Proassurance Corporation · NYSE:PRA
Proassurance — Investor Presentation (May 2024)
30 slides from Proassurance's investor presentation, May 28, 2024
Slide 1: Investor Update First Quarter 2024
Investor Update First quarter 2024 Accurate as of May 28, 2024
Slide 2: Overview
ProAssurance Overview
Slide 3: Mission, Vision, & Values
ProAssurance Investor Briefing | May 2024 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 ou
Slide 4: At a Glance
ProAssurance Investor Briefing | May 2024 4 At a Glance All employee and financial data as of 03/31/24 Business Unit Principal Offices Employees Lines of Business Medical Professional Liability 9 704 Healthcare professional liability Medmarc 1 34 Medical technology liability Eastern 7 254 Workers’ C
Slide 5: ProAssurance Executive Leadership
ProAssurance Investor Briefing | May 2024 5 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 6: ProAssurance Board of Directors
ProAssurance Investor Briefing | May 2024 6 ProAssurance Board of Directors Committee assignments effective June 1, 2024 Director bios available on our website at Investor.ProAssurance.com/OD Maye Head Frei C Edward L. Rand, Jr E Katisha T. Vance, MD N/C A - Audit Committee C - Compensation Committe
Slide 7: ProAssurance Brand Profile
ProAssurance Investor Briefing | May 2024 7 ProAssurance Brand Profile Specialty P&C Medical Professional Liability Workers’ Comp Alternative Risk Transfer Medical Technology & Life Sciences Products Liability Legal Professional Liability
Slide 8: Significant Positives in First Quarter 2024 Results
ProAssurance Investor Briefing | May 2024 8 Significant Positives in First Quarter 2024 Results Operating earnings in the first quarter of $0.08 per share, benefiting from a six-point improvement in the calendar year loss ratio and a 12% increase in investment income We remain focused on driving und
Slide 9: ProAssurance business segments
ProAssurance Investor Briefing | May 2024 9 ProAssurance Specialty Property & Casualty • Medical Professional Liability (MPL) insures healthcare providers and facilities, including E&S coverages • The Small Business Unit insures podiatrists, chiropractors, dentists, and lawyers • Medmarc insures med
Slide 10: Specialty Property & Casualty Premiums
ProAssurance Investor Briefing | May 2024 10 ProAssurance Specialty Property & Casualty Premiums Specialty Healthcare Life Sciences Podiatry, Chiropractic, Dental Standard Physicians Medical Professional Liability Insurance $45M$91M$415M $221M Gross Premiums Written for the 12 months ended 03/31/24
Slide 11: Workers' Compensation Insurance
ProAssurance Investor Briefing | May 2024 11 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 hazard) Claims
Slide 12: Segregated Portfolio Cell Reinsurance
ProAssurance Investor Briefing | May 2024 12 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 pro
Slide 13: Debt and Leverage Update
ProAssurance Investor Briefing | May 2024 13 $430M total debt principal at 3/31/2024 $180M of Contribution Certificates from NORCAL acquisition $125M Revolving Credit Agreement $125M Term Loan On November 15, 2023, ProAssurance refinanced its $250M Senior Notes with a $125M draw on its revolver and
Slide 14: Financial Ratings & Balance Sheet Highlights
ProAssurance Investor Briefing | May 2024 14 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 Rating
Slide 15: Operational Discipline Designed for Ultimate Success in Competitive Markets
Operational Discipline Designed for Ultimate Success in Competitive Markets
Slide 16: A Foundation in Excellence
ProAssurance Investor Briefing | May 2024 16 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 Specializa
Slide 17: Current Strategic Initiatives: SP&C
ProAssurance Investor Briefing | May 2024 17 C u rr en t St ra te gi c In it ia ti ve s SP&C Innovation and Operational Excellence Launch a state-of-the-art workflow solution across the segment Develop and launch a next generation online portal for customers and agents to provide superior service fo
Slide 18: Current Strategic Initiatives: Workers' Comp and Corporate
ProAssurance Investor Briefing | May 2024 18 C u rr en t St ra te gi c In it ia ti ve s Workers’ Compensation Insurance Strategic Focus Implementing new integrated policy, claims, risk management, and billing system. Capitalize on InsurTech investments, including underwriting and claims data analyti
Slide 19: Returning to Sustained Profitability is Our Highest Priority
ProAssurance Investor Briefing | May 2024 19 Returning to Sustained Profitability is Our Highest Priority Operationally Reflecting challenging market realities in our drive for rate and through our rigorous underwriting New and renewal business is being written at rates we believe will ultimately pe
Slide 20: Appendix
Appendix
Slide 21: Income Statement Highlights
ProAssurance Investor Briefing | May 2024 21 Income Statement Highlights (3/31/24) In millions, except per share data | Subject to rounding Three Months Ended March 31 2024 2023 Gross Premiums Written $ 311.3 $ 315.8 Net Premiums Earned $ 244.2 $ 239.8 Net Investment Result $ 36.9 $ 29.2 Net Investm
Slide 22: Specialty P&C Financial Highlights
ProAssurance Investor Briefing | May 2024 22 Specialty P&C Financial Highlights (3/31/24) In millions, except ratios | Subject to rounding Three Months Ended March 31 2024 2023 Gross Premiums Written $ 238.7 $ 242.4 Net Premiums Earned $ 188.9 $ 183.7 Total Revenues $ 190.2 $ 184.7 Net Losses & Loss
Slide 23: Workers' Compensation Insurance Financial Highlights
ProAssurance Investor Briefing | May 2024 23 Workers’ Compensation Insurance Financial Highlights (3/31/24) In millions, except ratios | Subject to rounding Three Months Ended March 31 2024 2023 Gross Premiums Written $ 72.6 $ 73.4 Net Premiums Earned $ 41.1 $ 40.8 Total Revenues $ 41.6 $ 41.4 Net L
Slide 24: Segregated Portfolio Cell Reinsurance Financial Highlights
ProAssurance Investor Briefing | May 2024 24 Segregated Portfolio Cell Reinsurance Financial Highlights (3/31/24) In thousands, except ratios | Subject to rounding Three Months Ended March 31 2024 2023 Gross Premiums Written $ 15,934 $ 22,881 Net Premiums Earned $ 14,168 $ 15,300 Net Investment Inco
Slide 25: Corporate Financial Highlights
ProAssurance Investor Briefing | May 2024 25 Corporate Financial Highlights (3/31/24) In millions | Subject to rounding Three Months Ended March 31 2024 2023 Net investment income $ 33.2 $ 29.9 Equity in earnings (loss) of unconsolidated subsidiaries $ 3.0 $ (1.1) Net investment gains (losses) $ (1.
Slide 26: YTD 2024 Net Investment Result and Equity Rollforward
ProAssurance Investor Briefing | May 2024 26 YTD 2024 Net Investment Result and Equity Rollforward Data shown in thousands 2024 Beginning Equity $1,111,980 Employee Stock Transactions (1,069) Earnings 4,626 OCI (2,472) Total Equity $1,113,065 ($ in millions) 3/31/2024 3/31/2023 Change Net Investment
Slide 27: Investment Philosophy & Portfolio
ProAssurance Investor Briefing | May 2024 27 Investment Philosophy & Portfolio (3/31/24) Total Investments $4.33 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-sup
Slide 28: Combined Tax Credits Portfolio Detail & Projections
ProAssurance Investor Briefing | May 2024 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 part
Slide 29: Forward Looking Statements Non-GAAP Measures
ProAssurance Investor Briefing | May 2024 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 actu
Slide 30: Contact
© ProAssurance Corporation. All rights reserved. MAILING ADDRESS: ProAssurance Corporation 100 Brookwood Place Birmingham, AL 35209 CONTACT: Heather J. Wietzel SVP, Investor Relations 205.776.3028 InvestorRelations@ProAssurance.com