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Segment Information (Tables) | 9 Months Ended
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Sep. 30, 2021
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 Condensed Consolidated Statements of Income and Comprehensive Income. ProAssurance does not consider goodwill or intangible asset impairments, a gain on bargain purchase 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:
| Three Months Ended September 30, 2021
(In thousands) | Specialty P&C |  | Workers' Compensation Insurance |  | Segregated Portfolio Cell Reinsurance |  | Lloyd's Syndicates |  | Corporate |  | Inter-segment Eliminations |  | Consolidated
Net premiums earned | $ | 203,716 |  |  | $ | 42,235 |  |  | $ | 15,344 |  |  | $ | 10,953 |  |  | $ | — |  |  | $ | — |  |  | $ | 272,248 |
Net investment income | — |  |  | — |  |  | 193 |  |  | 431 |  |  | 18,654 |  |  | — |  |  | 19,278 |
Equity in earnings (loss) of unconsolidated subsidiaries | — |  |  | — |  |  | — |  |  | — |  |  | 15,244 |  |  | — |  |  | 15,244 |
Net realized gains (losses) | — |  |  | — |  |  | 204 |  |  | 35 |  |  | 291 |  |  | — |  |  | 530 |
Other income (loss)(1) | 860 |  |  | 437 |  |  | — |  |  | 283 |  |  | 1,542 |  |  | (722) |  |  | 2,400 |
Net losses and loss adjustment expenses | (176,490) |  |  | (31,364) |  |  | (8,693) |  |  | (6,846) |  |  | — |  |  | — |  |  | (223,393) |
Underwriting, policy acquisition and operating expenses(1) | (36,147) |  |  | (13,521) |  |  | (4,758) |  |  | (3,909) |  |  | (6,872) |  |  | 722 |  |  | (64,485) |
SPC U.S. federal income taxes(2) | — |  |  | — |  |  | (431) |  |  | — |  |  | — |  |  | — |  |  | (431) |
SPC dividend (expense) income | — |  |  | — |  |  | (1,320) |  |  | — |  |  | — |  |  | — |  |  | (1,320) |
Interest expense | — |  |  | — |  |  | — |  |  | — |  |  | (5,814) |  |  | — |  |  | (5,814) |
Income tax benefit (expense) | — |  |  | — |  |  | — |  |  | — |  |  | (219) |  |  | — |  |  | (219) |
Segment results | $ | (8,061) |  |  | $ | (2,213) |  |  | $ | 539 |  |  | $ | 947 |  |  | $ | 22,826 |  |  | $ | — |  |  | 14,038 |
Reconciliation of segments to consolidated results: |  |  |  |  |  |  |  |  |  |
Transaction-related costs, net(3) |  |  |  |  |  |  |  |  |  |  |  |  | (1,838) |
Net income (loss) |  |  |  |  |  |  |  |  |  |  |  |  | $ | 12,200 |
Significant non-cash items: |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization, net of accretion | $ | 1,956 |  |  | $ | 903 |  |  | $ | 397 |  |  | $ | 17 |  |  | $ | 6,973 |  |  | $ | — |  |  | $ | 10,246 |
| Nine Months Ended September 30, 2021
(In thousands) | Specialty P&C |  | Workers' Compensation Insurance |  | Segregated Portfolio Cell Reinsurance |  | Lloyd's Syndicates |  | Corporate |  | Inter-segment Eliminations |  | Consolidated
Net premiums earned | $ | 487,963 |  |  | $ | 122,872 |  |  | $ | 47,500 |  |  | $ | 40,263 |  |  | $ | — |  |  | $ | — |  |  | $ | 698,598 |
Net investment income | — |  |  | — |  |  | 620 |  |  | 1,677 |  |  | 49,416 |  |  | — |  |  | 51,713 |
Equity in earnings (loss) of unconsolidated subsidiaries | — |  |  | — |  |  | — |  |  | — |  |  | 33,959 |  |  | — |  |  | 33,959 |
Net realized gains (losses) | — |  |  | — |  |  | 2,772 |  |  | 9 |  |  | 17,431 |  |  | — |  |  | 20,212 |
Other income (expense)(1) | 2,800 |  |  | 1,730 |  |  | 2 |  |  | 864 |  |  | 3,786 |  |  | (2,320) |  |  | 6,862 |
Net losses and loss adjustment expenses | (417,890) |  |  | (85,323) |  |  | (26,560) |  |  | (25,257) |  |  | — |  |  | — |  |  | (555,030) |
Underwriting, policy acquisition and operating expenses(1) | (91,369) |  |  | (38,519) |  |  | (15,078) |  |  | (15,219) |  |  | (19,050) |  |  | 2,320 |  |  | (176,915) |
SPC U.S. federal income tax expense(2) | — |  |  | — |  |  | (1,291) |  |  | — |  |  | — |  |  | — |  |  | (1,291) |
SPC dividend (expense) income | — |  |  | — |  |  | (5,926) |  |  | — |  |  | — |  |  | — |  |  | (5,926) |
Interest expense | — |  |  | — |  |  | — |  |  | — |  |  | (14,203) |  |  | — |  |  | (14,203) |
Income tax benefit (expense) | — |  |  | — |  |  | — |  |  | — |  |  | (1,369) |  |  | — |  |  | (1,369) |
Segment results | $ | (18,496) |  |  | $ | 760 |  |  | $ | 2,039 |  |  | $ | 2,337 |  |  | $ | 69,970 |  |  | $ | — |  |  | 56,610 |
Reconciliation of segments to consolidated results: |  |  |  |  |  |  |  |  |  |
Gain on bargain purchase |  |  |  |  |  |  |  |  |  |  |  |  | 74,408 |
Transaction-related costs, net(3) |  |  |  |  |  |  |  |  |  |  |  |  | (19,034) |
Net income (loss) |  |  |  |  |  |  |  |  |  |  |  |  | $ | 111,984 |
Significant non-cash items: |  |  |  |  |  |  |  |  |  |  |  |  |
Gain on bargain purchase |  |  |  |  |  |  |  |  |  |  |  |  | $ | 74,408 |
Depreciation and amortization, net of accretion | $ | 7,261 |  |  | $ | 2,709 |  |  | $ | 1,074 |  |  | $ | 49 |  |  | $ | 15,473 |  |  | $ | — |  |  | $ | 26,566 |
| Three Months Ended September 30, 2020
(In thousands) | Specialty P&C |  | Workers' Compensation Insurance |  | Segregated Portfolio Cell Reinsurance |  | Lloyd's Syndicates |  | Corporate |  | Inter-segment Eliminations |  | Consolidated
Net premiums earned | $ | 117,849 |  |  | $ | 42,516 |  |  | $ | 16,052 |  |  | $ | 18,142 |  |  | $ | — |  |  | $ | — |  |  | $ | 194,559 |
Net investment income | — |  |  | — |  |  | 273 |  |  | 951 |  |  | 15,700 |  |  | — |  |  | 16,924 |
Equity in earnings (loss) of unconsolidated subsidiaries | — |  |  | — |  |  | — |  |  | — |  |  | 4,853 |  |  | — |  |  | 4,853 |
Net realized gains (losses) | — |  |  | — |  |  | 1,495 |  |  | 489 |  |  | 6,854 |  |  | — |  |  | 8,838 |
Other income (expense)(1) | 726 |  |  | 441 |  |  | 12 |  |  | 411 |  |  | 775 |  |  | (642) |  |  | 1,723 |
Net losses and loss adjustment expenses | (102,951) |  |  | (26,455) |  |  | (6,858) |  |  | (9,317) |  |  | — |  |  | — |  |  | (145,581) |
Underwriting, policy acquisition and operating expenses(1) | (28,074) |  |  | (14,983) |  |  | (5,036) |  |  | (6,938) |  |  | (5,044) |  |  | 642 |  |  | (59,433) |
SPC U.S. federal income tax expense(2) | — |  |  | — |  |  | (871) |  |  | — |  |  | — |  |  | — |  |  | (871) |
SPC dividend (expense) income | — |  |  | — |  |  | (3,854) |  |  | — |  |  | — |  |  | — |  |  | (3,854) |
Interest expense | — |  |  | — |  |  | — |  |  | — |  |  | (3,881) |  |  | — |  |  | (3,881) |
Income tax benefit (expense) | — |  |  | — |  |  | — |  |  | — |  |  | (2,141) |  |  | — |  |  | (2,141) |
Segment results | $ | (12,450) |  |  | $ | 1,519 |  |  | $ | 1,213 |  |  | $ | 3,738 |  |  | $ | 17,116 |  |  | $ | — |  |  | 11,136 |
Reconciliation of segments to consolidated results: |  |  |  |  |  |  |  |  |  |
Goodwill impairment |  |  |  |  |  |  |  |  |  |  |  |  | (161,115) |
Net income (loss) |  |  |  |  |  |  |  |  |  |  |  |  | $ | (149,979) |
Significant non-cash items: |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill impairment |  |  |  |  |  |  |  |  |  |  |  |  | $ | 161,115 |
Depreciation and amortization, net of accretion | $ | 2,669 |  |  | $ | 923 |  |  | $ | 210 |  |  | $ | 3 |  |  | $ | 2,540 |  |  | $ | — |  |  | $ | 6,345 |
| Nine Months Ended September 30, 2020
(In thousands) | Specialty P&C |  | Workers' Compensation Insurance |  | Segregated Portfolio Cell Reinsurance |  | Lloyd's Syndicates |  | Corporate |  | Inter-segment Eliminations |  | Consolidated
Net premiums earned | $ | 365,305 |  |  | $ | 129,437 |  |  | $ | 49,780 |  |  | $ | 61,186 |  |  | $ | — |  |  | $ | — |  |  | $ | 605,708 |
Net investment income | — |  |  | — |  |  | 832 |  |  | 3,236 |  |  | 51,809 |  |  | — |  |  | 55,877 |
Equity in earnings (loss) of unconsolidated subsidiaries | — |  |  | — |  |  | — |  |  | — |  |  | (22,065) |  |  | — |  |  | (22,065) |
Net realized gains (losses) | — |  |  | — |  |  | 894 |  |  | 1,100 |  |  | (1,844) |  |  | — |  |  | 150 |
Other income (expense)(1) | 3,515 |  |  | 1,717 |  |  | 203 |  |  | 219 |  |  | 1,813 |  |  | (1,799) |  |  | 5,668 |
Net losses and loss adjustment expenses | (373,442) |  |  | (84,648) |  |  | (23,890) |  |  | (39,432) |  |  | — |  |  | — |  |  | (521,412) |
Underwriting, policy acquisition and operating expenses(1) | (82,894) |  |  | (42,604) |  |  | (15,474) |  |  | (23,373) |  |  | (17,632) |  |  | 1,799 |  |  | (180,178) |
SPC U.S. federal income tax expense(2) | — |  |  | — |  |  | (1,573) |  |  | — |  |  | — |  |  | — |  |  | (1,573) |
SPC dividend (expense) income | — |  |  | — |  |  | (7,988) |  |  | — |  |  | — |  |  | — |  |  | (7,988) |
Interest expense | — |  |  | — |  |  | — |  |  | — |  |  | (11,725) |  |  | — |  |  | (11,725) |
Income tax benefit (expense) | — |  |  | — |  |  | — |  |  | 29 |  |  | 48,592 |  |  | — |  |  | 48,621 |
Segment results | $ | (87,516) |  |  | $ | 3,902 |  |  | $ | 2,784 |  |  | $ | 2,965 |  |  | $ | 48,948 |  |  | $ | — |  |  | (28,917) |
Reconciliation of segments to consolidated results: |  |  |  |  |  |  |  |  |  |
Goodwill impairment |  |  |  |  |  |  |  |  |  |  |  |  | (161,115) |
Net income (loss) |  |  |  |  |  |  |  |  |  |  |  |  | $ | (190,032) |
Significant non-cash items: |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill impairment |  |  |  |  |  |  |  |  |  |  |  |  | $ | 161,115 |
Depreciation and amortization, net of accretion | $ | 5,930 |  |  | $ | 2,771 |  |  | $ | 371 |  |  | $ | 26 |  |  | $ | 7,070 |  |  | $ | — |  |  | $ | 16,168 |
(1) Certain fees for services provided to the SPCs at Inova Re and Eastern Re 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) 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.
(3) Represents the transaction-related costs, after-tax, associated with the acquisition of NORCAL. Pre-tax transaction-related costs of $2.3 million and $23.5 million were included as a component of consolidated operating expense and the associated income tax benefit of $0.5 million and $4.5 million were included as a component of consolidated income tax benefit (expense) on the Condensed Consolidated Statements of Income and Comprehensive Income for the three and nine months ended September 30, 2021, respectively.
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.
| Three Months Ended September 30 |  | Nine Months Ended September 30
(In thousands) | 2021 |  | 2020 |  | 2021 |  | 2020
Specialty P&C Segment |  |  |  |  |  |  |
Gross premiums earned: |  |  |  |  |  |  |
HCPL | $ | 184,893 |  |  | $ | 101,785 |  |  | $ | 432,722 |  |  | $ | 317,088 |
Small Business Unit | 26,958 |  |  | 26,372 |  |  | 78,789 |  |  | 77,937 |
Medical Technology Liability | 9,933 |  |  | 8,749 |  |  | 28,484 |  |  | 25,918 |
Other | 172 |  |  | 138 |  |  | 494 |  |  | 671 |
Ceded premiums earned | (18,240) |  |  | (19,195) |  |  | (52,526) |  |  | (56,309) |
Segment net premiums earned | 203,716 |  |  | 117,849 |  |  | 487,963 |  |  | 365,305 |
Workers' Compensation Insurance Segment |  |  |  |  |  |  |
Gross premiums earned: |  |  |  |  |  |  |
Traditional business | 45,331 |  |  | 45,620 |  |  | 130,767 |  |  | 138,628 |
Alternative market business | 16,633 |  |  | 17,187 |  |  | 50,539 |  |  | 53,221 |
Ceded premiums earned | (19,729) |  |  | (20,291) |  |  | (58,434) |  |  | (62,412) |
Segment net premiums earned | 42,235 |  |  | 42,516 |  |  | 122,872 |  |  | 129,437 |
Segregated Portfolio Cell Reinsurance Segment |  |  |  |  |  |  |
Gross premiums earned: |  |  |  |  |  |  |
Workers' compensation(1) | 15,846 |  |  | 16,476 |  |  | 48,215 |  |  | 51,178 |
HCPL(2) | 1,649 |  |  | 1,699 |  |  | 5,675 |  |  | 5,099 |
Ceded premiums earned | (2,151) |  |  | (2,123) |  |  | (6,390) |  |  | (6,497) |
Segment net premiums earned | 15,344 |  |  | 16,052 |  |  | 47,500 |  |  | 49,780 |
Lloyd's Syndicates Segment |  |  |  |  |  |  |
Gross premiums earned: |  |  |  |  |  |  |
Property and casualty | 13,262 |  |  | 22,777 |  |  | 50,282 |  |  | 77,309 |
Ceded premiums earned | (2,309) |  |  | (4,635) |  |  | (10,019) |  |  | (16,123) |
Segment net premiums earned | 10,953 |  |  | 18,142 |  |  | 40,263 |  |  | 61,186 |
Consolidated net premiums earned | $ | 272,248 |  |  | $ | 194,559 |  |  | $ | 698,598 |  |  | $ | 605,708 |
(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.

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- Definition Tabular disclosure of entity-wide revenues from external customers for each product or service or each group of similar products or services if the information is not provided as part of the reportable operating segment information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 + Details
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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599 + Details
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