ProAssurance Reports Results for First Quarter 2023
Highlights - First Quarter 2023(2)
-
Gross premiums written of
$316 million (-6%) -
Unfavorable prior accident year reserve development of
$7 million - Consolidated combined ratio of 113.9%
-
Consolidated operating ratio of 101.3%
-
Net investment income of
$30 million (+48%)-
Net investment income increased by
$10 million compared to 2022
-
Net investment income increased by
-
Adjusted book value per share(1) of
$25.81 as ofMarch 31, 2023 . Adjusted book value per share was$25.99 as ofDecember 31, 2022 .
|
(1) |
Represents a Non-GAAP financial measure. See a reconciliation to its GAAP counterpart under the heading “Non-GAAP Financial Measures” that follows. |
|
(2) |
Comparisons are to the first quarter of 2022. |
Management Commentary & Results of Operations
Our first quarter results for 2023 highlight the challenging market dynamics in our core operating segments. The medical professional liability market faces cost pressures driven by social inflation, reinsurance costs, and the weakening of tort reform. These pressures led to a higher net loss ratio in our Specialty P&C segment this quarter and resulted in unfavorable development of prior accident years in the segment.
In the Workers’
Rand continued: “The results for the quarter reflect our continued caution in assessing reserves in prior years; in our loss ratio selections for the current year; and in reserve increases on a handful of claims, some of which resulted from excess verdicts against our insureds in the quarter. MPL carriers and their insureds are facing an environment in which in large verdicts are too commonly rendered without regard to the facts of the case regarding liability or a reasonable assessment of damages.”
Net investment income showed substantial growth this quarter, increasing by 48% to
Our book value per share at quarter end was
|
CONSOLIDATED INCOME STATEMENT HIGHLIGHTS |
|||||||||||
|
Selected consolidated financial data for each period is summarized in the table below. |
|||||||||||
|
|
Three Months Ended |
||||||||||
|
($ in thousands, except per share data) |
2023 |
|
2022 |
|
Change |
||||||
|
Revenues |
|
|
|
|
|
||||||
|
Gross premiums written(1) |
$ |
315,794 |
|
|
$ |
335,607 |
|
|
|
(5.9 |
%) |
|
Net premiums written |
$ |
284,909 |
|
|
$ |
310,915 |
|
|
|
(8.4 |
%) |
|
Net premiums earned |
$ |
239,787 |
|
|
$ |
265,711 |
|
|
|
(9.8 |
%) |
|
Net investment income |
|
30,310 |
|
|
|
20,443 |
|
|
|
48.3 |
% |
|
Equity in earnings (loss) of unconsolidated subsidiaries |
|
(1,121 |
) |
|
|
7,620 |
|
|
|
(114.7 |
%) |
|
Net investment gains (losses)(2) |
|
2,912 |
|
|
|
(13,506 |
) |
|
|
121.6 |
% |
|
Other income (loss)(1) |
|
787 |
|
|
|
2,804 |
|
|
|
(71.9 |
%) |
|
Total revenues(1) |
|
272,675 |
|
|
|
283,072 |
|
|
|
(3.7 |
%) |
|
Expenses |
|
|
|
|
|
||||||
|
Net losses and loss adjustment expenses |
|
205,296 |
|
|
|
209,423 |
|
|
|
(2.0 |
%) |
|
Underwriting, policy acquisition and operating expenses(1) |
|
67,788 |
|
|
|
71,776 |
|
|
|
(5.6 |
%) |
|
SPC |
|
532 |
|
|
|
642 |
|
|
|
(17.1 |
%) |
|
SPC dividend expense (income) |
|
1,942 |
|
|
|
2,367 |
|
|
|
(18.0 |
%) |
|
Interest expense |
|
5,463 |
|
|
|
4,441 |
|
|
|
23.0 |
% |
|
Total expenses(1) |
|
281,021 |
|
|
|
288,649 |
|
|
|
(2.6 |
%) |
|
Income (loss) before income taxes |
|
(8,346 |
) |
|
|
(5,577 |
) |
|
|
(49.7 |
%) |
|
Income tax expense (benefit) |
|
(2,172 |
) |
|
|
(2,017 |
) |
|
|
(7.7 |
%) |
|
Net income (loss) |
$ |
(6,174 |
) |
|
$ |
(3,560 |
) |
|
|
(73.4 |
%) |
|
Non-GAAP operating income (loss) |
$ |
(8,071 |
) |
|
$ |
7,683 |
|
|
|
(205.1 |
%) |
|
Weighted average number of common shares outstanding |
|
|
|
|
|
||||||
|
Basic |
|
53,987 |
|
|
|
54,012 |
|
|
|
||
|
Diluted |
|
54,117 |
|
|
|
54,143 |
|
|
|
||
|
Earnings (loss) per share |
|
|
|
|
|
||||||
|
Net income (loss) per diluted share |
$ |
(0.11 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.04 |
) |
|
Non-GAAP operating income (loss) per diluted share |
$ |
(0.15 |
) |
|
$ |
0.14 |
|
|
$ |
(0.29 |
) |
|
(1) |
Consolidated totals include inter-segment eliminations. The eliminations affect individual line items only and have no effect on net income (loss). See Note 11 of the Notes to Condensed Consolidated Financial Statements in our |
|
(2) |
This line item typically includes both realized and unrealized investment gains and losses, investment impairments losses, and, for the current period, the change in the fair value of the contingent consideration in relation to the NORCAL acquisition. Detailed information regarding the components of net investment gains (losses) are included in Note 3 of the Notes to Condensed Consolidated Financial Statements in our |
| The abbreviation “nm” indicates that the information or the percentage change is not meaningful. | |
|
BALANCE SHEET HIGHLIGHTS |
|||||||
|
($ in thousands, except per share data) |
|
|
|
||||
|
Total investments |
$ |
4,381,648 |
|
|
$ |
4,387,683 |
|
|
Total assets |
$ |
5,747,863 |
|
|
$ |
5,699,999 |
|
|
Total liabilities |
$ |
4,609,573 |
|
|
$ |
4,595,981 |
|
|
Common shares (par value |
$ |
635 |
|
|
$ |
634 |
|
|
Retained earnings |
$ |
1,414,411 |
|
|
$ |
1,423,286 |
|
|
|
$ |
(419,214 |
) |
|
$ |
(419,214 |
) |
|
Shareholders’ equity |
$ |
1,138,290 |
|
|
$ |
1,104,018 |
|
|
Book value per share |
$ |
21.07 |
|
|
$ |
20.46 |
|
|
Non-GAAP adjusted book value per share(1) |
$ |
25.81 |
|
|
$ |
25.99 |
|
|
(1) |
Adjusted book value per share is a Non-GAAP financial measure. See a reconciliation of book value per share to Non-GAAP adjusted book value per share under the heading “Non-GAAP Financial Measures” that follows. |
|
CONSOLIDATED KEY RATIOS |
|||||
|
|
Three Months Ended |
||||
|
|
2023 |
|
2022 |
||
|
Current accident year net loss ratio |
82.7 |
% |
|
80.8 |
% |
|
Effect of prior accident years’ reserve development |
2.9 |
% |
|
(2.0 |
%) |
|
Net loss ratio |
85.6 |
% |
|
78.8 |
% |
|
Underwriting expense ratio(2) |
28.3 |
% |
|
27.0 |
% |
|
Combined ratio |
113.9 |
% |
|
105.8 |
% |
|
Operating ratio |
101.3 |
% |
|
98.1 |
% |
|
Return on equity(1) |
(2.5 |
%) |
|
(0.8 |
%) |
|
Non-GAAP operating return on equity(1)(2) |
(2.9 |
%) |
|
2.3 |
% |
|
|
|
|
|
||
|
Combined ratio, excluding transaction-related costs(3) |
113.9 |
% |
|
105.4 |
% |
|
(1) |
Quarterly amounts are annualized. Refer to our |
|
(2) |
See a reconciliation of ROE to Non-GAAP operating ROE under the heading “Non-GAAP Financial Measures” that follows. |
|
(3) |
Our consolidated underwriting expense ratio for the quarter ended |
|
SPECIALTY P&C SEGMENT RESULTS |
||||||||||
|
|
Three Months Ended |
|||||||||
|
($ in thousands) |
2023 |
|
2022 |
|
% Change |
|||||
|
Gross premiums written |
$ |
238,874 |
|
|
$ |
257,672 |
|
|
(7.3 |
%) |
|
Net premiums written |
$ |
214,065 |
|
|
$ |
234,838 |
|
|
(8.8 |
%) |
|
Net premiums earned |
$ |
179,344 |
|
|
$ |
197,967 |
|
|
(9.4 |
%) |
|
Other income |
|
993 |
|
|
|
1,019 |
|
|
(2.6 |
%) |
|
Total revenues |
|
180,337 |
|
|
|
198,986 |
|
|
(9.4 |
%) |
|
Net losses and loss adjustment expenses |
|
(164,051 |
) |
|
|
(165,958 |
) |
|
(1.1 |
%) |
|
Underwriting, policy acquisition and operating expenses |
|
(40,961 |
) |
|
|
(42,878 |
) |
|
(4.5 |
%) |
|
Total expenses |
|
(205,012 |
) |
|
|
(208,836 |
) |
|
1.8 |
% |
|
Segment results |
$ |
(24,675 |
) |
|
$ |
(9,850 |
) |
|
(150.5 |
%) |
|
SPECIALTY P&C SEGMENT KEY RATIOS |
|||||
|
|
Three Months Ended |
||||
|
|
2023 |
|
2022 |
||
|
Current accident year net loss ratio |
87.2 |
% |
|
85.8 |
% |
|
Effect of prior accident years’ reserve development |
4.3 |
% |
|
(2.0 |
%) |
|
Net loss ratio |
91.5 |
% |
|
83.8 |
% |
|
Underwriting expense ratio |
22.8 |
% |
|
21.7 |
% |
|
Combined ratio |
114.3 |
% |
|
105.5 |
% |
The underwriting loss in the quarter reflects claims severity trends, largely from prior accident years, which adversely impacted the calendar year loss ratio. The loss environment continues to be challenging as a result of social inflation and large jury verdicts in the healthcare professional liability space. 2023 has continued the record-setting pace of excess verdicts across the MPL industry.
Compared to the same period last year, gross written premium and net earned premium decreased 7% and 9% year over year, respectively, primarily as a result of competitive market conditions and our efforts in pursuing needed rate improvements over the past year. However, premium retention in the quarter was 85% compared to 83% in the prior period. The improvement in the retention was driven by our
We achieved renewal pricing increases of 6%, compared to 9% in the first quarter of 2022. New business writings improved to
Excluding the effects of purchase accounting on last year’s results, the segment current accident year net loss ratio was essentially flat compared to the prior year. The benefits of our re-underwriting efforts over the past few years were offset by continued claims severity trends and weakening tort reform in recent quarters within our healthcare liability physician business, primarily in a couple of states.
We recognized net unfavorable prior accident year reserve development of
The expense ratio of 22.8% was pressured by higher acquisition costs driven by an increase in compensation related expenses and lower earned premium compared to the prior period. This was offset by a one-time benefit of 2.2 percentage points resulting from a
|
WORKERS’ COMPENSATION INSURANCE SEGMENT RESULTS |
||||||||||
|
|
Three Months Ended |
|||||||||
|
($ in thousands) |
2023 |
|
2022 |
|
% Change |
|||||
|
Gross premiums written |
$ |
73,431 |
|
|
$ |
72,118 |
|
|
1.8 |
% |
|
Net premiums written |
$ |
47,572 |
|
|
$ |
45,266 |
|
|
5.1 |
% |
|
Net premiums earned |
$ |
40,803 |
|
|
$ |
40,684 |
|
|
0.3 |
% |
|
Other income |
|
581 |
|
|
|
682 |
|
|
(14.8 |
%) |
|
Total revenues |
|
41,384 |
|
|
|
41,366 |
|
|
0.0 |
% |
|
Net losses and loss adjustment expenses |
|
(30,844 |
) |
|
|
(27,211 |
) |
|
13.4 |
% |
|
Underwriting, policy acquisition and operating expenses |
|
(12,980 |
) |
|
|
(13,001 |
) |
|
(0.2 |
%) |
|
Total expenses |
|
(43,824 |
) |
|
|
(40,212 |
) |
|
9.0 |
% |
|
Segment results |
$ |
(2,440 |
) |
|
$ |
1,154 |
|
|
(311.4 |
%) |
|
WORKERS’ COMPENSATION INSURANCE SEGMENT KEY RATIOS |
|||||
|
|
Three Months Ended |
||||
|
|
2023 |
|
2022 |
||
|
Current accident year net loss ratio |
72.6 |
% |
|
71.8 |
% |
|
Effect of prior accident years’ reserve development |
3.0 |
% |
|
(4.9 |
%) |
|
Net loss ratio |
75.6 |
% |
|
66.9 |
% |
|
Underwriting expense ratio |
31.8 |
% |
|
32.0 |
% |
|
Combined ratio |
107.4 |
% |
|
98.9 |
% |
The Workers’
Gross premiums increased by
Renewal premium results reflected the continuation of competitive market conditions. Renewal rates in our traditional business decreased 6% during the quarter. Renewal retention was 83% in our traditional business for the quarter, compared to 85% for the same period in 2022.
The current accident year net loss ratio increased 0.8 percentage points, primarily reflecting an increase in losses recognized under our reinsurance contract annual aggregate deductible and higher ULAE costs, partially offset by a reduction in reported claim frequency. We recognized unfavorable prior accident year reserve development of
Underwriting expenses and the underwriting expense ratio were relatively flat in the first quarter of 2023, compared to the same period in 2022.
|
SEGREGATED PORTFOLIO CELL REINSURANCE SEGMENT RESULTS |
||||||||||
|
|
Three Months Ended |
|||||||||
|
($ in thousands) |
2023 |
|
2022 |
|
% Change |
|||||
|
Gross premiums written |
$ |
22,881 |
|
|
$ |
28,369 |
|
|
(19.3 |
%) |
|
Net premiums written |
$ |
19,947 |
|
|
$ |
25,217 |
|
|
(20.9 |
%) |
|
Net premiums earned |
$ |
15,300 |
|
|
$ |
19,314 |
|
|
(20.8 |
%) |
|
Net investment income |
|
420 |
|
|
|
112 |
|
|
275.0 |
% |
|
Net investment gains (losses) |
|
1,160 |
|
|
|
(711 |
) |
|
263.2 |
% |
|
Other income |
|
1 |
|
|
|
1 |
|
|
— |
% |
|
Net losses and loss adjustment expenses |
|
(8,423 |
) |
|
|
(11,491 |
) |
|
(26.7 |
%) |
|
Underwriting, policy acquisition and operating expenses |
|
(5,035 |
) |
|
|
(4,369 |
) |
|
15.2 |
% |
|
SPC |
|
(532 |
) |
|
|
(642 |
) |
|
(17.1 |
%) |
|
SPC net results |
|
2,891 |
|
|
|
2,214 |
|
|
30.6 |
% |
|
SPC dividend (expense) income (2) |
|
(1,942 |
) |
|
|
(2,367 |
) |
|
(18.0 |
%) |
|
Segment results (3) |
$ |
949 |
|
|
$ |
(153 |
) |
|
(720.3 |
%) |
|
(1) |
Represents the provision for |
|
(2) |
Represents the net (profit) loss attributable to external cell participants. |
|
(3) |
Represents our share of the net profit (loss) and OCI of the SPCs in which we participate. |
|
SEGREGATED PORTFOLIO CELL REINSURANCE SEGMENT KEY RATIOS |
|||||
|
|
Three Months Ended |
||||
|
|
2023 |
|
2022 |
||
|
Current accident year net loss ratio |
64.9 |
% |
|
64.5 |
% |
|
Effect of prior accident years’ reserve development |
(9.8 |
%) |
|
(5.0 |
%) |
|
Net loss ratio |
55.1 |
% |
|
59.5 |
% |
|
Underwriting expense ratio |
32.9 |
% |
|
22.6 |
% |
|
Combined ratio |
88.0 |
% |
|
82.1 |
% |
The improvement in the Segregated Portfolio Cell Reinsurance segment results for the first quarter of 2023, compared to the same period of 2022, primarily reflects the impact of net investment gains in the current period.
Gross premiums written decreased in the quarter, driven by lower healthcare professional liability premium due to the prior year impact of the issuance of tail policies under one program. Workers’ compensation premium also declined, driven by lower renewal and audit premium.
Renewal rate decreases were 5% during the first quarter of 2023. Renewal retention was 90% in 2023, compared to 92% for the same period in 2022. Audit premium decreased to
The net loss ratio decreased, reflecting higher favorable prior accident year reserve development. We recognized net favorable prior accident year reserve development of
The underwriting expense ratio increased to 32.9% in 2023 from 22.6% in 2022, primarily reflecting the impact of a decrease in the allowance for credit losses during the 2022 first quarter. Underwriting expenses mostly represent commissions and other expenses charged by the Workers’
|
LLOYD’S SYNDICATES SEGMENT RESULTS |
||||||||||
|
|
Three Months Ended |
|||||||||
|
($ in thousands) |
2023 |
|
2022 |
|
% Change |
|||||
|
Gross premiums written |
$ |
3,489 |
|
|
$ |
5,817 |
|
|
(40.0 |
%) |
|
Net premiums written |
$ |
3,325 |
|
|
$ |
5,594 |
|
|
(40.6 |
%) |
|
Net premiums earned |
$ |
4,340 |
|
|
$ |
7,746 |
|
|
(44.0 |
%) |
|
Net investment income |
|
188 |
|
|
|
211 |
|
|
(10.9 |
%) |
|
Net investment gains (losses) |
|
(11 |
) |
|
|
(399 |
) |
|
(97.2 |
%) |
|
Other income (loss) |
|
(3 |
) |
|
|
134 |
|
|
(102.2 |
%) |
|
Net losses and loss adjustment expenses |
|
(1,978 |
) |
|
|
(4,763 |
) |
|
(58.5 |
%) |
|
Underwriting, policy acquisition and operating expenses |
|
(1,720 |
) |
|
|
(2,709 |
) |
|
(36.5 |
%) |
|
Segment results |
$ |
816 |
|
|
$ |
220 |
|
|
270.9 |
% |
|
LLOYD’S SYNDICATES SEGMENT KEY RATIOS |
|||||
|
|
Three Months Ended |
||||
|
|
2023 |
|
|
2022 |
|
|
Current accident year net loss ratio |
51.3 |
% |
|
41.8 |
% |
|
Effect of prior accident years’ reserve development |
(5.7 |
%) |
|
19.7 |
% |
|
Net loss ratio |
45.6 |
% |
|
61.5 |
% |
|
Underwriting expense ratio |
39.6 |
% |
|
35.0 |
% |
|
Combined ratio |
85.2 |
% |
|
96.5 |
% |
Results of our Lloyd’s Syndicates segment are generally reported on a one-quarter lag and include the results from our current participation in Lloyd's of London Syndicate 1729. Our participation in the results of Syndicate 1729 for the 2023 underwriting year remains unchanged from the 2022 underwriting year at 5%. We ceased participation in Syndicate 6131 beginning with the 2022 underwriting year. Due to the quarter lag, our ceased participation in Syndicate 6131 was not reflected in our results until the second quarter of 2022. We continue to view our participation at Lloyd’s as an investment outside of our core operations.
The decline in net premiums earned is attributable to our ceased participation in Syndicate 6131 for the 2022 underwriting year. The segment reported a combined ratio of 85.2% for the quarter. The current accident year net loss ratio increased as compared to the prior year quarter, driven by certain property and catastrophe related losses in the current period.
We recognized
|
CORPORATE SEGMENT |
||||||||||
|
|
Three Months Ended |
|||||||||
|
($ in thousands) |
2023 |
|
2022 |
|
% Change |
|||||
|
Net investment income |
$ |
29,702 |
|
|
$ |
20,120 |
|
|
47.6 |
% |
|
Equity in earnings (loss) of unconsolidated subsidiaries: |
|
|
|
|
|
|||||
|
All other investments, primarily investment fund LPs/LLCs |
|
(767 |
) |
|
|
10,008 |
|
|
(107.7 |
%) |
|
Tax credit partnerships |
|
(354 |
) |
|
|
(2,388 |
) |
|
(85.2 |
%) |
|
Total equity in earnings (loss) of unconsolidated subsidiaries: |
|
(1,121 |
) |
|
|
7,620 |
|
|
(114.7 |
%) |
|
Net investment gains (losses) |
|
763 |
|
|
|
(12,396 |
) |
|
106.2 |
% |
|
Other income (loss) |
|
327 |
|
|
|
2,065 |
|
|
(84.2 |
%) |
|
Operating expenses |
|
(8,204 |
) |
|
|
(8,739 |
) |
|
(6.1 |
%) |
|
Interest expense |
|
(5,463 |
) |
|
|
(4,441 |
) |
|
23.0 |
% |
|
Income tax (expense) benefit |
|
2,172 |
|
|
|
1,770 |
|
|
(22.7 |
%) |
|
Segment results |
$ |
18,176 |
|
|
$ |
5,999 |
|
|
203.0 |
% |
|
Consolidated effective tax rate |
|
26.0 |
% |
|
|
36.2 |
% |
|
|
|
The rise in interest rates continues to add significantly to our net investment income, which increased to
Equity in earnings (loss) from our investment in LPs/LLCs, which are typically reported to us on a one-quarter lag, decreased to a loss of
The corporate segment results include
The decline in other income was driven by the effect of foreign currency exchange rate losses of
Operating expenses decreased by
Non-GAAP Financial Measures
Non-GAAP Operating Income (Loss)
Non-GAAP operating income (loss) is a financial measure that is widely used to evaluate performance within the insurance sector. In calculating Non-GAAP operating income (loss), we have excluded the effects of the items listed in the following table that do not reflect normal results. We believe Non-GAAP operating income (loss) presents a useful view of the performance of our insurance operations, however it should be considered in conjunction with net income (loss) computed in accordance with GAAP. The following table reconciles net income (loss) to Non-GAAP operating income (loss):
|
RECONCILIATION OF NET INCOME (LOSS) TO NON-GAAP OPERATING INCOME (LOSS) |
|||||||
|
|
Three Months Ended |
||||||
|
(In thousands, except per share data) |
2023 |
|
2022 |
||||
|
Net income (loss) |
$ |
(6,174 |
) |
|
$ |
(3,560 |
) |
|
Items excluded in the calculation of Non-GAAP operating income (loss): |
|
|
|
||||
|
Net investment (gains) losses (1) |
|
(2,912 |
) |
|
|
13,506 |
|
|
Net investment gains (losses) attributable to SPCs which no profit/loss is retained (2) |
|
913 |
|
|
|
(602 |
) |
|
Transaction-related costs (3) |
|
— |
|
|
|
1,177 |
|
|
Guaranty fund assessments (recoupments) |
|
(74 |
) |
|
|
13 |
|
|
Pre-tax effect of exclusions |
|
(2,073 |
) |
|
|
14,094 |
|
|
Tax effect, at 21% (4) |
|
176 |
|
|
|
(2,851 |
) |
|
After-tax effect of exclusions |
|
(1,897 |
) |
|
|
11,243 |
|
|
Non-GAAP operating income (loss) |
$ |
(8,071 |
) |
|
$ |
7,683 |
|
|
Per diluted common share: |
|
|
|
||||
|
Net income (loss) |
$ |
(0.11 |
) |
|
$ |
(0.07 |
) |
|
Effect of exclusions |
|
(0.04 |
) |
|
|
0.21 |
|
|
Non-GAAP operating income (loss) per diluted common share |
$ |
(0.15 |
) |
|
$ |
0.14 |
|
|
(1) |
Net investment gains (losses) in 2023 include a gain of |
|
(2) |
Net investment gains (losses) on investments related to SPCs are recognized in our Segregated Portfolio Cell Reinsurance segment. SPC results, including any net investment gain or loss, that are attributable to external cell participants are reflected in the SPC dividend expense (income). To be consistent with our exclusion of net investment gains (losses) recognized in earnings, we are excluding the portion of net investment gains (losses) that is included in the SPC dividend expense (income) which is attributable to the external cell participants. |
|
(3) |
Transaction-related costs associated with our acquisition of NORCAL. We are excluding these costs as they do not reflect normal operating results and are unique and non-recurring in nature. |
|
(4) |
The 21% rate is the annual expected statutory tax rate associated with the taxable or tax deductible items listed above. We utilized the estimated annual effective tax rate method for the three months ended |
Non-GAAP Operating ROE
The following table is a reconciliation of ROE to Non-GAAP operating ROE for the three months ended
|
|
Three Months Ended
|
||||
|
|
2023 |
|
2022 |
||
|
ROE(1) |
(2.5 |
%) |
|
(0.8 |
%) |
|
Pre-tax effect of items excluded in the calculation of Non-GAAP operating ROE |
(0.5 |
%) |
|
3.9 |
% |
|
Tax effect, at 21%(2) |
0.1 |
% |
|
(0.8 |
%) |
|
Non-GAAP operating ROE |
(2.9 |
%) |
|
2.3 |
% |
|
(1) |
Quarterly amounts are annualized. Refer to our |
|||
|
(2) |
The 21% rate is the statutory tax rate associated with the taxable or tax deductible items. See further discussion in footnote 4 in this section under the heading "Non-GAAP Operating Income." |
|||
Non-GAAP Adjusted Book Value per Share
The following table is a reconciliation of our book value per share to Non-GAAP adjusted book value per share at
|
|
Book Value Per Share |
||
|
Book Value Per Share at |
$ |
20.46 |
|
|
Less: AOCI Per Share(1) |
|
(5.53 |
) |
|
Non-GAAP Adjusted Book Value Per Share at |
|
25.99 |
|
|
Increase (decrease) to Adjusted Book Value Per Share during the three months ended |
|
||
|
Dividends declared |
|
(0.05 |
) |
|
Net income (loss) |
|
(0.11 |
) |
|
Other(2) |
|
(0.02 |
) |
|
Non-GAAP Adjusted Book Value Per Share at |
|
25.81 |
|
|
Add: AOCI Per Share(1) |
|
(4.74 |
) |
|
Book Value Per Share at |
$ |
21.07 |
|
|
(1) |
Primarily the impact of accumulated unrealized investment gains (losses) on our available-for-sale fixed maturity investments. See Note 8 of the Notes to Condensed Consolidated Financial Statements in our |
|
|
(2) |
Includes the impact of share-based compensation. |
|
Conference Call Information
A replay will be available by telephone for at least 7 days after the call date. US-based investors may access the replay by dialing (866) 813-9403 (toll free) or (929) 458-6194, and international investors may dial +44 (204) 525-0658. The access code for all attendees is 514298. A replay will also be available for at least one year at investor.proassurance.com. Investors may follow @ProAssurance on Twitter to be notified of the latest news about
About
Caution Regarding Forward-Looking Statements
Any statements in this news release that are not historical facts are specifically identified as forward-looking statements. These statements are based upon our estimates and anticipation of future events and are subject to significant risks, assumptions and uncertainties that could cause actual results to differ materially from the expected results described in the forward-looking statements. Forward-looking statements are identified by words such as, but not limited to, “anticipate,” “believe,” “estimate,” “expect,” “hope,” “hopeful,” “intend,” “likely,” “may,” “optimistic,” “possible,” “potential,” “preliminary,” “project,” “should,” “will,” and other analogous expressions.
Although it is not possible to identify all of these risks and factors, they include, among others, the following: inadequate loss reserves to cover the Company's actual losses; inherent uncertainty of models resulting in actual losses that are materially different than the Company's estimates; adverse economic factors; a decline in the Company's financial strength rating; loss of one or more key executives; loss of a group of agents or brokers that generate significant portions of the Company's business; failure of any of the loss limitations or exclusions the Company employs, or change in other claims or coverage issues; adverse performance of the Company's investment portfolio; adverse market conditions that affect its excess and surplus lines insurance operations; and other risks described in the Company's filings with the
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VP, Investor Relations
800-282-6242 • 512-879-5101
[email protected]
Source:
Aterian Reports First Quarter 2023 Results
Jackson Announces First Quarter 2023 Results
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