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Shareholders' Equity
 9 Months Ended
Sep. 30, 2021
Equity [Abstract]  
Shareholders' Equity Shareholders’ Equity
At September 30, 2021 and December 31, 2020, ProAssurance had 100 million shares of authorized common stock and 50 million shares of authorized preferred stock. The Board has the authority to determine provisions for the issuance of preferred shares, including the number of shares to be issued, the designations, powers, preferences and rights, and the qualifications, limitations or restrictions of such shares.
ProAssurance declared cash dividends of $0.05 per share during each of the first three quarters of 2021, $0.31 per share during the first quarter of 2020 and $0.05 per share during each of the second and third quarters of 2020. Dividends declared during the 2021 and 2020 nine-month periods totaled $8.1 million and $22.1 million, respectively. Any decision to pay future cash dividends is subject to the Board’s final determination after a comprehensive review of financial performance, future expectations and other factors deemed relevant by the Board. See Note 12 of the Notes to Consolidated Financial Statements in ProAssurance's December 31, 2020 report on Form 10-K for additional information.
At September 30, 2021, Board authorizations for the repurchase of common shares or the retirement of outstanding debt of $110 million remained available for use. ProAssurance did not repurchase any common shares during the nine months ended September 30, 2021 or 2020.
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss)
The following tables provide a detailed breakout of the components of AOCI and the amounts reclassified from AOCI to net income (loss). The tax effects of all amounts in the tables below, except for an immaterial amount of unrealized gains and losses on available-for-sale securities held at the Company's U.K. subsidiary, were computed using the enacted U.S. federal corporate tax rate of 21%. OCI included a deferred tax benefit of $3.2 million and $8.3 million for the three and nine months ended September 30, 2021, respectively, as compared to a deferred tax expense of $1.9 million and $7.7 million for the same respective periods of 2020.
The changes in the balance of each component of AOCI for the three and nine months ended September 30, 2021 and 2020 were as follows:
(In thousands)Unrealized Investment Gains (Losses)Non-credit ImpairmentsUnrecognized Change in Defined Benefit Plan Liabilities*Accumulated Other Comprehensive Income (Loss)
Balance, July 1, 2021$53,168 $— $(96)$53,072 
OCI, before reclassifications, net of tax(10,158)— — (10,158)
Amounts reclassified from AOCI, net of tax(1,503)— 96 (1,407)
Net OCI, current period(11,661)— 96 (11,565)
Balance, September 30, 2021$41,507 $— $— $41,507 
(In thousands)Unrealized Investment Gains (Losses)Non-credit ImpairmentsUnrecognized Change in Defined Benefit Plan Liabilities*Accumulated Other Comprehensive Income (Loss)
Balance, December 31, 2020$75,388 $(57)$(104)$75,227 
OCI, before reclassifications, net of tax(24,655)— 8 (24,647)
Amounts reclassified from AOCI, net of tax(9,226)57 96 (9,073)
Net OCI, current period(33,881)57 104 (33,720)
Balance, September 30, 2021$41,507 $— $— $41,507 

(In thousands)Unrealized Investment Gains (Losses)Non-credit ImpairmentsUnrecognized Change in Defined Benefit Plan Liabilities*Accumulated Other Comprehensive Income (Loss)
Balance, July 1, 2020$61,912 $(704)$(78)$61,130 
OCI, before reclassifications, net of tax9,505 — (22)9,483 
Amounts reclassified from AOCI, net of tax(2,975)647 — (2,328)
Net OCI, current period6,530 647 (22)7,155 
Balance, September 30, 2020$68,442 $(57)$(100)$68,285 
(In thousands)Unrealized Investment Gains (Losses)Non-credit ImpairmentsUnrecognized Change in Defined Benefit Plan Liabilities*Accumulated Other Comprehensive Income (Loss)
Balance, December 31, 2019$37,333 $(300)$(78)$36,955 
OCI, before reclassifications, net of tax37,199 (187)(22)36,990 
Amounts reclassified from AOCI, net of tax(6,090)430 — (5,660)
Net OCI, current period31,109 243 (22)31,330 
Balance, September 30, 2020$68,442 $(57)$(100)$68,285 
* The Company terminated Eastern's defined benefit plan, effective September 30, 2021, resulting in a settlement of the liabilities under the plan and the net loss previously reflected in AOCI being recognized in earnings for the three and nine months ended September 30, 2021. As a result of the NORCAL acquisition, the Company sponsors another frozen defined benefit plan (see Note 16). Due to the application of GAAP purchase accounting (see Note 2), there were no amounts recorded in AOCI related to this plan as of September 30, 2021 as the plan assets and benefit obligation are not remeasured on a quarterly basis.