Proassurance Corporation · NYSE:PRA
Proassurance — Investor Presentation (June 2023)
30 slides from Proassurance's investor presentation, Jun 15, 2023
Slide 1: ProAssurance Investor Update First Quarter 2023
PROASSURANCE. Treated Fairly Investor Update First Quarter 2023 June 2023
Slide 2: Overview
ProAssurance Overview
Slide 3: Mission, Vision, & Values
ProAssurance Investor Briefing | June 2023 3 Mission, Vision, & Values The ProAssurance Mission We Protect Others. Corporate Values Integrity | Leadership | Relationships | Enthusiasm Our Brand Promise We will honor these values in the execution of treated fairly to perform our mission and realize o
Slide 4: At a Glance
ProAssurance Investor Briefing | June 2023 4 At a Glance All employee and financial data as of 3/31/23. Business Unit Principal Offices Employees Lines of Business HCPL 8 607 Healthcare professional liability Medmarc 1 35 Medical technology liability Small Business Unit 1 100 Podiatrists, chiropract
Slide 5: ProAssurance Executive Leadership
ProAssurance Investor Briefing | June 2023 5 ProAssurance Executive Leadership Ned Rand - President & Chief Executive Officer Mr. Rand became President and CEO in 2019, after serving as COO, CFO, Executive VP, and Senior VP of Finance at ProAssurance since joining the company in 2004. Prior to joini
Slide 6: ProAssurance Board of Directors
ProAssurance Investor Briefing | June 2023 6 ProAssurance Board of Directors Director bios available on our website at Investor.ProAssurance.com/OD Maye Head Frei C M. James Gorrie N/C Ziad R. Haydar, MD C Edward L. Rand, Jr E Frank A. Spinosa, DPM N/C Katisha T. Vance, MD N/C A - Audit Committee C
Slide 7: ProAssurance Brand Profile
ProAssurance Investor Briefing | June 2023 7 ProAssurance Brand Profile Specialty P&C Healthcare Professional Liability Workers’ Comp Alternative Risk Transfer Medical Technology & Life Sciences Products Liability Legal Professional Liability
Slide 8: ProAssurance business lines overview
ProAssurance Investor Briefing | June 2023 8 ProAssurance Specialty Property & Casualty • Healthcare Professional Liability (HCPL) insures healthcare providers and facilities, including E&S coverages • The Small Business Unit insures podiatrists, chiropractors, dentists, and lawyers • Medmarc insure
Slide 9: Specialty Property & Casualty
ProAssurance Investor Briefing | June 2023 9 ProAssurance Specialty Property & Casualty Specialty Healthcare Life SciencesSmall Business Unit Standard Physicians Healthcare Professional Liability Insurance $42M$101M$427M $205M Gross Premiums Written Last 12 months $817M Specialty Property & Casualty
Slide 10: Workers' Compensation Insurance
ProAssurance Investor Briefing | June 2023 10 Disciplined individual account underwriting with focus on rate adequacy in rural territories • Guaranteed Cost Policies • Loss-Sensitive Dividend Plans • Deductible Plans • Retrospective Rating Plans • ParallelPay–“Pay as you Go” • Specialty Risk (high h
Slide 11: Segregated Portfolio Cell Reinsurance
ProAssurance Investor Briefing | June 2023 11 Segregated Portfolio Cell Reinsurance ProAssurance Fronting Arrangement Agency Group or Association establishes a cell Underwriting Claims Administration Risk Management Reinsurance Audit Asset Management Services + Cell Rental Fees + Participation in pr
Slide 12: Financial Ratings & Balance Sheet Highlights
ProAssurance Investor Briefing | June 2023 12 • ProAssurance is recognized for our financial strength by top rating agencies • We maintain a balance sheet that ensures stability and security for our customers • Our conservative reserving philosophy enables success over the insurance cycles Financial
Slide 13: ProAssurance Leverage Update
ProAssurance Investor Briefing | June 2023 13 • $428M total debt principal at 03/31/2023 o $178M of Contribution Certificates from NORCAL acquisition o $250M 5.3% 10-year notes due 11/15/2023 • $250M revolving credit facility, $50M "accordion" option, no outstanding borrowing • In April 2023, ProAss
Slide 14: Success in Competitive Markets
Success in Competitive Markets
Slide 15: A Foundation in Excellence
ProAssurance Investor Briefing | June 2023 15 A Foundation in Excellence “From our earliest days, we have operated with a strategy both responsive to near-term challenges and proactive to long-term opportunity.” -Ned Rand President & CEO Superior brand identity and reputation in the market Specializ
Slide 16: Executing our Strategy: 2022 Accomplishments
ProAssurance Investor Briefing | June 2023 16 Ex ec u ti n g o u r St ra te gy Enterprise-Wide ➢ Safely and successfully re-opened offices after 2 years of primarily remote work ➢ AM Best and Fitch ratings moved to Stable outlook in 2022 Specialty Property & Casualty ➢ Achieved renewal rate increase
Slide 17: Goals / Initiatives
ProAssurance Investor Briefing | June 2023 17 2 0 2 3 G o al s / In it ia ti ve s SP&C Innovation and Operational Excellence ➢ Launch a state-of-the-art workflow solution across the segment ➢ Build out data science and predictive analytics strategy ➢ Develop and launch a next generation online porta
Slide 18: Appendix
Appendix
Slide 19: Income Statement Highlights (3/31/23)
ProAssurance Investor Briefing | June 2023 19 Income Statement Highlights (3/31/23) Three Months Ended March 31 2023 2022 Gross Premiums Written $ 315.8 $ 335.6 Net Premiums Earned $ 239.8 $ 265.7 Net Investment Result $ 29.2 $ 28.1 Net Investment Gains (Losses) $ 2.9 $ (13.5) Total Revenues $ 272.7
Slide 20: Specialty P&C Financial Highlights (3/31/23)
ProAssurance Investor Briefing | June 2023 20 Current Accident Year Net Loss Ratio 87.2 % 85.8 % Effect of Prior Accident Year Reserve Development 4.3 % (2.0%) Net Loss Ratio 91.5 % 83.8 % Underwriting Expense Ratio 22.8 % 21.7 % Combined Ratio 114.3 % 105.5 % Specialty P&C Financial Highlights (3/3
Slide 21: Workers' Compensation Insurance Financial Highlights
ProAssurance Investor Briefing | June 2023 21 Workers’ Compensation Insurance Financial Highlights (3/31/23) Three Months Ended March 31 2023 2022 Gross Premiums Written $ 73.4 $ 72.1 Net Premiums Earned $ 40.8 $ 40.7 Total Revenues $ 41.4 $ 41.4 Net Losses & Loss Adjustment Expenses $ (30.8) $ (27.
Slide 22: Segregated Portfolio Cell Reinsurance Financial Highlights
ProAssurance Investor Briefing | June 2023 22 Segregated Portfolio Cell Reinsurance Financial Highlights (3/31/23) Three Months Ended March 31 2023 2022 Gross Premiums Written $ 22,881 $ 28,369 Net Premiums Earned $ 15,300 $ 19,314 Net Investment Income $ 420 $ 112 Net Gains (Losses) $ 1,160 $ (711)
Slide 23: Lloyd's Syndicates Segment Financial Highlights
ProAssurance Investor Briefing | June 2023 23 Lloyd’s Syndicates Segment Financial Highlights (3/31/23) Three Months Ended March 31 2023 2022 Gross Premiums Written $ 3.5 $ 5.8 Net Premiums Earned $ 4.3 $ 7.7 Total Revenues $ 4.5 $ 7.7 Net Losses & Loss Adjustment Expenses $ (2.0) $ (4.8) Underwriti
Slide 24: Corporate Segment Financial Highlights
ProAssurance Investor Briefing | June 2023 24 Corporate Segment Financial Highlights (3/31/23) Three Months Ended March 31 2023 2022 Net investment income $ 29.7 $ 20.1 Equity in earnings (loss) of unconsolidated subsidiaries $ (1.1) $ 7.6 Net investment gains (losses) $ 0.8 $ (12.4) Other income $
Slide 25: YTD 2023 Net Investment Result and Equity Rollforward
ProAssurance Investor Briefing | June 2023 25 YTD 2023 Net Investment Result and Equity Rollforward Data shown in thousands 2023 Beginning Equity $1,104,018 Employee Stock Transactions 518 Earnings (6,174) Dividends (2,701) Unrealized G/L 42,629 Total Equity $1,138,290 ($ in millions) 3/31/2023 3/31
Slide 26: Lloyd's of London Syndicates
ProAssurance Investor Briefing | June 2023 26 Lloyd’s of London Syndicates ProAssurance Funds at Lloyd’s (FAL) $25.1 Million 1 Property Insurance (All Other - Mainly US) 28% Casualty (Mainly US) 28% Catastrophe Reinsurance (Excess of Loss) 15% Specialty 8% Facility (US) 6% General Liability (US) 4%
Slide 27: Investment Philosophy & Portfolio
ProAssurance Investor Briefing | June 2023 27 Investment Philosophy & Portfolio Total Investments $4.38 Billion 03/31/2023 Subject to rounding Details of our investment portfolio are available on our website at https://investor.proassurance.com/financial-information/quarterly-investment-supplements/
Slide 28: Combined Tax Credits Portfolio Detail & Projections
ProAssurance Investor Briefing | June 2023 28 Combined Tax Credits Portfolio Detail & Projections The total credits column represents our current estimated schedule of tax credits that we expect to receive from our tax credit partnerships. The actual amounts of credits provided by the tax credit par
Slide 29: Forward Looking Statements; Non-GAAP Measures
ProAssurance Investor Briefing | June 2023 29 Forward Looking Statements Non-GAAP Measures 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 act
Slide 30: Contact
© ProAssurance Corporation. All rights reserved. MAILING ADDRESS: ProAssurance Corporation 100 Brookwood Place Birmingham, AL 35209 CONTACT: Jason Gingerich VP of Investor Relations 512.879.5101 JasonGingerich@ProAssurance.com