Slide 1: March 21-22, 2016 Investor Meetings
March 21 - 22, 2016 Investor Meetings
Slide 2: Forward Looking Statements
Forward Looking Statements 1 This presentation contains Forward Looking Statements and other information designed to convey our projections and expectations regarding future results. There are a number of factors which could cause our actual results to vary materially from those projected in this pr
Slide 3: ProAssurance Corporate Profile
ProAssurance Corporate Profile Healthcare - centric specialty liability insurance writer Healthcare Professional Liability (HCPL) Only public company writing predominately HCPL Workers' Compensation Life sciences and medical devices Attorney’s professional liability Market Cap: ~$2.9 billion Shareho
Slide 4: ProAssurance Corporate Profile
ProAssurance Corporate Profile Healthcare - centric specialty insurance writer Healthcare Professional Liability (HCPL) Only public company writing predominately HCPL Life sciences and medical device liability Workers' compensation Legal professional liability Alternative Risk Transfer Market Cap: $
Slide 5: ProAssurance Brand Profile
ProAssurance Brand Profile 4 Specialty P&C Workers’ Comp Healthcare Professional Liability Medical Technology & Life Sciences Products Liability Legal Professional Liability Alternative Risk Transfer
Slide 6: Mission, Vision and Values
Mission, Vision and Values 5 Mission We exist to protect others Vision We will be the best in the world at understanding and providing solutions for the risks our customers encounter as healers, innovators, employers, and professionals. Through an integrated family of specialty companies, products,
Slide 7: Strategic Review
Strategic Review <a
Slide 8: Key High-Level Strategies
Key High - Level Strategies We have built a platform to address the challenges of the evolution of healthcare The creation of new delivery systems and entities is changing the competitive landscape in healthcare professional liability Financial strength and broad geographic reach are now simply “tab
Slide 9: The Reality of Healthcare
The Reality of Healthcare Healthcare cost is the main event. The Affordable Care Act is a side show America can deliver more care than we can afford Restructuring is producing profound changes in healthcare Healthcare delivery is being pushed down to lower cost providers The U.S. spends a greater pr
Slide 10: The Reality of Insurance
The Reality of Insurance 9 Insurance companies are awash in capital Pressure is mounting to “do something” with it Chase market share with low prices but disastrous long - term consequences Appease investors or policyholders with unwise capital - return strategies M&A will emerge, but may be more cr
Slide 11: Establishing our Platform
Establishing our Platform 10 Early M&A built out our medical professional liability business by building scope and size We added capabilities through subsequent M&A PICA: podiatric and related specialties Medmarc: life sciences and medical technology ProAssurance Mid - Continent Underwriters: ancill
Slide 12: ProAssurance is Positioned to Succeed in HCPL
ProAssurance is Positioned to Succeed in HCPL 11 ProAssurance has the right combination of geographic scope, broad experience, and financial strength for success in the new world of healthcare liability Medical Protective (Main Berkshire HCPL) National Recent Hospital Experience $570 Doctors Co Nati
Slide 13: Strategic Successes in the Evolving Market
Strategic Successes in the Evolving Market The Certitude tm program in partnership with Ascension Health Shared risk through quota share participation by Ascension’s captive on first $ 1M ~ 1,800 insured risks $14.5 NPW in 2015 Active in Alabama, Connecticut , D.C ., Florida, Illinois, Indiana, Mich
Slide 14: Strategies for an Evolving Market
Strategies for an Evolving Market 13 Cross - selling / Cross - licensing targets existing insureds for additional policies Produced Alternative risk and self - insurance opportunities Captive insurance programs allow large, sophisticated healthcare and workers’ compensation customers to control thei
Slide 15: Strategic Opportunities
Strategic Opportunities 14 ProAssurance Risk Solutions sm Proven expertise to address complex risk financing challenges in both healthcare and workers’ compensation Run - off liabilities in M&A transactions Assumption of existing reserve liabilities for large organizations seeking to repurpose capit
Slide 16: Strategic Opportunities Through Lloyd's
Strategic Opportunities Through Lloyd’s Syndicate 1729 is an investment opportunity with significant insurance benefits Potentially provides access to international medical professional liability opportunities Leverage Medmarc’s expertise to underwrite international medical technology and life scien
Slide 17: Strategic Opportunities Through Medmarc
Strategic Opportunities Through Medmarc Medmarc is a market - leader in medical products and life sciences liability Increasing presence in device and drug development by larger healthcare organizations Increasing globalization of testing and development efforts are a natural fit with Lloyd’s Syndic
Slide 18: Strategic Opportunities Through Mid-Continent
Strategic Opportunities Through Mid - Continent ProAssurance Mid - Continent Underwriters addresses the needs of ancillary healthcare providers This market is increasing rapidly as the push to reduce healthcare costs drives care through lower cost providers who are an important part of the healthcar
Slide 19: Key Investor Points
Key Investor Points 18 ProAssurance has always evolved ahead of the curve in our industry — we continue that trend We have proven our ability to thrive across insurance cycles and produce significant returns for long - term shareholders Our long - term focus on financial strength and sustained value
Slide 20: 2015 Income Statement Highlights
2015 Income Statement Highlights Continued profitability in a challenging market in millions, except per share data Quarter Ended Year Ended December 31, 2015 2014 2015 2014 Gross Premiums Written $ 161 $ 148 $ 812 $ 780 Net Investment Result $ 26 $ 34 $ 112 $ 130 Total Revenues $ 186 $ 218 $ 772 $
Slide 21: Balance Sheet Highlights
Balance Sheet Highlights Split adjusted, in billions, except Book Value per share Shareholders’ Equity $ 2.0 $ 2.2 $ 2.4 Total Investments 3.7 4.0 3.9 Total Assets 4.9 5.2 5.2 Total Policy Liabilities 2.4 2.4 2.4 $1.26 $1.42 $1.70 $1.86 $2.16 $2.27 $2.39 $2.16 $1.96 2007 2008 2009 2010 2011 2012 201
Slide 22: The Payoff: Consistent Value Creation
3% 52% 50% 88% 146% 160% 357% 521% 298% 229% 247% 314% 534% 671% 862% 884% 983% 941% 959% 1095% 1484% 1698% 2012% 2040% 2201% 2310% 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Reflects all stock splits and includes all dividends in the year declared. Source: SNL The Pa
Slide 23: The Payoff: Consistent Value Creation
Reflects all stock splits and includes all dividends in the year declared. Source: SNL The Payoff: Consistent Value Creation 22 2015 Book Value Per Share + Dividends Declared at 3/15/16 Split Adjusted Since Inception: 2501% (CAGR: 14%) 3% 52% 50% 88% 146% 160% 357% 521% 298% 229% 247% 314% 534% 671%
Slide 24: Capital Discussion
Capital Discussion We focus on the creation of meaningful shareholder value through a disciplined approach to capital management
Slide 25: Demonstrated Commitment to Capital Management
Demonstrated Commitment to Capital Management $290 million capital returned in 2015 $443 million in 2014 Share buybacks balance share price vs. book value/share 2015: $170 mln / 3.7 mln shares 2014: $ 222 mln / 4.9 mln shares Since 2007: $747 mln / 15.4 mln shares $110 mln authorized at 3/15/16 Divi
Slide 26: Capital Growth and Total Capital Return
Capital Growth and Total Capital Return 25 A superb track record under the current senior management team ( Q2 2007 to 2015) Shareholders Equity grown from $1.2 billion to $2.0 billion (56%) $1.4 billion returned to shareholders through share repurchase and dividends Additionally, $754 million deplo
Slide 27: Capital and Liquidity Decisions
Share repurchase at prices with a reasonable payback period Options for deploying remaining capital Capital and Liquidity Decisions All decisions must recognize that we hold significant capital at the subsidiary level to maintain operating company ratings and satisfy regulatory requirements. Dividen
Slide 28: Subsidiary Dividends to Corporate
Subsidiary Dividends to Corporate 27 Primary source of liquidity Ordinary dividends permitted without regulatory approval Generally once per year/ subsidiary Amounts and criteria vary by domiciliary state Extraordinary dividends require regulatory approval Subsidiary capital requirements play a majo
Slide 29: Strong Capital Position and Minimal Debt
Strong Capital Position and Minimal Debt Committed to enhancing shareholder value through effective capital management R etaining capital needed for the market turn and M&A 18% 12% 10% 6% 2% 3% 3% 2% 13% 16% 22% 25% $- $0.5 $1.0 $1.5 $2.0 $2.5 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2
Slide 30: Capital Management Priorities
Capital Management Priorities 29 The manner in which capital is used has an effect on financial ratings Conceptual Model of Projected A. M. Best BCAR Scores if Premiums Increase Surplus is Reduced Excess Capital vs. Excess Capacity “A+” Rating Threshold
Slide 31: Consolidated Operational Highlights
Consolidated Operational Highlights Our commentary on operational results and updates on recent transactions and strategy
Slide 32: Strong Operational Results
Strong Operational Results Lowest combined ratio of the top 100 Property & Casualty writers 2011 through 2014 * Second in 2009 and fourth in 2010 Combined ratio average 2009 - 2015: 70.0% Operating ratio average 2009 - 2015: 46.3% 69.1% 68.0% 52.5% 57.3% 70.6% 82.1% 90.5% 38.8% 39.8% 27.6% 32.6% 46.
Slide 33: Consistent Approach to Reserves
Consistent Approach to Reserves Recognizing loss trends as they appear No change in reserving philosophy or process Reserve Development History by Quarter by Year $16 $20 $19 $25 $40 $48 $53 $48 $34 $20 $31 $37 $38 $50 $60 $39 $42 $35 $25 $30 $43 $33 $52 $50 $49 $43 $36 $44 $104 $108 $138 $184 $114
Slide 34: 2015 Premiums, Policyholders & Distribution
1 2 Physician & Dental 49.2% Ancillary Healthcare 3.2% Life Sciences & Med Tech 4.1% Hospitals & Facilities 4.6% Attorneys 3.5% Workers' Comp 30.0% Lloyd's 5.2% Other 0.2% Specialty P&C: 65% 2015 Policyholders: ~78,000 Physician & Dental 58.4% Ancillary Healthcare 10.8% Life Sciences & Med Tech 1.5%
Slide 35: Reinsurance Programs
Reinsurance Programs Professional Liability Medical Technology & Life Sciences Workers' Compensation Reinsured Retention Coverage Offered up to Maximum Standard Policy Limits -------- 5% to 10% retained based on layer Coverage Offered up to Maximum Standard Policy Limits -------- 20% Retention s Cov
Slide 36: Eastern Insurance Update
Eastern Insurance Update 35 Driver of significant top line growth in 2015 Profitable operations also contributing to bottom line success Expected cross selling / cross licensing opportunities are emerging $2.9 million in YTD premiums Continues building the platform to serve the needs of larger integ
Slide 37: Lloyd's Syndicate 1729 Update
Lloyd’s Syndicate 1729 Update 36 First policies underwritten January 1, 2014 $46.9 million in gross premiums written (to ProAssurance) for the nine months reported 12/31/15 Current capacity for 2015 is approximately $113.5 million ProAssurance is providing 58% of underwriting capital $65 million in
Slide 38: The ProAssurance Response
The ProAssurance Response 37 Our long - term focus on financial strength is central to our overall strategy and success ProAssurance has always evolved ahead of the curve We have proven our ability to thrive across insurance cycles We have an unmatched combination of financial strength and deep expe
Slide 39: Segment Highlights
Segment Highlights We report results in three operational segments Specialty Property Casualty Insurance Workers’ Compensation Insurance Lloyd’s Syndicate 1729
Slide 40: 2015 Specialty P&C Financial Highlights
Quarter Ended Year Ended December 31, 2015 2014 2015 2014 Gross Premiums Written $ 110 $ 103 $ 526 $ 533 Net Premiums Earned $ 100 $ 118 $ 443 $ 493 Total Revenues $ 100 $ 120 $ 448 $ 499 Net Losses & Loss Adjustment Expenses $ 53 $ 37 $ 250 $ 228 Underwriting & Operating Expenses $ 26 $ 32 $ 106 $
Slide 41: Q4 2015 Specialty P&C Gross Written Premium
Q4 2015 Specialty P&C Gross Written Premium 40 Gross Written Premiums increased $6.8 mln (6.6%) from $102.9 mln to $109.6 mln Physician increase is due to new business of $7.0 mln , retention of 91% Facilities increase is due to new business of $1.4 mln offset by 81% retention Lawyers increase is du
Slide 42: 2015 Specialty P&C Gross Written Premium
2015 Specialty P&C Gross Written Premium 41 $37 $33 $28 $20 $33 $34 $34 $28 $19 $35 Healthcare facilities Other healthcare providers Legal professionals Tail & other, professional liability Products liability 2015 2014 $345 $362 $30 $20 $375 $382 2015 2014 Physician 12-mo Physician 24-mo Year ended
Slide 43: Strong Retention Despite Competition
Strong Retention Despite Competition Retention remains strong Continued underwriting vigilance is being used today to ensure future success Market share is important, but NOT as important as profitability 84% 85% 87% 90% 90% 89% 90% 89% 89% 89% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Year
Slide 44: No Overall Change in HCPL Loss Trends
No Overall Change in HCPL Loss Trends Current accident year loss ratio adjustments have been minor — in either direction Minimal changes on renewed business 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Annual 23% 28% 28% 19% 11% 3% -2% -6% -4% -2% -2% 0% -1% 0% 1% Cumul
Slide 45: Differentiate Through Claims Defense
Differentiate Through Claims Defense 44 We leverage our financial strength to give our insureds the opportunity for an uncompromising defense of each claim Differentiates our product Provides long - term financial and marketing advantages Retains business and deters future lawsuits Increasingly impo
Slide 46: The Ohio Example: 2006–2013 Data
The Ohio Example: 2006 – 2013 Data Comprehensive, reliable data provided by the Ohio Department of Insurance Broad range of competitors and business approaches www.insurance.ohio.gov/Legal/Reports/Documents/Ohio2013MedicalProfessionalLiabilityClosedClaimReport.pdf 92% 75% 8% 25% ProAssurance All Oth
Slide 47: The Bottom Line Benefits of Strong Defense
On average, 29 points better than the industry The Bottom Line Benefits of Strong Defense Our ability and willingness to defend claims allows us to achieve better results 20.6% 21.1% 17.6% 16.2% 4.6% 14.0% 10.7% 21.9% 43.7% 23.1% 24.0% 20.6% 20.1% 17.1% 28.0% 27.3% 64.3% 44.2% 41.6% 36.8% 24.6% 31.1
Slide 48: ProAssurance Outperforms in HCPL
ProAssurance Outperforms in HCPL ProAssurance consistently outperforms in a volatile line of business 40% 60% 80% 100% 120% 140% 160% 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 Calendar Year Combined Ratio 1991 - 2014 ProAssurance MPL Source: 1991 - 2013 A.M. Best Aggreg
Slide 49: Segment Highlights
Segment Highlights We repo rt results in three operational segments Specialty Property Casualty Insurance Workers’ Compensation In surance Lloyd’s Syndicate 1729
Slide 50: 2015 Workers' Compensation Financial Highlights
Quarter Ended Year Ended December 31, 2015 2014 2015 2014 Gross Premiums Written $ 48 $ 44 $ 244 $ 225 Net Premiums Earned $ 54 $ 51 $ 213 $ 195 Total Revenues $ 54 $ 51 $ 214 $ 195 Net Losses & Loss Adjustment Expenses $ 38 $ 34 $ 141 $ 126 Underwriting & Operating Expenses $ 16 $ 15 $ 64 $ 45 Oper
Slide 51: Consistent Profitability in Workers' Comp
Consistent Profitability in Workers' Comp 50 Historical Combined Ratio Average 88% since 2006 (1) excluding fair value adjustments, intangible asset amortization, transaction - related and other one - time charges (1) 79.1% 65.6% 80.2% 87.7% 96.0% 89.7% 91.8% 93.0% 96.0% 101.3% 92.7% 99.7% 2006 2007
Slide 52: How Eastern Differentiates
How Eastern Differentiates 51 Disciplined individual account underwriting with focus on rate adequacy in rural territories Dedicated to effective claims management and returning injured workers to wellness Understands market dynamics and regulatory concerns Use of local knowledge that has always dif
Slide 53: Eastern Business Profile
Eastern Business Profile 52 Offices Licensed and actively seeking business Licensed, accepting “border” business Eastern Re (Cayman) Licensed in 30 states Avoiding high - hazard states within the Eastern footprint
Slide 54: Workers' Compensation Risk Diversification
Workers' Compensation Risk Diversification Wide diversification by class code and market segment 6,987 active policies in Traditional Programs Over 600 class c odes a ctively written 53 Physcians/Dentists 10.5% Nursing Homes Skilled 2.7% Hospital 6.3% Clerical / Office 15.6% Colleges/Schools 10.3% A
Slide 55: Workers' Compensation Risk Diversification
These are self - insured, segregated portfolio cells within Eastern’s alternative markets facility 2,699 active Inova ® policies Over 4 00 class codes actively written Physician / Dentists 4.5% Nursing Homes Skilled 3.4% Social Rehab Facilities 3.0% Retirement/Life Care Community 2.7% Clerical / Off
Slide 56: Broad Product Spectrum
Broad Product Spectrum Guaranteed Cost 58.0% INOVA (Alternative Markets) 29.0% Policyholder Dividend 7.4% Deductible Plans 3.5% Retrospective Rating 2.1% Guaranteed Cost Policies Loss - Sensitive Dividend Plans Deductible Plans Retrospective Rating Plans Alternative Market Programs ParallelPay – “ P
Slide 57: How Eastern Differentiates
How Eastern Differentiates Extensive medical cost containment strategies consistently updated and implemented as new trends emerge Ten - year weighted average implied medical inflation is 1.5 percent on an incurred basis Proactive claims management Use of Compromise & Release where permitted by law
Slide 58: Workers' Comp Claim Closing Pattern: Traditional
Workers’ Comp Claim Closing Pattern: Traditional 57 Few claims remain open from older accident years Eastern is recognized as a short - tail writer of workers’ compensation insurance 364 535 590 570 687 591 717 776 889 955 1,073 1,176 1,220 1,224 1,040 0 1 0 3 0 2 2 3 4 6 5 18 40 96 222 0 250 500 75
Slide 59: Workers' Comp Claim Closing Pattern: Alternative
Workers’ Comp Claim Closing Pattern: Alternative 58 Few claims remain open from older accident years Eastern is recognized as a short - tail writer of workers’ compensation insurance 66 103 175 267 407 424 310 325 336 385 403 502 493 543 529 0 0 0 0 0 0 0 1 0 0 3 2 8 30 100 0 150 300 450 600 2000 20
Slide 60: How Eastern Differentiates
How Eastern Differentiates Captive insurance solutions provided through Eastern Re Segregated cell company based in Cayman Opens additional business opportunities for healthcare professional liability business Strategic partnerships with select independent agencies that share philosophies on control
Slide 61: Segment Highlights
Segment Highlights We repo rt results in three operational segments Specialty Property Casualty Insurance Workers’ Compensation Insurance Lloyd’s Syndicate 1729
Slide 62: Lloyd's Segment Financial Highlights
As reported December 31, 2015 Quarter Ended Year Ended September 30, 2015 2014 2015 2014 Gross Premiums Written $ 10 $ 7 $ 57 $ 34 Net Premiums Earned $ 11 $ 6 $ 38 $ 12 Total Revenues $ 12 $ 6 $ 39 $ 13 Net Losses & Loss Adjustment Expenses $ 7 $ 4 $ 25 $ 8 Underwriting & Operating Expenses $ 5 $ 4
Slide 63: Lloyd's Syndicate 1729: Business Detail
Casualty $26.9 47% Property Insurance $16.4 29% Property Reinsurance $2.7 5% Catastrophe Reinsurance $ 10.9 19% Lloyd’s Syndicate 1729: Business Detail Broad spread of risk Casualty includes $14.9 million ceded by PRA/PICA (Podiatry) Property is primarily US 62 For the 12 months reported December 31
Slide 64: Segment Highlights: Corporate
Segment Highlights Corporate U.S. investing activities Non - premium revenues Corporate expenses U. S. taxes
Slide 65: 2015 Corporate Segment Financial Highlights
Quarter Ended Year Ended December 31, 2015 2014 2015 2014 Investment income $ 27 $ 33 $ 82 $ 93 Equity in earnings (loss) of unconsolidated subsidiaries $ (0.2) $ .3 $ 4 $ 3 Net realized investment gains (losses) $ (37) $ (8) $ (36) $ 8 Operating expenses $ 5 $ 3 $ 18 $ 7 Interest expense $ 4 $ 4 $
Slide 66: Corporate Segment Financial Highlights
Corporate Segment Financial Highlights Overall investment result decreased primarily due to lower average balances on fixed income investments Corporate segment expenses increased due to a change in our process for allocating expenses Segment expenses decreased correspondingly 65
Slide 67: Investment Portfolio Detail
Investment Portfolio Detail ProAssurance remains conservatively invested to ensure our ability to keep our long - term promise of insurance protection
Slide 68: 2015 Investment Overview
2015 Investment Overview Maintained duration of approximately 3.5 years and A+ credit quality Obtained a tax effective income yield of 4.0% 67 2016 Investment Strategy & Outlook Continuing capital management activities will reduce the size of the portfolio Maintaining optimum allocation remains para
Slide 69: ProAssurance Investment Profile
All as of 12/31/15 ProAssurance Investment Profile Fixed Income 79% Short Term (incl cash) 3% Equities & Equity Substitutes 17% BOLI 1% $3.7 Billion Overall Portfolio State & Muni 34% Corporate 47% Asset Backed 14% Govt & Agency 5% $2.8 Billion Fixed Income Portfolio (79% of Invested Assets) Average
Slide 70: Portfolio Detail: Asset Backed
Other 13% Auto 12% Non Agency MBS 1% Agency MBS/CMBS 64% Non Agency CMBS 10% ProAssurance Portfolio Detail: Asset Backed 12/31/15 Subject to Rounding Asset Backed: $408 Million (10% of Invested Assets) Weighted Average Rating: “ AAA” 69
Slide 71: Portfolio Detail: Corporate
Financials 31% Industrials 16% Utilities/ Energy 17% Other 1% Basic Materials 4% Technology 4% Communications 7% Consumer Oriented 20% ProAssurance Portfolio Detail: Corporate Corporates: $ 1.3 Billion (35% of Invested Assets) Weighted Average Rating: A - Top 20 Banks/Financials: $212 million in mil
Slide 72: Portfolio Detail: Energy Exposure
Fixed Income $145 79% LP $22 12% Equities & Other $16 9% ProAssurance Portfolio Detail: Energy Exposure Energy Related Exposure: $199 Million 12/31/15 71 Total energy exposure is 5% of invested assets $121 million is investment grade with a $2 million net unrealized loss 3.3% of invested assets $24
Slide 73: Portfolio Detail: Municipals
General Obligation 25% Special Revenue 60% Prerefunded 15% ProAssurance Portfolio Detail: Municipals Municipals: $0.9 Billion (26% of Invested Assets) Top 10 Municipal Holdings in millions State of Texas $15 Connecticut State Housing Authority $13 Omaha Public Power $13 South Carolina State Public S
Slide 74: Portfolio: Equities & Other
Equities 36% Alternative Equity & Debt 13% Real Estate LP 5% Private Equity 14% Convertible Bonds 4% Short Inv Grade Bond Fund 1% Inflation Focused Bond Fund 9% Tax Credits 18% ProAssurance Portfolio: Equities & Other 12/31/15 Equities & Other: $713 Million (20% of Invested Assets) 5.8% TE Book Yiel
Slide 75: Additional Financial Detail
Additional Financial Detail
Slide 76: Tax Credit Impact on Operating Results
Tax Credit Impact on Operating Results 75 Substantial tax benefits and amortization expenses - $0.6 - $5.2 - $5.7 - $8.0 - $7.5 - $7.7 - $12.5 - $21.0 - $19.8 $1.0 $6.9 $12.0 $20.0 $20.4 $24.9 $31.5 $27.6 $21.3 $0.3 $1.7 $6.3 $12.0 $13.0 $17.2 $18.9 $6.6 $1.5 2010 2011 2012 2013 2014 2015 2016 2017
Slide 77: Capital Growth: 2008–2015
Capital Growth: 2008‒2015 2008 2009 2010 2011 2012 2013 2014 2015 Dividends (15,269) (192,466) (64,777) (220,464) (119,866) Earnings 177,725 222,026 231,598 287,096 275,470 297,523 196,565 116,197 Employee Stock Transactions 11,673 7,205 6,147 6,167 7,780 9,261 11,246 8,221 Stock Issued 112,478 Trea
Slide 78: Inside ProAssurance's Balance Sheet
Inside ProAssurance’s Balance Sheet Cash & Investments: 79.3% Insurance Receivables 10.4% Goodwill & Intangible Assets: 6.2% Other Assets: 4.1% Retained Earnings: 40.5% Other Equity: - 0.6% Reinsurance Payable & Other Liabilities: 11.8% Unearned Premiums: 7.4% Loss Reserves: 40.9% Assets: $4.9 bln L
Slide 79: Inside ProAssurance's Income Statement
Inside ProAssurance’s Income Statement 78 Net Premiums Earned: 89.9% Net Realized Investment Gains: - 5.4% Net Investment Income: 14.1% Other: 1.4% Net Income: 15.0% Provision for Income Taxes: 1.6% Underwriting, Policy Acquisitions, Operating and Interest Expenses: 30.2% Net Losses and Loss Adjustm
Slide 80: Book Value per Share History
Book Value per Share History 79 $21.35 $26.30 $30.17 $35.42 $36.85 $39.13 $38.17 $36.88 $20.26 $24.04 $26.58 $31.93 $33.34 $35.64 $32.66 $31.17 $20.80 $23.13 $25.29 $29.80 $30.98 $34.67 $31.63 $30.72 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 12/31/2014 12/31/2015 Book Value per Share Tan
Slide 81: Book Value per Share Components
Book Value per Share 80 Components 12/31/15 12/31/14 Change Total Book Value $ 36.88 $ 38.17 $ (1.31) Less: Goodwill & Intangible Assets 5.71 5.51 0.20 Tangible Book Value $ 31.17 $ 32.66 $ (1.51) Less: Unrealized Gain / Loss 0.45 1.03 (0.58) Tangible Book Value excl Unreal G/L $ 30.72 $ 31.63 $ 0.9
Slide 82: Components of Return on Equity
3.9% 5.5% - 2.0% - 0.6% - 1.2% Pre-Tax Underwriting Profit $81 Pre-Tax Investment Income $112 Non-Operating Gains $(42) Taxes $(13) Interest & Intangibles $(23) 6.3% 5.7% 0.7% - 2.9% - 1.2% Pre-Tax Underwriting Profit $143 Pre-Tax Investment Income $130 Non-Operating Gains $16 Taxes $(65) Interest &
Slide 83: Now Reporting in Four Segments
Now Reporting in Four Segments 82 • Healthcare Professional Liability • Products Liability • Lawyers’ Professional Liability Specialty P&C • Traditional • Captive Market Facility Workers’ Compensation • Syndicate 1729 (58%) (including investments & taxes) Lloyd’s • PRA Corp – parent company • Intern
Slide 84: Q4 2015 Condensed Results by Segment
Q4 2015 Condensed Results by Segment 83 Specialty P&C Workers' Comp Lloyd's Syndicate Corporate / Other Elimination 2015 2014 Gross premiums written $ 109,641 $ 47,644 $ 10,043 $ — $ (6,452 ) $ 160,876 $ 147,599 Net premiums written 80,562 40,279 6,590 — — 127,431 133,276 Net premiums earned 100,249
Slide 85: 2015 Condensed Results by Segment
2015 Condensed Results by Segment 84 Specialty P&C Workers' Comp Lloyd' s Syndicate Corporate / Other Elimination 2015 2014 Gross premiums written $ 526,296 $ 243,608 $ 56,929 $ — $ (14,615 ) $ 812,218 $ 779,609 Net premiums written 442,126 218,338 48,821 — — 709,285 701,849 Net premiums earned 443,