
	March 31, 2024
(In thousands)	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturities, available-for-sale
U.S. Treasury obligations	$	258,462	$	—	$	24	$	17,597	$	240,889
U.S. Government-sponsored enterprise obligations	19,957		—		—		1,030		18,927
State and municipal bonds	502,549		—		1,736		30,020		474,265
Corporate debt	1,849,162		740		2,421		136,791		1,714,052
Residential mortgage-backed securities	507,312		207		2,020		59,073		450,052
Agency commercial mortgage-backed securities	8,964		—		—		1,014		7,950
Other commercial mortgage-backed securities	248,756		—		221		19,948		229,029
Other asset-backed securities	418,695		190		921		10,453		408,973
	$	3,813,857	$	1,137	$	7,343	$	275,926	$	3,544,137


	December 31, 2023
(In thousands)	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturities, available-for-sale
U.S. Treasury obligations	$	259,834	$	—	$	165	$	16,474	$	243,525
U.S. Government-sponsored enterprise obligations	19,752		—		2		1,030		18,724
State and municipal bonds	482,367		—		1,885		29,871		454,381
Corporate debt	1,883,308		—		4,025		136,759		1,750,574
Residential mortgage-backed securities	481,267		211		2,876		53,795		430,137
Agency commercial mortgage-backed securities	9,369		—		5		987		8,387
Other commercial mortgage-backed securities	210,469		151		60		20,904		189,474
Other asset-backed securities	412,354		193		1,104		14,870		398,395
	$	3,758,720	$	555	$	10,122	$	274,690	$	3,493,597

The recorded cost basis and estimated fair value of available-for-sale fixed maturities at March 31, 2024, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


(In thousands)	Amortized Cost		Due in one year or less		Due after one year through five years		Due after five years through ten years		Due after ten years		Total Fair Value
Fixed maturities, available-for-sale
U.S. Treasury obligations	$	258,462	$	36,249	$	169,651	$	32,387	$	2,602	$	240,889
U.S. Government-sponsored enterprise obligations	19,957		4,790		11,653		505		1,979		18,927
State and municipal bonds	502,549		30,409		157,707		161,274		124,875		474,265
Corporate debt	1,849,162		179,206		886,529		569,033		79,284		1,714,052
Residential mortgage-backed securities	507,312										450,052
Agency commercial mortgage-backed securities	8,964										7,950
Other commercial mortgage-backed securities	248,756										229,029
Other asset-backed securities	418,695										408,973
	$	3,813,857									$	3,544,137

Cash and securities with a carrying value of $53.5 million at March 31, 2024 were on deposit with various state insurance departments to meet regulatory requirements. ProAssurance also held securities with a carrying value of $70.6 million at March 31, 2024 that are pledged as collateral security for advances under the Company's borrowing relationships with FHLBs.

As a member of Lloyd's, ProAssurance is required to maintain capital at Lloyd's, referred to as FAL, to support the Company's previous participation in underwriting years that remain open at Syndicate 1729. At March 31, 2024, the fair value of ProAssurance's FAL investments was $20.2 million and were comprised of investment securities, primarily short-term investments, and cash and cash equivalents on deposit with Lloyd's in order to satisfy these FAL requirements.


	March 31, 2024
	Total				Less than 12 months				12 months or longer
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(In thousands)	Value		Loss		Value		Loss		Value		Loss
Fixed maturities, available-for-sale
U.S. Treasury obligations	$	226,103	$	17,597	$	40,747	$	1,412	$	185,356	$	16,185
U.S. Government-sponsored enterprise obligations	18,928		1,030		10,631		486		8,297		544
State and municipal bonds	389,539		30,020		98,395		5,941		291,144		24,079
Corporate debt	1,498,062		136,791		459,157		38,451		1,038,905		98,340
Residential mortgage-backed securities	335,297		59,073		130,058		16,800		205,239		42,273
Agency commercial mortgage-backed securities	7,950		1,014		2,652		344		5,298		670
Other commercial mortgage-backed securities	214,030		19,948		90,586		8,120		123,444		11,828
Other asset-backed securities	252,384		10,453		125,871		3,746		126,513		6,707
	$	2,942,293	$	275,926	$	958,097	$	75,300	$	1,984,196	$	200,626


	December 31, 2023
	Total				Less than 12 months				12 months or longer
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(In thousands)	Value		Loss		Value		Loss		Value		Loss
Fixed maturities, available-for-sale
U.S. Treasury obligations	$	213,634	$	16,474	$	32,925	$	1,364	$	180,709	$	15,110
U.S. Government-sponsored enterprise obligations	18,428		1,030		4,128		242		14,300		788
State and municipal bonds	378,313		29,871		48,960		2,287		329,353		27,584
Corporate debt	1,524,940		136,759		84,221		5,054		1,440,719		131,705
Residential mortgage-backed securities	313,082		53,795		74,463		10,271		238,619		43,524
Agency commercial mortgage-backed securities	7,955		987		212		1		7,743		986
Other commercial mortgage-backed securities	184,416		20,904		18,092		1,140		166,324		19,764
Other asset-backed securities	293,447		14,870		30,115		867		263,332		14,003
	$	2,934,215	$	274,690	$	293,116	$	21,226	$	2,641,099	$	253,464

As of March 31, 2024, excluding U.S. Government or U.S. Government-sponsored enterprise obligations, there were 2,545 debt securities (64.8% of all available-for-sale fixed maturity securities held) in an unrealized loss position representing 1,328 issuers. The greatest and second greatest unrealized loss positions among those securities were approximately $5.3 million and $3.3 million, respectively. The securities were evaluated for impairment as of March 31, 2024.

As of December 31, 2023, excluding U.S. Government or U.S. Government-sponsored enterprise obligations, there were 2,531 debt securities (65.6% of all available-for-sale fixed maturity securities held) in an unrealized loss position representing 1,319 issuers. The greatest and second greatest unrealized loss positions among those securities were approximately $5.0 million and $3.2 million, respectively. The securities were evaluated for impairment as of December 31, 2023.

Each quarter, ProAssurance performs a detailed analysis for the purpose of assessing whether any of the securities it holds in an unrealized loss position has suffered an impairment due to credit or non-credit factors. A detailed discussion of the factors considered in the assessment is included in Note 1 of the Notes to Consolidated Financial Statements in ProAssurance's December 31, 2023 report on Form 10-K.

Fixed maturity securities held in an unrealized loss position at March 31, 2024, excluding asset-backed securities, have paid all scheduled contractual payments and are expected to continue. Expected future cash flows of asset-backed securities, excluding those issued by GNMA, FNMA and FHLMC, held in an unrealized loss position were estimated as part of the March 31, 2024 impairment evaluation using the most recently available six-month historical performance data for the collateral (loans) underlying the security or, if historical data was not available, sector based assumptions, and equaled or exceeded the current amortized cost basis of the security.


	Three Months Ended March 31, 2024
(In thousands)	Corporate Debt		Residential mortgage-backed securities		Other commercial mortgage-backed securities		Other asset-backed securities		Total
Balance, at December 31, 2023	$	—	$	211	$	151	$	193	$	555
Additional credit losses related to securities for which:
No allowance for credit losses has been previously recognized	740		—		—		—		740


Reductions related to:
Securities sold during the period	—		(4)		(151)		(3)		(158)



Balance, at March 31, 2024	$	740	$	207	$	—	$	190	$	1,137


	Three Months Ended March 31, 2023
(In thousands)	Residential mortgage-backed securities		Other asset-backed securities		Total
Balance, at December 31, 2022	$	229	$	198	$	427




Reductions related to:
Securities sold during the period	(2)		(1)		(3)



Balance, at March 31, 2023	$	227	$	197	$	424


	March 31, 2024	Carrying Value
(In thousands)	Percentage Ownership	March 31, 2024		December 31, 2023
Qualified affordable housing project tax credit partnerships	See below	$	562	$	666

All other investments, primarily investment fund LPs/LLCs	See below	278,369		276,090
		$	278,931	$	276,756

Qualified affordable housing project tax credit partnership interests held by ProAssurance generate investment returns by providing tax benefits to fund investors in the form of tax credits and project operating losses. The carrying value of these investments reflects ProAssurance's total commitments (both funded and unfunded) to the partnerships, less any amortization. At March 31, 2024 and December 31, 2023, ProAssurance did not have an ownership percentage greater than 20% in any tax credit partnership interests. Since ProAssurance has the ability to exert influence over the partnerships but does not control them, all are accounted for using the equity method. See further discussion of the entities in which ProAssurance holds passive interests in Note 10.

ProAssurance holds interests in investment fund LPs/LLCs and other equity method investments and LPs/LLCs which are not considered to be investment funds. ProAssurance's ownership percentage relative to four of the LPs/LLCs is greater than 25% at March 31, 2024 and December 31, 2023 which is likely to be reduced as the funds mature and other investors participate in the funds; these investments had a carrying value of $24.0 million at March 31, 2024 and $23.0 million at December 31, 2023. ProAssurance's ownership percentage relative to the remaining investments and LPs/LLCs is less than 25%; these interests had a carrying value of $254.4 million at March 31, 2024 and $253.1 million at December 31, 2023. ProAssurance does not have the ability to exert control over any of these funds.

Equity in earnings (loss) of unconsolidated subsidiaries included losses from qualified affordable housing project tax credit partnerships and a historic tax credit partnership. Investment results recorded reflect ProAssurance's allocable portion of partnership operating results. Tax credits reduce income tax expense in the period they are utilized. The results recorded and tax credits recognized related to ProAssurance's tax credit partnership investments were as follows:

ProAssurance accounts for its tax credit partnership investments under the equity method of accounting and records its allocable portion of the operating losses of the underlying properties based on estimates provided by the partnerships. For the Company's qualified affordable housing project tax credit partnerships, it adjusts its estimates of their allocable portion of operating losses periodically as actual operating results of the underlying properties become available. The primary benefits of tax credits and tax-deductible operating losses from the historic tax credit partnerships are earned in a short period with potential for additional cash flows extending over several years. For the three months ended March 31, 2024 and 2023, the Company generated a nominal amount of tax credits from its tax credit partnership investments, which were deferred and are expected to be utilized in future periods. As of March 31, 2024, the Company had approximately $52.7 million of available tax credit carryforwards generated from its investments in tax credit partnerships which they expect to utilize in future periods.

Tax credits provided by the underlying projects of the Company's historic tax credit partnership are typically available in the tax year in which the project is put into active service, whereas the tax credits provided by qualified affordable housing project tax credit partnerships are provided over approximately a ten-year period.


	Three Months Ended March 31
(In thousands)		2024		2023
Total impairment losses:


Corporate debt		$	(1,316)	$	(2,936)

Asset-backed securities		(194)		3
Portion of impairment losses recognized in other comprehensive income before taxes:
Corporate debt		576		—



Net impairment losses recognized in earnings		(934)		(2,933)
Gross realized gains, available-for-sale fixed maturities		366		79
Gross realized (losses), available-for-sale fixed maturities		(1,099)		(457)

Net realized gains (losses), trading fixed maturities		15		(108)
Net realized gains (losses), equity investments		(256)		84
Net realized gains (losses), other investments		1,776		229
Change in unrealized holding gains (losses), trading fixed maturities		214		97
Change in unrealized holding gains (losses), equity investments		774		3,746
Change in unrealized holding gains (losses), convertible securities, carried at fair value		(1,119)		1,132

Other(1)		(5)		1,043
Net investment gains (losses)		$	(268)	$	2,912
(1) Includes a gain of $1.0 million recognized during the 2023 three-month period related to the change in the fair value of contingent consideration issued in connection with the NORCAL acquisition. See further discussion on the contingent consideration in Note 2 and Note 6 and discussion on the Company's accounting policy in Note 1 in its December 31, 2023 report on Form 10-K.

For the three months ended March 31, 2024, ProAssurance recognized $0.9 million of credit-related impairment losses in earnings related to a corporate bond in the consumer sector as well as an asset-backed security. The Company recognized non-credit impairment losses in OCI of $0.6 million related to a corporate bond during the three months ended March 31, 2024. For the three months ended March 31, 2023, ProAssurance recognized credit-related impairment losses in earnings of $2.9 million related to two corporate bonds in the financial sector. The Company did not recognize any non-credit impairment losses in OCI during the three months ended March 31, 2023.