XML 43 R29.htm IDEA: XBRL DOCUMENT v3.24.1.u1

Segment Information (Tables)

3 Months Ended

Mar. 31, 2024

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, changes in the fair value of contingent consideration 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 March 31, 2024
(In thousands)			Specialty P&C						Workers' Compensation Insurance						Segregated Portfolio Cell Reinsurance						Corporate						Inter-segment Eliminations						Consolidated
Net premiums earned			$	188,888					$	41,094					$	14,168					$	—					$	—					$	244,150
Net investment income			—						—						693						33,204						—						33,897
Equity in earnings (loss) of unconsolidated subsidiaries			—						—						—						2,963						—						2,963
Net investment gains (losses)			—						—						1,471						(1,739)						—						(268)
Other income (expense)(1)			1,353						477						(1)						3,061						(935)						3,955
Net losses and loss adjustment expenses			(152,994)						(31,636)						(10,064)						—						—						(194,694)
Underwriting, policy acquisition and operating expenses(1)			(51,049)						(14,490)						(4,713)						(8,688)						935						(78,005)
SPC U.S. federal income tax benefit (expense)(2)			—						—						(416)						—						—						(416)
SPC dividend (expense) income			—						—						(607)						—						—						(607)
Interest expense			—						—						—						(5,657)						—						(5,657)
Income tax benefit (expense)			—						—						—						(692)						—						(692)
Segment results			$	(13,802)					$	(4,555)					$	531					$	22,452					$	—					4,626
Net income (loss)																																	$	4,626
Significant non-cash items:
Depreciation and amortization, net of accretion			$	2,429					$	1,164					$	(370)					$	2,109					$	—					$	5,332

			Three Months Ended March 31, 2023
(In thousands)			Specialty P&C						Workers' Compensation Insurance						Segregated Portfolio Cell Reinsurance						Corporate						Inter-segment Eliminations						Consolidated
Net premiums earned			$	183,684					$	40,803					$	15,300					$	—					$	—					$	239,787
Net investment income			—						—						420						29,890						—						30,310
Equity in earnings (loss) of unconsolidated subsidiaries			—						—						—						(1,121)						—						(1,121)
Net investment gains (losses)			—						—						1,160						752						—						1,912
Other income (expense)(1)			990						581						1						327						(1,112)						787
Net losses and loss adjustment expenses			(166,029)						(30,844)						(8,423)						—						—						(205,296)
Underwriting, policy acquisition and operating expenses(1)			(42,681)						(12,980)						(5,035)						(8,204)						1,112						(67,788)
SPC U.S. federal income tax benefit (expense)(2)			—						—						(532)						—						—						(532)
SPC dividend (expense) income			—						—						(1,942)						—						—						(1,942)
Interest expense			—						—						—						(5,463)						—						(5,463)
Income tax benefit (expense)			—						—						—						2,172						—						2,172
Segment results			$	(24,036)					$	(2,440)					$	949					$	18,353					$	—					(7,174)
Reconciliation of segments to consolidated results:
Contingent Consideration(3)																																	1,000
Net income (loss)																																	$	(6,174)
Significant non-cash items:
Depreciation and amortization, net of accretion			$	2,640					$	869					$	64					$	4,104					$	—					$	7,677
(1) Includes certain fees for services provided by the Workers' Compensation Insurance segment to the SPCs at Inova Re and Eastern Re which 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 change in the fair value of contingent consideration issued in connection with the NORCAL acquisition included as a component of consolidated net investment gains (losses) on the Condensed Consolidated Statements of Income and Comprehensive Income. See further discussion on the contingent consideration in Note 2.

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 March 31
(In thousands)															2024						2023
Specialty P&C Segment
Gross premiums earned:
MPL															$	184,744					$	181,800
Medical Technology Liability															10,938						10,546
Lloyd's Syndicates															4,934						5,046
Other															6,011						6,661
Ceded premiums earned															(17,739)						(20,369)
Segment net premiums earned															188,888						183,684
Workers' Compensation Insurance Segment
Gross premiums earned:
Traditional business															44,376						43,540
Alternative market business															17,163						17,626
Ceded premiums earned															(20,445)						(20,363)
Segment net premiums earned															41,094						40,803
Segregated Portfolio Cell Reinsurance Segment
Gross premiums earned:
Workers' compensation(1)															15,867						16,304
MPL(2)															543						1,299
Ceded premiums earned															(2,242)						(2,303)
Segment net premiums earned															14,168						15,300
Consolidated net premiums earned															$	244,150					$	239,787

(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.

X

- 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
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

+ Details

Name:	us-gaap_ScheduleOfEntityWideInformationRevenueFromExternalCustomersByProductsAndServicesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- 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
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 25
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-25

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

+ Details

Name:	us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_SegmentReportingAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration