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ProAssurance Corporation
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NYSE: PRA Financials Insurance 🔎 Screen
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Market Cap
24.4
P/E
2.14
PEG
—
ROCE
4.0%
ROE
0.32
D/E
11.1%
OPM
0.0%
% from 52W High
45
α RS
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Currency-adjusted total returns for PRA including FX impact
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📈 Price History
Ratio Health
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About

ProAssurance Corporation, through its subsidiaries, provides property and casualty insurance, and reinsurance products in the United States. It operates through three segments: Specialty Property and Casualty, Workers' Compensation Insurance, Segregated Portfolio Cell Reinsurance, and Corporate. The company offers professional liability insurance to healthcare providers and institutions, and attorneys and their firms; medical technology liability insurance to medical technology and life sciences companies; and custom alternative risk solutions, including assumed reinsurance and captive cell programs for healthcare professional liability insureds. It also provides workers' compensation insurance products, such as guaranteed cost policies, policyholder dividend policies, retrospectively rated policies, and deductible policies, as well as alternative market solutions that include program design, fronting, claims administration, risk management, SPC rental, asset management, and SPC management services for individual companies, agencies, groups, and associations. It markets its products through independent agencies and brokers, as well as an internal business development team. ProAssurance Corporation was founded in 1976 and is headquartered in Birmingham, Alabama.

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📈 Growth Pattern
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⭐ Superinvestors Holding PRA
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 964.9K $23.9M 0.04% Mar 2026
Steve Cohen Point72 Asset Management 36.8K $909K 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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📊 MIXED ProAssurance reports fifth consecutive quarter of improved operating earnings; Specialty P&C combined ratio 101%
Revenue & Profitability
Full-year operating earnings were $0.95 per share. Net income was reduced by $5.3 million ($0.10 per share) due to a reserve charge from the Lloyd's syndicate runoff. Net investment income rose 9% for the quarter and 12% for the year. Reported book value per share increased to $23.49, and adjusted book value per share to $26.86. Net favorable prior accident-year reserve development in Specialty P&C contributed nearly nine points to the quarterly combined ratio.
Outlook
Management cited social inflation and eroding tort reform as challenging the legal environment, with continued legal system abuse. In Workers' Compensation, state-mandated loss cost decreases persist, but severity trends are a concern. The company expects the market to remain competitive with excess capital, and it will maintain its focus on rate adequacy over growth.
Growth Drivers
Growth is driven by renewal premium increases (10% for standard MPL, 8% for specialty in the quarter) and disciplined underwriting. Retention was a solid 83% in the quarter. New business is constrained by rate adequacy focus, while Workers' Compensation net written premiums increased slightly due to higher audit premiums from wage inflation. The company aims to grow by leveraging innovation and data analytics.
Balance Sheet & CapEx
Not discussed in detail as a separate line item. The company mentioned investments in innovation, including an AI web portal, the CLARA Analytics platform for workers' comp, and proprietary underwriting tools. Headcount declined 6% in 2024, reflecting efficiency initiatives.
Margins
The Specialty P&C segment's full-year combined ratio improved by nearly five points to 104%, with the current accident-year loss ratio improving by about half a point. Workers' Compensation combined ratio was 114%, with the current accident-year loss ratio down four points from 2023. Expense ratios increased due to higher incentive compensation. Management expects further margin improvement through rate actions and cost discipline.
Key Risks
Key risks include social inflation, legal system abuse, and rising severity trends in medical professional liability. In Workers' Compensation, state-mandated loss cost decreases and backward-looking data may not reflect actual severity. Reserve development uncertainty exists, particularly from legacy and NORCAL business. Competitive pricing pressures also pose a risk to achieving rate adequacy.
Generated by AI · Q4 2024 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q4 2024 Q4 2024 2025-02-25
Operating earnings improved for the fifth straight quarter, with strong rate increases and disciplined underwriting driving profitability in core segments. Book value per share rose, and investment income was robust, despite headwinds from legal trends and competitive pressures.
Q3 2024 Q3 2024 2024-11-08
Third quarter operating earnings reached $17.3 million, driven by improved loss ratios and favorable reserve development. Book value per share rose to $24.07, with strong investment income and disciplined underwriting supporting profitability despite ongoing medical cost inflation.
Q2 2024 Q2 2024 2024-08-09
Q2 2024 saw operating earnings of $0.23 per share and a 16% rise in net investment income, with stable Specialty P&C premiums and improved loss ratios. Workers' comp premiums declined, but new tech investments aim to enhance future profitability.
Q1 2024 Q1 2024 2024-05-07
Q4 2023 Q4 2023 2024-02-28
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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