Birmingham, AL – ProAssurance Corporation (NYSE: PRA) reports the following results for the three and nine months ended September 30, 2017.
“ProAssurance continues to achieve solid profitability, driven by our Specialty P&C and Workers’ Compensation segments. Our Lloyd’s segment increased premiums, but was adversely affected by losses stemming from recent hurricanes. We believe the strong flow of new business that we are writing and our strong retention of existing business in a very competitive environment validates our strategic initiatives and provides us with meaningful growth opportunities for the future,” said W. Stancil Starnes, Chairman and Chief Executive Officer of ProAssurance.
Third Quarter 2017 Highlights
- Gross premiums written increased 5.8% quarter-over-quarter, driven primarily by the timing of certain policy renewals in our Specialty P&C segment and by overall premium gains in our Lloyd’s Syndicate segment. Gross premiums written in our Workers’ Compensation segment were essentially level, reflecting the intense competition in that line of business.
- Net premiums earned grew in all three operating segments, quarter-over-quarter, and were up 3.8% overall.
- Our coordinated sales & marketing programs continued to drive additional business opportunities and resulted in $2.9 million of direct premiums written in the quarter.
- Net favorable development was $32.3 million in the quarter, as compared to $29.0 million in the year-ago period. Net favorable development in our Specialty P&C segment was $30.1 million, and our Workers’ Compensation segment experienced net favorable development of $2.3 million.
- The consolidated current accident year net loss ratio was 4.7 points higher quarter-over-quarter, due to losses, somewhat offset by reinstatement premiums, related to Hurricanes Harvey, Irma and Maria in our Lloyd’s Syndicate segment. The consolidated underwriting expense ratio decreased 0.4 points over the third quarter of 2016.
- The results of our income from equity investments in unconsolidated subsidiaries were $4.2 million, an increase of $7.5 million from a $3.3 million loss in the third quarter of 2016. However, net investment income declined $1.5 million quarter-over-quarter primarily due to lower earnings in our fixed income portfolio.
- Net realized investment gains were $7.7 million in the third quarter of 2017. This is an $8.0 million decrease from the prior-year quarter because of a reduction in the amount of unrealized gains in our securities trading portfolio.
- Taxes decreased $3.7 million, quarter-over-quarter, primarily due to lower net realized investment gains, and as in prior quarters this year, the effect of our investment in various tax credits and tax exempt income.
The complete results release is available here: ProAssurance Results Third Quarter 2017