Proassurance Corporation · NYSE:PRA
Proassurance — Sandler O'Neill Financial Services Conference 2006
11 slides from Proassurance's conference presentation, Jun 8, 2006
Slide 1: Sandler O'Neill Financial Services Conference
June 8, 2006June 8, 2006June 8, 2006Mr. Victor T. AdamoMr. Victor T. AdamoPresident & COOPresident & COOSandler O'Neill Financial Services Conference Sandler O'NeillFinancial Services Conference
Slide 2: Caution Regarding Forward Looking Statements
Caution Regarding Forward Looking Statements This presentation contains historical information as well as forward-looking statements that are based upon our estimates and anticipation of future events that are subject to certain risks and uncertainties that could cause actual results to vary materia
Slide 3: Focused on Professional Liability
Focused on Professional liability Over 30,000 policyholders in 22 states and DC Majority are solo practitioners or in smaller groups Focus on the bottom line and shareholder value Superior results through careful underwriting, properpricing and effective claims handling Growing through M & A and car
Slide 4: Income Statement Highlights for Q1, 2006
Income Statement Highlights for Q1, 2006 Premium Growth of 11.5% Primarily due to NCRIC acquisition Validates our strategy of growth by M&A Book Value Up $4.01 to $28.60, primarily due to MEEMIC sale Cash flow from Continuing Operations: $115.8 million Rising Investment Income in millions Financial
Slide 5: ProAssurance Growth Strategy
5 ProAssurance Growth StrategyProAssurance Growth StrategyWe grow when opportunities arise for profitable growth Hard Market Soft MarketM & A de novo Expansion Internal Growth M & A is preferable because of pricing pressure All avenues open because of pricing power
Slide 6: ProAssurance Growth Strategy: Companies Are Available for Many Reasons
ProAssurance Growth Strategy Companies are available for many reasons Commitment to a shared vision of the future Medical Assurance & Professionals Group Financial challenges Example: NCRIC Shareholder value Example: PIC Wisconsin / liquidity Competitive pressures Capacity constraints
Slide 7: ProAssurance Growth Strategy: Preference to Grow in Our Footprint
ProAssurance Growth Strategy Our preference is to grow in our footprint NCRIC and PIC Wisconsin We are focused on medical liability Doctor-founded companies with similar culture We can acquire without "breaking the bank" Stock trading at ~2x book value Cash flows at historically high levels We don't
Slide 8: PIC Wisconsin Transaction
PIC Wisconsin Transaction National Scale - Local Orientation States of Origin or AcquisitionStates of Origin or Acquisition++ oooo ++ oo oo ++oo oooo ++ + oo+ ++ Expansion States PIC Wis States oClaims Offices + Claims / Underwriting Offices Corporate Headquarters Local knowledge is crucial for our
Slide 9: Market Opportunities
Market Opportunities We are the foremost writer in our states of operation We are market leaders in AL, DE, DC, OH and VA Strong Position in other states We continue to grow within our market footprint but will not "force" top line Leading Market Share Top 5 Market Share growth Top 10 Market Share G
Slide 10: Consistent Growth in Book Value per Share
10 Consistent Growth in Book Value per Share Consistent Growth in Book Value per Share$3.67 $6.27 $8.56 $11.57 $13.92 $16.02 $17.49 $18.77 $24.59 $28.60 $20.92 1991 1993 1995 1997 1999 2001 2002 2003 2004 2005 Q1 2006 $3.67$6.27$8.56$11.57$13.92$16.02$17.49$18.77$24.59$28.60$ 20.92199119931995199719
Slide 11: Long-Term Return to Shareholders
Long-Term Return to Shareholders $52.00 11 $52. $21.19 $16.69 $4.12 $7.43 $13.22 $23.20 $28.69 $21.00 $32.15 $39. $48.64 00$21.19$16.69$4.12$7.43$13.22$23.20$28.69$21.00$32.15$39.11$48.64 Compound Annual Growth Rate: 19.3% Inception (9/11/91) - 12/31/05 Compound Annual Growth Rate: 19.3% Inception (
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