Slide 1: Third Quarter 2023
Third Quarter 2023 November 2023
Slide 2: Overview
ProAssurance Overview
Slide 3: Mission, Vision, & Values
ProAssurance Investor Briefing | November 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 reali
Slide 4: At a Glance
ProAssurance Investor Briefing | November 2023 4 At a Glance All employee and financial data as of 09/30/23. Business Unit Principal Offices Employees Lines of Business HCPL 8 607 Healthcare professional liability Medmarc 1 34 Medical technology liability Small Business Unit 1 102 Podiatrists, chiro
Slide 5: ProAssurance Executive Leadership
ProAssurance Investor Briefing | November 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 j
Slide 6: ProAssurance Board of Directors
ProAssurance Investor Briefing | November 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 Committe
Slide 7: ProAssurance Brand Profile
ProAssurance Investor Briefing | November 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: Operating and Reportable Segments Update
ProAssurance Investor Briefing | November 2023 8 Operating and Reportable Segments Update Q3 2023 Event ProAssurance decided to discontinue participation in the results of Lloyd’s Syndicate 1729 effective December 31, 2023 Results from our participation in Syndicate 1729 from open underwriting years
Slide 9: Q3 2023 Discussion Points
ProAssurance Investor Briefing | November 2023 9 Q3 2023 Discussion Points Goodwill Impairment $44 Million impairment of goodwill from the Eastern Insurance acquisition in 2014 Q3 Evaluation triggered by current market conditions No effect on operating results Significant Positives Gross Written Pre
Slide 10: ProAssurance Specialty Property & Casualty
ProAssurance Investor Briefing | November 2023 10 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 i
Slide 11: Specialty Property & Casualty Premiums (Trailing Twelve Months)
ProAssurance Investor Briefing | November 2023 11 ProAssurance Specialty Property & Casualty Premiums (Trailing Twelve Months) Specialty Healthcare Life SciencesSmall Business Unit Standard Physicians Healthcare Professional Liability Insurance $43M$100M$422M $229M Gross Premiums Written Trailing Tw
Slide 12: Workers' Compensation Insurance
ProAssurance Investor Briefing | November 2023 12 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) C
Slide 13: Segregated Portfolio Cell Reinsurance
ProAssurance Investor Briefing | November 2023 13 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 i
Slide 14: ProAssurance Leverage Update
ProAssurance Investor Briefing | November 2023 14 $429M total debt principal at 09/30/2023 $179M of Contribution Certificates from NORCAL acquisition $250M 5.3% 10-year notes due 11/15/2023 On November 15, 2023, ProAssurance refinanced its $250M Senior Notes with a $125M draw on its revolver and a $
Slide 15: Financial Ratings & Balance Sheet Highlights
ProAssurance Investor Briefing | November 2023 15 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 R
Slide 16: Success in Competitive Markets
Success in Competitive Markets
Slide 17: A Foundation in Excellence
ProAssurance Investor Briefing | November 2023 17 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 Speci
Slide 18: Current Strategic Initiatives: Drive our Competitiveness
ProAssurance Investor Briefing | November 2023 18 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 servi
Slide 19: Current Strategic Initiatives: Drive our Competitiveness
ProAssurance Investor Briefing | November 2023 19 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 an
Slide 20: Appendix
Appendix
Slide 21: Income Statement Highlights (9/30/23)
ProAssurance Investor Briefing | November 2023 21 Income Statement Highlights (9/30/23) In millions, except per share data | Subject to rounding Three Months Ended Nine Months Ended September 30 2023 2022 2023 2022 Gross Premiums Written $ 319.8 $ 308.4 $ 873.5 $ 879.5 Net Premiums Earned $ 242.4 $
Slide 22: Specialty P&C Financial Highlights (9/30/23)
ProAssurance Investor Briefing | November 2023 22 Current Accident Year Net Loss Ratio 83.4 % 82.2 % 84.4 % 82.8 % Effect of Prior Accident Year Reserve Development (0.3%) (2.3%) 0.3% (3.7%) Net Loss Ratio 83.1 % 79.9 % 84.7 % 79.1 % Underwriting Expense Ratio 25.2 % 26.8 % 25.1 % 25.1 % Combined Ra
Slide 23: Workers' Compensation Insurance Financial Highlights (9/30/23)
ProAssurance Investor Briefing | November 2023 23 Workers’ Compensation Insurance Financial Highlights (9/30/23) Three Months Ended Nine Months Ended September 30 2023 2022 2023 2022 Gross Premiums Written $ 63.6 $ 63.5 $ 199.8 $ 199.3 Net Premiums Earned $ 39.9 $ 42.1 $ 121.7 $ 124.5 Total Revenues
Slide 24: Segregated Portfolio Cell Reinsurance Financial Highlights (9/30/23)
ProAssurance Investor Briefing | November 2023 24 Segregated Portfolio Cell Reinsurance Financial Highlights (9/30/23) Three Months Ended Nine Months Ended September 30 2023 2022 2023 2022 Gross Premiums Written $ 7,930 $ 17,879 $ 55,924 $ 62,882 Net Premiums Earned $ 6,763 $ 17,811 $ 46,156 $ 53,34
Slide 25: Corporate Financial Highlights (9/30/23)
ProAssurance Investor Briefing | November 2023 25 Corporate Financial Highlights (9/30/23) Three Months Ended Nine Months Ended September 30 2023 2022 2023 2022 Net investment income $ 32.2 $ 24.5 $ 93.1 $ 66.5 Equity in earnings (loss) of unconsolidated subsidiaries $ (0.1) $ (6.9) $ 5.5 $ 5.9 Net
Slide 26: YTD 2023 Net Investment Result and Equity Rollforward
ProAssurance Investor Briefing | November 2023 26 YTD 2023 Net Investment Result and Equity Rollforward Data shown in thousands 2023 Beginning Equity $1,104,018 Common Shares Required (50,488) Employee Stock Transactions 4,227 Earnings (44,981) Dividends (2,701) OCI 1,768 Total Equity $1,011,843 ($
Slide 27: Investment Philosophy & Portfolio
ProAssurance Investor Briefing | November 2023 27 Investment Philosophy & Portfolio Total Investments $4.23 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-suppleme
Slide 28: Combined Tax Credits Portfolio Detail & Projections
ProAssurance Investor Briefing | November 2023 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
Slide 29: Forward Looking Statements; Non-GAAP Measures
ProAssurance Investor Briefing | November 2023 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
Slide 30: © ProAssurance Corporation. All rights reserved. MAILING ADDRESS: ProAssurance Corporation 100 Brookwood Place Birmin…
© ProAssurance Corporation. All rights reserved. MAILING ADDRESS: ProAssurance Corporation 100 Brookwood Place Birmingham, AL 35209 CONTACT: Dana Hendricks EVP, Chief Financial Officer 205.877.4462 DanaHendricks@ProAssurance.com