ProAssurance Corporation (NYSE: PRA) reports a net loss of $6.2
million, or $0.11 per diluted share, and an operating loss(1) of
$8.1 million, or $0.15 per diluted share, for the three months
ended March 31, 2023.
Highlights - First Quarter 2023(2)
- Gross premiums written of $316 million (-6%)
- Unfavorable prior accident year reserve development of $7
million
- Consolidated combined ratio of 113.9%
- Consolidated operating ratio of 101.3%
- Net investment income of $30 million (+48%)
- Net investment income increased by $10 million compared to
2022
- Adjusted book value per share(1) of $25.81 as of March 31,
2023. Adjusted book value per share was $25.99 as of December 31,
2022.
(1)
Represents a Non-GAAP financial measure.
See a reconciliation to its GAAP counterpart under the heading
“Non-GAAP Financial Measures” that follows.
(2)
Comparisons are to the first quarter of
2022.
Management Commentary & Results of Operations
Our first quarter results for 2023 highlight the challenging
market dynamics in our core operating segments. The medical
professional liability market faces cost pressures driven by social
inflation, reinsurance costs, and the weakening of tort reform.
These pressures led to a higher net loss ratio in our Specialty
P&C segment this quarter and resulted in unfavorable
development of prior accident years in the segment.
In the Workers’ Compensation Insurance and Segregated Portfolio
Cell Reinsurance segments, competition and lower expected claim
costs pressured workers’ compensation rates. Our retention in the
Workers’ Compensation Insurance segment declined, though higher new
business activity and an increase in audit premium led to higher
premium in the segment compared to last year. Unfavorable
development on an older claim led to a decline in results compared
to last year.
Ned Rand, President and Chief Executive Officer of ProAssurance,
commented on the environment: “In this time of uncertainty for
medical professionals, it is more important than ever that they
have a professional liability carrier who will stand behind them
and assist in finding solutions to the challenges they face. At
ProAssurance, we are working to develop those solutions and to play
a critical role in addressing the issues. Our data science and
predictive analytics strategy is one of the areas we will focus on
to uncover solutions.”
Rand continued: “The results for the quarter reflect our
continued caution in assessing reserves in prior years; in our loss
ratio selections for the current year; and in reserve increases on
a handful of claims, some of which resulted from excess verdicts
against our insureds in the quarter. MPL carriers and their
insureds are facing an environment in which in large verdicts are
too commonly rendered without regard to the facts of the case
regarding liability or a reasonable assessment of damages.”
Net investment income showed substantial growth this quarter,
increasing by 48% to $30 million. This continues a trend of higher
investment income as a result of higher interest rates. We expect
this trend to continue, as reinvestment rates are now considerably
higher than the average book yield of maturing investments. In
addition, bond prices strengthened over the quarter, leading to an
increase in book value.
Our book value per share at quarter end was $21.07, up 3% from
the December 31, 2022 book value of $20.46. Adjusted book value per
share, which excludes Accumulated Other Comprehensive Income
(AOCI), is $25.81 as of March 31, 2023, compared to $25.99 as of
December 31, 2022.
CONSOLIDATED INCOME STATEMENT
HIGHLIGHTS
Selected consolidated financial data for
each period is summarized in the table below.
Three Months Ended March
31
($ in thousands, except per share
data)
2023
2022
Change
Revenues
Gross premiums written(1)
$
315,794
$
335,607
(5.9
%)
Net premiums written
$
284,909
$
310,915
(8.4
%)
Net premiums earned
$
239,787
$
265,711
(9.8
%)
Net investment income
30,310
20,443
48.3
%
Equity in earnings (loss) of
unconsolidated subsidiaries
(1,121
)
7,620
(114.7
%)
Net investment gains (losses)(2)
2,912
(13,506
)
121.6
%
Other income (loss)(1)
787
2,804
(71.9
%)
Total revenues(1)
272,675
283,072
(3.7
%)
Expenses
Net losses and loss adjustment
expenses
205,296
209,423
(2.0
%)
Underwriting, policy acquisition and
operating expenses(1)
67,788
71,776
(5.6
%)
SPC U.S. federal income tax expense
532
642
(17.1
%)
SPC dividend expense (income)
1,942
2,367
(18.0
%)
Interest expense
5,463
4,441
23.0
%
Total expenses(1)
281,021
288,649
(2.6
%)
Income (loss) before income taxes
(8,346
)
(5,577
)
(49.7
%)
Income tax expense (benefit)
(2,172
)
(2,017
)
(7.7
%)
Net income (loss)
$
(6,174
)
$
(3,560
)
(73.4
%)
Non-GAAP operating income (loss)
$
(8,071
)
$
7,683
(205.1
%)
Weighted average number of common
shares outstanding
Basic
53,987
54,012
Diluted
54,117
54,143
Earnings (loss) per share
Net income (loss) per diluted share
$
(0.11
)
$
(0.07
)
$
(0.04
)
Non-GAAP operating income (loss) per
diluted share
$
(0.15
)
$
0.14
$
(0.29
)
(1)
Consolidated totals include
inter-segment eliminations. The eliminations affect individual line
items only and have no effect on net income (loss). See Note 11 of
the Notes to Condensed Consolidated Financial Statements in our
March 31, 2023 report on Form 10-Q for amounts by line item.
(2)
This line item typically includes
both realized and unrealized investment gains and losses,
investment impairments losses, and, for the current period, the
change in the fair value of the contingent consideration in
relation to the NORCAL acquisition. Detailed information regarding
the components of net investment gains (losses) are included in
Note 3 of the Notes to Condensed Consolidated Financial Statements
in our March 31, 2023 report on Form 10-Q.
The abbreviation “nm” indicates that the information or the
percentage change is not meaningful.
BALANCE SHEET HIGHLIGHTS
($ in thousands, except per share
data)
March
31, 2023
December
31, 2022
Total investments
$
4,381,648
$
4,387,683
Total assets
$
5,747,863
$
5,699,999
Total liabilities
$
4,609,573
$
4,595,981
Common shares (par value $0.01)
$
635
$
634
Retained earnings
$
1,414,411
$
1,423,286
Treasury shares
$
(419,214
)
$
(419,214
)
Shareholders’ equity
$
1,138,290
$
1,104,018
Book value per share
$
21.07
$
20.46
Non-GAAP adjusted book value per
share(1)
$
25.81
$
25.99
(1)
Adjusted book value per share is a
Non-GAAP financial measure. See a reconciliation of book value per
share to Non-GAAP adjusted book value per share under the heading
“Non-GAAP Financial Measures” that follows.
CONSOLIDATED KEY RATIOS
Three Months Ended March
31
2023
2022
Current accident year net loss ratio
82.7
%
80.8
%
Effect of prior accident years’ reserve
development
2.9
%
(2.0
%)
Net loss ratio
85.6
%
78.8
%
Underwriting expense ratio(2)
28.3
%
27.0
%
Combined ratio
113.9
%
105.8
%
Operating ratio
101.3
%
98.1
%
Return on equity(1)
(2.5
%)
(0.8
%)
Non-GAAP operating return on
equity(1)(2)
(2.9
%)
2.3
%
Combined ratio, excluding
transaction-related costs(3)
113.9
%
105.4
%
(1)
Quarterly amounts are annualized. Refer to
our March 31, 2023 report on Form 10-Q under the heading “Non-GAAP
Operating ROE” in the Executive Summary of Operations section for
details on our calculation.
(2)
See a reconciliation of ROE to Non-GAAP
operating ROE under the heading “Non-GAAP Financial Measures” that
follows.
(3)
Our consolidated underwriting expense
ratio for the quarter ended March 31, 2022 includes $1.2 million of
transaction-related costs included in consolidated operating
expenses associated with our acquisition of NORCAL. These costs do
not reflect normal operating results.
SPECIALTY P&C SEGMENT
RESULTS
Three Months Ended March
31
($ in thousands)
2023
2022
%
Change
Gross premiums written
$
238,874
$
257,672
(7.3
%)
Net premiums written
$
214,065
$
234,838
(8.8
%)
Net premiums earned
$
179,344
$
197,967
(9.4
%)
Other income
993
1,019
(2.6
%)
Total revenues
180,337
198,986
(9.4
%)
Net losses and loss adjustment
expenses
(164,051
)
(165,958
)
(1.1
%)
Underwriting, policy acquisition and
operating expenses
(40,961
)
(42,878
)
(4.5
%)
Total expenses
(205,012
)
(208,836
)
1.8
%
Segment results
$
(24,675
)
$
(9,850
)
(150.5
%)
SPECIALTY P&C SEGMENT KEY
RATIOS
Three Months Ended March
31
2023
2022
Current accident year net loss ratio
87.2
%
85.8
%
Effect of prior accident years’ reserve
development
4.3
%
(2.0
%)
Net loss ratio
91.5
%
83.8
%
Underwriting expense ratio
22.8
%
21.7
%
Combined ratio
114.3
%
105.5
%
The underwriting loss in the quarter reflects claims severity
trends, largely from prior accident years, which adversely impacted
the calendar year loss ratio. The loss environment continues to be
challenging as a result of social inflation and large jury verdicts
in the healthcare professional liability space. 2023 has continued
the record-setting pace of excess verdicts across the MPL
industry.
Compared to the same period last year, gross written premium and
net earned premium decreased 7% and 9% year over year,
respectively, primarily as a result of competitive market
conditions and our efforts in pursuing needed rate improvements
over the past year. However, premium retention in the quarter was
85% compared to 83% in the prior period. The improvement in the
retention was driven by our Specialty Healthcare business and also
reflects strong results in our in our Standard Physician, Small
Business Unit, and Medical Technology Liability businesses of 89%,
87%, and 90%, respectively.
We achieved renewal pricing increases of 6%, compared to 9% in
the first quarter of 2022. New business writings improved to $11
million, compared to $8 million in the first quarter of 2022
despite the competitive market.
Excluding the effects of purchase accounting on last year’s
results, the segment current accident year net loss ratio was
essentially flat compared to the prior year. The benefits of our
re-underwriting efforts over the past few years were offset by
continued claims severity trends and weakening tort reform in
recent quarters within our healthcare liability physician business,
primarily in a couple of states.
We recognized net unfavorable prior accident year reserve
development of $8 million in the first quarter, compared to $4
million favorable in the same period of 2022. The unfavorable
development is attributed to several large verdicts during the
quarter, reflecting continued social inflation and higher than
anticipated loss severity trends.
The expense ratio of 22.8% was pressured by higher acquisition
costs driven by an increase in compensation related expenses and
lower earned premium compared to the prior period. This was offset
by a one-time benefit of 2.2 percentage points resulting from a
$3.8 million payroll tax refund from the Employer Retention Credit
program in connection with the CARES act.
WORKERS’ COMPENSATION INSURANCE SEGMENT
RESULTS
Three Months Ended March
31
($ in thousands)
2023
2022
%
Change
Gross premiums written
$
73,431
$
72,118
1.8
%
Net premiums written
$
47,572
$
45,266
5.1
%
Net premiums earned
$
40,803
$
40,684
0.3
%
Other income
581
682
(14.8
%)
Total revenues
41,384
41,366
0.0
%
Net losses and loss adjustment
expenses
(30,844
)
(27,211
)
13.4
%
Underwriting, policy acquisition and
operating expenses
(12,980
)
(13,001
)
(0.2
%)
Total expenses
(43,824
)
(40,212
)
9.0
%
Segment results
$
(2,440
)
$
1,154
(311.4
%)
WORKERS’ COMPENSATION INSURANCE SEGMENT
KEY RATIOS
Three Months Ended March
31
2023
2022
Current accident year net loss ratio
72.6
%
71.8
%
Effect of prior accident years’ reserve
development
3.0
%
(4.9
%)
Net loss ratio
75.6
%
66.9
%
Underwriting expense ratio
31.8
%
32.0
%
Combined ratio
107.4
%
98.9
%
The Workers’ Compensation Insurance segment underwriting results
declined in the first quarter of 2023, compared to the same period
in 2022, primarily reflecting unfavorable prior accident year
reserve development.
Gross premiums increased by $1.3 million in the quarter,
compared to the same period of 2022, reflecting higher audit
premium and new business written, partially offset by lower renewal
premium. In our traditional business, audit premium increased to
$2.5 million in the first quarter of 2023, compared to $0.1 million
for the same period in 2022. New business writings in our
traditional business were $6.6 million in the first quarter of
2023, an increase of $3.1 million compared to the same period in
2022.
Renewal premium results reflected the continuation of
competitive market conditions. Renewal rates in our traditional
business decreased 6% during the quarter. Renewal retention was 83%
in our traditional business for the quarter, compared to 85% for
the same period in 2022.
The current accident year net loss ratio increased 0.8
percentage points, primarily reflecting an increase in losses
recognized under our reinsurance contract annual aggregate
deductible and higher ULAE costs, partially offset by a reduction
in reported claim frequency. We recognized unfavorable prior
accident year reserve development of $1.2 million in 2023, compared
to favorable development of $2.0 million in 2022. The unfavorable
reserve development in 2023 was driven primarily by a large claim
from the 1997 accident year.
Underwriting expenses and the underwriting expense ratio were
relatively flat in the first quarter of 2023, compared to the same
period in 2022.
SEGREGATED PORTFOLIO CELL REINSURANCE
SEGMENT RESULTS
Three Months Ended March
31
($ in thousands)
2023
2022
%
Change
Gross premiums written
$
22,881
$
28,369
(19.3
%)
Net premiums written
$
19,947
$
25,217
(20.9
%)
Net premiums earned
$
15,300
$
19,314
(20.8
%)
Net investment income
420
112
275.0
%
Net investment gains (losses)
1,160
(711
)
263.2
%
Other income
1
1
—
%
Net losses and loss adjustment
expenses
(8,423
)
(11,491
)
(26.7
%)
Underwriting, policy acquisition and
operating expenses
(5,035
)
(4,369
)
15.2
%
SPC U.S. federal income tax expense(1)
(532
)
(642
)
(17.1
%)
SPC net results
2,891
2,214
30.6
%
SPC dividend (expense) income (2)
(1,942
)
(2,367
)
(18.0
%)
Segment results (3)
$
949
$
(153
)
(720.3
%)
(1)
Represents the provision for U.S. federal
income taxes for SPCs at Inova Re, which have elected to be taxed
as a U.S. corporation under Section 953(d) of the Internal Revenue
Code. U.S. federal income taxes are included in the total SPC net
results and are paid by the individual SPCs.
(2)
Represents the net (profit) loss
attributable to external cell participants.
(3)
Represents our share of the net profit
(loss) and OCI of the SPCs in which we participate.
SEGREGATED PORTFOLIO CELL REINSURANCE
SEGMENT KEY RATIOS
Three Months Ended March
31
2023
2022
Current accident year net loss ratio
64.9
%
64.5
%
Effect of prior accident years’ reserve
development
(9.8
%)
(5.0
%)
Net loss ratio
55.1
%
59.5
%
Underwriting expense ratio
32.9
%
22.6
%
Combined ratio
88.0
%
82.1
%
The improvement in the Segregated Portfolio Cell Reinsurance
segment results for the first quarter of 2023, compared to the same
period of 2022, primarily reflects the impact of net investment
gains in the current period.
Gross premiums written decreased in the quarter, driven by lower
healthcare professional liability premium due to the prior year
impact of the issuance of tail policies under one program. Workers’
compensation premium also declined, driven by lower renewal and
audit premium.
Renewal rate decreases were 5% during the first quarter of 2023.
Renewal retention was 90% in 2023, compared to 92% for the same
period in 2022. Audit premium decreased to $1.2 million in the
current period, compared to $1.6 million for the prior year. New
business writings in our workers’ compensation programs were $1.2
million in the first quarter of 2023, compared to $1.1 million for
the same period in 2022.
The net loss ratio decreased, reflecting higher favorable prior
accident year reserve development. We recognized net favorable
prior accident year reserve development of $1.5 million and $0.9
million during the first quarters of 2023 and 2022, respectively.
The net favorable development related to the workers' compensation
business and reflected overall favorable trends in claim closing
patterns primarily in accident years 2016 through 2020.
The underwriting expense ratio increased to 32.9% in 2023 from
22.6% in 2022, primarily reflecting the impact of a decrease in the
allowance for credit losses during the 2022 first quarter.
Underwriting expenses mostly represent commissions and other
expenses charged by the Workers’ Compensation Insurance and
Specialty P&C segments.
LLOYD’S SYNDICATES SEGMENT
RESULTS
Three Months Ended March
31
($ in thousands)
2023
2022
%
Change
Gross premiums written
$
3,489
$
5,817
(40.0
%)
Net premiums written
$
3,325
$
5,594
(40.6
%)
Net premiums earned
$
4,340
$
7,746
(44.0
%)
Net investment income
188
211
(10.9
%)
Net investment gains (losses)
(11
)
(399
)
(97.2
%)
Other income (loss)
(3
)
134
(102.2
%)
Net losses and loss adjustment
expenses
(1,978
)
(4,763
)
(58.5
%)
Underwriting, policy acquisition and
operating expenses
(1,720
)
(2,709
)
(36.5
%)
Segment results
$
816
$
220
270.9
%
LLOYD’S SYNDICATES SEGMENT KEY
RATIOS
Three Months Ended March
31
2023
2022
Current accident year net loss ratio
51.3
%
41.8
%
Effect of prior accident years’ reserve
development
(5.7
%)
19.7
%
Net loss ratio
45.6
%
61.5
%
Underwriting expense ratio
39.6
%
35.0
%
Combined ratio
85.2
%
96.5
%
Results of our Lloyd’s Syndicates segment are generally reported
on a one-quarter lag and include the results from our current
participation in Lloyd's of London Syndicate 1729. Our
participation in the results of Syndicate 1729 for the 2023
underwriting year remains unchanged from the 2022 underwriting year
at 5%. We ceased participation in Syndicate 6131 beginning with the
2022 underwriting year. Due to the quarter lag, our ceased
participation in Syndicate 6131 was not reflected in our results
until the second quarter of 2022. We continue to view our
participation at Lloyd’s as an investment outside of our core
operations.
The decline in net premiums earned is attributable to our ceased
participation in Syndicate 6131 for the 2022 underwriting year. The
segment reported a combined ratio of 85.2% for the quarter. The
current accident year net loss ratio increased as compared to the
prior year quarter, driven by certain property and catastrophe
related losses in the current period.
We recognized $0.2 million of favorable prior year development
during the three months ended March 31, 2023, compared to
unfavorable development of $1.5 million for the same period of
2022. The favorable prior year development for the current period
was driven by lower than expected losses and development on certain
large claims, primarily catastrophe related losses.
CORPORATE SEGMENT
Three Months Ended March
31
($ in thousands)
2023
2022
%
Change
Net investment income
$
29,702
$
20,120
47.6
%
Equity in earnings (loss) of
unconsolidated subsidiaries:
All other investments, primarily
investment fund LPs/LLCs
(767
)
10,008
(107.7
%)
Tax credit partnerships
(354
)
(2,388
)
(85.2
%)
Total equity in earnings (loss) of
unconsolidated subsidiaries:
(1,121
)
7,620
(114.7
%)
Net investment gains (losses)
763
(12,396
)
106.2
%
Other income (loss)
327
2,065
(84.2
%)
Operating expenses
(8,204
)
(8,739
)
(6.1
%)
Interest expense
(5,463
)
(4,441
)
23.0
%
Income tax (expense) benefit
2,172
1,770
(22.7
%)
Segment results
$
18,176
$
5,999
203.0
%
Consolidated effective tax rate
26.0
%
36.2
%
The rise in interest rates continues to add significantly to our
net investment income, which increased to $29.7 million in the
quarter, driven by higher average book yields on our fixed maturity
investments as our reinvestment rate exceeds that of the maturing
assets.
Equity in earnings (loss) from our investment in LPs/LLCs, which
are typically reported to us on a one-quarter lag, decreased to a
loss of $0.8 million in the quarter driven by the performance of
one LP which reflected lower market valuations during the fourth
quarter of 2022. Partially offsetting the lower earnings from our
LP/LLC investments was lower amortization of tax credit partnership
operating losses.
The corporate segment results include $0.8 million of net
investment gains for the quarter, as unrealized holding gains
resulting from changes in the fair value of our equity investments
and convertible securities more than offset $2.9 million of
credit-related impairment losses related to two corporate bonds in
the financial sector.
The decline in other income was driven by the effect of foreign
currency exchange rate losses of $1.0 million in the current
quarter, compared to foreign currency exchange rate gains of $1.3
million in the prior year period. These foreign currency exchange
rate movements are related to foreign currency denominated loss
reserves in our Specialty P&C Segment.
Operating expenses decreased by $0.5 million primarily due to a
decrease in compensation-related costs and, to a lesser extent,
lower share-based compensation expenses.
Non-GAAP Financial Measures
Non-GAAP Operating Income
(Loss)
Non-GAAP operating income (loss) is a financial measure that is
widely used to evaluate performance within the insurance sector. In
calculating Non-GAAP operating income (loss), we have excluded the
effects of the items listed in the following table that do not
reflect normal results. We believe Non-GAAP operating income (loss)
presents a useful view of the performance of our insurance
operations, however it should be considered in conjunction with net
income (loss) computed in accordance with GAAP. The following table
reconciles net income (loss) to Non-GAAP operating income
(loss):
RECONCILIATION OF NET INCOME (LOSS) TO
NON-GAAP OPERATING INCOME (LOSS)
Three Months Ended March
31
(In thousands, except per share
data)
2023
2022
Net income (loss)
$
(6,174
)
$
(3,560
)
Items excluded in the calculation of
Non-GAAP operating income (loss):
Net investment (gains) losses (1)
(2,912
)
13,506
Net investment gains (losses) attributable
to SPCs which no profit/loss is retained (2)
913
(602
)
Transaction-related costs (3)
—
1,177
Guaranty fund assessments
(recoupments)
(74
)
13
Pre-tax effect of exclusions
(2,073
)
14,094
Tax effect, at 21% (4)
176
(2,851
)
After-tax effect of exclusions
(1,897
)
11,243
Non-GAAP operating income (loss)
$
(8,071
)
$
7,683
Per diluted common share:
Net income (loss)
$
(0.11
)
$
(0.07
)
Effect of exclusions
(0.04
)
0.21
Non-GAAP operating income (loss) per
diluted common share
$
(0.15
)
$
0.14
(1)
Net investment gains (losses) in 2023
include a gain of $1.0 million related to the change in the fair
value of contingent consideration issued in connection with the
NORCAL acquisition. We have excluded this adjustment as it does not
reflect normal operating results. See further discussion around the
contingent consideration in Note 2 of the Notes to Condensed
Consolidated Financial Statements and discussion on our accounting
policy in the Critical Accounting Estimates section under the
heading "Contingent Consideration" of our March 31, 2023 report on
Form 10-Q.
(2)
Net investment gains (losses) on
investments related to SPCs are recognized in our Segregated
Portfolio Cell Reinsurance segment. SPC results, including any net
investment gain or loss, that are attributable to external cell
participants are reflected in the SPC dividend expense (income). To
be consistent with our exclusion of net investment gains (losses)
recognized in earnings, we are excluding the portion of net
investment gains (losses) that is included in the SPC dividend
expense (income) which is attributable to the external cell
participants.
(3)
Transaction-related costs associated with
our acquisition of NORCAL. We are excluding these costs as they do
not reflect normal operating results and are unique and
non-recurring in nature.
(4)
The 21% rate is the annual expected
statutory tax rate associated with the taxable or tax deductible
items listed above. We utilized the estimated annual effective tax
rate method for the three months ended March 31, 2023, while we
utilized the discrete effective tax rate method for the three
months ended March 31, 2022. For the 2023 period our effective tax
rate was applied to these items in calculating net income (loss),
excluding net investment gains (losses) and related adjustments.
The 2023 gain related to the change in the fair value of contingent
consideration is non-taxable and therefore had no associated income
tax impact. For the 2022 period, our statutory tax rate was applied
to these items in calculating net income (loss). Net investment
gains (losses) in our Corporate segment are treated as discrete
items and are tax effected at the annual expected statutory tax
rate (21%) in the period they are included in our consolidated tax
provision and net income (loss). The taxes associated with the net
investment gains (losses) related to SPCs in our Segregated
Portfolio Cell Reinsurance segment are paid by the individual SPCs
and are not included in our consolidated tax provision or net
income (loss); therefore, both the net investment gains (losses)
from our Segregated Portfolio Cell Reinsurance segment and the
adjustment to exclude the portion of net investment gains (losses)
included in the SPC dividend expense (income) in the table above
are not tax effected. See further discussion under the heading
“Taxes” in the Executive Summary of Operations section of our March
31, 2023 report on Form 10-Q.
Non-GAAP Operating ROE
The following table is a reconciliation of ROE to Non-GAAP
operating ROE for the three months ended March 31, 2023 and
2022:
Three Months Ended
March 31
2023
2022
ROE(1)
(2.5
%)
(0.8
%)
Pre-tax effect of items excluded in the
calculation of Non-GAAP operating ROE
(0.5
%)
3.9
%
Tax effect, at 21%(2)
0.1
%
(0.8
%)
Non-GAAP operating ROE
(2.9
%)
2.3
%
(1)
Quarterly amounts are annualized. Refer to
our March 31, 2023 report on Form 10-Q under the heading “Non-GAAP
Operating ROE” in the Executive Summary of Operations section for
details on our calculation.
(2)
The 21% rate is the statutory tax rate
associated with the taxable or tax deductible items. See further
discussion in footnote 4 in this section under the heading
"Non-GAAP Operating Income."
Non-GAAP Adjusted Book Value per
Share
The following table is a reconciliation of our book value per
share to Non-GAAP adjusted book value per share at March 31, 2023
and December 31, 2022:
Book Value Per Share
Book Value Per Share at December 31,
2022
$
20.46
Less: AOCI Per Share(1)
(5.53
)
Non-GAAP Adjusted Book Value Per Share at
December 31, 2022
25.99
Increase (decrease) to Adjusted Book Value
Per Share during the three months ended March 31, 2023 attributable
to:
Dividends declared
(0.05
)
Net income (loss)
(0.11
)
Other(2)
(0.02
)
Non-GAAP Adjusted Book Value Per Share at
March 31, 2023
25.81
Add: AOCI Per Share(1)
(4.74
)
Book Value Per Share at March 31,
2023
$
21.07
(1)
Primarily the impact of accumulated
unrealized investment gains (losses) on our available-for-sale
fixed maturity investments. See Note 8 of the Notes to Condensed
Consolidated Financial Statements in our March 31, 2023 report on
Form 10-Q for additional information.
(2)
Includes the impact of share-based
compensation.
Conference Call Information
ProAssurance management will discuss first quarter 2023 results
during a conference call at 10:00 a.m. ET on Wednesday, May 10,
2023. US-based investors may access the call by dialing either
(833) 470-1428 (toll free) or (404) 975-4839 (local). International
investors may find a toll-free number here:
https://www.netroadshow.com/events/globalnumbers?confId=49320. The
access code for all attendees is 881898. We will webcast the call
at investor.proassurance.com.
A replay will be available by telephone for at least 7 days
after the call date. US-based investors may access the replay by
dialing (866) 813-9403 (toll free) or (929) 458-6194, and
international investors may dial +44 (204) 525-0658. The access
code for all attendees is 514298. A replay will also be available
for at least one year at investor.proassurance.com. Investors may
follow @ProAssurance on Twitter to be notified of the latest news
about ProAssurance.
About ProAssurance
ProAssurance Corporation is an industry-leading specialty
insurer with extensive expertise in healthcare professional
liability, products liability for medical technology and life
sciences, legal professional liability, and workers’ compensation
insurance.
ProAssurance Group is rated “A” (Excellent) by AM Best; NORCAL
Group is rated “A-” (Excellent) by AM Best. ProAssurance and its
operating subsidiaries (excluding NORCAL Group) are rated “A-”
(Strong) by Fitch Ratings. For the latest on ProAssurance and its
industry-leading suite of products and services, cutting-edge risk
management and practice enhancement programs, follow @ProAssurance
on Twitter or LinkedIn. ProAssurance’s YouTube channel regularly
presents thought-provoking, insightful videos that communicate
effective practice management, patient safety and risk management
strategies.
Caution Regarding Forward-Looking Statements
Any statements in this news release that are not historical
facts are specifically identified as forward-looking statements.
These statements are based upon our estimates and anticipation of
future events and are subject to significant risks, assumptions and
uncertainties that could cause actual results to differ materially
from the expected results described in the forward-looking
statements. Forward-looking statements are identified by words such
as, but not limited to, “anticipate,” “believe,” “estimate,”
“expect,” “hope,” “hopeful,” “intend,” “likely,” “may,”
“optimistic,” “possible,” “potential,” “preliminary,” “project,”
“should,” “will,” and other analogous expressions.
Although it is not possible to identify all of these risks and
factors, they include, among others, the following: inadequate loss
reserves to cover the Company's actual losses; inherent uncertainty
of models resulting in actual losses that are materially different
than the Company's estimates; adverse economic factors; a decline
in the Company's financial strength rating; loss of one or more key
executives; loss of a group of agents or brokers that generate
significant portions of the Company's business; failure of any of
the loss limitations or exclusions the Company employs, or change
in other claims or coverage issues; adverse performance of the
Company's investment portfolio; adverse market conditions that
affect its excess and surplus lines insurance operations; and other
risks described in the Company's filings with the Securities and
Exchange Commission. These forward-looking statements speak only as
of the date of this release and the Company does not undertake and
specifically declines any obligation to update or revise any
forward-looking information to reflect changes in assumptions, the
occurrence of unanticipated events, or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230509006051/en/
Jason Gingerich VP, Investor Relations 800-282-6242 •
512-879-5101 JasonGingerich@ProAssurance.com
Grafico Azioni ProAssurance (NYSE:PRA)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni ProAssurance (NYSE:PRA)
Storico
Da Dic 2023 a Dic 2024
