Goodwill

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

Goodwill is recognized in conjunction with business acquisitions as the excess of the purchase consideration for the business acquisition over the fair value of identifiable assets acquired and liabilities assumed. The fair value of identifiable assets acquired and liabilities assumed, and thus goodwill, is subject to redetermination within a measurement period of up to one year following completion of a business acquisition. See Note 1 for further information on how the Company tests goodwill for impairment.

Goodwill is tested for impairment annually or more frequently if circumstances indicate an impairment may have occurred. The date of the Company's annual goodwill impairment test is October 1. Impairment of goodwill is tested at the reporting unit level. The reporting units are: Specialty P&C, Workers' Compensation Insurance, Segregated Portfolio Cell Reinsurance, Lloyd's Syndicates and Corporate. Of the five reporting units, only the Segregated Portfolio Cell Reinsurance reporting unit has goodwill at December 31, 2024.

Interim Impairment Assessment

As discussed in Note 1, during the third quarter of 2023 ProAssurance recorded a $44.1 million charge to fully impair the goodwill in the Workers' Compensation Insurance reporting unit.

Annual Impairment Assessments

The Company performed its annual goodwill impairment assessment on October 1, 2024 and October 1, 2023. For both annual assessments, management concluded that it was not more likely than not that the fair value of the Segregated Portfolio Cell Reinsurance reporting unit was less than its carrying value as of the testing date; therefore, no further impairment testing was required.

There were no changes in the carrying amount of goodwill or accumulated impairment losses for the year ended December 31, 2024. The table below presents the changes in the carrying amount of goodwill and accumulated impairment losses by reporting unit for the year ended December 31, 2023:

	Reporting Unit
(In thousands)	Specialty P&C		Workers' Compensation Insurance		Segregated Portfolio Cell Reinsurance		Total
At December 31, 2023:
Goodwill, gross	$	161,115	$	44,110	$	5,500	$	210,725
Accumulated impairment losses*	(161,115)		(44,110)		—		(205,225)
Goodwill, net	$	—	$	—	$	5,500	$	5,500
Goodwill, net as of January 1, 2023	$	—	$	44,110	$	5,500	$	49,610
Impairment losses	—		(44,110)		—		(44,110)
Goodwill, net as of December 31, 2023	$	—	$	—	$	5,500	$	5,500
*Accumulated impairment losses include the $44.1 million impairment loss recognized in relation to the Workers' Compensation Insurance reporting unit during the third quarter of 2023 and the $161.1 million impairment loss recognized during the third quarter of 2020 in relation to the Specialty P&C reporting unit.