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Segment Information (Tables)
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Schedule of segment reporting information
Financial results by segment were as follows:
 
Year Ended December 31, 2019
(In thousands)
Specialty P&C
 
Workers' Compensation Insurance
 
Segregated Portfolio Cell Reinsurance
 
Lloyd's Syndicates
 
Corporate
 
Inter-segment Eliminations
 
Consolidated
Net premiums earned
$
499,058

 
$
189,240

 
$
78,563

 
$
80,671

 
$
—

 
$
—

 
$
847,532

Net investment income
—

 
—

 
1,578

 
4,551

 
87,140

 
—

 
93,269

Equity in earnings (loss) of unconsolidated subsidiaries
—

 
—

 
—

 
—

 
(10,061
)
 
—

 
(10,061
)
Net realized gains (losses)
—

 
—

 
4,020

 
768

 
55,086

 
—

 
59,874

Other income (expense)(1)
5,796

 
2,399

 
559

 
(573
)
 
3,478

 
(2,439
)
 
9,220

Net losses and loss adjustment expenses
(532,485
)
 
(121,649
)
 
(52,412
)
 
(47,369
)
 
—

 
—

 
(753,915
)
Underwriting, policy acquisition and operating expenses(1)(2)
(120,310
)
 
(57,520
)
 
(24,260
)
 
(34,711
)
 
(19,146
)
 
2,439

 
(253,508
)
Segregated portfolio cells dividend (expense) income
—

 
—

 
(4,579
)
 
—

 
—

 
—

 
(4,579
)
Interest expense
—

 
—

 
—

 
—

 
(16,636
)
 
—

 
(16,636
)
Income tax benefit (expense)
—

 
—

 
—

 
—

 
29,808

 
—

 
29,808

Segment operating results
$
(147,941
)
 
$
12,470

 
$
3,469

 
$
3,337

 
$
129,669

 
$
—

 
$
1,004

Significant non-cash items:
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization, net of accretion
$
6,586

 
$
3,825

 
$
(41
)
 
$
(7
)
 
$
8,302

 
$
—

 
$
18,665

 
Year Ended December 31, 2018
(In thousands)
Specialty P&C
 
Workers' Compensation Insurance
 
Segregated Portfolio Cell Reinsurance
 
Lloyd's Syndicates
 
Corporate
 
Inter-segment Eliminations
 
Consolidated
Net premiums earned
$
491,787

 
$
186,079

 
$
73,940

 
$
67,047

 
$
—

 
$
—

 
$
818,853

Net investment income
—

 
—

 
1,566

 
3,358

 
86,960

 
—

 
91,884

Equity in earnings (loss) of unconsolidated subsidiaries
—

 
—

 
—

 
—

 
8,948

 
—

 
8,948

Net realized gains (losses)
—

 
—

 
(3,149
)
 
(460
)
 
(39,879
)
 
—

 
(43,488
)
Other income (expense)(1)
5,844

 
2,412

 
211

 
322

 
3,525

 
(2,481
)
 
9,833

Net losses and loss adjustment expenses
(384,431
)
 
(118,483
)
 
(38,726
)
 
(51,570
)
 
—

 
—

 
(593,210
)
Underwriting, policy acquisition and operating expenses(1)(2)
(112,419
)
 
(55,693
)
 
(22,426
)
 
(31,686
)
 
(18,767
)
 
2,435

 
(238,556
)
Segregated portfolio cells dividend (expense) income
—

 
—

 
(9,122
)
 
—

 
—

 
—

 
(9,122
)
Interest expense
—

 
—

 
—

 
—

 
(16,163
)
 
46

 
(16,117
)
Income tax benefit (expense)
—

 
—

 
—

 
317

 
17,715

 
—

 
18,032

Segment operating results
$
781

 
$
14,315

 
$
2,294


$
(12,672
)
 
$
42,339

 
$
—

 
$
47,057

Significant non-cash items:
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization, net of accretion
$
7,050

 
$
3,850

 
$
441

 
$
(8
)
 
$
9,922

 
$
—

 
$
21,255

 
Year Ended December 31, 2017
(In thousands)
Specialty P&C
 
Workers' Compensation Insurance
 
Segregated Portfolio Cell Reinsurance
 
Lloyd's Syndicates
 
Corporate
 
Inter-segment Eliminations
 
Consolidated
Net premiums earned
$
449,823

 
$
163,309

 
$
68,197

 
$
57,202

 
$
—

 
$
—

 
$
738,531

Net investment income
—

 
—

 
1,059

 
1,736

 
92,867

 
—

 
95,662

Equity in earnings (loss) of unconsolidated subsidiaries
—

 
—

 
—

 
—

 
8,033

 
—

 
8,033

Net realized gains (losses)
—

 
—

 
3,914

 
107

 
12,388

 
—

 
16,409

Other income (expense)(1)
5,688

 
2,096

 
115

 
(1,476
)
 
2,888

 
(1,797
)
 
7,514

Net losses and loss adjustment expenses
(285,250
)
 
(102,233
)
 
(37,455
)
 
(44,220
)
 
—

 
—

 
(469,158
)
Underwriting, policy acquisition and operating expenses(1)
(107,972
)
 
(52,576
)
 
(20,764
)
 
(26,963
)
 
(29,275
)
 
1,797

 
(235,753
)
Segregated portfolio cells dividend (expense) income(3)
(5,181
)
 
—

 
(10,590
)
 
—

 
—

 
—

 
(15,771
)
Interest expense
—

 
—

 
—

 
—

 
(16,844
)
 
—

 
(16,844
)
Income tax benefit (expense)(3)
—

 
—

 
—

 
568

 
(21,927
)
 
—

 
(21,359
)
Segment operating results
$
57,108

 
$
10,596

 
$
4,476

 
$
(13,046
)
 
$
48,130

 
$
—

 
$
107,264

Significant non-cash items:
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization, net of accretion
$
7,922

 
$
3,480

 
$
680

 
$
(20
)
 
$
16,734

 
$
—

 
$
28,796

(1) Certain fees for services provided to the SPCs at Inova Re and Eastern Re are recorded as expenses within the Segregated Portfolio Cell Reinsurance segment and as other income within the Workers' Compensation Insurance segment. These fees are primarily SPC rental fees and are eliminated between segments in consolidation.
(2) Underwriting, policy acquisition and operating expenses in both the years ended December 31, 2019 and 2018 included a provision for U.S. federal income taxes of $1.1 million and $0.4 million, respectively, for SPCs at Inova Re that have elected to be taxed as U.S. taxpayers. The portion of U.S. federal income taxes attributable to external cell participants is reflected in SPC dividend (expense) income.
(3) During 2017, ProAssurance recognized a $5.2 million pre-tax expense related to previously unrecognized SPC dividend expense for the cumulative earnings of unrelated parties that have owned segregated portfolio cells at various periods since 2003 in a Bermuda captive insurance operation managed by the Company's HCPL line of business within the Specialty P&C segment. The expense recorded in 2017 related to periods prior to the then current period and was unrelated to the Company's Cayman Islands captive operations. The $1.8 million tax impact of the expense recognized in 2017 was included in the Corporate segment's income tax benefit (expense).
Schedule of product and service revenue from external customers
The following table provides detailed information regarding ProAssurance's gross premiums earned by product as well as a reconciliation to net premiums earned. All gross premiums earned are from external customers except as noted. ProAssurance's insured risks are primarily within the U.S.
 
 
Year Ended December 31
(In thousands)
 
2019
 
2018
 
2017
Specialty P&C Segment
 
 
 
 
 
 
Gross premiums earned:
 
 
 
 
 
 
Healthcare professional liability
 
$
517,977

 
$
518,303

 
$
477,561

Legal professional liability
 
26,766

 
26,094

 
25,771

Medical technology liability
 
33,957

 
35,157

 
33,836

Other
 
2,096

 
468

 
415

Ceded premiums earned
 
(81,738
)
 
(88,235
)
 
(87,760
)
Segment net premiums earned
 
499,058

 
491,787

 
449,823

 
 
 
 
 
 
 
Workers' Compensation Insurance Segment
 
 
 
 
 
 
Gross premiums earned:
 
 
 
 
 
 
Traditional business
 
203,195

 
199,466

 
173,246

Alternative market business
 
84,214

 
83,508

 
80,698

Ceded premiums earned
 
(98,169
)
 
(96,895
)
 
(90,635
)
Segment net premiums earned
 
189,240

 
186,079

 
163,309

 
 
 
 
 
 
 
Segregated Portfolio Cell Reinsurance Segment
 
 
 
 
 
 
Gross premiums earned:
 
 
 
 
 
 
Workers' compensation (1)
 
81,765

 
78,255

 
72,814

Healthcare professional liability (2)
 
6,059

 
5,009

 
4,097

Other
 
480

 
—

 
—

Ceded premiums earned
 
(9,741
)
 
(9,324
)
 
(8,714
)
Segment net premiums earned
 
78,563

 
73,940

 
68,197

 
 
 
 
 
 
 
Lloyd's Syndicates Segment
 
 
 
 
 
 
Gross premiums earned:
 
 
 
 
 
 
Property and casualty (3)
 
101,222

 
83,307

 
69,749

Ceded premiums earned
 
(20,551
)
 
(16,260
)
 
(12,547
)
Segment net premiums earned
 
80,671

 
67,047

 
57,202

 
 
 
 
 
 
 
Consolidated net premiums earned
 
$
847,532

 
$
818,853

 
$
738,531

(1) Premium for all periods is assumed from the Workers' Compensation Insurance segment.
(2) Premium for all periods is assumed from the Specialty P&C segment.
(3) Includes premium assumed from the Specialty P&C segment of $0.1 million, $5.0 million and $11.8 million for years ended December 31, 2019, 2018 and 2017, respectively.