Exhibit 99.2
This presentation contains Forward Looking Statements and other information designed to convey
our projections and expectations regarding future results. There are a number of factors which
could cause our actual results to vary materially from those projected in this presentation. The
principal risk factors that may cause these differences are described in various documents we file
with the Securities and Exchange Commission, such as our Current Reports on Form 8-K, and our
regular reports on Forms 10-Q and 10-K, particularly in “Item 1A, Risk Factors.” Please review
this presentation in conjunction with a thorough reading and understanding of these risk factors.
our projections and expectations regarding future results. There are a number of factors which
could cause our actual results to vary materially from those projected in this presentation. The
principal risk factors that may cause these differences are described in various documents we file
with the Securities and Exchange Commission, such as our Current Reports on Form 8-K, and our
regular reports on Forms 10-Q and 10-K, particularly in “Item 1A, Risk Factors.” Please review
this presentation in conjunction with a thorough reading and understanding of these risk factors.
We especially identify statements concerning our recently-completed acquisition of American
Physicians Service Group (NASDAQ: AMPH) as Forward Looking Statements and direct
your attention to recent filings on Forms 10K and 10Q for a discussion of risk factors
pertaining to this transaction and subsequent integration into ProAssurance.
Physicians Service Group (NASDAQ: AMPH) as Forward Looking Statements and direct
your attention to recent filings on Forms 10K and 10Q for a discussion of risk factors
pertaining to this transaction and subsequent integration into ProAssurance.
This presentation contains Non-GAAP measures, and we may reference Non-GAAP measures in
our remarks. A reconciliation of these measures to GAAP measures is available in our latest
quarterly news release, which is available in the Investor Relations section of our website,
www.ProAssurance.com, and in the related Current Reports on Form 8K disclosing that release.
our remarks. A reconciliation of these measures to GAAP measures is available in our latest
quarterly news release, which is available in the Investor Relations section of our website,
www.ProAssurance.com, and in the related Current Reports on Form 8K disclosing that release.
FORWARD LOOKING STATEMENTS
1
NON-GAAP MEASURES
Corporate Overview
ProAssurance Corporate Profile
Specialty writer of professional liability insurance
Primarily Medical Professional Liability (MPL)
Only “pure play” public company MPL writer
Market Cap : ~$2.1 billion
Total Assets: $4.9 billion
Shareholders’ Equity: $2.0 billion
Annualized dividend yield is 1.4%
Initial dividend to be paid on October 13, 2011
Rated “A” by A.M. Best and Fitch
3
Medical Professional Liability Stands Apart
Long-tail vs short tail
Prolonged period of “benign profitability”
Premiums remain well above levels of year 2000
No large commercial competitors have entered
the market in a meaningful manner
the market in a meaningful manner
Significant barriers to entry in underwriting and
claims handling
claims handling
No “cat” exposure
Significant policyholder retention
4
Consistent Success in All Financial Climates
5
Historical Book Value Per Share
Inception to 6/30/11
CAGR: 16%
CAGR: 16%
Cumulative:1653%
10 Year Summary (2001 -2010)
CAGR: 15%
CAGR: 15%
Cumulative: 297%
Up
15%
Y-O-Y
15%
Y-O-Y
Founded in 1978, Demutualized to a
Public Company in September, 1991
Public Company in September, 1991
Consistent Success in All Financial Climates
6
Up
13%
Y-O-Y
13%
Y-O-Y
Historical Stock Price (to 8/31/11)
Inception to 8/31/11
CAGR: 14%
CAGR: 14%
Cumulative:1287%
10 Year Summary (2001-2010)
CAGR: 14%
CAGR: 14%
Cumulative: 263%
Founded in 1978, Demutualized to a
Public Company in September, 1991
Public Company in September, 1991
ProAssurance Business Profile
Fourth largest writer in a fragmented market
Top 20 writers have just 65% of the market
More than 100 writers with some share of the market
Majority of companies are mutual or similar
Few operate in more than two or three states
7
ProAssurance Geographic Profile
Writing across the United States, ProAssurance
has broad geographic diversification
has broad geographic diversification
Regional structure
provides the local
knowledge that
differentiates us
provides the local
knowledge that
differentiates us
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Corporate Headquarters
Corporate Headquarters
Claims / Underwriting Offices
Claims / Underwriting Offices
(Birmingham)
Market Share: Six-Ten1
Market Share: Six-Ten1
1 DPW: SNL & Highline Data 2010
ProForma ProAssurance and American Physicians
ProAssurance Risk Profile
We insure a broad range of healthcare risks,
from home health providers to large hospitals
from home health providers to large hospitals
Dual Distribution
Agents: 67%
Direct: 33%
Direct in Alabama, Florida and in all states for
Podiatric business
Podiatric business
Dual distribution in DC, Texas and parts of
Missouri
Missouri
9
Policyholder Data is YTD, June 30, 2010
Subject to Rounding
YTD 2011 Policyholders: ~71,000
Operational Highlights
ProAssurance Outperforms
Stringent underwriting based on individual risk
selection
selection
Frequent rate/loss review ensures adequate price
11
ProAssurance Average: 93.8% Industry Average: 107.4%
Source: A.M. Best Aggregates and Averages, Medical Malpractice Lines of Business
ProAssurance Rate History & Trends
Frequency stable after several years of decline
Yearly severity increase
is manageable at ~4%
is manageable at ~4%
Retention remains
at ~90%
at ~90%
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Physician Rate Change History1
1Excludes PICA for clarity of historical comparison
Conservative Approach to Reserves
No change in the historic reserving practices
which help provide protection against a loss
trend reversal
which help provide protection against a loss
trend reversal
Net Favorable Reserve Development
Net Reserve per Open MPL Claim1
1 Statutory basis; Loss & LAE
Acquired company data included at end of acquiring year
Successful Claims Defense Sets Us Apart
We leverage financial strength to give our insureds the opportunity
for an uncompromising defense of their claim
for an uncompromising defense of their claim
Differentiates our product
Provides long-term financial and marketing advantages
Helps retain business and deter future lawsuits
Increasingly important as claims data becomes public
14
ProAssurance: 82% Favorable Outcomes
Industry: 73% Favorable Outcomes
Source: The PIAA
Five Year Average
2005-2009
2005-2009
The Bottom Line: The Ohio Example
15
Fewer Claims Closed With Indemnity
More Claims Defended in Court
The Payoff: 2.5x Lower Average Indemnity Payment per Closed Claim
Malpractice Made Public
Malpractice judgments/settlements now
disclosed in 26 states
disclosed in 26 states
Disciplinary actions
now disclosed in
all states
now disclosed in
all states
Board / Discipline / Med-Mal
Med-Mal disclosure
legislation proposed
legislation proposed
P
Source: Federation of State Medical Boards National Clearinghouse and
ProAssurance research
ProAssurance research
Regulatory Changes = Opportunity
Healthcare Reform will require more providers across
all levels of care
all levels of care
More customers for certain, maybe more litigation
Likely to accelerate the trend of physicians joining
into hospital-owned practices and larger groups
into hospital-owned practices and larger groups
We are uniquely positioned due to geographic reach, long-
term experience in hospitals and financial strength
term experience in hospitals and financial strength
May hasten M&A amongst smaller insurers that lack the
capacity or capability to insure hospitals or facilities
capacity or capability to insure hospitals or facilities
Tort Reform remains a state-level issue
17
Financial Performance and Investments
Investments Balance Risk vs. Return
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$4 Billion Overall Portfolio
$3.6 Billion Fixed Income Portfolio
Average duration: 4.1 years
Average tax-equivalent yield:
4.7%
4.7%
Investment grade: 97%
Weighted average: AA-
6/30/11
Key actions in Q2
Added short ABS
Added Governments to mitigate
concerns over spread widening
concerns over spread widening
CUSIP-level portfolio disclosure on
our website:
www.proassurance.com/investorrelations/supplemental.aspx
our website:
www.proassurance.com/investorrelations/supplemental.aspx
Committed to Capital Management
Newly announced dividend of $1.00/share/year
Complements our prudent share repurchase
program
program
$315 million spent to repurchase 6.0 million shares since 2005
Enhancing shareholder value by repurchasing
shares at prices that build Book Value
shares at prices that build Book Value
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Share Repurchase History
Steady Return in an Unfavorable Environment
Meeting our long-term ROE target of 12% -14%
Components of Return on Equity (in millions)
Driven to Excel / Focused on Shareholder Value
Maintaining profitability
Sustaining book value growth
Producing sustainable shareholder value
Focusing on long-term—ready for the turn
22
Current Prices Present a Compelling Buying Opportunity