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Key Takeaways PRA reported Q4 adjusted EPS of 82 cents, beating estimates as income jumped 115.8% YoY.ProAssurance saw net investment income rise 9.1% and total expenses fall 17.8%.PRA's combined ratio improved to 92.3%, while book value per share rose 11.7%.ProAssurance Corporation (PRA) reported a fourth-quarter 2025 adjusted operating income of 82 cents per share, which beat the Zacks Consensus Estimate of 22 cents. The bottom line rose 115.8% year over year.Operating revenues of $271.6 million dipped 5. ...

ProAssurance (PRA) came out with quarterly earnings of $0.82 per share, beating the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +272.73%. A quarter ago, it was expected that this medical professional liability insurer would post earnings of $0.28 per share when it actually produced earnings of $0.15, delivering a surprise of -46.43%.Over the la ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025, or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number: 001-16533 ProAssurance Corporation (Exact name of registrant as specified in its charter) Delaware 63-1261433 (I.R. ...

NEWS RELEASE For More Information: Heather J. Wietzel • SVP, Investor Relations 800-282-6242 • 205-776-3028 • InvestorRelations@ProAssurance.com ProAssurance Reports Results for Fourth Quarter and Full-Year 2025 BIRMINGHAM, AL – February 23, 2026 – ProAssurance Corporation (NYSE: PRA), an industry-leading specialty insurer with extensive expertise in medical professional liability, today reported net income of $33.4 million, or $0.64 per diluted share, and operating income of $42.4 million, or $0.82 per dil ...

Core Insights - ProAssurance Corporation (PRA) reported weaker third-quarter 2025 results, with shares dipping marginally due to poor underwriting performance, declining gross premiums written, and elevated expenses [1][2][5] - The company experienced a significant drop in adjusted operating income and net income, while investment income showed strong growth [2][4][9] Financial Performance - Adjusted operating income was 15 cents per share, missing the Zacks Consensus Estimate by 46.4% and down 53.1% year over year [2][9] - Operating revenues totaled $274 million, a decrease of 1.4% year over year, and missed the consensus mark by 0.7% [2] - Gross premiums written fell 5.7% year over year to $290.4 million, below the estimate of $301.9 million [3][9] - Net premiums earned decreased 4% year over year to $233.4 million, surpassing the Zacks Consensus Estimate but missing the internal estimate [3] Investment Income and Expenses - Net investment income increased 8.5% year over year to $40.4 million, exceeding both the consensus and internal estimates [4] - Total expenses rose 4.2% year over year to $275.2 million, driven by higher net losses and operating costs, surpassing internal estimates [4] Segment Performance - Specialty P&C Segment revenues declined 4.4% year over year to $181.8 million, missing estimates [6] - Workers' Compensation Insurance Segment revenues fell 2.3% year over year to $41.4 million, also missing estimates [8] - Segregated Portfolio Cell Reinsurance Segment saw gross premiums written improve 4.2% year over year to $14.2 million, with a profit increase of 66.5% [11][12] Financial Position - As of September 30, 2025, cash and cash equivalents were $54.5 million, down 0.8% from the end of 2024 [14] - Total investments reached $4.4 billion, up 1.6% from the previous year [14] - Total shareholders' equity increased 8.5% to $1.3 billion, with book value per share growing 8% to $25.37 [15] Share Repurchase Update - ProAssurance did not repurchase any common shares in the third quarter of 2025, with a remaining capacity of $55.9 million for future repurchases or debt retirement [16]

Core Insights - ProAssurance reported quarterly earnings of $0.15 per share, missing the Zacks Consensus Estimate of $0.28 per share, and down from $0.34 per share a year ago, representing an earnings surprise of -46.43% [1] - The company posted revenues of $273.98 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.72%, and down from $278.23 million year-over-year [2] - ProAssurance shares have increased approximately 50.4% year-to-date, outperforming the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $277.51 million, and for the current fiscal year, it is $1.20 on revenues of $1.1 billion [7] - The estimate revisions trend for ProAssurance was favorable prior to the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Insurance - Property and Casualty industry is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Position - As of September 30, 2025, ProAssurance held cash and liquid investments of approximately $125 million outside its insurance subsidiaries, with an additional $125 million in permitted borrowings available under its Revolving Credit Agreement[170]. - As of September 30, 2025, the total carrying value of investments was $4,437,855,000, an increase from $4,367,427,000 as of December 31, 2024, representing a growth of approximately 1.6%[189]. - The outstanding debt as of September 30, 2025, totaled $422,783,000, slightly decreasing from $426,476,000 as of December 31, 2024[197]. - The company has $175 million available for use through its Revolving Credit Agreement as of October 30, 2025, providing additional liquidity options[192]. - Premiums receivable amounted to approximately $256 million, net of an allowance for expected credit losses of about $8 million, as of September 30, 2025[326]. Operating Performance - For the nine months ended September 30, 2025, net cash provided by operating activities was $(12,476) thousand, a decrease of $1,999 thousand compared to $(10,477) thousand for the same period in 2024[171]. - The decrease in operating cash flows was primarily due to an increase in cash paid for operating expenses of $8.9 million and a decrease in net premium receipts of $19.8 million[173]. - Total revenues decreased by $5.7 million (2.0%) to $279.6 million for the three months ended September 30, 2025, compared to $285.3 million in 2024[201]. - Net investment result increased by $3.1 million (7.5%) to $45.2 million for the three months ended September 30, 2025, compared to $42.0 million in 2024[204]. - Net income decreased by $15.0 million (91.4%) to $1.4 million for the three months ended September 30, 2025, compared to $16.4 million in 2024[201]. Underwriting Results - The combined ratio increased by 9.1 percentage points to 114.7% for the three months ended September 30, 2025, compared to 105.6% in 2024[201]. - The consolidated current accident year net loss ratio for the three months ended September 30, 2025, was 81.3%, a slight decrease of 0.2 percentage points from 81.5% in 2024[214]. - The net loss ratio for the nine months ended September 30, 2025, is 76.4%, down 0.6 percentage points from 76.6% in the same period of 2024[229]. - The net loss ratio for the Specialty P&C segment in Q3 2025 is 82.6%, a decrease of 1.8 percentage points from 72.2% in Q3 2024[229]. - The current accident year net loss ratio for Q3 2025 is 81.3%, a decrease of 0.2 percentage points from Q3 2024's 81.5%[228]. Investment Performance - The average rating of available-for-sale fixed maturity securities was A+, with 99% rated, indicating a strong credit quality in the investment portfolio[190]. - The company anticipates that between $90 million and $170 million of its portfolio will mature each quarter over the next twelve months, enhancing liquidity for cash flow requirements[192]. - The total fair value of fixed maturities, available-for-sale, was $3,929 million, an increase from $3,803 million at the end of 2024, reflecting a growth of approximately 3.3%[319]. - The corporate debt segment showed a fair value of $1,868 million as of September 30, 2025, compared to $1,832 million at December 31, 2024, indicating a growth of about 2.0%[319]. - The company recognized $1.3 million of other net investment gains in Q3 2025, driven by unrealized holding gains from equity investments[304]. Tax and Regulatory Matters - The OBBBA signed into law on July 4, 2025, included extensions and modifications to various tax provisions, but did not materially impact the company's effective tax rate[168]. - The effective tax rate for the nine months ended September 30, 2025, was 31.1%, significantly higher than the 17.5% for the same period in 2024, due to discrete items impacting the rate[313]. - The projected annual effective tax rate for 2025 is 25.2%, up from 17.5% in 2024, before considering discrete items[221]. - The tax impact of transaction-related costs for the three and nine months ended September 30, 2025, included a benefit of $555 thousand and $1,491 thousand, respectively, related to the proposed merger transaction[312]. - The company has made a 953(d) election under the U.S. Internal Revenue Code for its Cayman Islands reinsurance subsidiaries, subjecting them to U.S. federal income tax[310]. Segment Performance - The Specialty P&C segment's current accident year net loss ratio increased to 83.2% for the three months ended September 30, 2025, up 0.5 percentage points from 82.7% in 2024[214]. - Non-core operations reported an underwriting loss of $3.4 million for the three months ended September 30, 2025, compared to an underwriting income of $0.5 million in 2024[227]. - The underwriting expense ratio for the Specialty P&C segment was 28.2% for the three months ended September 30, 2025, an increase of 0.7 percentage points from 2024, while the nine-month ratio decreased by 0.4 percentage points to 27.0%[261]. - The retention rate for Medical Professional Liability (MPL) was 85% for the three months ended September 30, 2025, compared to 84% in 2024[243]. - The company retained thirteen of the sixteen workers' compensation alternative market programs that were up for renewal during the nine months ended September 30, 2025[268].

Financial Performance - ProAssurance reported net income of $1.4 million, or $0.03 per diluted share, for Q3 2025, a decrease of 91.2% compared to $16.4 million, or $0.32 per diluted share, in Q3 2024[1][7] - Net income for Q3 2025 was $1.446 million, a decrease from $16.441 million in Q3 2024, while net income for the nine months ended September 30, 2025 was $17.545 million compared to $36.575 million in the same period of 2024[19] - Non-GAAP operating income for Q3 2025 was $7.896 million, down from $16.454 million in Q3 2024, and for the nine months ended September 30, 2025, it was $41.474 million compared to $30.426 million in 2024[19] - Non-GAAP operating income for the nine months ended September 30, 2025, was $41.5 million, a 36.3% increase from $30.4 million in the same period of 2024[7][10] Premiums and Underwriting - Consolidated net premiums written were $261.3 million for the quarter, down 6.5% from $279.5 million in Q3 2024, with Medical Professional Liability business contributing over 95% of this segment[5][7] - Specialty P&C renewal premium increases of 8% this quarter are part of a cumulative premium change of over 80% since 2018 in the medical professional liability market[5] - Specialty P&C segment gross premiums written decreased by 5.9% to $229,507,000 for the three months ended September 30, 2025, compared to $244,007,000 in 2024[11] - Workers' Compensation insurance segment net premiums written fell by 6.3% to $43,396,000 for the three months ended September 30, 2025, down from $46,318,000 in 2024[13] - The net loss ratio for the Specialty P&C segment increased to 80.8% in Q3 2025 from 72.5% in Q3 2024[12] - The current accident year net loss ratio for Q3 2025 is 83.2%, an increase of 0.5 percentage points from 82.7% in Q3 2024[26] Investment Income - Consolidated net investment income increased by 8.5% to $40.4 million in Q3 2025, reflecting higher average book yields[5][7] - Corporate segment net investment income increased by 8.5% to $39,342,000 for the three months ended September 30, 2025, from $36,263,000 in 2024[17] - The company recognized net investment losses of $841,000 in Q3 2025, compared to losses of $2.252 million in Q3 2024[19] Ratios and Performance Metrics - The Non-GAAP combined ratio for Q3 2025 was 112.2%, compared to 106.4% in Q3 2024, indicating a deterioration in underwriting performance[5][10] - The combined ratio for Q3 2025 was 112.2%, a decrease from 114.7% in Q3 2024, and for the nine months ended September 30, 2025, it was 108.8%, down from 111.4% in 2024[23] - The underwriting expense ratio for the nine months ended September 30, 2025, is 27.0%, a slight decrease from 27.4% in the same period of 2024[26] - Non-GAAP operating ROE for Q3 2025 is 2.4%, down from 5.6% in Q3 2024[28] Assets and Book Value - Book value per share rose to $25.37 at September 30, 2025, up from $23.49 at year-end 2024[9] - The Non-GAAP adjusted book value per share at September 30, 2025, is $27.14, an increase from $26.86 at December 31, 2024[29] - Total assets decreased slightly to $5.55 billion as of September 30, 2025, from $5.57 billion at year-end 2024[9] Corporate Actions and Future Outlook - The anticipated closing of the transaction with The Doctors Company is expected by June 30, 2026, pending regulatory approvals in several states[4][3] - The company continues to forgo renewal and new business opportunities that do not meet expectations of rate adequacy in the current medical professional liability loss environment[5] - The Corporate segment results for the three months ended September 30, 2025, included pre-tax transaction-related costs of $3,000,000 related to a proposed merger transaction[17] - Transaction-related costs in 2025 amounted to $2.983 million for Q3 and $14.578 million for the nine-month period, primarily related to a proposed merger transaction[19] Tax and Currency Effects - The consolidated effective tax rate for the Corporate segment was 66.9% for the three months ended September 30, 2025, compared to 22.1% in 2024[17] - The effective tax rate applied to adjustments was 21%, consistent for both 2025 and 2024 periods[24] - Foreign currency exchange rate gains for Q3 2025 were $1.003 million, down from $3.849 million in Q3 2024[19] Non-Core Operations - Non-core operations reported an underwriting loss of $3.4 million for Q3 2025, compared to an underwriting income of $0.5 million in Q3 2024[22] Ratings - The company is rated "A" (Excellent) by AM Best, indicating strong financial stability and performance in the specialty insurance sector[30]

Core Insights - ProAssurance Corporation (PRA) reported a second-quarter 2025 adjusted operating income of $0.52 per share, exceeding the Zacks Consensus Estimate of $0.19, and an increase from $0.21 in the same period last year [1][11] - Operating revenues decreased by 2.4% year over year to $271.9 million, but still surpassed the consensus estimate by 2% [1][2] - The company experienced a decline in gross premiums written by 3.1% year over year to $216.9 million, with net premiums earned also decreasing by 3.1% to $232.4 million [3][6] Financial Performance - Net investment income rose by 6.5% year over year to $38.9 million, driven by higher book yields, and exceeded the consensus estimate of $37.5 million [4][11] - Total expenses decreased by 8.5% year over year to $249.3 million, lower than the estimate of $260.3 million, primarily due to a reduction in net losses and loss adjustment expenses [4][5] - Net income for the second quarter was $21.9 million, reflecting a 41.4% increase year over year, with a combined ratio improving to 103.6% from 110.9% in the prior-year quarter [5][11] Segment Analysis - Specialty P&C Segment revenues declined by 2.4% year over year to $181.4 million, but were above the Zacks Consensus Estimate of $178.7 million [6] - Workers' Compensation Insurance Segment revenues fell by 0.6% year over year to $42 million, missing the consensus estimate [8] - The Segregated Portfolio Cell Reinsurance Segment saw gross premiums written decline by 18% year over year to $13 million, missing estimates [12] Operational Metrics - The combined ratio for the Specialty P&C Segment improved to 95.2% from 106.8% in the prior-year quarter, while the Workers' Compensation Insurance Segment's combined ratio deteriorated to 115.4% from 113.2% [7][9] - The Corporate Segment's net investment income increased by 6.9% year over year to $38 million, surpassing estimates [14] Financial Position - As of June 30, 2025, ProAssurance had cash and cash equivalents of $41.6 million, down from $54.9 million at the end of 2024, while total investments rose to $4.4 billion [15] - Total shareholders' equity increased by 6.1% to $1.3 billion, with book value per share rising to $24.80 from $23.49 at the end of 2024 [16] Share Repurchase Update - ProAssurance did not repurchase any common shares in the second quarter of 2025, with a remaining capacity of $55.9 million for future repurchases or debt retirement [17]