NYSE$PRA

ProAssurance Corporation · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

ProAssurance reported net income of $15.5 million and operating income of $11.5 million for Q2 2024.

ProAssurance reported net income of $15.5 million, or $0.30 per diluted share, and operating income of $11.5 million, or $0.23 per diluted share, for the three months ended June 30, 2024. The results reflected strong net investment income and an improved net loss ratio in the Specialty P&C segment.

  • Insurance underwriting results, including 9% renewal pricing increases in Medical Professional Liability (MPL) business, illustrate management’s ongoing actions to achieve sustained profitability
  • Net investment income increased 16% as ProAssurance takes advantage of the higher interest rate environment as its portfolio matures
  • Earnings benefited from strong returns from limited partnership investments
  • Book value per share was $22.15 at June 30, 2024, while non-GAAP adjusted book value per share was $26.18

Headline financials

Total Revenue

$290M

Previous: $292M-0.5%
EPS

$0.30

Previous: $0.16+87.5%
Combined Ratio

110.9%

Previous: 108.2%+2.5%
Operating Ratio

95.7%

Previous: 95.4%+0.3%
Capital Expenditures

-$1.74M

No prior period
Free Cash Flow

$15.5M

Previous: $10.6M+45.9%
Net Income

$15.5M

Previous: $10.6M+45.9%
Operating Income

$24.3M

Previous: $23.8M+2.3%
Gross Profit

$70.5M

Previous: $66M+6.9%
Cash & Equivalents

$36.9M

Previous: $46M-19.9%
Total Assets

$5.61B

Previous: $5.66B-0.8%
Stock-Based Comp

$1.34M

Previous: $1.23M+8.7%

Revenue & EPS history

ProAssurance · Revenue · Quarterly

$290M

Q2 2024-0.5%vs Q2 2023
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

ProAssurance · $272M total across 4 segments · Q4 2024

  • Specialty P&C
    $187M
  • Workers' Compensation Insurance
    $43.3M
  • Corporate
    $29.5M
  • Segregated Portfolio Cell Reinsurance
    $12.4M

Forward guidance

ProAssurance is focused on disciplined underwriting and managing claims in a challenging loss environment. They are ahead of many in achieving rate levels in medical professional liability that outpace severity trends and are confident that these cyclical lines will respond to their focused efforts.

Tailwinds

  • Strong net investment income
  • Improved net loss ratio in Specialty P&C segment
  • Renewal pricing increases of 9% in Medical Professional Liability
  • Cumulative +65% premium change implemented since 2018
  • Retention for the Specialty P&C segment remained a solid 84%

Headwinds

  • Current market conditions are a headwind
  • Prudent to shrink in some markets
  • Net loss ratio in Specialty P&C segment not yet satisfactory
  • Underwriting appetite remains constrained in Workers’ Compensation
  • Higher loss trends related to rising medical costs per claim in Workers’ Compensation

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 2024

Historical avgQ2 2024

-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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