
Total equity in earnings (loss) of
unconsolidated subsidiaries:
2,963
(1,121
)
364.3
%
Net investment gains (losses)
(1,739
)
752
(331.3
%)
Other income (expense)
3,061
327
836.1
%
Operating expenses
(8,688
)
(8,204
)
5.9
%
Interest expense
(5,657
)
(5,463
)
3.6
%
Income tax (expense) benefit
(692
)
2,172
131.9
%
Segment results
$
22,452
$
18,353
22.3
%
Consolidated effective tax rate
13.0%
26.0%
The current interest rate environment continues to benefit our
net investment income, which increased to $33.2 million in the
quarter, driven by higher average book yields on our fixed maturity
investments as our reinvestment rate exceeds that of the maturing
assets.
Equity in earnings from our investment in LPs/LLCs, which are
typically reported to us on a one-quarter lag, reflected a $3.1
million gain in the quarter as compared to a loss of $0.8 million
in the year-ago quarter driven by the performance of two LPs, which
reflected higher market valuations during the fourth quarter of
2023.
The corporate segment results include $1.7 million of net
investment losses for the quarter driven primarily by
credit-related impairment losses in earnings, realized losses from
the sale of certain available-for-sale fixed maturities and, to a
lesser extent, unrealized holding losses resulting from changes in
the fair value of our convertible securities. This compares to $0.8
million of net investment gains in the first quarter of 2023 driven
by unrealized holding gains resulting from changes in the fair
value of our equity investments and convertible securities. These
results underscore the variable effect of measuring these
investments at fair value each period, which we believe to be
temporary as we have the intent and capability to hold to these
investments to maturity.
The increase in other income was driven by the effect of foreign
currency exchange rate gains of $1.9 million in the current
quarter, compared to foreign currency exchange rate losses of $0.8
million in the prior year period. These foreign currency exchange
rate movements are primarily related to euro-denominated loss
reserves in our Specialty P&C segment.
Operating expenses increased by $0.5 million primarily due to an
increase in compensation-related costs, partially offset by a
decrease in professional fees and, to a lesser extent, the timing
of share-based compensation expenses.
NON-GAAP FINANCIAL MEASURES
Non-GAAP Operating Income
(Loss)
Non-GAAP operating income (loss) is a financial measure that is
widely used to evaluate performance within the insurance sector. In
calculating Non-GAAP operating income (loss), we have excluded the
effects of the items listed in the following table that do not
reflect normal results. We believe Non-GAAP operating income (loss)
presents a useful view of the performance of our insurance
operations; however, it should be considered in conjunction with
net income (loss) computed in accordance with GAAP. The following
table reconciles net income (loss) to Non-GAAP operating income
(loss):
RECONCILIATION OF NET INCOME (LOSS) TO
NON-GAAP OPERATING INCOME (LOSS)
Three Months Ended March
31
($ in thousands, except per share
data)
2024
2023
Net income (loss)
$
4,626
$
(6,174
)
Items excluded in the calculation of
Non-GAAP operating income (loss):
Net investment (gains) losses (1)
268
(2,912
)
Net investment gains (losses) attributable
to SPCs which no profit/loss is retained (2)
1,151
913
Foreign currency exchange rate (gains)
losses(3)
(1,929
)
827
Guaranty fund assessments
(recoupments)
87
(74
)
Pre-tax effect of exclusions
(423
)
(1,246
)
Tax effect, at 21% (4)
(26
)
2
After-tax effect of exclusions
(449
)
(1,244
)
Non-GAAP operating income (loss)
$
4,177
$
(7,418
)
Per diluted common share:
Net income (loss)
$
0.09
$
(0.11
)
Effect of exclusions
(0.01
)
(0.03
)
Non-GAAP operating income (loss) per
diluted common share
$
0.08
$
(0.14
)
(1)
Net investment gains (losses) for the
three months ended March 31, 2023 include a gain of $1.0 million
related to the change in the fair value of contingent consideration
issued in connection with the NORCAL acquisition. We have excluded
this adjustment as it does not reflect normal operating results.
See further discussion around the contingent consideration in Notes
2 and 6 of the Notes to Condensed Consolidated Financial Statements
of our March 31, 2024 report on From 10-Q.
(2)
Net investment gains (losses) on
investments related to SPCs are recognized in our Segregated
Portfolio Cell Reinsurance segment. SPC results, including any net
investment gain or loss, that are attributable to external cell
participants are reflected in the SPC dividend expense (income). To
be consistent with our exclusion of net investment gains (losses)
recognized in earnings, we are excluding the portion of net
investment gains (losses) that is included in the SPC dividend
expense (income) which is attributable to the external cell
participants.
(3)
Foreign currency exchange rate gains
(losses) relate to the impact of foreign exchange rate movements on
foreign currency denominated loss reserves predominately associated
with premium assumed from an international medical professional
liability insured in our Specialty P&C segment. Our
participation in this program has grown in recent years which has
led to greater volatility in our results of operations even with
nominal movements in exchange rates given the size of the reserve.
We mitigate foreign exchange rate exposure on our Consolidated
Balance Sheet by generally matching the currency and duration of
associated investments to the corresponding loss reserves. In
accordance with GAAP, the impact on the market value of
available-for-sale fixed maturities due to changes in foreign
currency exchange rates is reflected as a part of OCI. Conversely,
the impact of changes in foreign currency exchange rates on loss
reserves is reflected through net income (loss) as a component of
other income. Therefore, we believe foreign currency exchange rate
gains (losses) in our Consolidated Statements of Income and
Comprehensive Income in isolation are not indicative of our
operating performance.
(4)
The 21% rate is the annual expected
statutory tax rate associated with the taxable or tax deductible
items listed above. We utilized the estimated annual effective tax
rate method for the three months ended March 31, 2024 and 2023. See
further discussion on this method in the Critical Accounting
Estimates section under the heading "Estimation of Taxes" and in
Note 4 of the Notes to Condensed Consolidated Financial Statements
in our March 31, 2024 report on Form 10-Q. For the 2024 and 2023
periods, our effective tax rate was applied to these items in
calculating net income (loss), excluding net investment gains
(losses) and related adjustments which were treated as discrete
items and were tax effected at the annual expected statutory tax
rate (21%) in the period they were included in our consolidated tax
provision and net income (loss). The 2023 gain related to the
change in the fair value of the contingent consideration was
non-taxable and therefore had no associated income tax impact. The
taxes associated with the net investment gains (losses) related to
SPCs in our Segregated Portfolio Cell Reinsurance segment are paid
by the individual SPCs and are not included in our consolidated tax
provision or net income (loss); therefore, both the net investment
gains (losses) from our Segregated Portfolio Cell Reinsurance
segment and the adjustment to exclude the portion of net investment
gains (losses) included in the SPC dividend expense (income) in the
table above are not tax effected.
Non-GAAP Operating ROE
The following table is a reconciliation of ROE to Non-GAAP
operating ROE for the three months ended March 31, 2024 and
2023:
Three Months Ended
March 31
2024
2023
ROE(1)
1.7
%
(2.5
%)
Pre-tax effect of items excluded in the
calculation of Non-GAAP operating ROE
(0.2
%)
(0.1
%)
Tax effect, at 21%(2)
—
%
—
%
Non-GAAP operating ROE
1.5
%
(2.6
%)
(1)
Quarterly amounts are annualized. Refer to
our March 31, 2024 report on Form 10-Q under the heading “Non-GAAP
Operating ROE” in the Executive Summary of Operations section for
details on our calculation.
(2)
The 21% rate is the statutory tax rate
associated with the taxable or tax deductible items. See further
discussion in footnote 4 in this section under the heading
"Non-GAAP Operating Income."
Non-GAAP Adjusted Book Value per
Share
The following table is a reconciliation of our book value per
share to Non-GAAP adjusted book value per share at March 31, 2024
and December 31, 2023:
Book Value Per Share
Book Value Per Share at December 31,
2023
$
21.82
Less: AOCI Per Share(1)
(4.01
)
Non-GAAP Adjusted Book Value Per Share at
December 31, 2023
25.83
Increase (decrease) to Non-GAAP Adjusted
Book Value Per Share during the three months ended March 31, 2024
attributable to:
Net income (loss)
0.09
Other(2)
(0.04
)
Non-GAAP Adjusted Book Value Per Share at
March 31, 2024
25.88
Add: AOCI Per Share(1)
(4.06
)
Book Value Per Share at March 31,
2024
$
21.82
(1)
Primarily the impact of accumulated
unrealized investment gains (losses) on our available-for-sale
fixed maturity investments. See Note 9 of the Notes to Condensed
Consolidated Financial Statements in our March 31, 2024 report on
Form 10-Q for additional information.
(2)
Includes the impact of share-based
compensation.
Conference Call Information
ProAssurance management will discuss first quarter 2024 results
during a conference call at 10:00 a.m. ET on Tuesday, May 7, 2024.
US-based investors may access the call by dialing either (833)
470-1428 (toll free) or (404) 975-4839 (local). Toll-free numbers
for international investors may be found using this link:
https://www.netroadshow.com/events/global-numbers?confId=63389. The
access code for all attendees is 923054.
Callers who wish to avoid operator wait times and receive unique
call access details may preregister using this link:
https://www.netroadshow.com/events/login?show=77ece0eb&confild=63389.
The conference call will also be webcast at
https://events.q4inc.com/attendee/483256153.
A replay will be available by telephone for at least 7 days
after the call date. US-based investors may access the replay by
dialing (866) 813-9403 (toll free) or (929) 458-6194, and
international investors may dial +44 (204) 525-0658. The access
code for all attendees is 547985. A replay will also be available
for at least one year at investor.proassurance.com. Investors may
follow @ProAssurance on X (formerly Twitter) to be notified of the
latest news about ProAssurance.
About ProAssurance
ProAssurance Corporation is an industry-leading specialty
insurer with extensive expertise in medical professional liability,
products liability for medical technology and life sciences, legal
professional liability, and workers’ compensation insurance.
ProAssurance Group is rated “A” (Excellent) by AM Best.
ProAssurance and its operating subsidiaries (excluding NORCAL
Group) are rated “A-” (Strong) by Fitch Ratings. For the latest on
ProAssurance and its industry-leading suite of products and
services, cutting-edge risk management and practice enhancement
programs, follow @ProAssurance on X (formerly Twitter) or LinkedIn.
ProAssurance’s YouTube channel regularly presents
thought-provoking, insightful videos that communicate effective
practice management, patient safety and risk management
strategies.
Caution Regarding Forward-Looking Statements
Any statements in this news release that are not historical
facts or explicitly stated as an opinion are specifically
identified as forward-looking statements. These statements are
based upon our estimates and anticipation of future events and are
subject to significant risks, assumptions and uncertainties that
could cause actual results to differ materially from the expected
results described in the forward-looking statements.
Forward-looking statements are identified by words such as, but not
limited to, “anticipate,” “believe,” “estimate,” “expect,” “hope,”
“hopeful,” “intend,” “likely,” “may,” “optimistic,” “possible,”
“potential,” “preliminary,” “project,” “should,” “will,” and other
analogous expressions.
Although it is not possible to identify all of these risks and
factors, they include, among others, the following: inadequate loss
reserves to cover the Company's actual losses; inherent uncertainty
of models resulting in actual losses that are materially different
than the Company's estimates; adverse economic factors; a decline
in the Company's financial strength rating; loss of one or more key
executives; loss of a group of agents or brokers that generate
significant portions of the Company's business; failure of any of
the loss limitations or exclusions the Company employs, or change
in other claims or coverage issues; adverse performance of the
Company's investment portfolio; adverse market conditions that
affect its excess and surplus lines insurance operations; and other
risks described in the Company's filings with the Securities and
Exchange Commission. These forward-looking statements speak only as
of the date of this release and the Company does not undertake and
specifically declines any obligation to update or revise any
forward-looking information to reflect changes in assumptions, the
occurrence of unanticipated events, or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240506179693/en/
Heather J. Wietzel SVP, Investor Relations 800-282-6242 •
205-776-3028 • InvestorRelations@ProAssurance.com
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