Proassurance Corporation · NYSE:PRA
Proassurance — PACE Meeting April 2014
18 slides from Proassurance's conference presentation, Apr 16, 2014
Slide 1: PACE Meeting - Eastern Alliance Insurance Group
PACE Meeting April 15, 2014 Eastern Alliance Insurance Group Bob Gilpin Senior Vice President, Field Operations / Marketing
Slide 2: EAIG Workers' Compensation Highlights
Page 2 EAIG Workers’ Compensation Highlights • Direct Written Premium of $198.7 Million for the Year Ended December 31, 2013, and $182.9 Million for the Year Ended December 31, 2012 • GAAP Combined Ratio – 93.0% for the Year Ended December 31, 2013 • Net Income - $12.2 Million for the Year Ended Dec
Slide 3: EAIG Direct Written Premium Growth Rates
Page 3 EAIG Direct Written Premium Growth Rates 20.6% 13.6% 8.9% 7.7% 10.4% 8.0% 15.2% 22.8% 17.5% 8.6% $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 $180.0 $200.0 $220.0
Slide 4: Workers' Compensation Key Operating Statistics
Page 4 Workers’ Compensation Key Operating Statistics for the Year Ended December 31, 2013 (1) Premium writings include Pennsylvania Employers Assessment (2) Claims occurring between October 1, 2007 and September 30, 2008 Underwriting (1) : Direct written premium $202.1 million Direct written premiu
Slide 5: EAIG Workers' Compensation Combined Ratio History
Page 5 EAIG Workers’ Compensation Combined Ratio History 79.1% 65.6% 80.2% 87.7% 96.0% 89.7% 91.8% 93.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% • 2013 NCCI industry projected combined ratio of 106.0%
Slide 6: EAIG Geographic Footprint
Page 6 EAIG Geographic Footprint ; ; ; ; ; • Direct Written Premium of $198.7 Million for the Year Ended 12.31.13, and $182.9 Million for the Year Ended 12.31.12 • Licensed – 30 states Alabama Arizona Arkansas District of Columbia Delaware Florida Georgia Illinois Indiana Iowa Kentucky Louisiana Mar
Slide 7: Workers' Compensation Product Line Diversification
Page 7 Workers’ Compensation Product Line Diversification Broad Product Spectrum • Guaranteed Cost Policies • Loss - Sensitive Dividend Plans • Large and Medium Deductible Plans • Retrospective Rating Plans • Alternative Market Programs • ParallelPay – “Pay as you Go” • TPA Services, including Claim
Slide 8: EAIG Workers' Compensation Geography Diversification
Page 8 EAIG Workers’ Compensation Geography Diversification • Opened Southeast regional office (Charlotte, NC) – February 2008 • Acquired Employers Security Insurance Company (Indianapolis, IN) – September 2008 to serve as Midwest regional office • Opened Nashville, TN satellite office – April 2010
Slide 9: Review of 2013 / 2014 EIHI Strategic Plan Highlights
Page 9 Review of 2013/ 2014 EIHI Strategic Plan Highlights 2014 Highlights • Grand Rapids, Michigan Satellite Office • Expand Healthcare Market Penetration in Partnership with ProAssurance • ProAssurance Integration • ParallelPay and uni te Expansion • Alternative Market Branding Initiative • Medica
Slide 10: EAIG Workers' Compensation Claim Closing Patterns - Traditional
0 200 400 600 800 1,000 1,200 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Claims Closed 65 205 382 595 691 687 827 686 842 775 879 952 1,051 1,130 1,083 Claims Open 0 0 0 1 0 3 3 3 3 5 13 22 34
Slide 11: Pennsylvania Workers' Compensation Market Share (Top 10)
Page 11 Pennsylvania Workers’ Compensation Market Share (Top 10) (dollars in thousands) 2012 Gross Written Premium Ten Year Average Loss Ratio Five Year Average Loss Ratio Three Year Average Loss Ratio 1. State Workers’ Insurance Fund $ 191,850 112.27% 121.65% 134.95% 2. Liberty Mutual Insurance Com
Slide 12: Indiana Workers' Compensation Market Share (Top 10)
Page 12 Page 12 Indiana Workers’ Compensation Market Share (Top 10) (dollars in thousands) 2012 Gross Written Premium Five Year Average Loss Ratio Three Year Average Loss Ratio 1. Liberty Mutual Insurance Company $ 86,481 72.33% 77.61% 2. Travelers Group 68,510 63.40% 73.14% 3. American Internationa
Slide 13: North Carolina Workers' Compensation Market Share (Top 10)
Page 13 North Carolina Workers’ Compensation Market Share (Top 10) (dollars in thousands) 2012 Gross Written Premium Five Year Average Loss Ratio Three Year Average Loss Ratio 1. Liberty Mutual Insurance Companies $ 121,216 81.05% 87.60% 2. Travelers Group 104,468 59.80% 57.26% 3. Hartford Insurance
Slide 14: Workers' Compensation Alternative Markets...Alternative Options
Page 14 Workers’ Compensation Alternative Markets…Alternative Options $847 $2,451 $5,082 $12,159 $17,257 $25,786 $28,512 $27,032 $26,912 $29,113 $28,790 $31,139 $38,517 $42,733 $51,125 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 15: EAIG Alternative Markets Highlights
Page 15 Page 15 EAIG Alternative Markets Highlights • Programs for construction, petroleum distribution, forestry, rehabilitation facilities and marina/recreation are open across all regions • Wrote direct written premium of $12.1 million in 2013 outside of Pennsylvania through geographic expansion
Slide 16: EAIG Workers' Compensation Claim Closing Patterns - Alternative Markets
Page 16 EAIG Workers’ Compensation Claim Closing Patterns – Alternative Markets 0 100 200 300 400 500 600 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Claims Closed 45 72 116 213 334 503 507 355 323 334 38
Slide 17: 2014 EAIG Financial and Strategic Plan
Page 17 Page 17 2014 EAIG Financial and Strategic Plan 1. 2014 financial plan • Direct written premium - $211.9 million • Alternative market direct written premium - $55.6 million • Combined ratio – 90.5% • Net income (excludes investment income) - $12.2 million 2. Increase core workers’ compensatio
Slide 18: Eastern Alliance Insurance Group
eastern Eastern Alliance Insurance Group fresh outlooks. better outcomes.”