XML 70 R41.htm IDEA: XBRL DOCUMENT v3.25.0.1
Reserve for Losses and Loss Adjustment Expenses (Tables)
 12 Months Ended
Dec. 31, 2024
Insurance [Abstract]  
Schedule of Reserve for Losses and Loss Adjustment Expenses
Activity in the reserve for losses and loss adjustment expenses is summarized as follows:
(In thousands)202420232022
Balance, beginning of year$3,401,281 $3,471,147 $3,579,940 
Less reinsurance recoverables on unpaid losses and loss adjustment expenses445,573 431,889 451,741 
Net balance, beginning of year2,955,708 3,039,258 3,128,199 
Net losses:
Current year(1)
779,650 794,848 813,515 
(Favorable) unfavorable development of reserves established in prior years, net(2)
(40,215)5,646 (36,753)
Total739,435 800,494 776,762 
Paid related to:
Current year
(113,268)(101,996)(108,139)
Prior years
(733,248)(782,048)(757,564)
Total paid(846,516)(884,044)(865,703)
Net balance, end of year2,848,627 2,955,708 3,039,258 
Plus reinsurance recoverables on unpaid losses and loss adjustment expenses409,069 445,573 431,889 
Balance, end of year$3,257,696 $3,401,281 $3,471,147 
(1) Current year net losses for the year ended December 31, 2022 included $4.9 million of purchase accounting amortization of the negative VOBA associated with NORCAL's assumed unearned premium, which was amortized over a period in proportion to the earn-out of the associated premium as a reduction to current accident year net losses. As of June 30, 2022, the negative VOBA was fully amortized.
(2) Net prior accident year reserve development recognized for the years ended December 31, 2024, 2023 and 2022 included $5.3 million, $8.3 million and $10.8 million, respectively, of amortization of the purchase accounting fair value adjustment on NORCAL's assumed net reserve and amortization of the negative VOBA associated with NORCAL's DDR reserve which is recorded as a reduction to prior accident year net losses and loss adjustment expenses.
Schedule of Short-Duration Insurance Contracts Claims Development
ProAssurance has elected to present reserve history for NORCAL in all periods shown in the Medical Professional Liability tables below, including periods prior to acquisition.
Medical Professional Liability Claims-Made
Incurred Claims and Allocated Claim Adjustment Expenses, Net of ReinsuranceDecember 31, 2024
($ in thousands)Year Ended December 31IBNR*Cumulative Number of Reported Claims
2015201620172018201920202021202220232024
Accident YearUnaudited
2015$503,412 $486,760 $492,824 $491,180 $500,336 $500,550 $503,600 $503,628 $504,585 $498,249 $1,001 7,421 
2016— $484,153 $488,349 $507,586 $555,416 $554,395 $560,840 $557,097 $556,531 550,544 $5,116 7,927 
2017— — $508,072 $506,207 $577,401 $569,737 $573,570 $557,620 $554,336 558,362 $5,469 8,081 
2018— — — $544,617 $643,864 $630,169 $636,023 $642,948 $644,705 648,246 $(21,346)8,517 
2019— — — — $670,958 $664,934 $642,370 $646,676 $656,790 653,012 $1,645 8,476 
2020— — — — — $593,994 $574,274 $557,651 $601,642 600,104 $(8,655)6,758 
2021— — — — — — $527,718 $524,468 $508,391 500,764 $(12,560)5,400 
2022— — — — — — — $464,069 $475,752 476,551 $17,785 4,907 
2023— — — — — — — — $465,702 477,274 $50,765 4,487 
2024— — — — — — — — — 460,088 $249,409 3,719 
Total$5,423,194 
* Includes expected development on reported claims
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
(In thousands)Year Ended December 31
2015201620172018201920202021202220232024
Accident YearUnaudited
2015$26,664 $125,234 $256,791 $351,703 $410,506 $446,069 $463,224 $476,664 $482,757 $486,605 
2016— $27,442 $137,338 $276,548 $378,828 $440,163 $472,441 $499,431 $524,901 525,150 
2017— — $32,342 $147,515 $288,695 $351,548 $419,180 $467,423 $496,970 520,794 
2018— — — $34,238 $159,657 $279,204 $367,522 $450,952 $520,383 561,247 
2019— — — — $37,755 $144,225 $259,889 $364,411 $463,007 528,008 
2020— — — — — $32,270 $117,153 $234,804 $341,481 429,227 
2021— — — — — — $23,494 $110,483 $205,414 286,729 
2022— — — — — — — $24,792 $103,111 210,069 
2023— — — — — — — — $26,206 97,852 
2024— — — — — — — — — 27,029 
Total3,672,710 
All outstanding liabilities before 2015, net of reinsurance
19,970 
Liabilities for losses and loss adjustment expenses, net of reinsurance$1,770,454 
Medical Professional Liability Occurrence
Incurred Claims and Allocated Claim Adjustment Expenses, Net of ReinsuranceDecember 31, 2024
($ in thousands)Year Ended December 31IBNR*Cumulative Number of Reported Claims
2015201620172018201920202021202220232024
Accident YearUnaudited
2015$52,531 $54,890 $56,621 $57,606 $52,455 $51,276 $56,468 $61,198 $57,560 $56,817 $573 626 
2016— $56,089 $49,795 $53,358 $56,345 $66,886 $64,122 $68,674 $68,079 70,844 $1,302 787 
2017— — $45,463 $42,338 $40,983 $44,449 $46,865 $50,652 $50,747 49,727 $2,551 775 
2018— — — $59,351 $61,880 $63,576 $73,599 $74,419 $76,975 75,255 $5,977 752 
2019— — — — $63,548 $58,555 $70,926 $86,543 $87,535 83,533 $885 881 
2020— — — — — $165,955 $178,804 $181,643 $183,767 168,435 $37,585 1,974 
2021— — — — — — $82,590 $81,254 $86,436 87,403 $7,907 695 
2022— — — — — — — $82,436 $66,926 64,944 $21,656 482 
2023— — — — — — — — $56,795 58,064 $36,607 288 
2024— — — — — — — — — 62,272 $59,501 96 
Total$777,294 
* Includes expected development on reported claims
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
(In thousands)Year Ended December 31
2015201620172018201920202021202220232024
Accident YearUnaudited
2015$(180)$2,617 $9,953 $20,627 $28,482 $36,413 $41,800 $52,017 $54,100 $54,823 
2016— $44 $2,750 $15,433 $28,362 $40,766 $48,691 $54,324 $58,386 60,862 
2017— — $(6,631)$(3,385)$3,592 $11,051 $19,696 $30,489 $38,687 42,585 
2018— — — $444 $6,193 $15,229 $26,932 $37,828 $49,549 56,309 
2019— — — — $628 $4,575 $10,399 $26,359 $44,758 57,332 
2020— — — — — $397 $6,194 $21,100 $42,129 54,935 
2021— — — — — — $762 $4,335 $16,268 30,686 
2022— — — — — — — $675 $3,329 13,579 
2023— — — — — — — — $463 4,962 
2024— — — — — — — — — 469 
Total376,542 
All outstanding liabilities before 2015, net of reinsurance7,430 
Liabilities for losses and loss adjustment expenses, net of reinsurance$408,182 
Medical Technology Liability Claims-Made
Incurred Claims and Allocated Claim Adjustment Expenses, Net of ReinsuranceDecember 31, 2024
($ in thousands)Year Ended December 31IBNR*Cumulative Number of Reported Claims
2015201620172018201920202021202220232024
Accident YearUnaudited
2015$9,376 $8,757 $7,193 $5,929 $5,081 $4,664 $4,192 $3,499 $4,348 $4,568 $104 157 
2016— $9,200 $8,467 $7,413 $6,422 $6,241 $4,491 $5,145 $4,721 4,901 $157 182 
2017— — $11,049 $10,143 $8,306 $4,919 $3,381 $5,351 $4,349 4,299 $227 98 
2018— — — $10,141 $8,108 $7,506 $4,961 $4,646 $5,233 5,483 $1,129 216 
2019— — — — $10,072 $8,324 $9,588 $7,658 $8,907 7,332 $160 336 
2020— — — — — $11,082 $10,671 $9,150 $7,949 6,468 $2,718 179 
2021— — — — — — $13,914 $11,909 $9,927 10,512 $4,192 174 
2022— — — — — — — $15,014 $14,718 12,160 $9,083 181 
2023— — — — — — — — $16,268 15,543 $14,578 249 
2024— — — — — — — — — 16,860 $16,420 253 
Total$88,126 
* Includes expected development on reported claims
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
(In thousands)Year Ended December 31
2015201620172018201920202021202220232024
Accident YearUnaudited
2015$25 $440 $1,625 $2,097 $2,567 $2,911 $2,987 $2,989 $2,989 $2,989 
2016— $53 $1,690 $2,365 $2,959 $4,295 $4,342 $4,383 $4,415 4,593 
2017— — $56 $1,681 $2,017 $2,360 $2,867 $4,073 $4,072 4,072 
2018— — — $6 $191 $1,850 $2,651 $3,065 $4,185 4,188 
2019— — — — $584 $2,552 $3,902 $5,321 $5,700 6,384 
2020— — — — — $40 $526 $1,034 $2,412 3,584 
2021— — — — — — $4 $384 $3,374 3,816 
2022— — — — — — — $24 $500 2,128 
2023— — — — — — — — $— 129 
2024— — — — — — — — — 35 
Total31,918 
All outstanding liabilities before 2015, net of reinsurance103 
Liabilities for losses and loss adjustment expenses, net of reinsurance$56,311 
Workers' Compensation Insurance
Incurred Claims and Allocated Claim Adjustment Expenses, Net of ReinsuranceDecember 31, 2024
($ in thousands)Year Ended December 31IBNR*Cumulative Number of Reported Claims
2015201620172018201920202021202220232024
Accident YearUnaudited
2015$100,101 $100,454 $98,454 $97,654 $96,354 $93,054 $91,840 $90,547 $90,362 $90,190 $— 16,551 
2016— $101,348 $97,348 $92,148 $84,799 $82,799 $80,751 $78,808 $78,892 78,889 $— 15,979 
2017— — $99,874 $99,874 $99,874 $97,874 $95,674 $92,715 $92,000 91,411 $75 16,085 
2018— — — $118,095 $118,095 $120,095 $120,095 $120,056 $119,086 118,249 $136 18,017 
2019— — — — $115,852 $115,852 $115,352 $112,534 $111,296 110,159 $147 17,531 
2020— — — — — $102,475 $102,475 $101,621 $100,486 100,608 $143 14,529 
2021— — — — — — $105,722 $108,722 $112,606 112,642 $398 15,497 
2022— — — — — — — $104,675 $112,858 113,386 $751 15,154 
2023— — — — — — — — $114,013 112,931 $7,000 15,087 
2024— — — — — — — — — 116,609 $39,400 15,260 
Total$1,045,074 
* Includes expected development on reported claims
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
(In thousands)Year Ended December 31
2015201620172018201920202021202220232024
Accident YearUnaudited
2015$32,078 $65,070 $78,947 $83,483 $86,528 $87,884 $88,476 $89,089 $89,212 $89,314 
2016— $28,377 $58,192 $69,237 $74,886 $76,954 $77,546 $77,265 $77,575 77,757 
2017— — $31,586 $70,333 $82,289 $87,129 $88,504 $88,953 $89,421 89,931 
2018— — — $41,619 $86,063 $104,216 $110,928 $114,525 $115,792 116,256 
2019— — — — $40,994 $84,108 $100,373 $105,724 $107,525 107,945 
2020— — — — — $32,447 $74,532 $90,174 $95,213 97,114 
2021— — — — — — $39,634 $81,499 $98,292 103,578 
2022— — — — — — — $38,734 $85,584 101,291 
2023— — — — — — — — $38,921 85,066 
2024— — — — — — — — — 39,056 
Total907,308 
All outstanding liabilities before 2015, net of reinsurance4,004 
Liabilities for losses and loss adjustment expenses, net of reinsurance$141,770 
Segregated Portfolio Cell Reinsurance - Workers' Compensation
Incurred Claims and Allocated Claim Adjustment Expenses, Net of ReinsuranceDecember 31, 2024
($ in thousands)Year Ended December 31IBNR*Cumulative Number of Reported Claims
2015201620172018201920202021202220232024
Accident YearUnaudited
2015$36,423 $32,519 $28,746 $27,548 $26,720 $26,121 $25,566 $25,575 $25,528 $25,432 $— 4,949 
2016— $37,601 $34,055 $30,998 $29,424 $28,437 $28,411 $28,175 $27,873 27,740 $— 5,327 
2017— — $42,725 $38,594 $34,246 $32,879 $32,763 $32,514 $32,544 32,552 $122 5,707 
2018— — — $43,654 $41,283 $40,017 $38,569 $38,197 $37,376 36,951 $215 6,342 
2019— — — — $48,505 $42,345 $38,815 $37,490 $36,608 36,562 $334 6,157 
2020— — — — — $40,094 $38,602 $36,107 $34,924 34,547 $362 5,795 
2021— — — — — — $39,510 $37,185 $34,518 33,227 $631 5,182 
2022— — — — — — — $37,978 $38,811 38,417 $1,752 4,714 
2023— — — — — — — — $35,305 35,062 $3,784 4,063 
2024— — — — — — — — — 34,348 $11,749 3,769 
Total$334,838 
* Includes expected development on reported claims
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
(In thousands)Year Ended December 31
2015201620172018201920202021202220232024
Accident YearUnaudited
2015$11,257 $21,706 $23,977 $24,781 $25,033 $25,125 $25,144 $25,266 $25,300 $25,316 
2016— $10,980 $23,003 $26,285 $27,162 $27,211 $27,585 $27,583 $27,640 27,646 
2017— — $12,404 $24,791 $28,853 $31,140 $31,631 $31,875 $31,904 31,985 
2018— — — $12,517 $27,501 $33,236 $35,575 $36,010 $36,117 36,229 
2019— — — — $15,100 $29,604 $33,314 $34,829 $35,323 35,426 
2020— — — — — $11,238 $26,626 $30,680 $32,961 33,623 
2021— — — — — — $12,465 $26,495 $30,441 31,671 
2022— — — — — — — $13,420 $28,749 33,265 
2023— — — — — — — — $11,304 24,947 
2024— — — — — — — — — 13,553 
Total293,661 
All outstanding liabilities before 2015, net of reinsurance392 
Liabilities for losses and loss adjustment expenses, net of reinsurance$41,569 
Schedule of Historical Claims Duration
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years12345678910
Unaudited
Medical Professional Liability Claims-Made5.4%17.7%21.8%16.1%12.9%8.5%5.0%3.9%0.6%0.8%
Medical Professional Liability Occurrence(0.9%)5.2%12.8%16.5%15.5%15.5%10.7%10.5%3.6%1.3%
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years12345678910
Unaudited
Medical Technology Liability1.2 %14.0 %18.2 %12.8 %13.4 %13.3 %0.6 %0.2 %1.8 %— %
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years12345678910
Unaudited
Workers' Compensation Insurance34.8 %39.4 %14.6 %5.4 %2.3 %0.8 %0.3 %0.5 %0.2 %0.1 %
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years12345678910
Unaudited
Segregated Portfolio Cell Reinsurance - workers' compensation37.4 %40.9 %11.8 %4.9 %1.1 %0.6 %0.1 %0.3 %0.1 %0.1 %
Schedule of Reconciliation of Claims Development to Liability
Below is a reconciliation of the claims development information to the Consolidated Balance Sheet:
(In thousands)
December 31, 2024
Net outstanding liabilities
Medical Professional Liability claims-made$1,770,454 
Medical Professional Liability occurrence408,182 
Medical Technology Liability claims-made56,311 
Workers' Compensation Insurance141,770 
Segregated Portfolio Cell Reinsurance - workers' compensation41,569 
Other short-duration lines187,880 
Liabilities for losses and loss adjustment expenses, net of reinsurance2,606,166 
Reinsurance recoverable on unpaid losses
Medical Professional Liability claims-made212,272 
Medical Professional Liability occurrence52,524 
Medical Technology Liability claims-made38,197 
Workers' Compensation Insurance39,118 
Segregated Portfolio Cell Reinsurance - Workers' Compensation25,789 
Other short-duration lines41,169 
Total reinsurance recoverable on unpaid losses and loss adjustment expenses409,069 
Reserve for the future utilization of the DDR benefit101,151 
Unallocated loss adjustment expenses120,965 
Annual Aggregate Deductible8,965 
Loss portfolio transfer (1)
1,592 
Purchase accounting adjustments (2)
9,783 
Other5 
242,461 
Gross liability for losses and loss adjustment expenses$3,257,696 
(1) Represents the reserve for retroactive coverages, net of any applicable deferred gains, related to the loss portfolio transfer entered into during 2019.
(2) Represents the remaining unamortized fair value adjustment on the net reserve for losses and loss adjustment expenses, the negative net VOBA recorded on the assumed unearned premium and negative VOBA recorded on the DDR reserve associated with the Company's acquisition of NORCAL.