
	December 31, 2024
(In thousands)	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturities, available-for-sale
U.S. Treasury obligations	$	256,939	$	—	$	107	$	13,143	$	243,903
U.S. Government-sponsored enterprise obligations	15,586		—		—		692		14,894
State and municipal bonds	470,974		—		1,135		25,508		446,601
Corporate debt	1,833,207		2,608		4,241		107,065		1,727,775
Residential mortgage-backed securities	536,194		197		1,628		58,826		478,799
Agency commercial mortgage-backed securities	7,600		—		—		873		6,727
Other commercial mortgage-backed securities	214,019		406		439		12,266		201,786
Other asset-backed securities	469,316		188		1,725		9,131		461,722
	$	3,803,835	$	3,399	$	9,275	$	227,504	$	3,582,207


	December 31, 2023
(In thousands)	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturities, available-for-sale
U.S. Treasury obligations	$	259,834	$	—	$	165	$	16,474	$	243,525
U.S. Government-sponsored enterprise obligations	19,752		—		2		1,030		18,724
State and municipal bonds	482,367		—		1,885		29,871		454,381
Corporate debt	1,883,308		—		4,025		136,759		1,750,574
Residential mortgage-backed securities	481,267		211		2,876		53,795		430,137
Agency commercial mortgage-backed securities	9,369		—		5		987		8,387
Other commercial mortgage-backed securities	210,469		151		60		20,904		189,474
Other asset-backed securities	412,354		193		1,104		14,870		398,395
	$	3,758,720	$	555	$	10,122	$	274,690	$	3,493,597

The recorded cost basis and estimated fair value of available-for-sale fixed maturities at December 31, 2024, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


(In thousands)	Amortized Cost		Due in one year or less		Due after one year through five years		Due after five years through ten years		Due after ten years		Total Fair Value
Fixed maturities, available-for-sale
U.S. Treasury obligations	$	256,939	$	62,307	$	152,785	$	26,312	$	2,499	$	243,903
U.S. Government-sponsored enterprise obligations	15,586		5,514		6,932		499		1,949		14,894
State and municipal bonds	470,974		44,589		143,632		150,338		108,042		446,601
Corporate debt	1,833,207		179,365		897,261		537,948		113,201		1,727,775
Residential mortgage-backed securities	536,194										478,799
Agency commercial mortgage-backed securities	7,600										6,727
Other commercial mortgage-backed securities	214,019										201,786
Other asset-backed securities	469,316										461,722
	$	3,803,835									$	3,582,207

Cash and securities with a carrying value of $52.2 million at December 31, 2024 were on deposit with various state insurance departments to meet regulatory requirements. ProAssurance also held securities with a carrying value of $68.2 million at December 31, 2024 that are pledged as collateral security for advances under the Company's borrowing relationships with FHLBs.

As a member of Lloyd's, ProAssurance is required to maintain capital at Lloyd's, referred to as FAL, to support the Company's previous participation in underwriting years that remain open at Syndicate 1729. At December 31, 2024, the fair value of ProAssurance's FAL investments was $11.7 million and were comprised of cash and cash equivalents and investment securities, primarily available-for-sale fixed maturities on deposit with Lloyd's, in order to satisfy these FAL requirements. During 2024, ProAssurance received a return of approximately $9.1 million of cash from its FAL balances due to lower capital requirements for the 2023 underwriting year and lower economic capital assessments.


	December 31, 2024
	Total				Less than 12 months				12 months or longer
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(In thousands)	Value		Loss		Value		Loss		Value		Loss
Fixed maturities, available-for-sale
U.S. Treasury obligations	$	213,505	$	13,143	$	33,822	$	1,561	$	179,683	$	11,582
U.S. Government-sponsored enterprise obligations	14,894		692		2,603		69		12,291		623
State and municipal bonds	378,425		25,508		82,312		2,261		296,113		23,247
Corporate debt	1,350,139		107,065		222,614		9,593		1,127,525		97,472
Residential mortgage-backed securities	378,461		58,826		118,908		3,810		259,553		55,016
Agency commercial mortgage-backed securities	6,727		873		426		8		6,301		865
Other commercial mortgage-backed securities	151,386		12,266		17,337		188		134,049		12,078
Other asset-backed securities	202,517		9,131		65,870		560		136,647		8,571
	$	2,696,054	$	227,504	$	543,892	$	18,050	$	2,152,162	$	209,454


	December 31, 2023
	Total				Less than 12 months				12 months or longer
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(In thousands)	Value		Loss		Value		Loss		Value		Loss
Fixed maturities, available-for-sale
U.S. Treasury obligations	$	213,634	$	16,474	$	32,925	$	1,364	$	180,709	$	15,110
U.S. Government-sponsored enterprise obligations	18,428		1,030		4,128		242		14,300		788
State and municipal bonds	378,313		29,871		48,960		2,287		329,353		27,584
Corporate debt	1,524,940		136,759		84,221		5,054		1,440,719		131,705
Residential mortgage-backed securities	313,082		53,795		74,463		10,271		238,619		43,524
Agency commercial mortgage-backed securities	7,955		987		212		1		7,743		986
Other commercial mortgage-backed securities	184,416		20,904		18,092		1,140		166,324		19,764
Other asset-backed securities	293,447		14,870		30,115		867		263,332		14,003
	$	2,934,215	$	274,690	$	293,116	$	21,226	$	2,641,099	$	253,464

As of December 31, 2024, excluding U.S. Government or U.S. Government-sponsored enterprise obligations, there were 2,350 debt securities (58.7% of all available-for-sale fixed maturity securities held) in an unrealized loss position representing 1,235 issuers. The greatest and second greatest unrealized loss positions among those securities were approximately $5.2 million and $3.4 million, respectively. The securities were evaluated for impairment as of December 31, 2024.

As of December 31, 2023, excluding U.S. Government or U.S. Government-sponsored enterprise obligations, there were 2,531 debt securities (65.6% of all available-for-sale fixed maturity securities held) in an unrealized loss position representing 1,319 issuers. The greatest and second greatest unrealized loss positions among those securities were approximately $5.0 million and $3.2 million, respectively. The securities were evaluated for impairment as of December 31, 2023.

Each quarter, ProAssurance performs a detailed analysis for the purpose of assessing whether any of the securities it holds in an unrealized loss position has suffered an impairment due to credit or non-credit factors. A detailed discussion of the factors considered in the assessment is included in Note 1.

Fixed maturity securities held in an unrealized loss position at December 31, 2024, excluding asset-backed securities, have paid all scheduled contractual payments and are expected to continue. Expected future cash flows of asset-backed securities, excluding those issued by GNMA, FNMA and FHLMC, held in an unrealized loss position were estimated as part of the December 31, 2024 impairment evaluation using the most recently available six-month historical performance data for the collateral (loans) underlying the security or, if historical data was not available, sector based assumptions, and equaled or exceeded the current amortized cost basis of the security.


	Year Ended December 31, 2024
(In thousands)	Corporate Debt		Residential mortgage-backed securities		Other commercial mortgage-backed securities		Other asset-backed securities		Total
Balance, at December 31, 2023	$	—	$	211	$	151	$	193	$	555
Additional credit losses related to securities for which:
No allowance for credit losses has been previously recognized	2,138		—		406		—		2,544

An allowance for credit losses was recorded in a previous period	470		—		—		—		470
Reductions related to:
Securities sold during the period	—		(14)		(151)		(5)		(170)



Balance, at December 31, 2024	$	2,608	$	197	$	406	$	188	$	3,399


	Year Ended December 31, 2023
(In thousands)	Residential mortgage-backed securities		Other commercial mortgage-backed securities		Other asset-backed securities		Total
Balance, at December 31, 2022	$	229	$	—	$	198	$	427
Additional credit losses related to securities for which:
No allowance for credit losses has been previously recognized	—		151		—		151


Reductions related to:
Securities sold during the period	(18)		—		(5)		(23)



Balance, at December 31, 2023	$	211	$	151	$	193	$	555

ProAssurance's equity investments are carried at fair value with changes in fair value recognized in income as a component of net investment gains (losses) during the period of change. Equity investments on the Consolidated Balance Sheets as of December 31, 2024 and 2023 primarily included bond funds and, to a lesser degree, stocks and investment funds.

ProAssurance's short-term investments, which have a maturity at purchase of one year or less, are primarily comprised of investments in U.S. treasury obligations, commercial paper, money market funds and a certificate of deposit. Short-term investments are carried at fair value which approximates the cost of the securities due to their short-term nature.

ProAssurance holds BOLI policies that are carried at the current cash surrender value of the policies (original cost $38 million). All insured individuals were members of the Company's management at the time the policies were acquired. The primary purpose of the program is to offset future employee benefit expenses through earnings on the cash value of the policies. ProAssurance is the owner and beneficiary of these policies.


	Year Ended December 31
(In thousands)	2024		2023		2022
Fixed maturities	$	133,577	$	113,721	$	93,736
Equities	4,758		4,610		3,706
Short-term investments, including Other	12,463		15,476		5,681
BOLI	2,316		2,489		1,141
Investment fees and expenses	(8,576)		(7,877)		(8,292)
Net investment income	$	144,538	$	128,419	$	95,972


	December 31, 2024	Carrying Value
(In thousands)	Percentage Ownership	December 31, 2024		December 31, 2023

Qualified affordable housing project tax credit partnerships	See below	$	247	$	666

All other investments, primarily investment fund LPs/LLCs	See below	259,291		276,090
		$	259,538	$	276,756

Qualified affordable housing project tax credit partnership interests held by ProAssurance generate investment returns by providing tax benefits to fund investors in the form of tax credits and project operating losses. The carrying value of these investments reflects ProAssurance's total commitments (both funded and unfunded) to the partnerships, less any amortization. At December 31, 2024 and December 31, 2023, ProAssurance did not have an ownership percentage greater than 20% in any tax credit partnership interests. Since ProAssurance has the ability to exert influence over the partnerships but does not control them, all are accounted for using the equity method. See further discussion of the entities in which ProAssurance holds passive interests in Note 14.

ProAssurance holds interests in investment fund LPs/LLCs and other equity method investments and LPs/LLCs which are not considered to be investment funds. ProAssurance's ownership percentage relative to five and four of the LPs/LLCs is greater than 25% at December 31, 2024 and 2023, respectively, which is likely to be reduced as the funds mature and other investors participate in the funds; these investments had a carrying value of $18.0 million and $23.0 million at December 31, 2024 and 2023, respectively. ProAssurance's ownership percentage relative to the remaining investments and LPs/LLCs is less than 25%; these interests had a carrying value of $241.3 million and $253.1 million at December 31, 2024 and 2023, respectively. ProAssurance does not have the ability to exert control over any of these funds.

Equity in earnings (loss) of unconsolidated subsidiaries included losses from tax credit partnerships. Investment results recorded reflect ProAssurance's allocable portion of partnership operating results. Tax credits reduce income tax expense in the period they are utilized. The results recorded and tax credits recognized related to ProAssurance's tax credit partnership investments were as follows:


	Year Ended December 31
(In thousands)		2024		2023		2022
Qualified affordable housing project tax credit partnerships
Losses (gains) recorded		$	193	$	2,405	$	8,278
Tax credits recognized		$	32	$	631	$	4,805

Historic tax credit partnership*
Losses (gains) recorded		$	(864)	$	—	$	(1,212)

*ProAssurance holds a historic tax credit partnership which was fully amortized in 2020. This partnership generated investment returns by providing benefits to partnership investors in the form of tax credits, tax deductible project operating losses and distributions resulting from positive cash flows. ProAssurance received distributions associated with this investment during the fourth quarter of 2024 and second quarter of 2022 as a result of positive cash flows from completed projects, which were recognized as an operating gain.

ProAssurance accounts for its tax credit partnership investments under the equity method of accounting and records its allocable portion of the operating losses of the underlying properties based on estimates provided by the partnerships. For the Company's qualified affordable housing project tax credit partnerships, it adjusts its estimates of their allocable portion of operating losses periodically as actual operating results of the underlying properties become available. The primary benefits of tax credits and tax-deductible operating losses from the historic tax credit partnerships are earned in a short period with potential for additional cash flows extending over several years. For the years ended December 31, 2024, 2023 and 2022 the Company generated a nominal amount, $0.6 million and $4.8 million, respectively, of tax credits from its tax credit partnership investments, which were deferred and are expected to be utilized in future periods. For the year ended December 31, 2024, ProAssurance utilized approximately $5.9 million of tax credits carried forward from 2019 and, as of December 31, 2024, the Company had approximately $46.9 million of available tax credit carryforwards generated from its investments in tax credit partnerships which they expect to utilize in future periods (see further discussion in Note 5).

As previously discussed, ProAssurance holds certain investments that are measured using the equity method of accounting, primarily investments in LPs/LLCs, which are carried as a part of investment in unconsolidated subsidiaries on the Consolidated Balance Sheets. As of December 31, 2024, ProAssurance determined one equity method investee, WNG Aircraft Opportunities Fund II LP, to be significant. WNG Aircraft Opportunities Fund II LP invests in mid-life to older narrow body aircraft.

The following tables present aggregated gross summarized financial information for the fund as of December 31, 2024, including the portion not attributable to ProAssurance, derived from the fund's financial statements which are prepared in accordance with GAAP. As the majority of ProAssurance's equity method investments report their results to the Company on a one quarter lag, the majority of the summarized financial information below is for the twelve months ended September 30, 2024 and 2023.


Income Statement Information
(In thousands)	Year Ended September 30
	2024		2023		2022
Net investment income (loss)	$	74,769	$	(4,846)	$	(5,814)
Net investment gains (losses)	—		(475)		3,025
Net change in unrealized appreciation (depreciation)	27,152		20,976		8,171

Net gain (loss)	$	101,921	$	15,655	$	5,382

Net gain (loss) attributable to ProAssurance(1)	$	6,348	$	(4,517)	$	377

(1) Represents ProAssurance's share of the fund's aggregate income or loss, which is included as a component of equity in earnings (loss) of unconsolidated subsidiaries in its Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2024, 2023 and 2022.


	Year Ended December 31
(In thousands)	2024		2023		2022
Total impairment losses:


Corporate debt	$	(2,710)	$	(2,984)	$	(1,331)


Asset-backed securities	(588)		(127)		(441)
Portion of impairment losses recognized in other comprehensive income before taxes:
Corporate debt	102		—		—
Asset-backed securities	—		—		14
Net impairment losses recognized in earnings	(3,196)		(3,111)		(1,758)
Gross realized gains, available-for-sale fixed maturities	1,527		876		1,740
Gross realized (losses), available-for-sale fixed maturities	(4,116)		(1,860)		(3,387)

Net realized gains (losses), trading fixed maturities	34		(88)		(155)
Net realized gains (losses), equity investments	2,559		496		(5,252)
Net realized gains (losses), other investments	(826)		(2,417)		(222)
Change in unrealized holding gains (losses), trading fixed maturities	445		68		(613)
Change in unrealized holding gains (losses), equity investments	(2,313)		5,733		(22,166)
Change in unrealized holding gains (losses), convertible securities, carried at fair value	866		5,774		(10,557)

Other(1)	6,923		8,357		9,213
Net investment gains (losses)	$	1,903	$	13,828	$	(33,157)
(1) Includes gains of $6.5 million, $5.0 million and $9.0 million related to the decrease in the contingent consideration liability during 2024, 2023 and 2022, respectively. See further discussion on the contingent consideration in Note 2 and Note 8.

For the years ended December 31, 2024, 2023 and 2022, ProAssurance recognized credit-related impairment losses in earnings of $3.2 million, $3.1 million and $1.8 million, respectively, and, for the years ended December 31, 2024 and 2022, a nominal amount of non-credit impairment losses in OCI. The credit-related impairment losses recognized in 2024 primarily related to four corporate bonds in the real estate sector. The credit-related impairment losses recognized in 2023 related to a mortgage-backed security and two corporate bonds in the financial sector. The credit-related impairment losses recognized in 2022 related to a corporate bond in the consumer sector as well as certain mortgage-backed and other asset backed securities.


	Year Ended December 31
(In thousands)	2024		2023		2022
Balance beginning of period	$	57	$	57	$	—
Additional credit losses recognized during the period, related to securities for which:
No impairment has been previously recognized	740		—		610
Impairment has been previously recognized	470		—		—
Reductions due to:


Securities for which there is an intent to sell or will more likely than not be sold before recovery of amortized cost	—		—		(553)
Balance December 31	$	1,267	$	57	$	57