XML 43 R26.htm IDEA: XBRL DOCUMENT v3.3.1.900
Schedule II - Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Schedule II - Condensed Financial Information of Registrant
Condensed Balance Sheets
 
December 31
(In thousands)
2015
 
2014
Assets
 
 
 
Investment in subsidiaries, at equity
$
2,026,247

 
$
2,145,358

Fixed maturities available for sale, at fair value
202,501

 
203,451

Short-term investments
16,716

 
42,790

Cash and cash equivalents
103,292

 
87,200

Due from subsidiaries
—

 
87,719

Other assets
48,288

 
25,736

Total Assets
$
2,397,044

 
$
2,592,254

Liabilities and Shareholders’ Equity
 
 
 
Liabilities:
 
 
 
Due to subsidiaries
$
14,803

 
$
—

Dividends payable
69,447

 
167,744

Other liabilities
4,440

 
16,566

Debt
350,000

 
250,000

Total Liabilities
438,690

 
434,310

Shareholders’ Equity:
 
 
 
Common stock
625

 
623

Other shareholders’ equity, including unrealized gains (losses) on securities of subsidiaries
1,957,729

 
2,157,321

Total Shareholders’ Equity
1,958,354

 
2,157,944

Total Liabilities and Shareholders’ Equity
$
2,397,044

 
$
2,592,254

Condensed Statements of Income
 
Year Ended December 31
(In thousands)
2015
 
2014
 
2013
Net investment income
$
5,017

 
$
3,295

 
$
5,789

Net realized investment gains (losses)
4,673

 
990

 
5,334

Other income (loss)
378

 
660

 
170

 
10,068

 
4,945

 
11,293

Expenses:
 
 
 
 
 
Interest expense
14,596

 
14,084

 
2,747

Other expenses
24,695

 
7,083

 
13,213

 
39,291

 
21,167

 
15,960

Income (loss) before income tax expense (benefit) and equity in net income of consolidated subsidiaries
(29,223
)
 
(16,222
)
 
(4,667
)
Income tax expense (benefit)
(11,657
)
 
(6,728
)
 
(1,007
)
Income (loss) before equity in net income of consolidated subsidiaries
(17,566
)
 
(9,494
)
 
(3,660
)
Equity in net income of consolidated subsidiaries
133,763

 
206,059

 
301,183

Net income
$
116,197

 
$
196,565

 
$
297,523

Other comprehensive income
$
(34,349
)
 
$
(1,457
)
 
$
(85,719
)
Comprehensive income
$
81,848

 
$
195,108

 
$
211,804

Condensed Statements of Cash Flow
 
Year Ended December 31
(In thousands)
2015
 
2014
 
2013
Net cash provided (used) by operating activities
$
(14,411
)
 
$
20,086

 
$
(24,654
)
Investing activities
 
 
 
 
 
Purchases of equity securities trading
—

 
(310
)
 
(1,265
)
Proceeds from sale or maturities of:
 
 
 
 
 
Fixed maturities, available for sale
200,245

 
104,844

 
224,993

Equity securities trading
—

 
12,813

 
1,113

Net decrease (increase) in short-term investments
26,074

 
149,202

 
(187,625
)
Dividends from subsidiaries
107,870

 
67,188

 
239,484

Contribution of capital to subsidiaries
—

 
(7,000
)
 
—

Deposit made for future acquisition
—

 
—

 
(205,244
)
(Increase) decrease in restricted cash
—

 
78,000

 
(78,000
)
Funds advanced for Syndicate 1729 FAL deposit
(9,642
)
 
(76,553
)
 
(8,699
)
Funds advanced under Syndicate 1729 credit agreement
(3,083
)
 
(9,107
)
 
(1,665
)
Other
(289
)
 
415

 
(20
)
Net cash provided (used) by investing activities
321,175

 
319,492

 
(16,928
)
Financing activities
 
 
 
 
 
Proceeds from debt
100,000

 
—

 
250,000

Principal repayment of debt
—

 
—

 
(125,000
)
Repurchase of common stock
(172,772
)
 
(222,360
)
 
(29,089
)
Subsidiary payments for common shares and share-based compensation awarded to subsidiary employees
6,063

 
8,301

 
6,258

Excess of tax benefit from share-based payment arrangements
379

 
1,631

 
2,128

Dividends to shareholders
(217,626
)
 
(70,490
)
 
(46,375
)
Other
(6,716
)
 
(6,919
)
 
(8,278
)
Net cash provided (used) by financing activities
(290,672
)
 
(289,837
)
 
49,644

Increase (decrease) in cash and cash equivalents
16,092

 
49,741

 
8,062

Cash and cash equivalents, beginning of period
87,200

 
37,459

 
29,397

Cash and cash equivalents, end of period
$
103,292

 
$
87,200

 
$
37,459

Supplemental disclosure of cash flow information:
 
 
 
 
 
Cash paid during the year for income taxes, net of refunds
$
47,004

 
$
26,764

 
$
120,031

Cash paid during the year for interest
$
13,996

 
$
13,408

 
$
913

Significant non-cash transactions:
 
 
 
 
 
Dividends declared and not yet paid
$
69,447

 
$
167,744

 
$
18,532

Securities transferred at fair value as dividends from subsidiaries
$
206,880

 
$
227,412

 
$
69,011

Non-cash capital contribution to subsidiaries
$
87,719

 
$
—

 
$
—

Note to Condensed Financial Statements of Registrant
Basis of Presentation
The registrant-only financial statements should be read in conjunction with ProAssurance Corporation’s Consolidated Financial Statements and Notes thereto.
At December 31, 2015 and 2014, PRA Parent’s investment in subsidiaries is stated at the initial consolidation value plus equity in the undistributed earnings of subsidiaries since the date of acquisition.
Effective January 1, 2015 ProAssurance Corporation entered into a management agreement with several of its insurance subsidiaries whereby ProAssurance Corporation charges the subsidiaries a management fee for various management services provided to the subsidiary. Under the new arrangement, the expenses associated with such services remain as expenses of ProAssurance Corporation and the management fee charged is reported as an offset to ProAssurance Corporation expenses. Prior to 2015, a substantial portion of expenses associated with services provided to insurance subsidiaries were directly allocated or directly charged to the insurance subsidiaries.