The following is a summary of the ProAssurance Corporation (PRA) Q1 2024 Earnings Call Transcript:
Financial Performance:
ProAssurance reported Q1 operating earnings of $0.08 per share, a result of a 6-point improvement in the calendar year loss ratio and a 12% increase in investment income.
There was an approximate $3.6 million decline in gross premiums written quarter-over-quarter due to the nonrenewal of a large account.
Net investment income increased by $4 million or 12% quarter-over-quarter due to the rising rate environment.
A 3-point improvement in the current accident year loss ratio shows efforts in underwriting improvement.
Business Progress:
ProAssurance is taking steps to achieve pricing levels that contribute to long-term profitability. There is positive progress, evident in maintaining strong retention of existing insurers and not renewing business that doesn't meet underwriting criteria.
They anticipate the impact of increased medical utilization industry-wide in following quarters and are working towards safeguarding their balance sheet and insureds over the long term.
Due to increased severity trends and social inflation, ProAssurance is improving its underwriting and claims handling processes.
They predict changing dynamics in workers' compensation line with decreasing rates and increasing severity trends.
Unlike competitors underpricing despite higher combined ratios, ProAssurance plans to retain focus on individual underwriting and driving rates.
The company carries concerns about long-term geographic stability due to uncertain litigation environments, and advocates for tort reform and enhanced public understanding of insurance value.
More details: Proassurance IR
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