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Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2025

Fair values of assets measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024 are shown in the following tables. Where applicable, the tables also indicate the fair value hierarchy of the valuation techniques utilized to determine those fair values. For some assets, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. When this is the case, the asset is categorized based on the level of the most significant input to the fair value measurement. Assessments of the significance of a particular input to the fair value measurement require judgment and consideration of factors specific to the assets being valued.


	September 30, 2025
	Fair Value Measurements Using						Total
(In thousands)	Level 1		Level 2		Level 3		Fair Value
Assets:
Fixed maturities, available-for-sale
U.S. Treasury obligations	$	—	$	248,450	$	—	$	248,450
U.S. Government-sponsored enterprise obligations	—		10,026		—		10,026
State and municipal bonds	—		451,391		—		451,391
Corporate debt, multiple observable inputs	—		1,666,329		—		1,666,329
Corporate debt, limited observable inputs	—		—		77,906		77,906

Residential mortgage-backed securities	—		552,081		—		552,081
Agency commercial mortgage-backed securities	—		5,230		—		5,230
Other commercial mortgage-backed securities	—		205,798				205,798
Other asset-backed securities	—		453,736		8,235		461,971
Fixed maturities, trading	—		12,390		—		12,390
Equity investments
Financial	9,532		2,358		—		11,890
Utilities/Energy	1,030		—		—		1,030

Industrial	—		—		4,526		4,526
Bond funds	81,215		—		—		81,215
All other	11,537		—		—		11,537
Short-term investments	223,597		67,748		—		291,345
Other investments	—		1,616		521		2,137
Other assets	—		734		—		734
Total assets categorized within the fair value hierarchy	$	326,911	$	3,677,887	$	91,188	4,095,986
Assets carried at NAV, which approximates fair value and which are not categorized within the fair value hierarchy, reported as a part of:

Investment in unconsolidated subsidiaries							220,532
Total assets at fair value							$	4,316,518

Liabilities:
Other liabilities	$	1,650	$	1,540	$	—	$	3,190
Total liabilities categorized within the fair value hierarchy	$	1,650	$	1,540	$	—	$	3,190


	December 31, 2024
	Fair Value Measurements Using						Total
(In thousands)	Level 1		Level 2		Level 3		Fair Value
Assets:
Fixed maturities, available-for-sale
U.S. Treasury obligations	$	—	$	243,903	$	—	$	243,903
U.S. Government-sponsored enterprise obligations	—		14,894		—		14,894
State and municipal bonds	—		446,601		—		446,601
Corporate debt, multiple observable inputs	—		1,646,713		—		1,646,713
Corporate debt, limited observable inputs	—		—		81,062		81,062

Residential mortgage-backed securities	—		478,799		—		478,799
Agency commercial mortgage-backed securities	—		6,727		—		6,727
Other commercial mortgage-backed securities	—		201,786		—		201,786
Other asset-backed securities	—		457,948		3,774		461,722
Fixed maturities, trading	—		53,157		—		53,157
Equity investments
Financial	9,006		2,310		273		11,589
Utilities/Energy	724		—		—		724

Industrial	—		—		5,233		5,233
Bond funds	101,243		—		—		101,243
All other	11,369		—		—		11,369
Short-term investments	185,492		69,430		—		254,922
Other investments	—		1,577		500		2,077
Other assets	—		6,094		—		6,094
Total assets categorized within the fair value hierarchy	$	307,834	$	3,629,939	$	90,842	4,028,615
Assets carried at NAV, which approximates fair value and which are not categorized within the fair value hierarchy, reported as a part of:

Investment in unconsolidated subsidiaries							226,269
Total assets at fair value							$	4,254,884

Liabilities:
Other liabilities	$	6,680	$	—	$	—	$	6,680
Total liabilities categorized within the fair value hierarchy	$	6,680	$	—	$	—	$	6,680

Schedule of Quantitative Information Regarding Level 3 Valuations

Quantitative Information Regarding Level 3 Valuations

Below is quantitative information regarding securities in the Level 3 category, by security type:

Fair Value at

($ in thousands)

September 30, 2025

December 31, 2024

Valuation Technique

Unobservable Input

Range
(Weighted Average)

Assets:

Corporate debt, limited observable inputs

$77,906

$81,062

Market Comparable
Securities

Comparability Adjustment

0% - 5% (2.5%)

Discounted Cash Flows

Comparability Adjustment

0% - 5% (2.5%)

Other asset-backed securities

$8,235

$3,774

Market Comparable
Securities

Comparability Adjustment

0% - 5% (2.5%)

Discounted Cash Flows

Comparability Adjustment

0% - 5% (2.5%)

Equity investments

$4,526

$5,506

Discounted Cash Flows

Comparability Adjustment

0% - 10% (5%)

Other investments

$521

$500

Discounted Cash Flows

Comparability Adjustment

0% - 10% (5%)

Schedule of Fair Value Measurements - Level 3 Assets & Liabilities

The following tables present summary information regarding changes in the fair value of assets and liabilities measured using Level 3 inputs.


	September 30, 2025
	Level 3 Fair Value Measurements – Assets
(In thousands)	Corporate Debt		Asset-backed Securities		Equity Investments		Other Investments		Total
Balance, June 30, 2025	$	80,344	$	9,449	$	4,526	$	1,021	$	95,340
Total gains (losses) realized and unrealized:
Included in earnings, as a part of:
Net investment income (loss)	24		3		—		—		27

Net investment gains (losses)	—		—		(590)		—		(590)

Included in other comprehensive income (loss)	224		98		—		—		322
Purchases	2,734		3,500		590		—		6,824
Sales	(5,444)		(49)		—		(500)		(5,993)
Transfers in	901		—		—		—		901
Transfers out	(877)		(4,766)		—		—		(5,643)
Balance, September 30, 2025	$	77,906	$	8,235	$	4,526	$	521	$	91,188
Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets held at period-end	$	—	$	—	$	(590)	$	—	$	(590)


	September 30, 2025
	Level 3 Fair Value Measurements - Assets

(In thousands)	Corporate Debt		Asset-backed Securities		Equity Investments		Other Investments		Total Assets
Balance, December 31, 2024	$	81,062	$	3,774	$	5,506	$	500	$	90,842
Total gains (losses) realized and unrealized:
Included in earnings, as a part of:
Net investment income (loss)	24		3		—		—		27

Net investment gains (losses)	(1,727)		—		(1,570)		—		(3,297)

Included in other comprehensive income (loss)	692		69		—		—		761
Purchases	12,533		8,321		590		521		21,965

Sales	(9,831)		(316)		—		(500)		(10,647)
Transfers in	6,968		2,198		—		—		9,166
Transfers out	(11,815)		(5,814)		—		—		(17,629)
Balance, September 30, 2025	$	77,906	$	8,235	$	4,526	$	521	$	91,188
Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets held at period-end	$	—	$	—	$	(1,278)	$	—	$	(1,278)


	September 30, 2024
	Level 3 Fair Value Measurements – Assets
(In thousands)	Corporate Debt		Asset-backed Securities		Equity Investments		Other Investments		Total Assets
Balance, June 30, 2024	$	66,951	$	724	$	4,238	$	500	$	72,413
Total gains (losses) realized and unrealized:
Included in earnings, as a part of:
Net investment income	—		2		—		—		2

Net investment gains (losses)	—		—		(68)		—		(68)

Included in other comprehensive income (loss)	95		—		—		—		95
Purchases	5,133		1,998		319		—		7,450
Sales	(958)		—		—		—		(958)
Transfers in	3,587		—		—		—		3,587

Balance, September 30, 2024	$	74,808	$	2,724	$	4,489	$	500	$	82,521
Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets and liabilities held at period-end	$	—	$	—	$	(68)	$	—	$	(68)


	September 30, 2024
	Level 3 Fair Value Measurements
	Assets										Liabilities
(In thousands)	Corporate Debt		Asset-backed Securities		Equity Investments		Other Investments		Total Assets		Other Liabilities		Total Liabilities
Balance, December 31, 2023	$	82,377	$	4,414	$	5,237	$	5,126	$	97,154	$	(6,500)	$	(6,500)
Total gains (losses) realized and unrealized:
Included in earnings, as a part of:
Net investment income (loss)	—		2		—		—		2		—		—

Net investment gains (losses)	—		—		(1,067)		98		(969)		6,500		6,500

Included in other comprehensive income (loss)	(49)		(22)		—		—		(71)		—		—
Purchases	11,901		3,198		319		—		15,418		—		—
Sales	(2,497)		(217)		—		(252)		(2,966)		—		—
Transfers in	3,587		—		—		—		3,587		—		—
Transfers out	(20,511)		(4,651)		—		(4,472)		(29,634)		—		—
Balance, September 30, 2024	$	74,808	$	2,724	$	4,489	$	500	$	82,521	$	—	$	—
Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets and liabilities held at period-end	$	—	$	—	$	(1,067)	$	88	$	(979)	$	—	$	—

Schedule of Investments in LLCs and Limited Partnerships

The amount of ProAssurance's unfunded contractual commitments related to these investments as of September 30, 2025 and fair values of these investments as of September 30, 2025 and December 31, 2024 were as follows:


	Unfunded Contractual Commitments	Fair Value
(In thousands)	September 30, 2025	September 30, 2025		December 31, 2024


Investment in unconsolidated subsidiaries:
Private debt funds (1)	$3,799	$	11,823	$	14,190

Long/short equity funds (2)	None	—		4,246
Non-public equity funds (3)	$30,413	104,488		111,441

Credit funds (4)	$55,793	52,696		45,134

Strategy focused funds (5)	$62,270	51,525		51,258

Total investments carried at NAV		$	220,532	$	226,269

Below is additional information regarding each of the investments listed in the table above as of September 30, 2025.

(1)This investment is comprised of interests in two unrelated LP funds that are structured to provide interest distributions primarily through diversified portfolios of private debt instruments. One LP allows redemption by special consent, while the other does not permit redemption. Income and capital are to be periodically distributed at the discretion of the LPs over an anticipated time frame that spans from three to eight years.

(2)This investment is comprised of one LP fund, which holds long and short publicly traded securities that will passively generate income. This fund was fully redeemed in the third quarter of 2025.

(3)This investment is comprised of interests in multiple unrelated LP funds, each structured to provide capital appreciation through diversified investments in private equity, which can include investments in buyout, venture capital, debt including senior, second lien and mezzanine, distressed debt, collateralized loan obligations and other private equity-oriented LPs. Two of the LPs allow redemption by terms set forth in the LP agreements; the others do not permit redemption. Income and capital are to be periodically distributed at the discretion of the LP over time frames that are anticipated to span up to ten years.

(4)This investment is comprised of multiple unrelated LP funds. Three funds seek to obtain superior risk-adjusted absolute returns through a diversified portfolio of debt securities, including bonds, loans and other asset-backed instruments. The remaining funds focus on private middle market company mezzanine and senior secured loans, opportunities across the credit spectrum, mortgage backed-loans, as well as various types of loan-backed investments. One fund allows redemptions at any quarter-end with prior notice requirements of 180 days, while another fund allows for redemptions with consent of the General Partner. The remaining funds do not allow redemptions. For the funds that do not allow redemptions, income and capital are to be periodically distributed at the discretion of the LP over time frames throughout the remaining life of the funds.

(5)This investment is comprised of multiple unrelated LPs/LLCs funds. One fund is an LLC focused on investing in North American consumer products companies, comprised of equity and equity-related securities, as well as debt instruments. A second fund is focused on aircraft investments, along with components and assets related to aircraft. A third fund is an LLC focused on acquiring ownership stakes in insurance agencies. For all three funds, redemptions are not permitted. The remaining funds are real estate focused LPs, three of which allow for redemption with prior notice.

Schedule of Financial Instruments Not Measured at Fair Value

The following table provides the estimated fair value of the Company's financial instruments that, in accordance with GAAP for the type of investment, are measured using a methodology other than fair value. Fair values provided primarily fall within the Level 3 fair value category.


	September 30, 2025				December 31, 2024
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
BOLI	$	82,346	$	82,346	$	80,179	$	80,179
Other investments	$	7,172	$	7,172	$	5,189	$	5,189
Other assets	$	23,151	$	23,151	$	34,793	$	34,793
Financial liabilities:

Revolving Credit Agreement*	$	125,000	$	125,000	$	125,000	$	125,000
Term Loan*	$	115,625	$	115,625	$	120,313	$	120,313
Contribution Certificates	$	182,158	$	165,112	$	181,163	$	152,564

Other liabilities	$	28,955	$	28,955	$	33,793	$	33,793
* Carrying value excludes unamortized debt issuance costs.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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