Schedule II - Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule II - Condensed Financial Information of Registrant

	December 31, 2016		December 31, 2015
Assets
Investment in subsidiaries, at equity	$	1,908,663	$	2,026,247
Fixed maturities available for sale, at fair value	267,412		202,501
Short-term investments	279,510		16,716
Investment in unconsolidated subsidiaries	845		—
Cash and cash equivalents	31,330		103,292
Due from subsidiaries	185		—
Other assets	33,350		46,146
Total Assets	$	2,521,295	$	2,394,902
Liabilities and Shareholders’ Equity
Liabilities:
Due to subsidiaries	$	—	$	14,803
Dividends payable	265,659		69,447
Other liabilities	8,733		4,440
Debt less debt issuance costs	448,202		347,858
Total Liabilities	722,594		436,548
Shareholders’ Equity:
Common stock	627		625
Other shareholders’ equity, including unrealized gains (losses) on securities of subsidiaries	1,798,074		1,957,729
Total Shareholders’ Equity	1,798,701		1,958,354
Total Liabilities and Shareholders’ Equity	$	2,521,295	$	2,394,902

	Year Ended December 31
	2016			2015			2014
Net investment income	$	6,359		$	5,017		$	3,295
Equity in earnings (loss) of unconsolidated subsidiaries	(155		)	—			—
Net realized investment gains (losses)	405			4,673			990
Other income (loss)	(960		)	378			660
	5,649			10,068			4,945
Expenses:
Interest expense	15,030			14,596			14,084
Other expenses	28,305			24,695			7,083
	43,335			39,291			21,167
Income (loss) before income tax expense (benefit) and equity in net income of consolidated subsidiaries	(37,686		)	(29,223		)	(16,222		)
Income tax expense (benefit)	(12,583		)	(11,657		)	(6,728		)
Income (loss) before equity in net income of consolidated subsidiaries	(25,103		)	(17,566		)	(9,494		)
Equity in net income of consolidated subsidiaries	176,184			133,763			206,059
Net income	$	151,081		$	116,197		$	196,565
Other comprehensive income	(6,456		)	(34,349		)	(1,457		)
Comprehensive income	$	144,625		$	81,848		$	195,108

	Year Ended December 31
	2016			2015			2014
Net cash provided (used) by operating activities	$	(10,549	)	$	(14,411	)	$	20,086
Investing activities
Purchases of equity securities trading	—			—			(310		)
(Investments in) distributions from unconsolidated subsidiaries, net:
Other partnership investments	(1,000		)	—			—
Proceeds from sale or maturities of:
Fixed maturities, available for sale	100,240			200,245			104,844
Equity securities trading	—			—			12,813
Net decrease (increase) in short-term investments	(262,169		)	26,074			149,202
Dividends from subsidiaries	122,030			107,870			67,188
Contribution of capital to subsidiaries	(1,983		)	—			(7,000		)
(Increase) decrease in restricted cash	—			—			78,000
Unsettled security transactions, net of change	(1,100		)	—			—
Funds (advanced) repaid for Syndicate 1729 FAL deposit	—			(9,642		)	(76,553		)
Funds (advanced) repaid under Syndicate 1729 credit agreement	1,695			(3,083		)	(9,107		)
Funds (advanced) repaid under strategic partnership line of credit	(3,090		)	—			—
Other	(2,805		)	(289		)	415
Net cash provided (used) by investing activities	(48,182		)	321,175			319,492
Financing activities
Proceeds from debt	100,000			100,000			—
Repurchase of common stock	(2,106		)	(172,772		)	(222,360		)
Subsidiary payments for common shares and share-based compensation awarded to subsidiary employees	11,384			6,063			8,301
Excess of tax benefit from share-based payment arrangements	688			379			1,631
Dividends to shareholders	(118,812		)	(217,626		)	(70,490		)
Other	(4,385		)	(6,716		)	(6,919		)
Net cash provided (used) by financing activities	(13,231		)	(290,672		)	(289,837		)
Increase (decrease) in cash and cash equivalents	(71,962		)	16,092			49,741
Cash and cash equivalents, beginning of period	103,292			87,200			37,459
Cash and cash equivalents, end of period	$	31,330		$	103,292		$	87,200
Supplemental disclosure of cash flow information:
Cash paid during the year for income taxes, net of refunds	$	(8,519	)	$	47,004		$	26,764
Cash paid during the year for interest	$	14,732		$	13,996		$	13,408
Significant non-cash transactions:
Dividends declared and not yet paid	$	265,659		$	69,447		$	167,744
Securities transferred at fair value as dividends from subsidiaries	$	174,270		$	206,880		$	227,412
Non-cash capital contribution to subsidiaries	$	—		$	87,719		$	—

Basis of Presentation

The registrant-only financial statements should be read in conjunction with ProAssurance Corporation’s Consolidated Financial Statements and Notes thereto.

At December 31, 2016 and 2015, PRA Parent’s investment in subsidiaries is stated at the initial consolidation value plus equity in the undistributed earnings of subsidiaries since the date of acquisition.

ProAssurance Corporation has a management agreement with several of its insurance subsidiaries whereby ProAssurance Corporation charges the subsidiaries a management fee for various management services provided to the subsidiary. Under the arrangement, the expenses associated with such services remain as expenses of ProAssurance Corporation and the management fee charged is reported as an offset to ProAssurance Corporation expenses. Prior to 2015, a substantial portion of expenses associated with services provided to insurance subsidiaries were directly allocated or directly charged to the insurance subsidiaries.

Reclassifications

On January 1, 2016 in accordance with adopted guidance, ProAssurance began presenting debt issuance costs as a direct deduction from the carrying amount of Debt on the Consolidated Balance Sheets and the Condensed Balance Sheets of the Registrant, and the respective December 31, 2016 and 2015 Balance Sheets have been conformed to the current presentation. Previously, debt issuance costs ($2.1 million at December 31, 2015) were reported in Other assets.