Slide 1: Second Quarter 2024 Investor Update
©2024 ProAssurance • All rights reserved. 1 Investor Update Accurate as of August 8, 2024 Second Quarter 2024 Investor Update Learn more: • News release issued August 8 • 10-Q filed August 8 • Quarterly investor call August 9
Slide 2: Our Shared Vision
©2024 ProAssurance • All rights reserved. 2 Our Shared Vision We will be the best in the world at understanding and providing solutions for the risks our customers encounter as healers, innovators, employers, and professionals. Through an integrated family of specialty companies, products, and servi
Slide 3: Specialty Property & Casualty Segment
©2024 ProAssurance • All rights reserved. 3 ProAssurance Corporation (SNL P&C Group) 2023 Reported: MPL Direct Premiums Written > $45 million $25-45 million $15-25 million $5-$15 million < $5 million Fourth largest Medical Professional Liability (MPL) carrier in 2023 with $683 million of net earned
Slide 4: Remainder of ProAssurance Premiums from Workers' Compensation and Segregated Portfolio Cell Reinsurance
4 ©2024 ProAssurance • All rights reserved. Remainder of ProAssurance Premiums from Workers’ Compensation Insurance and Segregated Portfolio Cell Reinsurance Segments ProAssurance Corporate Segment • Reports investment results except those in Segregated Portfolio Cell Reinsurance segment, interest e
Slide 5: Operational Discipline Designed for Success in Competitive Markets
©2024 ProAssurance • All rights reserved. 5 Operational Discipline Designed for Success in Competitive Markets
Slide 6: Operations – Insurance underwriting results for the second quarter of 2024
©2024 ProAssurance • All rights reserved. 6 Operations – Insurance underwriting results for the second quarter of 2024, including 9% renewal pricing increases in medical professional liability business, illustrate management’s ongoing actions to achieve sustained profitability • Our expertise in med
Slide 7: Specialty Property & Casualty – Restore profitability and support appropriate growth
©2024 ProAssurance • All rights reserved. 7 Specialty Property & Casualty – Restore profitability and support appropriate growth • Obtain rate beyond loss cost trend • Distinguish ProAssurance as carrier of choice for medical professional liability coverages ▪ Use technology to support superior cust
Slide 8: Second quarter 2024 results highlights
©2024 ProAssurance • All rights reserved. 8 • Operating earnings benefited from 16% increase in net investment income as we take advantage of the higher interest rate environment as our portfolio matures ▪ Earnings also benefited from strong returns from our limited partnership and LLC investments (
Slide 9: ProAssurance Overview
©2024 ProAssurance • All rights reserved. 9 ProAssurance Overview
Slide 10: A Foundation in Excellence
©2024 ProAssurance • All rights reserved. 10 A Foundation in Excellence SUPERIOR BRAND IDENTITY AND REPUTATION IN THE MARKET SCOPE & SCALE Regional hubs combined with local knowledge of market dynamics and regulatory environments HISTORY OF SUCCESSFUL MERGERS & ACQUISITIONS Selective M&A with best-i
Slide 11: Specialty Property & Casualty Segment
©2024 ProAssurance • All rights reserved. 11 • Deep expertise and broad product spectrum in healthcare and related sciences • Consolidation in MPL → demand for comprehensive insurance solutions • Life Sciences → offer liability solutions to companies that develop, test, and deliver healthcare produc
Slide 12: Cumulative premium change since 2018
©2024 ProAssurance • All rights reserved. 12 Cumulative +65% premium change since 2018 2019 2020 2021 2022 2023 2024 • Medical professional liability market facing increasingly unfavorable legal environment • ProAssurance focus on underwriting discipline has constrained growth as market cycle has sh
Slide 13: Managing Risk While Enhancing Competitive Posture
©2024 ProAssurance • All rights reserved. 13 Managing Risk While Enhancing Competitive Posture • Limit growth except in appropriate markets and subsectors ▪ Consider specialty and venue severity when establishing underwriting appetite ▪ Continue strategic shift toward small to midsize accounts; hosp
Slide 14: Workers' Compensation Insurance Segment
©2024 ProAssurance • All rights reserved. 14 • Proactive claim-closing strategies key to being recognized as a short-tail writer of workers’ compensation ▪ Between 2013 and 2022, averaged approximately 40% faster claims closure rate than industry ▪ 36 claims open from 2016 and prior, net of reinsura
Slide 15: Workers' Compensation Segment Addressing Market Challenges With Innovation Initiatives
©2024 ProAssurance • All rights reserved. 15 Workers’ Compensation Insurance Segment Addressing Market Challenges With Innovation Initiatives • Implemented new integrated policy, claims, risk management and billing systems, paving the way for innovation initiatives • Expand use of data analytics to
Slide 16: Segregated Portfolio Cell Reinsurance Segment
©2024 ProAssurance • All rights reserved. 16 Agency group or association establishes a cell SERVICES INCLUDE • Underwriting • Claims Administration • Risk Management • Reinsurance • Audit • Asset Management Services + Cell Rental Fees + Participation in profits/losses of selected cells Fee Income to
Slide 17: Investment portfolio: 92% of fixed maturities investment grade
©2024 ProAssurance • All rights reserved. 17 AAA 14% AA+ 20% AA 6% AA- 5% A+ 8% A 12%A- 11% BBB+ 5% BBB 8% BBB- 4% Below IG or Not Rated, 7% Details of our investment portfolio are available on our website at https://investor.proassurance.com/financial-information/quarterly- investment-supplements/d
Slide 18: Contribution of Net Investment Result Rose 22% Year-To-Date
©2024 ProAssurance • All rights reserved. 18 Contribution of Net Investment Result Rose 22% Year-To-Date ($ in millions) 2024 Beginning Equity $1,112 Employee Stock Transactions 1,862 Earnings 20,134 OCI (1,548) Total Equity $1,132 Net Investment Income ($ in millions) 6/30/2024 6/30/2023 Change Fix
Slide 19: Financial and Operating Leverage Appropriate for Current Business Mix
©2024 ProAssurance • All rights reserved. 19 0.59 0.63 0.72 0.75 0.79 16% 24% 24% 25% 25% 2020 2021 2022 2023 At 6/30/24 Premiums to Equity (excluding AOCI) Debt to Capital • ProAssurance maintains a balance sheet that ensures stability and security for our customers ▪ Targeted Premiums to Equity ra
Slide 20: Appendix
©2024 ProAssurance • All rights reserved. 20 Appendix
Slide 21: ProAssurance Executive Leadership
21 ©2024 ProAssurance • All rights reserved. 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 22: ProAssurance Board of Directors
22 ©2024 ProAssurance • All rights reserved. ProAssurance Board of Directors Director bios available on our website at Investor.ProAssurance.com/OD Maye Head Frei Compensation Committee Chair Katisha T. Vance, MD Nominating/Corporate Governance Committee Chair Samuel A. Di Piazza, Jr Compensation Co
Slide 23: ProAssurance Group Brands
23 ©2024 ProAssurance • All rights reserved. ProAssurance Group Brands ALTERNATIVE RISK TRANSFER WORKERS’ COMPENSATIONSPECIALTY PROPERTY & CASUALTY MEDICAL PROFESSIONAL LIABILITY INSURANCE FOR ANESTHESIOLOGISTS MEDICAL PROFESSIONAL LIABILITY INSURANCE FOR ASCENSION PROGRAM PARTICIPANTS
Slide 24: Forward Looking Statements
©2024 ProAssurance • All rights reserved. 24 Forward Looking Statements 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 actual results to vary
Slide 25: Contact
©2024 ProAssurance • All rights reserved. 25 CONTACT: Heather J. Wietzel SVP, Investor Relations 205-776-3028 InvestorRelations@ProAssurance.com MAILING ADDRESS: ProAssurance Corporation 100 Brookwood Place Birmingham, AL 35209