ProAssurance Q4 Earnings Beat on Improved Net Investment Income

Core Insights - ProAssurance Corporation (PRA) reported a fourth-quarter 2024 adjusted operating income of 36 cents per share, exceeding the Zacks Consensus Estimate of 15 cents, and a significant improvement from a loss of five cents per share in the same period last year [1][2] Financial Performance - Operating revenues increased by 0.9% year over year to $287.5 million, surpassing the consensus mark by 5.7% [2] - Net income surged 153.6% year over year to $16.2 million, with a combined ratio of 109.3%, improving by 270 basis points [5] - Total expenses decreased by 5.5% year over year to $271.4 million, although it was higher than the estimate of $267 million [4] Segment Analysis - Specialty P&C Segment: Revenues declined 4.3% year over year to $186.8 million but exceeded the Zacks Consensus Estimate of $184.1 million [6] - Workers' Compensation Insurance Segment: Revenues rose 12.2% year over year to $43.3 million, surpassing the consensus estimate of $40.3 million [8] - Segregated Portfolio Cell Reinsurance Segment: Gross premiums written fell 13.2% year over year to $12.4 million, missing the estimate of $15.6 million [10] Investment Income and Expenses - Net investment income was $36.8 million, a 9.2% increase year over year, but fell short of the consensus mark of $37.7 million [4] - Total expenses in the Workers' Compensation segment declined 2.2% year over year to $50.5 million, with a loss of $7.2 million, improved from a loss of $13 million in the prior year [9] Financial Position - As of December 31, 2024, cash and cash equivalents were $54.9 million, down 16.7% from the end of 2023 [13] - Total investments rose by 0.4% to $4.4 billion, while total assets decreased by 1% to $5.6 billion [13] - Total shareholders' equity increased by 8.1% to $1.2 billion, with a book value per share of $23.49, up 7.7% from the previous year [14] Share Repurchase Update - ProAssurance did not repurchase any common shares in 2024, with a remaining capacity of $55.9 million for future repurchases or debt retirement [15]