ProAssurance Corporation reported its financial results for the third quarter and nine months ended September 30, 2024, showcasing significant improvements in profitability and operational efficiency compared to the previous fiscal period.
For the third quarter of 2024, ProAssurance achieved total revenues of $285.3 million, a 3.4% increase from $275.7 million in Q3 2023. This growth was driven by a slight rise in net premiums earned, which reached $243.2 million, up from $242.4 million year-over-year. The company also reported net investment income of $37.3 million, an increase of 13.8% from $32.8 million in the prior year. Notably, net income for the quarter was $16.4 million, a substantial recovery from a net loss of $49.4 million in Q3 2023, reflecting a marked improvement in operational performance.
The nine-month results also indicated a positive trend, with total revenues increasing to $860.3 million from $840.3 million in the same period of 2023. Net income for the nine months was $36.6 million, compared to a net loss of $44.9 million in the prior year. The company’s basic earnings per share rose to $0.72 from a loss of $0.85, while non-GAAP operating income per share improved to $0.65 from a loss of $0.09.
ProAssurance's total investments increased to $4.46 billion as of September 30, 2024, up from $4.35 billion at the end of 2023. The fair value of fixed maturities available-for-sale rose to $3.69 billion, representing 83% of total investments. The company’s total shareholders' equity also improved, reaching $1.23 billion, up from $1.11 billion at the end of 2023.
The company’s combined ratio for Q3 2024 was 105.6%, a significant improvement from 116.7% in Q3 2023, indicating enhanced underwriting performance. The current accident year net loss ratio decreased to 81.5% from 83.0% in the prior year, reflecting better claims management and reserve development.
Strategically, ProAssurance recognized a nonrecurring impairment of goodwill of $44.1 million in Q3 2023, which impacted prior year results but has since been addressed. The company has also focused on improving its operational efficiency, leading to a reduction in total expenses for the nine months ended September 30, 2024, which fell to $816.0 million from $889.1 million in the previous year.
Overall, ProAssurance's financial performance in the latest quarter and year-to-date reflects a recovery trajectory, driven by strategic operational improvements and favorable market conditions.
About PROASSURANCE CORP
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