NYSE$PRA

ProAssurance Corporation · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

ProAssurance reported a net loss and reduced its quarterly dividend due to the impact of COVID-19 and challenges in the healthcare professional liability and workers' compensation insurance markets.

ProAssurance reported a net loss of $22.0 million, or $0.41 per share, for the first quarter of 2020, compared to a net income of $31.65 million, or $0.59 per share, in the same quarter of 2019. The results were impacted by the COVID-19 pandemic, which led to steep declines in the mark-to-market values of the company's equity investments. The company also faced continued challenges in the healthcare professional liability market and intense competition in workers' compensation insurance. As a result of these factors, ProAssurance reduced its quarterly dividend from $0.31 per share to $0.05 per share.

  • ProAssurance reported a net loss of $22.0 million, or $0.41 per share, and an operating loss of $1.1 million, or $0.02 per share.
  • Consolidated gross premiums written were $262.4 million, a decrease of 6.2% from the same quarter in 2019.
  • Consolidated net premiums earned decreased 2.1% from the year-ago quarter to $203.9 million.
  • Net realized investment losses were $28.7 million, primarily due to changes in fair value of our equity portfolio and convertible securities attributable to the recent disruptions in the global financial markets related to COVID-19.

Headline financials

Total Revenue

$197M

Previous: $269M-26.8%
EPS (adj)

-$0.02

Previous: $0.08-125.0%
Combined Ratio

111.3%

No prior period
Operating Ratio

101.1%

No prior period
Net Loss Ratio

80.9%

No prior period
Free Cash Flow

-$22M

Previous: $31.7M-169.4%
Net Income

-$22M

Previous: $31.7M-169.4%
Operating Income

-$30.2M

Previous: $47.7M-163.2%
Gross Profit

$4.59M

Previous: $81M-94.3%
Cash & Equivalents

$217M

Previous: $71.8M+202.3%
Total Assets

$4.73B

Previous: $4.72B+0.3%
Stock-Based Comp

$1.01M

Previous: $1.23M-17.7%

Revenue & EPS history

ProAssurance · Revenue · Quarterly

$197M

Q1 2020-26.8%vs Q1 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

ProAssurance · $178M total across 4 segments · Q1 2020

  • Specialty P&C
    $122M
  • Workers' Compensation Insurance
    $45.3M
  • Segregated Portfolio Cell Reinsurance
    $17.4M
  • Corporate
    -$7.06M

Forward guidance

ProAssurance anticipates that the COVID-19 virus will have broad effects on the property and casualty industry and will ripple through the company's results for the rest of 2020, and possibly beyond.

Headwinds

  • The effects of the COVID-19 virus in the property and casualty industry will ripple through our results for the rest of 2020, and possibly beyond.
  • The impact on our business is likely to include premium and exposure reductions.
  • New business disruption.
  • Jury trial delays.
  • Cash flows implications from deferred premiums.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.4%

Avg return

Earnings day

-1.1%

Avg return

5 days after

-0.7%

Avg return

30 days after

56%

38 / 68 earnings

Positive

+18.1%

Q2 2024

Best reaction

-22.1%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%+0.2%-0.5%
Q4 2025+0.4%+0.6%+1.3%
Q3 2025+0.2%+0.3%-0.4%
Q1 2025-0.2%+0.2%+0.8%
Q4 2024+14.3%+10.8%+65.5%
Q3 2024+3.0%+3.7%+2.5%
Q2 2024+18.1%+15.5%+14.6%
Q1 2024+9.6%+6.9%+0.7%
Q4 2023-4.7%+0.2%-0.8%
Q3 2023-22.1%-27.6%-27.7%
Q2 2023+8.2%+8.2%+3.7%
Q1 2023-21.5%-21.3%-22.5%
Q4 2022+4.7%+3.7%-5.9%
Q3 2022-12.7%-11.2%-14.4%
Q2 2022+6.1%+6.7%-4.3%
Q1 2022-12.7%-15.0%-8.0%
Q4 2021+1.1%-0.9%+3.4%
Q3 2021-0.9%-2.0%-6.3%
Q2 2021+5.4%+17.5%+23.7%
Q1 2021+1.1%-3.1%-6.8%
Q4 2020+5.0%+5.6%+13.7%
Q3 2020-10.2%+2.0%+8.6%
Q2 2020-2.1%-5.1%-12.2%
Q1 2020-18.0%-22.1%-17.0%
Q4 2019-0.2%-5.4%-22.7%
Q3 2019+1.4%-1.6%-5.3%
Q2 2019-0.6%+1.6%+3.7%
Q1 2019-0.9%+4.2%+6.7%
Q4 2018-3.7%-9.3%-22.3%
Q3 2018+4.2%-0.4%-4.9%
Q2 2018+5.5%+6.8%+16.1%
Q1 2018-13.5%-12.7%-17.2%
Q4 2017-6.9%-5.4%-7.5%
Q3 2017+6.1%+5.5%+7.7%
Q2 2017-5.0%-6.0%-10.7%
Q1 2017+1.1%-2.4%-1.0%
Q4 2016+8.9%+4.9%+4.0%
Q3 2016-2.5%-1.6%+10.6%
Q2 2016+2.4%+5.4%+5.7%
Q1 2016+1.1%
Q4 2015-3.3%
Q3 2015-0.9%
Q2 2015+0.1%
Q1 2015-3.5%
Q4 2014+0.1%
Q3 2014-4.9%
Q2 2014-0.4%
Q1 2014-0.6%
Q4 2013-2.2%
Q3 2013+2.7%
Q2 2013-6.3%
Q1 2013+0.1%
Q4 2012+0.9%
Q3 2012-1.9%
Q2 2012+0.9%
Q1 2012+1.5%
Q4 2011+5.7%
Q4 2010+5.7%
Q3 2011+2.0%
Q2 2011+1.8%
Q1 2010+0.4%
Q1 2011+0.6%
Q4 2008+8.2%
Q3 2009+4.2%
Q3 2010+4.2%
Q2 2010-3.5%
Q2 2009-3.5%
Q4 2009-3.5%

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