ProAssurance Reports Q2 2025 Financial Results with Increased Net Income and Merger Plans

ProAssurance Corporation reported its financial results for the second quarter of 2025, revealing a net income of $21.9 million, or $0.42 per diluted share, compared to $15.5 million, or $0.30 per diluted share, in the same period last year. For the first half of 2025, the company recorded a net income of $16.1 million, down from $20.1 million in the prior year. Total revenues for the second quarter were $276.8 million, a decrease of 4.7% from $290.4 million in the same quarter of 2024. The decline in revenue was attributed to a decrease in net premiums earned, which fell to $232.4 million from $239.9 million year-over-year.

The company experienced a notable reduction in net losses and loss adjustment expenses, which decreased to $159.9 million from $186.0 million in the prior year’s quarter. This reduction contributed to an improved net loss ratio of 68.8%, down from 77.5% in the same quarter of 2024. The underwriting expense ratio also increased slightly to 34.8% from 33.4%, primarily due to transaction-related costs associated with the proposed merger with The Doctors Company. The combined ratio improved to 103.6% from 110.9%, reflecting better underwriting performance.

In terms of strategic developments, ProAssurance is in the process of merging with The Doctors Company, with the merger agreement approved by the Board and stockholders. The transaction is expected to close in the first half of 2026, pending regulatory approvals. During the first half of 2025, the company incurred approximately $11.6 million in transaction-related costs, which were included in its operating expenses. The merger is anticipated to enhance ProAssurance's market position and operational capabilities.

Operationally, ProAssurance reported a decrease in net premiums written, which fell to $195.6 million from $202.9 million in the previous year. The decline was driven by a reduction in the volume of written premiums due to proactive measures taken to improve profitability. The company’s investment income also increased, reaching $38.9 million, up from $36.6 million in the prior year, benefiting from higher average book yields. The total assets of ProAssurance as of June 30, 2025, were reported at $5.5 billion, a slight decrease from $5.6 billion at the end of 2024.

Looking ahead, ProAssurance remains cautious about market conditions and the potential impacts of the merger. The company anticipates continued challenges in the medical professional liability market, driven by competitive pressures and changing market dynamics. Management emphasized the importance of maintaining underwriting discipline and strategic focus on core operations to navigate these challenges effectively.