Proassurance Corporation · NYSE:PRA
Proassurance — Q4 2023 Earnings Presentation
31 slides from Proassurance's earnings presentation, Mar 11, 2024
Slide 1: Investor Update Fourth Quarter 2023
Investor Update Fourth Quarter 2023 Accurate as of March 2024
Slide 2: Overview
ProAssurance Overview
Slide 3: Mission, Vision, & Values
ProAssurance Investor Briefing | March 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
Slide 4: At a Glance
ProAssurance Investor Briefing | March 2024 4 At a Glance All employee and financial data as of 12/31/23. Business Unit Principal Offices Employees Lines of Business HCPL 8 600 Healthcare professional liability Medmarc 1 34 Medical technology liability Small Business Unit 1 104 Podiatrists, chiropra
Slide 5: ProAssurance Executive Leadership
ProAssurance Investor Briefing | March 2024 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 2024 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 2024 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 | March 2024 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 pr
Slide 9: Q4 2023 Discussion Points
ProAssurance Investor Briefing | March 2024 9 Q4 2023 Discussion Points Significant Positives Strong New Business Gains at rates that meet our pricing goals and underwriting criteria Strong Retention Earning New Business and Retaining Existing Insureds While Maintaining Pricing and Underwriting Disc
Slide 10: ProAssurance Segments Overview
ProAssurance Investor Briefing | March 2024 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 insu
Slide 11: Specialty Property & Casualty Premiums (Trailing Twelve Months)
ProAssurance Investor Briefing | March 2024 11 ProAssurance Specialty Property & Casualty Premiums (Trailing Twelve Months) Specialty Healthcare Life SciencesSmall Business Unit Standard Physicians Healthcare Professional Liability Insurance $45M$99M$420M $217M Gross Premiums Written Trailing Twelve
Slide 12: Workers' Compensation Insurance
ProAssurance Investor Briefing | March 2024 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) Clai
Slide 13: Segregated Portfolio Cell Reinsurance
ProAssurance Investor Briefing | March 2024 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 in p
Slide 14: ProAssurance Leverage Update
ProAssurance Investor Briefing | March 2024 14 $429M total debt principal at 12/31/2023 $179M 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 a
Slide 15: Financial Ratings & Balance Sheet Highlights
ProAssurance Investor Briefing | March 2024 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 Rati
Slide 16: Operational Discipline Designed for Ultimate Success in Competitive Markets
Operational Discipline Designed for Ultimate Success in Competitive Markets
Slide 17: A Foundation in Excellence
ProAssurance Investor Briefing | March 2024 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 Speciali
Slide 18: Current Strategic Initiatives: Drive our Competitiveness
ProAssurance Investor Briefing | March 2024 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 service
Slide 19: Current Strategic Initiatives: Drive our Competitiveness
ProAssurance Investor Briefing | March 2024 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 analy
Slide 20: Returning to Sustained Profitability is Our Highest Priority
ProAssurance Investor Briefing | March 2024 20 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
Slide 21: Appendix
Appendix
Slide 22: Income Statement Highlights (12/31/23)
ProAssurance Investor Briefing | March 2024 22 Income Statement Highlights (12/31/23) In millions, except per share data | Subject to rounding Three Months Ended Year Ended December 31 2023 2022 2023 2022 Gross Premiums Written $ 208.8 $ 224.5 $ 1,082.3 $ 1,104.0 Net Premiums Earned $ 247.3 $ 258.2
Slide 23: Specialty P&C Financial Highlights (12/31/23)
ProAssurance Investor Briefing | March 2024 23 Current Accident Year Net Loss Ratio 77.5 % 78.6 % 82.6 % 81.7 % Effect of Prior Accident Year Reserve Development (0.7%) (0.4%) 0.1% (2.8%) Net Loss Ratio 76.8 % 78.2 % 82.7 % 78.9 % Underwriting Expense Ratio 28.1 % 25.8 % 25.8 % 25.2 % Combined Ratio
Slide 24: Workers' Compensation Insurance Financial Highlights (12/31/23)
ProAssurance Investor Briefing | March 2024 24 Workers’ Compensation Insurance Financial Highlights (12/31/23) Three Months Ended Year Ended December 31 2023 2022 2023 2022 Gross Premiums Written $ 47.0 $ 47.8 $ 246.9 $ 247.1 Net Premiums Earned $ 38.3 $ 41.9 $ 160.0 $ 166.4 Total Revenues $ 38.6 $
Slide 25: Segregated Portfolio Cell Reinsurance Financial Highlights (12/31/23)
ProAssurance Investor Briefing | March 2024 25 Segregated Portfolio Cell Reinsurance Financial Highlights (12/31/23) Three Months Ended Year Ended December 31 c 2023 2022 2023 2022 Gross Premiums Written $ 14,335 $ 16,055 $ 70,259 $ 78,937 Net Premiums Earned $ 15,390 $ 16,463 $ 61,546 $ 69,810 Net
Slide 26: Corporate Financial Highlights (12/31/23)
ProAssurance Investor Briefing | March 2024 26 Corporate Financial Highlights (12/31/23) Three Months Ended Year Ended December 31 2023 2022 2023 2022 Net investment income $ 33.0 $ 28.4 $ 126.1 $ 94.9 Equity in earnings (loss) of unconsolidated subsidiaries $ 1.3 $ (1.1) $ 6.8 $ 4.9 Net investment
Slide 27: YTD 2023 Net Investment Result and Equity Rollforward
ProAssurance Investor Briefing | March 2024 27 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 5,637 Earnings (38,604) Dividends (2,701) OCI 94,118 Total Equity $1,111,980 ($ in
Slide 28: Investment Philosophy & Portfolio (12/31/23)
ProAssurance Investor Briefing | March 2024 28 Investment Philosophy & Portfolio (12/31/23) Total Investments $4.35 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-
Slide 29: Combined Tax Credits Portfolio Detail & Projections
ProAssurance Investor Briefing | March 2024 29 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 pa
Slide 30: Forward Looking Statements Non-GAAP Measures
ProAssurance Investor Briefing | March 2024 30 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 31: Contact
© 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