Proassurance Corporation · NYSE:PRA
Proassurance — Annual Institutional Investors Conference (March 2015)
18 slides from Proassurance's conference presentation, Mar 2, 2015
Slide 1: Investor Presentation
March 2, 2015 Investor Presentation W. Stancil Starnes Chairman Chief Executive Officer Annual Institutional Investors Conference
Slide 2: Forward Looking Statements; Non-GAAP Measures
F ORWARD L OOKING S TATEMENTS 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 materially from those projected in this p
Slide 3: ProAssurance Corporate Profile
ProAssurance Corporate Profile 3 Healthcare - centric specialty liability insurance writer Healthcare Professional Liability (HCPL) Only public company writing predominately HCPL Workers' Compensation Life sciences and medical devices Attorney’s professional liability Market Cap: ~$2.9 billion Share
Slide 4: Key Strategies
Key Strategies We provide insight into our strategies to succeed
Slide 5: We Are Responding to
We Are Responding to: 5 The evolution of healthcare How does consolidation into larger entities affect our ability to compete? Will the Affordable Care Act change the medical professional liability landscape? Our acquisition of Eastern Insurance Alliance Why workers’ compensation and why this worker
Slide 6: The Evolution of Healthcare
The Evolution of Healthcare American healthcare is wrestling with the question of cost vs. care W e can deliver more care than we can afford Changes were certain even without the Affordable Care Act (ACA) Restructuring is producing profound changes in healthcare Larger entities are forming to harves
Slide 7: The ProAssurance Response
The ProAssurance Response 7 Our long - term focus on financial strength is central to our overall strategy and success ProAssurance has thrived across all insurance cycles We are building the platform that will allow us to serve the broad spectrum of healthcare Prudently leveraging our success and e
Slide 8: The ProAssurance Response: Alternative risk and self-insurance
The ProAssurance Response 8 Alternative risk and self - insurance opportunities Captive insurance programs allow large, sophisticated healthcare customers to control their own insurance programs for both professional liability and workers’ compensation Eastern Re brings proven experience and experti
Slide 9: The ProAssurance Response: New Products and Services
The ProAssurance Response 9 New Products and Services ProAssurance Risk Solutions sm Newly formed unit brings proven expertise to address complex risk financing challenges in both healthcare liability and workers’ compensation ProAssurance Complex Medicine ( ProCxM ) Targets larger entities with sel
Slide 10: The Workers Compensation Question
The Workers Compensation Question The Eastern acquisition cements our commitment to medical professional liability We now can provide a single source for the two most difficult coverages bought by healthcare institutions This transaction is part of our push to become a larger force with the broker c
Slide 11: Consistent Profitability in Workers' Comp
Consistent Profitability in Workers' Comp 11 Historical Combined Ratio (1) excluding fair value adjustment and intangible asset amortization, transaction - related and other one - time charges (1) 79.1% 65.6% 80.2% 87.7% 96.0% 89.7% 91.8% 93.0% 96.0% 91.8% 2006 2007 2008 2009 2010 2011 2012 2013 201
Slide 12: Eastern Differentiates in Workers' Compensation
Eastern Differentiates in Workers’ Compensation 12 Disciplined individual account underwriting with focus on rate adequacy in rural territories Dedicated to effective claims management and returning injured workers to wellness Understands market dynamics and regulatory concerns Use of local knowledg
Slide 13: Eastern Differentiates in Workers' Compensation
Eastern Differentiates in Workers’ Compensation Extensive medical cost containment strategies Average five - year medical cost inflation of 0.6% Use of a proactive, unique claims approach that has always differentiated ProAssurance Proactive claims management Use of Compromise & Release where permit
Slide 14: The Capital Question
The Capital Question Capital is a precious resource for us and our investors Highest use is investing in the business through M&A or strategic initiatives We have demonstrated our commitment to effective capital management 14
Slide 15: Demonstrated Commitment to Capital Management
Demonstrated Commitment to Capital Management Capital return at historic levels – $443 million in 2014 Dividends:$220.5 mln declared in 2014 Quarterly dividend increased to $0.31/share on December 3, 2014 Yield: Approximately 2.6% Buyback: $222.4 mln in 2014 4.9 mln shares repurchased $149 mln remai
Slide 16: Capital Growth and Total Capital Return
Capital Growth and Total Capital Return 16 A superb track record under the current senior management team ( Q2 2007 to Q4 2014) Shareholders Equity grown from $1.15 billion to $ 2.16 billion (87%) Additionally, $1.1 billion returned to shareholders in the form of share repurchase and dividends Addit
Slide 17: Key Points
Key Points 17 ProAssurance has always evolved ahead of the curve in our industry — we continue that trend We have proven our ability to thrive across insurance cycles and produce significant returns for long - term shareholders Our long - term focus on financial strength and sustained value creation
Slide 18: Investor Presentation
March 2, 2015 Investor Presentation W. Stancil Starnes Chairman Chief Executive Officer Annual Institutional Investors Conference
ProAssurance — Annual Institutional Investors Conference (March 2015) on 6ix