Slide 1: ProAssurance Investor Update March 2023
PROASSURANCE. Treated Fairly Investor Update March 2023
Slide 2: Overview
ProAssurance Overview
Slide 3: Mission, Vision, & Values
ProAssurance Investor Briefing | March 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
Slide 4: At a Glance
ProAssurance Investor Briefing | March 2023 4 At a Glance All employee and financial data as of 12/31/22. Business Unit Principal Offices Employees Lines of Business HCPL 8 605 Healthcare professional liability Medmarc 1 34 Medical technology liability Small Business Unit 1 98 Podiatrists, chiroprac
Slide 5: ProAssurance Executive Leadership
ProAssurance Investor Briefing | March 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 join
Slide 6: ProAssurance Board of Directors
ProAssurance Investor Briefing | March 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 | March 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 Segments
ProAssurance Investor Briefing | March 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 insur
Slide 9: Specialty Property & Casualty
ProAssurance Investor Briefing | March 2023 9 ProAssurance Specialty Property & Casualty Specialty Healthcare Life Sciences Innovative Specialty Team Standard Physicians Healthcare Professional Liability Insurance $205M $240M $41M$103M$156M $43M Each block represents $5 million of premium, rounded u
Slide 10: Workers' Compensation Insurance
ProAssurance Investor Briefing | March 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
Slide 11: Segregated Portfolio Cell Reinsurance
ProAssurance Investor Briefing | March 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 p
Slide 12: Financial Ratings & Balance Sheet Highlights
ProAssurance Investor Briefing | March 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 Financia
Slide 13: ProAssurance Leverage Update
ProAssurance Investor Briefing | March 2023 13 • $428M total debt principal ($427M less issuance costs) at 12/31/2022 o $178M of Contribution Certificates from NORCAL acquisition o $250M 5.3% 10-year notes due 11/15/2023 • $250M revolving credit facility, $50 million "accordion" option, no outstandi
Slide 14: Success in Competitive Markets
Success in Competitive Markets
Slide 15: A Foundation in Excellence
ProAssurance Investor Briefing | March 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 Speciali
Slide 16: Executing our Strategy: 2022 Accomplishments
ProAssurance Investor Briefing | March 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 increas
Slide 17: Appendix
Appendix
Slide 18: Income Statement Highlights (12/31/22)
ProAssurance Investor Briefing | March 2023 18 Income Statement Highlights (12/31/22) Three Months Ended Year Ended December 31 2022 2021 2022 2021 Gross Premiums Written $ 224.5 $ 218.1 $ 1,104.0 $ 960.0 Net Premiums Earned $ 258.2 $ 273.1 $ 1,029.6 $ 971.7 Net Investment Result $ 27.8 $ 33.8 $ 100
Slide 19: Specialty P&C Financial Highlights
ProAssurance Investor Briefing | March 2023 19 Current Accident Year Net Loss Ratio 79.6 % 82.2 % 83.1 % 87.5 % Effect of Prior Accident Year Reserve Development (1.5%) (6.2%) (3.9%) (4.7%) Net Loss Ratio 78.1 % 76.0 % 79.2 % 82.8 % Underwriting Expense Ratio 25.6 % 17.6 % 25.0 % 18.4 % Combined Rat
Slide 20: Workers' Compensation Insurance Financial Highlights
ProAssurance Investor Briefing | March 2023 20 Workers’ Compensation Insurance Financial Highlights (12/31/22) Three Months Ended Year Ended December 31 2022 2021 2022 2021 Gross Premiums Written $ 47.8 $ 45.8 $ 247.1 $ 240.5 Net Premiums Earned $ 41.9 $ 41.7 $ 166.4 $ 164.6 Total Revenues $ 42.4 $
Slide 21: Segregated Portfolio Cell Reinsurance Financial Highlights
ProAssurance Investor Briefing | March 2023 21 Segregated Portfolio Cell Reinsurance Financial Highlights (12/31/22) Three Months Ended Year Ended December 31 2022 2021 2022 2021 Gross Premiums Written $ 16,055 $ 15,395 $ 78,937 $ 71,850 Net Premiums Earned $ 16,463 $ 16,188 $ 69,810 $ 63,688 Net In
Slide 22: Lloyd's Segment Financial Highlights
ProAssurance Investor Briefing | March 2023 22 Lloyd’s Segment Financial Highlights (12/31/22) Three Months Ended Year Ended December 31 2022 2021 2022 2021 Gross Premiums Written $ 3.5 $ 6.3 $ 20.2 $ 38.0 Net Premiums Earned $ 4.4 $ 8.1 $ 23.6 $ 48.4 Total Revenues $ 4.2 $ 8.7 $ 23.3 $ 51.5 Net Los
Slide 23: Corporate Segment Financial Highlights
ProAssurance Investor Briefing | March 2023 23 Corporate Segment Financial Highlights (12/31/22) Three Months Ended Year Ended December 31 2022 2021 2022 2021 Net investment income $ 28.3 $ 18.3 $ 94.4 $ 67.7 Equity in earnings (loss) of unconsolidated subsidiaries $ (1.1) $ 15.0 $ 4.9 $ 49.0 Net in
Slide 24: YTD 2022 Net Investment Result and Equity Rollforward
ProAssurance Investor Briefing | March 2023 24 YTD 2022 Net Investment Result and Equity Rollforward Data shown in thousands ($ in millions) 12/31/2022 12/31/2021 Change Net Investment Income Fixed maturities $ 93,736 $ 74,437 $ 19,299 Equities 3,706 2,539 1,167 Short-term investments including Othe
Slide 25: Lloyd's of London Syndicates
ProAssurance Investor Briefing | March 2023 25 Lloyd’s of London Syndicates ProAssurance Funds at Lloyd’s (FAL) $24.8 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 26: Investment Philosophy & Portfolio
ProAssurance Investor Briefing | March 2023 26 Investment Philosophy & Portfolio Total Investments $4.39 Billion 12/31/2022 Subject to rounding Details of our investment portfolio are available on our website at https://investor.proassurance.com/financial-information/quarterly-investment-supplements
Slide 27: Combined Tax Credits Portfolio Detail & Projections
ProAssurance Investor Briefing | March 2023 27 Combined Tax Credits Portfolio Detail & Projections This 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 partnerships ma
Slide 28: Forward Looking Statements; Non-GAAP Measures
ProAssurance Investor Briefing | March 2023 28 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 ac
Slide 29: 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