ProAssurance Corporation reported a net income of $52.7 million for the fiscal year ending December 31, 2024, a significant recovery from a net loss of $38.6 million in 2023. The company's total revenues increased to $1.15 billion, up from $1.14 billion in the previous year, driven by a rise in net investment income, which grew by 12.6% to $166.7 million. However, net premiums written decreased by 3.3% to $953.7 million, reflecting strategic decisions to improve profitability in certain lines of business amid competitive market conditions.
The company experienced a notable decline in net losses and loss adjustment expenses, which fell to $739.4 million from $800.5 million in 2023, resulting in a net loss ratio of 76.4%, down from 81.9%. This improvement was attributed to favorable trends in claim closing patterns, particularly in the medical professional liability (MPL) line of business. The underwriting expense ratio increased slightly to 33.0%, influenced by higher compensation-related costs and the impact of one-time items from the previous year.
ProAssurance's Specialty Property and Casualty (P&C) segment, which includes MPL and medical technology liability insurance, saw net premiums earned decrease by 1.0% to $747.9 million. The segment's net loss ratio improved to 77.3%, down from 82.7%, while the Workers' Compensation Insurance segment reported a 4.7% increase in net premiums earned, totaling $167.6 million. The overall performance of the Workers' Compensation segment was bolstered by higher renewal premiums and audit premium billed to policyholders.
In terms of operational developments, ProAssurance's employee headcount stood at 1,036 as of December 31, 2024, with no significant changes reported. The company continues to focus on enhancing its risk management and claims handling processes, leveraging data analytics and artificial intelligence to improve operational efficiency. Looking ahead, ProAssurance aims to maintain its financial strength while pursuing profitable underwriting opportunities, with a long-term goal of achieving a return on equity that exceeds the 10-year U.S. Treasury rate by 700 basis points. The company remains cautious about market conditions and is prepared to adjust its strategies as necessary to navigate the competitive landscape.
About PROASSURANCE CORP
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