Core Insights - ProAssurance (PRA) reported quarterly earnings of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, and showing a significant improvement from a loss of $0.05 per share a year ago, resulting in an earnings surprise of 140% [1] - The company achieved revenues of $287.52 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 5.71% and showing an increase from $284.95 million in the same quarter last year [2] - ProAssurance has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of ProAssurance's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $269.12 million, and for the current fiscal year, it is $0.85 on revenues of $1.08 billion [7] Industry Context - The Insurance - Property and Casualty industry, to which ProAssurance belongs, is currently ranked in the top 27% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The correlation between near-term stock movements and trends in earnings estimate revisions suggests that investors should monitor these revisions closely [5]

Premiums and Revenue - Gross premiums written for 2024 totaled $1,050,867,000, a decrease of 2.1% from $1,082,279,000 in 2023[38] - The Specialty P&C segment accounted for 77% of total gross premiums written in 2024, with $807,463,000 reported[38] - Workers' Compensation Insurance premiums were $243,404,000 in 2024, representing 23% of total gross premiums written[38] - The Segregated Portfolio Cell Reinsurance segment reported premiums of $57,904,000 in 2024, down from $70,259,000 in 2023[38] - Approximately 66% of medical professional liability (MPL) gross premiums written in 2024 were produced through independent insurance agencies or brokers[42] - The top ten largest agents or brokers generated approximately 29% of MPL premium in 2024, with no single agency exceeding 8%[43] - The Medical Technology Liability business generated approximately 45% of its gross written premium from the top ten largest brokers in 2024[47] Risk Management and Compliance - The company plans to enhance coverage offerings to meet the changing risk management needs of larger healthcare entities and telemedicine companies[58] - The company has implemented innovative solutions, including artificial intelligence, to manage escalating medical costs in the Workers' Compensation Insurance segment[52] - The company emphasizes pricing products based on current loss projections to align with long-term profit targets, even if it affects top-line growth[60] - The company filed its internal assessment of solvency under ORSA criteria during 2024, reflecting compliance with regulatory requirements[79] - The Dodd-Frank Act has not materially affected the company's business to date, but future regulatory changes could impact operations and compliance costs[86] - The company is subject to various state statutory and regulatory restrictions that limit the amount of dividends or distributions it can pay to shareholders without prior regulatory approval[75] - The company expects additional states to adopt data security and privacy laws, but compliance is not anticipated to materially impact financial conditions[73] Financial Position and Capital Management - All of the company's insurance subsidiaries received an "A (Excellent)" rating from AM Best, indicating strong claims-paying ability[63] - As of December 31, 2024, the company estimates that all its insurance subsidiaries will exceed the minimum required risk-based capital levels[78] - The company maintains a minimum capital requirement of approximately $200,000 for its subsidiaries in the Cayman Islands[91] - The company's fixed maturities portfolio is exposed to interest rate risk, with a total fair value of $3,815 million as of December 31, 2024, which could decrease to $3,361 million with a 200 basis points increase in interest rates[450] - As of December 31, 2024, the fair value of corporate debt in the fixed maturities portfolio is $1,832 million, which could drop to $1,632 million with a 200 basis points increase in interest rates[450] - The outstanding borrowings under the Revolving Credit Agreement and Term Loan were $125 million and $120 million, with fixed base rates of 3.187% and 3.207% respectively[454] - Premiums receivable amounted to approximately $229 million, net of an allowance for expected credit losses of about $8 million[458] - Receivables from reinsurers approximated $427 million as of December 31, 2024, down from $467 million in 2023[458] Employee Relations and Corporate Culture - The company had 1,036 employees as of December 31, 2024, with no representation by labor unions, indicating good employee relations[95] - The company conducts quarterly "Pulse" surveys to gather real-time feedback from team members on key issues, aiming to enhance employee engagement[94] - The company expanded its health insurance program to include fertility benefits during the 2024 benefits open enrollment process[95] - The company is committed to fostering a diverse and inclusive workplace, supported by a Diversity, Equity and Inclusion Council[95] Investment and Credit Risk - 90% of fixed income securities purchased are emphasized for investment grade credit quality to control credit risk exposure[456] - The company has not experienced significant credit losses related to premiums receivable or reinsurers[458] - The defined benefit pension plan is exposed to economic risks related to changes in discount rates and expected returns on plan assets[455] - As of December 31, 2024, 93% of the fixed maturity securities were rated investment grade, reducing credit risk exposure[457] Market Conditions and Competitive Landscape - The workers' compensation industry is highly competitive, with multi-line insurers underpricing products to gain market access, a trend expected to continue into 2025[59] - The company's claims handling and risk management services provide a competitive advantage, even when pricing is higher than competitors[59] Legislative and Regulatory Environment - The Terrorism Risk Insurance Act (TRIA) was reauthorized in 2019, extending coverage through 2027, with a loss event threshold of $200 million to trigger federal coverage[89] Foreign Currency and Interest Rate Management - The company had one foreign currency forward contract with a notional amount of €5.0 million ($5.5 million) and a fair value of approximately $0.3 million[459] - The company entered into two Interest Rate Swaps to manage interest rate risk, effectively fixing rates on borrowings[454] - Foreign currency exchange rate movements have led to greater volatility in results due to increased participation in international programs[459]

Core Viewpoint - ProAssurance Corporation (PRA) is expected to report its fourth-quarter 2024 results on February 24, 2025, with earnings estimated at 15 cents per share and revenues of $271.98 million, indicating a year-over-year earnings improvement of 400% but a revenue decline of 4.6% [1][2]. Financial Estimates - The Zacks Consensus Estimate for ProAssurance's total revenues in 2024 is $1.11 billion, reflecting a slight decline of 0.5% year-over-year, while the EPS estimate is 80 cents, a significant recovery from a loss of 14 cents in the previous year [3]. - ProAssurance has beaten earnings estimates in three of the last four quarters, with an average surprise of 61.5% [3]. Earnings Prediction - The current model does not predict a definitive earnings beat for ProAssurance, as it has an Earnings ESP of 0.00% and a Zacks Rank of 2 (Buy) [4]. Factors Influencing Q4 Results - Rising investment income is expected to contribute positively, with a projected 11.9% year-over-year growth in net investment income [6]. - The net loss ratio is estimated to improve to 78.57%, down from 78.90% a year ago, indicating enhanced efficiency [6]. - Total expenses are anticipated to decline by approximately 7% in the quarter [6]. Segment Performance - The Workers' Compensation Insurance unit is projected to show a 46.4% improvement in operating income year-over-year, while the Segregated Portfolio Cell Reinsurance unit is expected to see over a 30% increase [7]. - However, lower premiums earned are likely to negatively impact results, with a consensus estimate indicating a 6.5% decline in net premiums earned [8]. - The underwriting expense ratio is expected to be 33.07%, and the Specialty P&C Segment's operating income is projected to deteriorate by over 23% year-over-year, complicating the earnings outlook [8].

Core Viewpoint - ProAssurance (PRA) is expected to report a significant increase in quarterly earnings per share (EPS) of $0.15, reflecting a 400% rise year-over-year, despite a forecasted revenue decline of 4.6% to $271.98 million [1]. Earnings Estimates - The consensus EPS estimate has remained stable over the past 30 days, indicating analysts have reassessed their projections [1][2]. - Changes in earnings estimates are crucial for predicting investor reactions and short-term stock performance [2]. Key Metrics Forecast - Analysts project 'Net premiums earned' to be $231.24 million, a decrease of 6.5% year-over-year [4]. - 'Net investment income' is expected to reach $37.73 million, marking an increase of 11.9% from the previous year [4]. - 'Other income(loss)' is estimated at $3.01 million, reflecting a decline of 23.1% year-over-year [4]. Specialty Property & Casualty Metrics - 'Net Premiums Earned - Specialty Property & Casualty' is forecasted at $183.36 million, down 5.3% year-over-year [5]. - The 'Underwriting Expense Ratio' is expected to remain stable at 33.1% compared to the previous year [5]. - The 'Combined Ratio' is projected to be 111.7%, slightly improved from 112% year-over-year [5]. Workers Compensation Metrics - The 'Underwriting Expense Ratio - Workers Compensation' is estimated at 35.5%, down from 36.9% in the same quarter last year [6]. - The 'Net Loss Ratio - Segregated Portfolio Cell Reinsurance' is expected to be 64.6%, up from 59.3% year-over-year [6]. Segregated Portfolio Cell Reinsurance Metrics - The 'Underwriting Expense Ratio - Segregated Portfolio Cell Reinsurance' is projected at 34.0%, slightly higher than the previous year's 33.9% [7]. - The 'Combined Ratio - Segregated Portfolio Cell Reinsurance' is expected to be 98.6%, compared to 93.2% last year [7]. Specialty Property & Casualty Loss Ratios - The 'Net Loss Ratio - Specialty Property & Casualty' is anticipated to be 79.6%, up from 76.8% in the same quarter last year [8]. - The 'Underwriting Expense Ratio - Specialty Property & Casualty' is expected to be 27.4%, down from 28.1% year-over-year [8]. Stock Performance - ProAssurance shares have decreased by 5.2% over the past month, contrasting with a 4.7% increase in the Zacks S&P 500 composite [8].

Investors might want to bet on ProAssurance (PRA) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a changing ...

ProAssurance Corporation’s (PRA) shares gained 6.4% since it reported third-quarter 2024 results on Nov. 7, 2024. The strong quarterly earnings benefited from strong underwriting results in the Specialty P&C segment, significant growth in investment income, higher yields and a decline in expenses. Deteriorating profitability in the Segregated Portfolio Cell Reinsurance unit acted as a partial offset.PRA reported a third-quarter 2024 adjusted operating income of 34 cents per share, which surpassed the Zacks ...

ProAssurance (PRA) reported $278.23 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 0.1%. EPS of $0.34 for the same period compares to -$0.07 a year ago.The reported revenue represents a surprise of +2.77% over the Zacks Consensus Estimate of $270.75 million. With the consensus EPS estimate being $0.12, the EPS surprise was +183.33%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to de ...

ProAssurance (PRA) came out with quarterly earnings of $0.34 per share, beating the Zacks Consensus Estimate of $0.12 per share. This compares to loss of $0.07 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 183.33%. A quarter ago, it was expected that this medical professional liability insurer would post earnings of $0.08 per share when it actually produced earnings of $0.23, delivering a surprise of 187.50%.Over the last fo ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 0-16533 ProAssurance Corporation (Exact name of registrant as specified in its charter) Delaware 63-1261433 ( ...

NEWS RELEASE For More Information: Heather J. Wietzel • SVP, Investor Relations 800-282-6242 • 205-776-3028 • InvestorRelations@ProAssurance.com ProAssurance Reports Results for Third Quarter 2024 BIRMINGHAM, AL – November 7, 2024 – ProAssurance Corporation (NYSE: PRA), an industry-leading specialty insurer with extensive expertise in medical professional liability and a core small-cap value equity in the financials sector, today reported net income of $16.4 million, or $0.32 per diluted share, and operatin ...