NYSE$PRA

ProAssurance Corporation · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

ProAssurance reported a net loss for Q2 2020 due to the COVID-19 pandemic and large national healthcare account policy expiration, but showed underlying improvements in core businesses.

ProAssurance reported a net loss of $18.1 million for the second quarter of 2020, primarily due to the non-renewal of a large national healthcare account and the establishment of a $10 million reserve for pandemic-related losses. However, the company saw incremental improvements in its underlying current accident year loss ratio, rate gains in healthcare professional liability, efficiency gains in its expense model, and continued profitability in its Workers’ Compensation Insurance and Segregated Portfolio Cell Reinsurance segments.

  • Reported a net loss of $18.1 million, or $0.34 per share, and an operating loss of $32.4 million, or $0.60 per share.
  • Experienced incremental improvements in the underlying current accident year loss ratio due to re-underwriting efforts in the Specialty P&C segment.
  • Rate gains in Healthcare Professional Liability lines, efficiency gains in the expense model, and continued profitability in Workers’ Compensation Insurance and SPCR segments.
  • Issued a tail policy associated with a LNHA's claims-made coverage which resulted in a net underwriting loss of $45.7 million

Headline financials

Total Revenue

$222M

Previous: $240M-7.5%
EPS (adj)

-$0.60

Previous: $0.08-850.0%
Combined Ratio

130.1%

No prior period
Operating Ratio

121.4%

No prior period
Return on Equity

-5.0%

No prior period
Net Loss Ratio

101.8%

No prior period
Free Cash Flow

-$18.1M

Previous: $11.5M-256.9%
Net Income

-$18.1M

Previous: $11.5M-256.9%
Operating Income

-$47.9M

Previous: $8.47M-665.9%
Gross Profit

-$14.6M

Previous: $43.1M-133.8%
Cash & Equivalents

$224M

Previous: $91.9M+144.1%
Total Assets

$4.78B

Previous: $4.79B-0.1%
Stock-Based Comp

$1.02M

Previous: $1.09M-6.5%

Revenue & EPS history

ProAssurance · Revenue · Quarterly

$222M

Q2 2020-7.5%vs Q2 2019
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

ProAssurance · $188M total across 3 segments · Q2 2020

  • Specialty P&C
    $128M
  • Workers' Compensation Insurance
    $42.9M
  • Segregated Portfolio Cell Reinsurance
    $17M

Forward guidance

ProAssurance anticipates booking approximately $1.4 million in pandemic-related losses, net of reinsurance, in the third quarter.

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 Q2 2020

Historical avgQ2 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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