Proassurance Corporation · NYSE:PRA
Proassurance — Investor Presentation (September 2022)
29 slides from Proassurance's investor presentation, Sep 9, 2022
Slide 1: Second Quarter 2022 September
Second Quarter 2022 September
Slide 2: ProAssurance Overview
ProAssurance Overview
Slide 3: Mission, Vision, & Values
ProAssurance Investor Briefing | September 2022 3 Mission, Vision, & Values The ProAssurance Mission We exist to 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
Slide 4: At a Glance
ProAssurance Investor Briefing | September 2022 4 At a Glance All employee and financial data as of 6/30/22. Office locations and employee counts include NORCAL. Business Unit Principal Offices Employees Lines of Business HCPL 8 530 Healthcare professional liability Medmarc 1 31 Medical technology l
Slide 5: ProAssurance Executive Leadership
ProAssurance Investor Briefing | September 2022 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
Slide 6: ProAssurance Board of Directors
ProAssurance Investor Briefing | September 2022 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 Committ
Slide 7: ProAssurance Brand Profile
ProAssurance Investor Briefing | September 2022 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 Specialty Property & Casualty
ProAssurance Investor Briefing | September 2022 8 ProAssurance Specialty Property & Casualty • Healthcare Professional Liability (HCPL) insures healthcare providers and facilities, including E&S coverages • Innovative Specialty Team (IST) insures podiatrists, chiropractors, dentists, and lawyers • M
Slide 9: Specialty Property & Casualty
ProAssurance Investor Briefing | September 2022 9 ProAssurance Specialty Property & Casualty Specialty Healthcare Life Sciences Innovative Specialty Team Standard Physicians Healthcare Professional Liability Insurance $204M $241M $41M$103M$140M $47M Each block represents $5 million of premium, round
Slide 10: Workers' Compensation Insurance
ProAssurance Investor Briefing | September 2022 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 (h
Slide 11: Segregated Portfolio Cell Reinsurance
ProAssurance Investor Briefing | September 2022 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
Slide 12: Lloyd's of London Syndicates
ProAssurance Investor Briefing | September 2022 12 Lloyd’s of London Syndicates ProAssurance Funds at Lloyd’s (FAL) $30.3 Million 1 Property Insurance (All Other - Mainly US) 29% Casualty (Mainly US) 25% Catastrophe Reinsurance (Excess of Loss) 13% Specialty 13% Facility (US) 7% General Liability (U
Slide 13: Financial Ratings & Balance Sheet Highlights
ProAssurance Investor Briefing | September 2022 13 • 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 Fina
Slide 14: ProAssurance Leverage Update
ProAssurance Investor Briefing | September 2022 14 • $426M debt at 6/30/2022 o $177M 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 outstanding borrowing ProAssurance Leverage Update
Slide 15: Success in Competitive Markets
Success in Competitive Markets
Slide 16: A Foundation in Excellence
ProAssurance Investor Briefing | September 2022 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 Spec
Slide 17: Executing our Strategy
ProAssurance Investor Briefing | September 2022 17 Ex ec u ti n g o u r St ra te gy *NAIC Data †NAIC before purchase accounting All data as of 12/31/2021 Specialty Property & Casualty ➢ Closed our acquisition of the NORCAL Group ▪ Added ~$300 million* of business to our Standard Physicians line ▪ Ad
Slide 18: Appendix
Appendix
Slide 19: Income Statement Highlights (6/30/22)
ProAssurance Investor Briefing | September 2022 19 Income Statement Highlights (6/30/22) Three Months Ended Six Months Ended June 30 2022 2021 2022 2021 Gross Premiums Written $ 235.5 $ 208.5 $ 571.1 $ 433.2 Net Premiums Earned $ 247.3 $ 239.0 $ 513.0 $ 426.4 Net Investment Result $ 27.1 $ 29.3 $ 55
Slide 20: Specialty P&C Financial Highlights (6/30/22)
ProAssurance Investor Briefing | September 2022 20 Current Accident Year Net Loss Ratio 84.1 % 89.4 % 85.0 % 89.6 % Effect of Prior Accident Year Reserve Development (9.5%) (6.3%) (5.6%) (4.7%) Net Loss Ratio 74.6 % 83.1 % 79.4 % 84.9 % Underwriting Expense Ratio 26.2 % 17.1 % 23.8 % 19.4 % Combined
Slide 21: Workers' Compensation Insurance Financial Highlights (6/30/22)
ProAssurance Investor Briefing | September 2022 21 Workers’ Compensation Insurance Financial Highlights (6/30/22) Three Months Ended Six Months Ended June 30 2022 2021 2022 2021 Gross Premiums Written $ 63.6 $ 57.8 $ 135.8 $ 130.2 Net Premiums Earned $ 41.7 $ 40.6 $ 82.4 $ 80.6 Total Revenues $ 42.2
Slide 22: Segregated Portfolio Cell Reinsurance Financial Highlights (6/30/22)
ProAssurance Investor Briefing | September 2022 22 Segregated Portfolio Cell Reinsurance Financial Highlights (6/30/22) Three Months Ended Six Months Ended June 30 2022 2021 2022 2021 Gross Premiums Written $ 16,634 $ 16,060 $ 45,003 $ 41,211 Net Premiums Earned $ 16,222 $ 16,272 $ 35,536 $ 32,156 N
Slide 23: Lloyd's Segment Financial Highlights (6/30/22)
ProAssurance Investor Briefing | September 2022 23 Lloyd’s Segment Financial Highlights (6/30/22) Three Months Ended Six Months Ended June 30 2022 2021 2022 2021 Gross Premiums Written $ 4.1 $ 8.6 $ 9.9 $ 22.7 Net Premiums Earned $ 5.8 $ 13.5 $ 13.5 $ 29.3 Total Revenues $ 5.6 $ 14.4 $ 13.3 $ 31.1 N
Slide 24: Corporate Segment Financial Highlights (6/30/22)
ProAssurance Investor Briefing | September 2022 24 Corporate Segment Financial Highlights (6/30/22) Three Months Ended Six Months Ended June 30 2022 2021 2022 2021 Net investment income $ 21.6 $ 16.7 $ 41.7 $ 30.8 Equity in earnings (loss) of unconsolidated subsidiaries $ 5.2 $ 11.9 $ 12.8 $ 18.7 Ne
Slide 25: Net Investment Income and Result
ProAssurance Investor Briefing | September 2022 25 ($ in millions) 6/30/2022 6/30/2021 Change Net Investment Income Fixed maturities $ 43,550 $ 33,848 $ 9,702 Equities 1,668 1,142 526 Short-term investments including Other 1,153 952 201 BOLI 214 1,130 (916) Investment fees and expenses (4,198) (4,63
Slide 26: Investment Philosophy & Portfolio
ProAssurance Investor Briefing | September 2022 26 Investment Philosophy & Portfolio Total Investments $4.55 Billion 6/30/2022 Subject to rounding Details of our investment portfolio are available on our website at https://investor.proassurance.com/financial-information/quarterly-investment-suppleme
Slide 27: Combined Tax Credits Portfolio Detail & Projections
ProAssurance Investor Briefing | September 2022 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 partnership
Slide 28: Forward Looking Statements Non-GAAP Measures
ProAssurance Investor Briefing | September 2022 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 ou
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
ProAssurance — Investor Presentation (September 2022) on 6ix