ProAssurance Corporation Q3 FY2024 earnings call

• Specialty P&C combined ratio benefited from favorable prior accident year reserve development; renewal premiums increased, and focus on rate adequacy. - Workers’ Compensation observed moderating medical loss trends, operational discipline impact, and leveraging new system for innovation. - Investment results: net investment income rose $5M or 14%, fixed maturity portfolio high quality, book value per share up over $2 since year-end.

Specialty P&C Segment: Operating earnings for Q3 were $17.3 million or $0.34 per share, with a 99.5% combined ratio. Benefited from 10.5 points of favorable prior accident year reserve development. Renewal premiums in NPL increased 14% for standard and 18% for specialty; new business was $8 million. Workers’ Compensation Segment: Current accident year loss ratio was 4 points below 2023 full year and 6 points below Q3 2023. Net written premiums up $2 million due to higher audit premiums; new business was $3 million.

• Expect continued progress with nine-month operating earnings of $0.64 per share. - Look forward to sharing results in coming quarters.

Q: Maxwell Fritscher asked about workers’ comp renewal pricing, competitive environment in physicians business, and details on medical professional liability back book reserve gains.

A: Kevin Shook noted workers’ comp renewal rate change was 2.3% (driven by a large account), Ned Rand discussed competitive environment in physicians business and reserve gains from favorable claim closings.

Q: Paul Newsome inquired about product portfolio underperformance and expense ratio impact on ROE targets.

A: Ned Rand talked about reunderwriting in specialty healthcare, broad-based work comp rate needs, and expense ratio tied to compensation costs and inflationary trends.

Q: Bob Farnam asked about medical cost inflation moderation and color on trends.

A: Kevin Shook mentioned average medical cost down about 3%, factors like unit cost, injury mix, utilization, and Pennsylvania’s fee schedule impact.