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Segment Information (Tables)
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information by Segment
The tabular information that follows shows the financial results of the Company's reportable segments reconciled to results reflected in the Consolidated Statements of Income and Comprehensive Income. The CODM does not consider goodwill or intangible asset impairments, changes in the fair value of contingent consideration or transaction-related costs for completed business combinations, including any related tax impacts, in assessing the financial performance of its operating and reportable segments, and thus are included in the reconciliation of segment results to consolidated results.
Financial results by segment were as follows:
Year Ended December 31, 2024
(In thousands)Specialty P&CWorkers' Compensation InsuranceSegregated Portfolio Cell Reinsurance CorporateInter-segment EliminationsConsolidated
Net premiums earned$747,942 $167,610 $52,698 $— $— $968,250 
Net investment income— — 3,608 140,930 — 144,538 
Equity in earnings (loss) of unconsolidated subsidiaries— — — 22,203 — 22,203 
Net investment gains (losses)— — 2,369 (7,206)— (4,837)
Other income (expense)(1)
4,373 1,887 19 11,489 (4,258)13,510 
Net losses and loss adjustment expenses(2)
(578,486)(128,483)(32,466)— — (739,435)
Operating expenses(1)(2)(3)
(101,082)(43,875)(1,709)(40,008)3,085 (183,589)
Deferred policy acquisition costs amortization(2)
(102,125)(18,124)(16,354)— 1,173 (135,430)
SPC U.S. federal income tax benefit (expense)(4)
— — (1,766)— — (1,766)
SPC dividend (expense) income— — (4,444)— — (4,444)
Interest expense— — — (22,342)— (22,342)
Income tax benefit (expense)— — — (10,401)— (10,401)
Segment results$(29,378)$(20,985)$1,955 $94,665 $— 46,257 
Reconciliation of segments to consolidated results:
Contingent consideration(5)
6,740 
Transaction-related costs, net(6)
(253)
Net income (loss)$52,744 
Significant non-cash items:
Depreciation and amortization, net of accretion$8,919 $5,020 $(2,129)$5,941 $— $17,751 
Year Ended December 31, 2023
(In thousands)Specialty P&CWorkers' Compensation InsuranceSegregated Portfolio Cell Reinsurance CorporateInter-segment EliminationsConsolidated
Net premiums earned$755,817 $160,034 $61,546 $— $— $977,397 
Net investment income— — 2,289 126,130 — 128,419 
Equity in earnings (loss) of unconsolidated subsidiaries— — — 6,791 — 6,791 
Net investment gains (losses)— — 3,680 5,148 — 8,828 
Other income (expense)(1)
4,695 1,854 5 8,307 (4,084)10,777 
Net losses and loss adjustment expenses(2)
(624,809)(139,322)(36,363)— — (800,494)
Operating expenses(1)(2)(3)
(93,612)(39,860)(2,086)(34,007)3,634 (165,931)
Deferred policy acquisition costs amortization(2)
(101,691)(15,201)(18,371)— 450 (134,813)
SPC U.S. federal income tax benefit (expense)(4)
— — (1,629)— — (1,629)
SPC dividend (expense) income— — (6,234)— — (6,234)
Interest expense— — — (23,150)— (23,150)
Income tax benefit (expense)— — — 545 — 545 
Segment results$(59,600)$(32,495)$2,837 $89,764 $— 506 
Reconciliation of segments to consolidated results:
Contingent consideration(5)
5,000 
Goodwill impairment
(44,110)
Net income (loss)$(38,604)
Significant non-cash items:
Goodwill impairment
$44,110 
Depreciation and amortization, net of accretion$10,581 $3,424 $(436)$12,446 $— $26,015 
Year Ended December 31, 2022
(In thousands)Specialty P&CWorkers' Compensation InsuranceSegregated Portfolio Cell Reinsurance CorporateInter-segment EliminationsConsolidated
Net premiums earned$793,400 $166,371 $69,810 $— $— $1,029,581 
Net investment income— — 1,029 94,943 — 95,972 
Equity in earnings (loss) of unconsolidated subsidiaries— — — 4,888 — 4,888 
Net investment gains (losses)— — (3,067)(39,090)— (42,157)
Other income (expense)(1)
5,122 2,201 2 6,198 (4,119)9,404 
Net losses and loss adjustment expenses(2)
(626,045)(111,407)(39,310)— — (776,762)
Operating expenses(1)(2)(3)
(102,052)(39,901)(248)(34,733)4,633 (172,301)
Deferred policy acquisition costs amortization(2)
(97,757)(14,836)(20,068)— (514)(133,175)
SPC U.S. federal income tax benefit (expense)(4)
— — (1,759)— — (1,759)
SPC dividend (expense) income— — (6,673)— — (6,673)
Interest expense— — — (20,372)— (20,372)
Income tax benefit (expense)— — — 5,423 — 5,423 
Segment results$(27,332)$2,428 $(284)$17,257 $— (7,931)
Reconciliation of segments to consolidated results:
Contingent consideration(5)
9,000 
Transaction-related costs, net(6)
(1,471)
Net income (loss)$(402)
Significant non-cash items:
Depreciation and amortization, net of accretion$10,473 $3,491 $1,186 $22,913 $— $38,063 
(1) Includes certain fees for services provided by the Workers' Compensation Insurance segment to the SPCs at Inova Re and Eastern Re which 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) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(3) Primarily includes compensation-related costs, professional fees, software and equipment costs and management fees in the Specialty P&C, Workers' Compensation Insurance and Corporate segments. Operating expenses in the Segregated Portfolio Cell Reinsurance segment primarily include bank fees, professional fees, changes in the allowance for expected credit losses and policyholder dividend expense. The remaining operating expenses were comprised of individually insignificant components.
(4) 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 results and are paid by the individual SPCs.
(5) Represents the change in the fair value of contingent consideration issued in connection with the NORCAL acquisition and, for the year ended December 31, 2024, the reversal of a nominal amount of associated contingent investment banker fees accrued during purchase accounting, all of which are included as a component of consolidated net investment gains (losses) on the Consolidated Statements of Income and Comprehensive Income. See further discussion on the contingent consideration in Note 2.
(6) For the years ended December 31, 2024 and 2022, pre-tax transaction-related costs of approximately $0.3 million and $1.9 million, respectively, were included as a component of consolidated operating expense and a nominal amount and $0.4 million of the associated income tax benefit for the years ended December 31, 2024 and 2022, respectively, was included as a component of consolidated income tax benefit (expense) on the Consolidated Statements of Income and Comprehensive Income. For 2024, these costs represent actuarial consulting fees, after tax, paid in connection with the final determination of contingent consideration associated with the acquisition of NORCAL. For 2022, these costs represent the transaction-related costs, after-tax, associated with the acquisition of NORCAL.
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.
Year Ended December 31
(In thousands)202420232022
Specialty P&C Segment
Gross premiums earned:
MPL
$738,422 $738,496 $764,244 
Medical Technology Liability44,432 43,387 41,323 
Lloyd's Syndicates
13,875 19,310 27,486 
Other22,022 25,714 28,933 
Ceded premiums earned(70,809)(71,090)(68,586)
Segment net premiums earned747,942 755,817 793,400 
Workers' Compensation Insurance Segment
Gross premiums earned:
Traditional business183,520 174,743 179,558 
Alternative market business64,225 70,130 72,894 
Ceded premiums earned(80,135)(84,839)(86,081)
Segment net premiums earned167,610 160,034 166,371 
Segregated Portfolio Cell Reinsurance Segment
Gross premiums earned:
Workers' compensation (1)
58,419 65,001 68,548 
MPL (2)
2,540 5,705 10,799 
Ceded premiums earned(8,261)(9,160)(9,537)
Segment net premiums earned52,698 61,546 69,810 
Consolidated net premiums earned$968,250 $977,397 $1,029,581 
(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.