Slide 1: Third Quarter 2024 Investor Update
Investor Update Accurate as of November 7, 2024 Third Quarter 2024 Investor Update Learn more: • News release issued November 7 • 10-Q filed November 7 • Quarterly investor call November 8
Slide 2: Our Shared Vision
©2024 ProAssurance • All rights reserved. 2 Our Shared 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, and servi
Slide 3: Specialty Property & Casualty Segment
©2024 ProAssurance • All rights reserved. 3 ProAssurance Corporation (SNL P&C Group) 2023 Reported: MPL Direct Premiums Written > $45 million $25-45 million $15-25 million $5-$15 million < $5 million Fourth largest Medical Professional Liability (MPL) carrier in 2023 with $683 million of net earned
Slide 4: Workers' Compensation and Segregated Portfolio Cell Reinsurance Segments
©2024 ProAssurance • All rights reserved. 4 Remainder of ProAssurance Premiums from Workers’ Compensation Insurance and Segregated Portfolio Cell Reinsurance Segments 2023 Net Earned Premiums of $977 Million $160 Million Workers’ Compensation Insurance (Eastern Insurance) Specialty regional underwri
Slide 5: Operational Discipline Designed for Success in Competitive Markets
©2024 ProAssurance • All rights reserved. 5 Operational Discipline Designed for Success in Competitive Markets
Slide 6: Operations and Corporate: Third Quarter 2024 Results
©2024 ProAssurance • All rights reserved. 6 Operations – Insurance underwriting results for the third quarter of 2024, including 14% renewal pricing increases in Medical Professional Liability business, illustrate management’s ongoing actions to achieve sustained profitability • Our expertise in med
Slide 7: Strategic Initiatives - Addressing Challenging Markets
©2024 ProAssurance • All rights reserved. 7 Corporate Provide strong net investment income stream to bolster underwriting contribution • Leverage higher interest rate environment to increase portfolio yield • Consolidate statutory entities to maximize efficiency and capital utilization • Manage tale
Slide 8: Specialty P&C Segment Combined Ratio Improvement
©2024 ProAssurance • All rights reserved. 8 Specialty P&C segment combined ratio improved 8.8 percentage points primarily due to a lower net loss ratio that reflected our continued focus on price adequacy and cautious underwriting as well as our ability to target segments within healthcare where the
Slide 9: ProAssurance Overview
©2024 ProAssurance • All rights reserved. 9 ProAssurance Overview
Slide 10: A Foundation in Excellence
©2024 ProAssurance • All rights reserved. 10 A Foundation in Excellence SUPERIOR BRAND IDENTITY AND REPUTATION IN THE MARKET SCOPE & SCALE Regional hubs combined with local knowledge of market dynamics and regulatory environments HISTORY OF SUCCESSFUL MERGERS & ACQUISITIONS Selective M&A with best-i
Slide 11: Specialty Property & Casualty Segment
©2024 ProAssurance • All rights reserved. 11 • Deep expertise and broad product spectrum in healthcare and related sciences • Consolidation in MPL → demand for comprehensive insurance solutions • Life Sciences → offer liability solutions to companies that develop, test, and deliver healthcare produc
Slide 12: Annual Renewal Pricing Change
©2024 ProAssurance • All rights reserved. 12 2019 2020 2021 2022 2023 2024 Cumulative +65% Renewal Pricing* Change Since 2018 • Medical professional liability market facing increasingly unfavorable legal environment • ProAssurance focus on underwriting discipline has constrained growth ▪ Select comp
Slide 13: Managing Risk While Enhancing Competitive Posture
©2024 ProAssurance • All rights reserved. 13 Managing Risk While Enhancing Competitive Posture • Limit growth except in appropriate markets and subsectors ▪ Consider specialty and venue severity when establishing underwriting appetite ▪ Continue strategic shift toward small to midsize accounts • Con
Slide 14: Payroll Exposure by Market Segment
©2024 ProAssurance • All rights reserved. 14 Payroll Exposure by Market Segment Demonstrations Diversification of Workers’ Compensation Insurance Segment Business Serving over 32 Market Segments, Primarily in Rural Territories as of 12/31/2023 *Excludes alternative markets business ceded to the Segr
Slide 15: Workers' Compensation Insurance Segment Innovation Initiatives
©2024 ProAssurance • All rights reserved. 15 Workers’ Compensation Insurance Segment Addressing Market Challenges With Innovation Initiatives • Implemented new integrated policy, claims, risk management and billing systems, paving the way for innovation initiatives • Expand use of data analytics to
Slide 16: Segregated Portfolio Cell Reinsurance (Inova Re)
©2024 ProAssurance • All rights reserved. 16 Agency group or association establishes a cell SERVICES INCLUDE • Underwriting • Claims Administration • Risk Management • Reinsurance • Audit • Asset Management Services + Cell Rental Fees + Participation in profits/losses of selected cells Fee Income to
Slide 17: Investment Portfolio
©2024 ProAssurance • All rights reserved. 17 Details of our investment portfolio are available on our website at https://investor.proassurance.com/financial-information/ quarterly-investment-supplements More than 90% Fixed Maturity Portfolio in Investment Grade Bonds • New money yield of 5.2% in thi
Slide 18: Contribution of Net Investment Result Rose 24% Year-To-Date
©2024 ProAssurance • All rights reserved. 18 Contribution of Net Investment Result Rose 24% Year-To-Date ($ in thousands) 2024 Beginning Equity 1,111,980 Employee Stock Transactions 3,290 Earnings 36,575 OCI 79,381 Total Equity 1,231,226 Net Investment Income ($ in millions) 9/30/2024 9/30/2023 Chan
Slide 19: Balance Sheet and Leverage
©2024 ProAssurance • All rights reserved. 19 • ProAssurance maintains a balance sheet that ensures stability and security for our customers ▪ Targeted Premiums to Equity ratio is 0.75X • Our reserving philosophy enables success over the insurance cycles ▪ Net loss reserves of $3.3 billion at Septemb
Slide 20: Appendix
©2024 ProAssurance • All rights reserved. 20 Appendix
Slide 21: ProAssurance Executive Leadership
©2024 ProAssurance • All rights reserved. 21 ProAssurance Executive Leadership Executive Team bios available on our website at Investor.ProAssurance.com/OD Ned Rand - President & Chief Executive Officer Mr. Rand became President and CEO in 2019, after serving as COO, CFO, Executive VP, and Senior VP
Slide 22: ProAssurance Board of Directors
©2024 ProAssurance • All rights reserved. 22 ProAssurance Board of Directors Director bios available on our website at Investor.ProAssurance.com/OD Maye Head Frei Compensation Committee Chair Katisha T. Vance, MD Nominating/Corporate Governance Committee Chair Samuel A. Di Piazza, Jr Compensation Co
Slide 23: ProAssurance Group Brands
©2024 ProAssurance • All rights reserved. 23 ProAssurance Group Brands Alternative Risk Transfer Workers’ CompensationSpecialty Property & Casualty MEDICAL PROFESSIONAL LIABILITY INSURANCE FOR ANESTHESIOLOGISTS
Slide 24: Forward Looking Statements
©2024 ProAssurance • All rights reserved. 24 Forward Looking Statements 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
Slide 25: Contact
25 Contact: Heather J. Wietzel SVP, Investor Relations 205-776-3028 InvestorRelations@ProAssurance.com Mailing Address: ProAssurance Corporation 100 Brookwood Place Birmingham, AL 35209