NYSE$PRA

ProAssurance Corporation · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

ProAssurance reported net income and operating income for the third quarter of 2021.

ProAssurance Corporation reported a net income of $12.2 million and an operating income of $13.8 million for the three months ended September 30, 2021. The company's performance was driven by strong investment results and improved performance in the Specialty P&C segment, offset by lower income from SPCR and Lloyd's Syndicates segments, and a loss in the Workers' Compensation Insurance Segment.

  • Net premiums earned increased by approximately 40%, driven by the addition of NORCAL premiums to the Specialty Property & Casualty segment.
  • Net favorable prior accident year reserve development of $8.6 million, with $6.8 million in Specialty P&C.
  • Consolidated expense ratio decreased by 6 points, with improvement in every segment, primarily reflecting the impact of the NORCAL acquisition.
  • Net investment result increased by 58.5%, with $19.3 million in net investment income and $15.2 million in equity in earnings of unconsolidated subsidiaries.

Headline financials

Total Revenue

$310M

Previous: $227M+36.5%
EPS (adj)

$0.25

Previous: $0.05+400.0%
Combined Ratio

106.6%

Previous: 105.3%+1.2%
Operating Ratio

99.5%

Previous: 96.6%+3.0%
Return on Equity

4.0%

No prior period
Net Loss Ratio

82.1%

Previous: 74.8%+9.8%
Underwriting Expense Ratio

24.5%

Previous: 30.5%-19.7%
Free Cash Flow

$12.2M

Previous: -$150M+108.1%
Net Income

$12.2M

Previous: -$150M+108.1%
Operating Income

$18.1M

Previous: -$141M+112.8%
Gross Profit

$58.2M

Previous: $54.3M+7.1%
Cash & Equivalents

$203M

Previous: $232M-12.5%
Total Assets

$6.33B

Previous: $4.69B+34.8%
Stock-Based Comp

$1.13M

Previous: $1.02M+11.2%

Revenue & EPS history

ProAssurance · Revenue · Quarterly

$310M

Q3 2021+36.5%vs Q3 2020
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

ProAssurance · $112M total across 3 segments · Q3 2021

  • Corporate
    $53.6M+92.9%
  • Workers' Compensation Insurance
    $42.7M-0.7%
  • Segregated Portfolio Cell Reinsurance
    $15.3M-14.0%

Forward guidance

No specific forward guidance was provided in the earnings report.

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 Q3 2021

Historical avgQ3 2021

-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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