XML 123 R29.htm IDEA: XBRL DOCUMENT v3.20.1
Segment Information (Tables)
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Schedule of segment reporting information, by segment
Financial results by segment were as follows:
 
Three Months Ended March 31, 2020
(In thousands)
Specialty P&C
 
Workers' Compensation Insurance
 
Segregated Portfolio Cell Reinsurance
 
Lloyd's Syndicates
 
Corporate
 
Inter-segment Eliminations
 
Consolidated
Net premiums earned
$
120,359

 
$
44,515

 
$
16,980

 
$
22,001

 
$
—

 
$
—

 
$
203,855

Net investment income
—

 
—

 
254

 
1,159

 
19,417

 
—

 
20,830

Equity in earnings (loss) of unconsolidated subsidiaries
—

 
—

 
—

 
—

 
(1,562
)
 
—

 
(1,562
)
Net realized gains (losses)
—

 
—

 
(3,207
)
 
81

 
(25,547
)
 
—

 
(28,673
)
Other income (expense)(1)
1,698

 
757

 
136

 
(232
)
 
633

 
(741
)
 
2,251

Net losses and loss adjustment expenses
(110,931
)
 
(29,769
)
 
(9,352
)
 
(14,780
)
 
—

 
—

 
(164,832
)
Underwriting, policy acquisition and operating expenses(1)
(29,585
)
 
(14,164
)
 
(5,079
)
 
(9,142
)
 
(4,827
)
 
741

 
(62,056
)
SPC U.S. federal income tax expense(2)
—

 
—

 
(222
)
 
—

 
—

 
—

 
(222
)
SPC dividend (expense) income
—

 
—

 
508

 
—

 
—

 
—

 
508

Interest expense
—

 
—

 
—

 
—

 
(4,129
)
 
—

 
(4,129
)
Income tax benefit (expense)
—

 
—

 
—

 
29

 
12,047

 
—

 
12,076

Segment operating results
$
(18,459
)
 
$
1,339

 
$
18

 
$
(884
)
 
$
(3,968
)
 
$
—

 
$
(21,954
)
Significant non-cash items:
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization, net of accretion
$
1,580

 
$
926

 
$
69

 
$
9

 
$
2,150

 
$
—

 
$
4,734


 
Three Months Ended March 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
$
124,067

 
$
45,939

 
$
19,502

 
$
18,641

 
$
—

 
$
—

 
$
208,149

Net investment income
—

 
—

 
448

 
1,006

 
21,364

 
—

 
22,818

Equity in earnings (loss) of unconsolidated subsidiaries
—

 
—

 
—

 
—

 
(810
)
 
—

 
(810
)
Net realized gains (losses)
—

 
—

 
2,141

 
178

 
34,304

 
—

 
36,623

Other income (expense)(1)
1,209

 
729

 
87

 
(146
)
 
905

 
(689
)
 
2,095

Net losses and loss adjustment expenses
(107,658
)
 
(30,443
)
 
(10,745
)
 
(10,909
)
 
—

 
—

 
(159,755
)
Underwriting, policy acquisition and operating expenses(1)
(29,615
)
 
(14,192
)
 
(5,235
)
 
(8,469
)
 
(4,570
)
 
689

 
(61,392
)
SPC U.S. federal income tax expense(2)
—

 
—

 
—

 
—

 
—

 
—

 
—

SPC dividend (expense) income
—

 
—

 
(4,787
)
 
—

 
—

 
—

 
(4,787
)
Interest expense
—

 
—

 
—

 
—

 
(4,330
)
 
—

 
(4,330
)
Income tax benefit (expense)
—

 
—

 
—

 
(304
)
 
(6,657
)
 
—

 
(6,961
)
Segment operating results
$
(11,997
)
 
$
2,033

 
$
1,411

 
$
(3
)
 
$
40,206

 
$
—

 
$
31,650

Significant non-cash items:
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization, net of accretion
$
1,736

 
$
977

 
$
46

 
$
(3
)
 
$
2,280

 
$
—

 
$
5,036

(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) Represents the provision for U.S. federal income taxes for SPCs at Inova Re, which have elected to be taxed as a U.S. corporation under Section 953(d) of the Internal Revenue Code. U.S. federal income taxes are included in the total SPC net operating results and are paid by the individual SPCs.
Schedule of gross premiums by product
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.
 
Three Months Ended March 31
(In thousands)
2020
 
2019
Specialty P&C Segment
 
 
 
Gross premiums earned:
 
 
 
Healthcare professional liability
$
123,366

 
$
128,021

Legal professional liability
6,751

 
6,560

Medical technology liability
8,529

 
8,302

Other
377

 
136

Ceded premiums earned
(18,664
)
 
(18,952
)
Segment net premiums earned
120,359

 
124,067

 
 
 
 
Workers' Compensation Insurance Segment
 
 
 
Gross premiums earned:
 
 
 
Traditional business
47,485

 
49,285

Alternative market business
18,128

 
20,991

Ceded premiums earned
(21,098
)
 
(24,337
)
Segment net premiums earned
44,515

 
45,939

 
 
 
 
Segregated Portfolio Cell Reinsurance Segment
 
 
 
Gross premiums earned:
 
 
 
Workers' compensation(1)
17,513

 
20,496

Healthcare professional liability(2)
1,677

 
1,323

Other
—

 
120

Ceded premiums earned
(2,210
)
 
(2,437
)
Segment net premiums earned
16,980

 
19,502

 
 
 
 
Lloyd's Syndicates Segment
 
 
 
Gross premiums earned:
 
 
 
Property and casualty(3)
28,196

 
23,828

Ceded premiums earned
(6,195
)
 
(5,187
)
Segment net premiums earned
22,001

 
18,641

 

 

Consolidated net premiums earned
$
203,855

 
$
208,149

(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 a nominal amount of premium assumed from the Specialty P&C segment for the three months ended March 31, 2019.