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Fair Value Measurement (Tables) | 3 Months Ended
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Mar. 31, 2024
Fair Value Disclosures [Abstract] |
Schedule of Fair Value of Assets | Fair values of assets measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 are shown in the following tables. Where applicable, the tables also indicate the fair value hierarchy of the valuation techniques utilized to determine those fair values. For some assets, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. When this is the case, the asset is categorized based on the level of the most significant input to the fair value measurement. Assessments of the significance of a particular input to the fair value measurement require judgment and consideration of factors specific to the assets being valued. For more information on the valuation methodologies used regarding securities in the Level 2 and Level 3 categories, see Note 2 of the Notes to Consolidated Financial Statements in ProAssurance’s December 31, 2023 report on Form 10-K.
| March 31, 2024
| Fair Value Measurements Using |  | Total
(In thousands) | Level 1 |  | Level 2 |  | Level 3 |  | Fair Value
Assets: |  |  |  |  |  |  |
Fixed maturities, available-for-sale |  |  |  |  |  |  |
U.S. Treasury obligations | $ | — |  |  | $ | 240,889 |  |  | $ | — |  |  | $ | 240,889 |
U.S. Government-sponsored enterprise obligations | — |  |  | 18,927 |  |  | — |  |  | 18,927 |
State and municipal bonds | — |  |  | 474,265 |  |  | — |  |  | 474,265 |
Corporate debt, multiple observable inputs | — |  |  | 1,647,844 |  |  | — |  |  | 1,647,844 |
Corporate debt, limited observable inputs | — |  |  | — |  |  | 66,208 |  |  | 66,208 |
Residential mortgage-backed securities | — |  |  | 450,052 |  |  | — |  |  | 450,052 |
Agency commercial mortgage-backed securities | — |  |  | 7,950 |  |  | — |  |  | 7,950 |
Other commercial mortgage-backed securities | — |  |  | 229,029 |  |  | — |  |  | 229,029 |
Other asset-backed securities | — |  |  | 406,832 |  |  | 2,141 |  |  | 408,973 |
Fixed maturities, trading | — |  |  | 50,106 |  |  | — |  |  | 50,106 |
Equity investments |  |  |  |  |  |  |
Financial | 9,750 |  |  | 2,270 |  |  | 288 |  |  | 12,308 |
Utilities/Energy | 1,258 |  |  | — |  |  | — |  |  | 1,258 |
Industrial | — |  |  | — |  |  | 4,946 |  |  | 4,946 |
Bond funds | 101,571 |  |  | — |  |  | — |  |  | 101,571 |
All other | 17,831 |  |  | — |  |  | — |  |  | 17,831 |
Short-term investments | 102,675 |  |  | 81,326 |  |  | — |  |  | 184,001 |
Other investments | — |  |  | 54,990 |  |  | 742 |  |  | 55,732 |
Other assets | — |  |  | 7,674 |  |  | — |  |  | 7,674 |
Total assets categorized within the fair value hierarchy | $ | 233,085 |  |  | $ | 3,672,154 |  |  | $ | 74,325 |  |  | 3,979,564 |
Assets carried at NAV, which approximates fair value and which are not categorized within the fair value hierarchy, reported as a part of: |  |  |  |  |  |  |
Investment in unconsolidated subsidiaries |  |  |  |  |  |  | 246,143 |
Total assets at fair value |  |  |  |  |  |  | $ | 4,225,707 |
Liabilities: |  |  |  |  |  |  |
Other liabilities | $ | 9,050 |  |  | $ | — |  |  | $ | 6,500 |  |  | $ | 15,550 |
Total liabilities categorized within the fair value hierarchy | $ | 9,050 |  |  | $ | — |  |  | $ | 6,500 |  |  | $ | 15,550 |
| December 31, 2023
| Fair Value Measurements Using |  | Total
(In thousands) | Level 1 |  | Level 2 |  | Level 3 |  | Fair Value
Assets: |  |  |  |  |  |  |
Fixed maturities, available-for-sale |  |  |  |  |  |  |
U.S. Treasury obligations | $ | — |  |  | $ | 243,525 |  |  | $ | — |  |  | $ | 243,525 |
U.S. Government-sponsored enterprise obligations | — |  |  | 18,724 |  |  | — |  |  | 18,724 |
State and municipal bonds | — |  |  | 454,381 |  |  | — |  |  | 454,381 |
Corporate debt, multiple observable inputs | — |  |  | 1,668,197 |  |  | — |  |  | 1,668,197 |
Corporate debt, limited observable inputs | — |  |  | — |  |  | 82,377 |  |  | 82,377 |
Residential mortgage-backed securities | — |  |  | 429,883 |  |  | 254 |  |  | 430,137 |
Agency commercial mortgage-backed securities | — |  |  | 8,387 |  |  | — |  |  | 8,387 |
Other commercial mortgage-backed securities | — |  |  | 188,464 |  |  | 1,010 |  |  | 189,474 |
Other asset-backed securities | — |  |  | 395,245 |  |  | 3,150 |  |  | 398,395 |
Fixed maturities, trading | — |  |  | 48,324 |  |  | — |  |  | 48,324 |
Equity investments |  |  |  |  |  |  |
Financial | 9,464 |  |  | 2,287 |  |  | 291 |  |  | 12,042 |
Utilities/Energy | 1,256 |  |  | — |  |  | — |  |  | 1,256 |
Industrial | — |  |  | — |  |  | 4,946 |  |  | 4,946 |
Bond funds | 114,901 |  |  | — |  |  | — |  |  | 114,901 |
All other | 18,150 |  |  | — |  |  | — |  |  | 18,150 |
Short-term investments | 163,499 |  |  | 72,286 |  |  | — |  |  | 235,785 |
Other investments | — |  |  | 57,478 |  |  | 5,126 |  |  | 62,604 |
Other assets | — |  |  | 3,876 |  |  | — |  |  | 3,876 |
Total assets categorized within the fair value hierarchy | $ | 307,270 |  |  | $ | 3,591,057 |  |  | $ | 97,154 |  |  | 3,995,481 |
Assets carried at NAV, which approximates fair value and which are not categorized within the fair value hierarchy, reported as a part of: |  |  |  |  |  |  |
Investment in unconsolidated subsidiaries |  |  |  |  |  |  | 245,455 |
Total assets at fair value |  |  |  |  |  |  | $ | 4,240,936 |
Liabilities: |  |  |  |  |  |  |
Other liabilities | $ | 4,030 |  |  | $ | — |  |  | $ | 6,500 |  |  | $ | 10,530 |
Total liabilities categorized within the fair value hierarchy | $ | 4,030 |  |  | $ | — |  |  | $ | 6,500 |  |  | $ | 10,530 |
Schedule of Quantitative Information Regarding Level 3 Valuations | Quantitative Information Regarding Level 3 Valuations Below is quantitative information regarding securities in the Level 3 category, by security type:
|  | Fair Value at |  |  |  |  |  |
($ in thousands) |  | March 31, 2024 |  | December 31, 2023 |  | Valuation Technique |  | Unobservable Input |  | Range (Weighted Average)
Assets: |  |  |  |  |  |  |  |  |  |
Corporate debt, limited observable inputs |  | $66,208 |  | $82,377 |  | Market Comparable Securities |  | Comparability Adjustment |  | 0% - 5% (2.5%)
|  |  |  |  |  | Discounted Cash Flows |  | Comparability Adjustment |  | 0% - 5% (2.5%)
Residential mortgage-backed, other commercial mortgage-backed and other asset-backed securities |  | $2,141 |  | $4,414 |  | Market Comparable Securities |  | Comparability Adjustment |  | 0% - 5% (2.5%)
|  |  |  |  |  | Discounted Cash Flows |  | Comparability Adjustment |  | 0% - 5% (2.5%)
Equity investments |  | $5,234 |  | $5,237 |  | Discounted Cash Flows |  | Comparability Adjustment |  | 0% - 10% (5%)
Other investments |  | $742 |  | $5,126 |  | Discounted Cash Flows |  | Comparability Adjustment |  | 0% - 10% (5%)
Liabilities: |  |  |  |  |  |  |  |  |  |
Other liabilities |  | $6,500 |  | $6,500 |  | Stochastic Model/Discounted Cash Flows |  | Weighted Average Cost of Capital |  | 0% - 10% (8%)
Schedule of Fair Value Measurements - Level 3 Assets & Liabilities | The following tables present summary information regarding changes in the fair value of assets and liabilities measured using Level 3 inputs.
|  |  |  |  | March 31, 2024
|  |  |  |  | Level 3 Fair Value Measurements
|  |  |  |  | Assets |  | Liabilities |  |
(In thousands) |  |  |  |  | Corporate Debt |  | Asset-backed Securities |  | Equity Investments |  | Other Investments |  | Total Assets |  | Other Liabilities |  | Total Liabilities |  |
Balance, December 31, 2023 |  |  |  |  | $ | 82,377 |  |  | $ | 4,414 |  |  | $ | 5,237 |  |  | $ | 5,126 |  |  | $ | 97,154 |  |  | $ | (6,500) |  |  | $ | (6,500) |  |  |
Total gains (losses) realized and unrealized: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Included in earnings, as a part of: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net investment gains (losses) |  |  |  |  | — |  |  | — |  |  | (3) |  |  | 88 |  |  | 85 |  |  | — |  |  | — |  |  |
Included in other comprehensive income (loss) |  |  |  |  | (171) |  |  | (28) |  |  | — |  |  | — |  |  | (199) |  |  | — |  |  | — |  |  |
Purchases |  |  |  |  | 2,201 |  |  | 1,200 |  |  | — |  |  | — |  |  | 3,401 |  |  | — |  |  | — |  |  |
Sales |  |  |  |  | (702) |  |  | — |  |  | — |  |  | — |  |  | (702) |  |  | — |  |  | — |  |  |
Transfers in |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |
Transfers out |  |  |  |  | (17,497) |  |  | (3,445) |  |  | — |  |  | (4,472) |  |  | (25,414) |  |  | — |  |  | — |  |  |
Balance, March 31, 2024 |  |  |  |  | $ | 66,208 |  |  | $ | 2,141 |  |  | $ | 5,234 |  |  | $ | 742 |  |  | $ | 74,325 |  |  | $ | (6,500) |  |  | $ | (6,500) |  |  |
Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets and liabilities held at period-end |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | (3) |  |  | $ | 88 |  |  | $ | 85 |  |  | $ | — |  |  | $ | — |  |  |
|  |  |  |  | March 31, 2023
|  |  |  |  | Level 3 Fair Value Measurements
|  |  |  |  | Assets |  | Liabilities
(In thousands) |  |  |  |  | Corporate Debt |  | Asset-backed Securities |  | Equity Investments |  | Other Investments |  | Total Assets |  | Other Liabilities |  | Total Liabilities
Balance, December 31, 2022 |  |  |  |  | $ | 63,973 |  |  | $ | 2,954 |  |  | $ | 2,803 |  |  | $ | 1,783 |  |  | $ | 71,513 |  |  | $ | (15,000) |  |  | $ | (15,000) |
Total gains (losses) realized and unrealized: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Included in earnings, as a part of: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net investment gains (losses) |  |  |  |  | 16 |  |  | — |  |  | (3) |  |  | — |  |  | 13 |  |  | 1,000 |  |  | 1,000 |
Operating expense |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,000 |  |  | 1,000 |
Included in other comprehensive income (loss) |  |  |  |  | 209 |  |  | 39 |  |  | — |  |  | — |  |  | 248 |  |  | — |  |  | — |
Purchases |  |  |  |  | 6,322 |  |  | 1,863 |  |  | — |  |  | — |  |  | 8,185 |  |  | — |  |  | — |
Sales |  |  |  |  | (432) |  |  | — |  |  | — |  |  | — |  |  | (432) |  |  | — |  |  | — |
Transfers in |  |  |  |  | 11,220 |  |  | 1,779 |  |  | — |  |  | — |  |  | 12,999 |  |  | — |  |  | — |
Transfers out |  |  |  |  | (5,151) |  |  | (1,581) |  |  | — |  |  | (1,283) |  |  | (8,015) |  |  | — |  |  | — |
Balance, March 31, 2023 |  |  |  |  | $ | 76,157 |  |  | $ | 5,054 |  |  | $ | 2,800 |  |  | $ | 500 |  |  | $ | 84,511 |  |  | $ | (13,000) |  |  | $ | (13,000) |
Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets and liabilities held at period-end |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | (3) |  |  | $ | — |  |  | $ | (3) |  |  | $ | — |  |  | $ | — |
Schedule of Investments in LLCs and Limited Partnerships | The amount of ProAssurance's unfunded contractual commitments related to these investments as of March 31, 2024 and fair values of these investments as of March 31, 2024 and December 31, 2023 were as follows:
| Unfunded Contractual Commitments |  | Fair Value
(In thousands) | March 31, 2024 |  | March 31, 2024 |  | December 31, 2023
Investment in unconsolidated subsidiaries: |  |  |  |  |
Private debt funds (1) | $4,565 |  | $ | 16,768 |  |  | $ | 19,886 |
Long/short equity funds (2) | None |  | 4,243 |  |  | 4,497 |
Non-public equity funds (3) | $38,970 |  | 115,421 |  |  | 111,251 |
Credit funds (4) | $31,552 |  | 56,595 |  |  | 55,740 |
Strategy focused funds (5) | $50,427 |  | 53,116 |  |  | 54,081 |
Total investments carried at NAV |  |  | $ | 246,143 |  |  | $ | 245,455 |
Below is additional information regarding each of the investments listed in the table above as of March 31, 2024. (1)This investment is comprised of interests in two unrelated LP funds that are structured to provide interest distributions primarily through diversified portfolios of private debt instruments. One LP allows redemption by special consent, while the other does not permit redemption. Income and capital are to be periodically distributed at the discretion of the LPs over an anticipated time frame that spans from three to eight years. (2)This investment is comprised of one LP fund, which holds long and short publicly traded securities that will passively generate income. Redemptions are permitted with 30 days written notice if outside of a lock-up period. (3)This investment is comprised of interests in multiple unrelated LP funds, each structured to provide capital appreciation through diversified investments in private equity, which can include investments in buyout, venture capital, debt including senior, second lien and mezzanine, distressed debt, collateralized loan obligations and other private equity-oriented LPs. Two of the LPs allow redemption by terms set forth in the LP agreements; the others do not permit redemption. Income and capital are to be periodically distributed at the discretion of the LP over time frames that are anticipated to span up to ten years. (4)This investment is comprised of multiple unrelated LP funds. Two funds seek to obtain superior risk-adjusted absolute returns through a diversified portfolio of debt securities, including bonds, loans and other asset-backed instruments. The remaining funds focus on private middle market company mezzanine and senior secured loans, opportunities across the credit spectrum, mortgage backed-loans, as well as various types of loan-backed investments. One fund allows redemptions at any quarter-end with prior notice requirements of 180 days, while two other funds allow for redemptions with consent of the General Partner. The remaining funds do not allow redemptions. For the funds that do not allow redemptions, income and capital are to be periodically distributed at the discretion of the LP over time frames throughout the remaining life of the funds. (5)This investment is comprised of multiple unrelated LPs/LLCs funds. One fund is an LLC focused on investing in North American consumer products companies, comprised of equity and equity-related securities, as well as debt instruments. A second fund is focused on aircraft investments, along with components and assets related to aircrafts. A third fund is an LLC focused on acquiring ownership stakes in insurance agencies. For all three funds, redemptions are not permitted. The remaining funds are real estate focused LPs, two of which allow for redemption with prior notice.
Schedule of Financial Instruments Not Measured at Fair Value | The following table provides the estimated fair value of the Company's financial instruments that, in accordance with GAAP for the type of investment, are measured using a methodology other than fair value. Fair values provided primarily fall within the Level 3 fair value category.
| March 31, 2024 |  | December 31, 2023
(In thousands) | Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value
Financial assets: |  |  |  |  |  |  |
BOLI | $ | 78,657 |  |  | $ | 78,657 |  |  | $ | 78,205 |  |  | $ | 78,205 |
Other investments | $ | 4,064 |  |  | $ | 4,064 |  |  | $ | 3,215 |  |  | $ | 3,215 |
Other assets | $ | 34,824 |  |  | $ | 34,824 |  |  | $ | 33,231 |  |  | $ | 33,221 |
Financial liabilities: |  |  |  |  |  |  |
Revolving Credit Agreement* | $ | 125,000 |  |  | $ | 125,000 |  |  | $ | 125,000 |  |  | $ | 125,000 |
Term Loan* | $ | 125,000 |  |  | $ | 125,000 |  |  | $ | 125,000 |  |  | $ | 125,000 |
Contribution Certificates | $ | 179,865 |  |  | $ | 147,328 |  |  | $ | 179,387 |  |  | $ | 149,782 |
Other liabilities | $ | 33,548 |  |  | $ | 33,548 |  |  | $ | 32,043 |  |  | $ | 32,043 |
* Carrying value excludes unamortized debt issuance costs.

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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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