The following is a summary of the ProAssurance Corporation (PRA) Q1 2024 Earnings Call Transcript:

Financial Performance:

• ProAssurance reported Q1 operating earnings of $0.08 per share, a result of a 6-point improvement in the calendar year loss ratio and a 12% increase in investment income.

• There was an approximate $3.6 million decline in gross premiums written quarter-over-quarter due to the nonrenewal of a large account.

• Net investment income increased by $4 million or 12% quarter-over-quarter due to the rising rate environment.

• A 3-point improvement in the current accident year loss ratio shows efforts in underwriting improvement.

Business Progress:

• ProAssurance is taking steps to achieve pricing levels that contribute to long-term profitability. There is positive progress, evident in maintaining strong retention of existing insurers and not renewing business that doesn't meet underwriting criteria.

• They anticipate the impact of increased medical utilization industry-wide in following quarters and are working towards safeguarding their balance sheet and insureds over the long term.

• Due to increased severity trends and social inflation, ProAssurance is improving its underwriting and claims handling processes.

• They predict changing dynamics in workers' compensation line with decreasing rates and increasing severity trends.

• Unlike competitors underpricing despite higher combined ratios, ProAssurance plans to retain focus on individual underwriting and driving rates.

• The company carries concerns about long-term geographic stability due to uncertain litigation environments, and advocates for tort reform and enhanced public understanding of insurance value.

More details: Proassurance IR

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