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Shareholders' Equity
 9 Months Ended
Sep. 30, 2023
Equity [Abstract]  
Shareholders' Equity Shareholders’ Equity
At September 30, 2023 and December 31, 2022, 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 the first quarter of 2023 and each of the first three quarters of 2022, totaling $2.7 million and $8.1 million, respectively. In light of the price range in which the Company's stock traded in the second quarter of 2023, the Board decided to suspend payment of a quarterly cash dividend. Instead, the Company used available capital to repurchase shares pursuant to the existing share repurchase authorization. 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, 2022 report on Form 10-K for additional information.
At September 30, 2023, Board authorizations for the repurchase of common shares or the retirement of outstanding debt of $55.9 million remained available for use. ProAssurance repurchased approximately 3.1 million common shares at a cost of $50.5 million and 139,000 common shares at a cost of $3.3 million during the nine months ended September 30, 2023 and 2022, respectively.
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 $8.2 million and of $0.2 million for the three and nine months ended September 30, 2023, respectively, as compared to $24.4 million and $92.2 million for the same respective periods of 2022.
The changes in the balance of each component of AOCI for the three and nine months ended September 30, 2023 and 2022 were as follows:
(In thousands)Unrealized Investment Gains (Losses) on Securities
Cash Flow Hedging Gains (Losses) (1)
Non-credit ImpairmentsUnrecognized Change in Defined Benefit Plan LiabilitiesAccumulated Other Comprehensive Income (Loss)
Balance, July 1, 2023$(270,325)$4,310 $(11)$(1,454)$(267,480)
OCI, before reclassifications, net of tax(33,371)3,879 — — (29,492)
Amounts reclassified from AOCI, net of tax133 — — — 133 
Net OCI, current period(33,238)3,879 — — (29,359)
Balance, at September 30, 2023$(303,563)$8,189 $(11)$(1,454)$(296,839)
(In thousands)Unrealized Investment Gains (Losses) on Securities
Cash Flow Hedging Gains (Losses) (1)
Non-credit ImpairmentsUnrecognized Change in Defined Benefit Plan LiabilitiesAccumulated Other Comprehensive Income (Loss)
Balance, December 31, 2022$(297,142)$— $(11)$(1,454)$(298,607)
OCI, before reclassifications, net of tax(9,437)8,189 — — (1,248)
Amounts reclassified from AOCI, net of tax3,016 — — — 3,016 
Net OCI, current period(6,421)8,189 — — 1,768 
Balance, September 30, 2023$(303,563)$8,189 $(11)$(1,454)$(296,839)
(In thousands)Unrealized Investment Gains (Losses) on SecuritiesNon-credit ImpairmentsUnrecognized Change in Defined Benefit Plan LiabilitiesAccumulated Other Comprehensive Income (Loss)
Balance, July 1, 2022
$(235,045)$(331)$1,188 $(234,188)
OCI, before reclassifications, net of tax(90,233)— — (90,233)
Amounts reclassified from AOCI, net of tax194 — (14)180 
Net OCI, current period(90,039)— (14)(90,053)
Balance, at September 30, 2022
$(325,084)$(331)$1,174 $(324,241)

(In thousands)Unrealized Investment Gains (Losses) on SecuritiesNon-credit ImpairmentsUnrecognized Change in Defined Benefit Plan LiabilitiesAccumulated Other Comprehensive Income (Loss)
Balance, December 31, 2021$14,929 $— $1,355 $16,284 
OCI, before reclassifications, net of tax(341,232)(331)— (341,563)
Amounts reclassified from AOCI, net of tax1,219 — (181)1,038 
Net OCI, current period(340,013)(331)(181)(340,525)
Balance, September 30, 2022$(325,084)$(331)$1,174 $(324,241)
(1) ProAssurance entered into two forward-starting interest rate swap agreements ("Interest Rate Swaps") on May 2, 2023, each of which are designated and qualify as a cash flow hedge. See Note 9 for additional information on the Interest Rate Swaps.