EX-99.1 2 exhibit.htm MATERIALS WILL WE WILL USE DURING INVESTOR MEETINGS STARTING SEPTEMBER 25, 2013 exhibit.htm
This presentation contains Forward Looking Statements and other information designed to convey
our projections and expectations regarding future results. There are a number of factors which
could cause our actual results to vary materially from those projected in this presentation. The
principal risk factors that may cause these differences are described in various documents we file
with the Securities and Exchange Commission, such as our Current Reports on Form 8-K, and our
regular reports on Forms 10-Q and 10-K, particularly in “Item 1A, Risk Factors.” Please review
this presentation in conjunction with a thorough reading and understanding of these risk factors.
We especially identify statements concerning our transactions involving Eastern Insurance
Holdings, Inc. and proposed Lloyd's Syndicate 1729 as Forward Looking Statements
and direct your attention to our news releases issued on September 24, 2013, our Current Report on
Form 8K, issued on September 24, 2013 and our 10K, filed on February 19, 2013 for a discussion
ofrisk factors pertaining to these transactions and subsequent integration into ProAssurance.
This presentation contains Non-GAAP measures, and we may reference Non-GAAP measures in
our remarks and discussions. A reconciliation of these measures to GAAP measures is available in
our latest quarterly news release, which is available in the Investor Relations section of our website,
www.ProAssurance.com, and in the related Current Report on Form 8K disclosing that release.
FORWARD LOOKING STATEMENTS
NON-GAAP MEASURES
 
 
 
Eastern Insurance Transaction Details
  All cash transaction
  Aggregate value: $205 million
  1.38x Book Value per Share at June 30, 2013
  Projected closing by January 1, 2014
  No financing contingency
  Modestly accretive to ProAssurance in 2014
2
 
 
 
Eastern Insurance Transaction Rationale
  Continues building the platform to serve the
 needs of larger integrated health systems
 healthcare delivery organizations
  Workers’ compensation represents one of the
 single largest liability expenditures for healthcare
 entities
  Eastern’s business is 20% healthcare
 and growing
  Provides diversification for ProAssurance with
 a consistently profitable workers’ compensation
 book
3
 
 
 
Eastern Insurance Transaction Operations
  Management will remain in place to provide
 operational expertise and ensure continuity
  Eastern will have access to greater capital to
 support growth
  Cross-selling opportunities exist
  Insureds
  Agents
4
 
 
 
Eastern Insurance Transaction ProForma
ProForma Written Premium
(GAAP at 12/31/12 in millions)
Product line
Direct
Assumed
Ceded
Net
Medical Professional Liability
$ 529
$  -
$ 7
$ 521
Lawyers Professional Liability
$ 27
$ -
$ 3
$ 24
Products Liability
$ 32
$  -
$ 11
$ 21
Workers' Compensation
$ 183
$ 3
$ 16
$ 170
Other
$ 2
$  -
  $  -
$ 2
 
$ 772
$ 3
$  38
$ 737
5
ProForma Balance Sheet
(GAAP at 12/31/12 in millions)
Total Assets
$
 5,461
Liabilities
$
 3,042
Shareholder’s Equity
$
 2,419
 
 
 
Lloyd’s Syndicate Transaction Details
  ProAssurance is providing 51% of underwriting
 capital
  Remaining capital contributed by other corporates
 and private names
  ProAssurance Capital Commitment
  Up to $60 mln in 2014
  Six-Year Commitment of up to $200 mln
  Normal regulatory and compliance processes
 expected to be complete in time for inception
 on January 1, 2014
6
 
 
 
Lloyd’s Syndicate Transaction Rationale
  Provides access to international medical
 professional liability opportunities
  Increases flexibility for ProAssurance when
 working with complex risks
  Primary and excess business can be written
7
 
 
 
Lloyd’s Syndicate Transaction Operations
  Led by Duncan Dale
  Thirty-years experience in the London market
  Preeminent MPL underwriter
  Start-up assisted by Asta Managing Agency Ltd.
  ProAssurance executives will assist in
 operations’ start-up
8
 
 
 
 
 
 
Strategies for Future Success
Our successful experience and deep expertise
uniquely qualify ProAssurance to insure the
widest range of healthcare risks
 
 
 
Building a Bridge to the Future
  We are uniquely positioned to succeed by serving both
 the emerging, complex healthcare market and the
 legacy business that will remain
  Smaller competitors with less experience and capacity
 have decisions to make about their future in this new
 healthcare environment
11
Legacy business is
largely single-state, solo
and small groups.
A substantial amount of
this business will
remain, but will demand
more from insurers.
The future will be
dominated by large
groups and institutions,
often multi-disciplinary
and multi-state. They
will demand financial
strength and deep
expertise.
 
 
 
Building a Bridge to the Future
  Larger risks demand sophisticated coverages
 that span the continuum of healthcare
  Broad healthcare liability experience is our
 foundation
  Adding capacity & capability through M&A
  Eastern Insurance, Medmarc, PICA & Mid-Continent
Home
Healthcare
Non-Traditional
Delivery Settings
Multi-Specialty
Clinics
Hospital & Facility
Centered Care
New delivery
devices,
techniques and
research
ProAssurance spans the continuum of care
Traditional
Practices
12
Worker’s Compensation
 
 
 
ProAssurance Will Grow Prudently
  We are building the platform that will allow us
 to serve the broad spectrum of healthcare
  Prudent leverage of our success and experience
 with the addition of specialized expertise
  Healthcare and related coverages that compliment
 our MPL line
  ProAssurance is a demonstrated leader in M&A
  The MPL market will firm and we are prepared
 to grow organically as opportunities arise
13
 
 
 
ProAssurance’s Successful M&A History
Original
Companies
  Purchased Company
  Demutualization
OHIC
HOSPITALS ONLY
2
1
1
1
1
1
1
1
1
3
4
4
1
4
  Renewal Rights
  Assumed Business
2
2
†
2
3
1
3
3
1
SERTA
14
 
 
 
Strategy for an Evolving Market
  Shaped by a healthcare landscape that will
 change—with or without federal healthcare
 reform
  Expanding our capabilities and commitment
 across the continuum of healthcare
  Building on two decades of hospital experience
  Recent expansion into products liability for life
 sciences and medical devices through M&A
  Enhancing our historical commitment to
 individual providers and small groups
15
 
 
 
Positioned to Succeed
  ProAssurance has the right combination of geographic scope, broad experience, and
 financial strength for success in the new world of healthcare liability
16
SNL 2012 Statutory Data, MPL Writers with Direct Written Premiums >$80 million
 
 
 
Strategy for an Evolving Market
  Leverage our reach, expertise and financial
 strength with larger accounts
  Largest non-profit healthcare
 system in the US
  Now in Michigan, Florida,
 Illinois, Indiana and Texas
  Insuring Ascension-affiliated
 physicians through coordinated,
 jointly insured programs
  Financial involvement of both entities creates incentive to reduce risk
*www.ascensionhealth.org/index.php?option=com_locations&view=locations&Itemid=148
Ascension Health’s Ministry Locations*
17
 
 
 
Strategy for an Evolving Market
  Joint physician/hospital insurance products to
 address the unique risk tolerance and claims-
 handling expectation of each insured
  Partnerships with existing physician-focused
 companies to leverage hospital expertise
  Recently announced California venture with
 CAP-MPT: CAPAssurance
  Alternative risk and self-insurance mechanisms
  Captive insurance, risk sharing programs and
 Risk Retention Groups for
 specific specialties or regions
18
 
 
 
Healthcare Reform
  Known: More customers for us
  May accelerate the growth of hospital-owned practices and
 consolidation into larger groups
  Provides an opportunity for us due to our geographic reach,
 long-term experience in hospitals and our financial strength
  We have enhanced our ability to write new classes of
 business through acquisitions
  May hasten the need for consolidation of smaller insurers
  Unknown: Effect on the medical/legal environment
  Increased patient frustration with the system
  Possibility of more unexpected outcomes
19
 
 
 
Sound Strategy = Consistent Profitability
 
 
 
  Captures our focus on long-term excellence
  Increased every year we have been public
The Payoff: Consistent Book Value Growth
21
Inception to 6/30/13
CAGR: 16%
Cumulative: 2,171%
10 Year Summary (2003 -2012)
CAGR: 16%
Cumulative: 360%
Historical Book Value Per Share
 Split Adjusted
 Dividends Shown in the Year Declared
Reflects all stock splits and includes all dividends in the year declared
 
 
 
  Share price reflects investor confidence in
 our business decisions and long-term strategy
The Payoff: Steady Share Price Increase
22
Historical Share Price
Reflects all stock splits
2012 excludes
$2.50/share
special dividend
Inception to 9/15/13
CAGR: 14%
Cumulative: 1,670%
10 Year Summary (2003-2012)
CAGR: 15%
Cumulative: 302%
 
 
 
Driven to Excel / Focused on Shareholder Value
  Maintaining profitability
  Continuing growth in book value per share
  Producing sustainable shareholder value
  Focusing on long-term—ready for the market turn
Current Prices Reflect the Solid Value of ProAssurance
Current Price to Q2 2013 Book: 1.2x Average Since Inception: 1.4x
Unadjusted for dividends
Prices Adjusted for 2:1 Stock Split
23
 
 
 
Operational Overview
 
 
 
Management is Experienced & Invested
 Effective senior management remains in place—13 years average tenure
  Average ProAssurance tenure through the VP level is 16 years, 25 years average industry experience
  Management and employees are invested, owning ~5.6 % of ProAssurance stock
W. Stancil Starnes, JD
Chairman & Chief Executive Officer
Company Tenure: 6 Years
Prior MPL Experience: 29 Years
Total Industry & Related Experience: 35 Years
Formerly in the private practice of law in MPL defense and
complex corporate litigation
Jeffrey L. Bowlby, ARM
Sr. Vice-President & Chief Marketing Officer
Company Tenure: 15 Years
Prior MPL Experience: -
Total Industry & Related Experience: 29 Years
Career-long experience in insurance sales and marketing,
most recently as SVP for Marketing with Meadowbrook
Howard H. Friedman, ACAS
Sr. Vice-President & Chief Underwriting Officer
Company Tenure: 17 Years
Prior MPL Experience: 16 Years
Total Industry & Related Experience: 33 Years
Career-long experience in MPL company operations
and management. Former ProAssurance CFO
Jeffrey P. Lisenby, JD
Sr. Vice-President, General Counsel & Secretary
Company Tenure: 12 Years
Prior MPL Experience: -
Total Industry & Related Experience: 12 Years
Formerly in the private practice of law
Duncan Y. Manley
Vice-President, Operations and Information Systems
Company Tenure: 13 Years
Prior MPL Experience: 7 Years
Total Industry & Related Experience: 20 Years
Career-long experience in MPL company operations as an
executive and consultant
Frank B. O’Neil
Sr. Vice-President & Chief Communications Officer
Company Tenure: 26 Years
Prior MPL Experience: -
Total Industry & Related Experience: 26 Years
Formerly a television news executive and anchor
Mary Todd Peterson, CPA
President & CEO of Medmarc
Company Tenure: 12 Years
Prior Industry Experience: 14 Years
Total Industry & Related Experience: 26 Years
Former Partner with Johnson Lambert and VP Finance &
Controller with Acacia
Edward L. Rand, Jr., CPA
Sr. Vice-President & Chief Financial Officer
Company Tenure: 8 Years
Prior MPL Experience: -
Total Industry & Related Experience: 20 Years
Career-long experience in insurance finance and accounting.
Most recently Chief Accounting Officer for Partner Re
Ross E. Taubman, DPM
President of PICA
Company Tenure: 2 Year
Prior MPL Experience: -
Total Industry & Related Experience: 28 Years
Formerly in the private practice of podiatry. Leader in
organized podiatric medicine; former president and Trustee of
the American Podiatric Medical Association
 Darryl K. Thomas, JD Hayes V. Whiteside, MD, FACS
 Sr. Vice-President & Chief Claims Officer Sr. Vice-President & Chief Medical Officer
 Company Tenure: 18 Years Company Tenure: 9 Years
 Prior MPL Experience: 10 Years Prior MPL Experience: -
 Total Industry & Related Experience: 28 Years Total Industry & Related Experience: 29 Years
 Career-long experience in MPL claims management Formerly in the private practice of Urology
25
 
 
 
ProAssurance Corporate Profile
  Specialty liability insurance writer
  Healthcare Professional Liability (HCPL)
  Only public company writing predominately HCPL
  Life sciences and medical devices
  Attorney’s professional liability
  Market Cap: ~$3.0 billion
  Shareholders’ Equity: $2.4 billion
  Total Assets: $5.3 billion
  Claims-Paying Ratings: “A+” (Superior) by A. M. Best
 and “A” by Fitch
26
 
 
 
ProAssurance Business Profile
27
Q2 2013 Policyholders: ~64,600
Q2 2013 Premium: $286 mln
June 30, 2013
 Includes Acquisitions
Tail Premium Allocated by Line
Distribution Channels
 
HCPL
LPL
Life
Sciences
Agent / Broker
67%
77%
100%
Direct
33%
23%
--
 
 
 
ProAssurance Geographic Profile
  Broad geographic diversification
  Locally-based decision-making differentiates ProAssurance by
 addressing each state’s unique medical/legal challenges
National Footprint
(Birmingham)
Corporate Headquarters
Corporate Headquarters
Claims Offices
Claims Offices
Claims / Underwriting Offices
Claims / Underwriting Offices
Underwriting Offices
Underwriting Offices
28
 
 
 
Seeking Increased Yield But Balancing Risk
 We continue to focus on
 maintaining a high quality, well
 diversified fixed income
 portfolio
 We have made incremental
 changes to obtain higher yields
 in blue chip investments
$4.2 Billion
Portfolio
$4.2 Billion
Portfolio
Fixed Income:
85%
Fixed Income:
85%
Short Term: 2%
Short Term: 2%
Equity and Equity Substitutes: 12%
Equity and Equity Substitutes: 12%
BOLI: 1%
BOLI: 1%
6/30/13
29
 
 
 
Consistent Approach to Reserves
  Recognizing loss trends as they appear
  No change in long-term results but potential
 volatility quarter-to-quarter
  No change in reserving philosophy or process
30
$ in millions
 
 
 
Underwriting for Profitability Not Market Share
  Underwriting process driven by individual risk
 selection and assessment of loss history, areas
 of practice, and location
  Rates contemplate specific ROE expectations
  Frequent rate/loss reviews ensure adequate prices
  Rate filings consider the results of the past five to
 seven years to ensure a single year does not unduly
 influence results
  Stringent underwriting standards maintain rate
 structure and enhance profitability
31
 
 
 
ProAssurance Pricing History
  Peak pricing was in 2006
  Improved frequency trends are reflected in recent rate declines
  Improvement in frequency has outweighed the steady, manageable rise in severity
  Loss trends have improved in states with and without tort reforms
  Rate changes (up or down) through 2013 likely will be low-to-mid single digits
MD/DO Rate Change History
PICA excluded to facilitate accurate comparisons over time
32
 
 
 
ProAssurance Retention Remains High
  Continued underwriting vigilance is being used today
 to ensure future success
  Market share is important, but NOT as important as
 profitability
  Retention remains in line with recent quarters
33
 
 
 
ProAssurance’s Standing in HCPL
  ProAssurance is the largest independent
 publicly-traded writer of HCPL insurance
  Fourth largest overall writer
DPW: SNL Data 2012
34
 
 
 
The HCPL Market Today
  Market remains fragmented even after two
 decades of consolidation
  More than 100 writers
  Largest market share is ~8%
  87% of top 100 companies have <2%
  76% of top 100 companies have <1%
35
 
 
 
Key State Rate Comparison
Annual Premium for a $1M / $3M Policy
Filed or Approved at 1/01/13
36
 
 
 
Understanding Recent Loss Trends
  Frequency stable after
 historic declines
  Lawyers are the gatekeepers
  Must weigh the cost of a trial vs.
 chances of success
  Likelihood of success is affected
 by many factors
  Societal perceptions of lawsuits
 against physicians
  Effects of the overall Tort
 Reform debate and headlines
 across the country
  Reforms enacted in some states
  Better quality of care reduces the
 number of medical misadventures
  Severity uptrend remains
 steady at 2%-3%
  Closely tied to inflation
  Primarily medical cost inflation
  Jury sentiment in reaction to
 headlines has moderated, but
 not eliminated, runaway
 verdicts in recent years
  Tort Reforms have limited
 non-economic damages in a
 number of states
37
 
 
 
New Claims Opened Each Year
Claims Trends Remain Favorable
  Fewer cases to try following significant decline in frequency
  Severity trends steady and manageable
  No observed effect from the economic downturn
  Trends are much the same in states with or without Tort Reform
ProAssurance Claims Tried to a Verdict
38
 
 
 
Differentiate Through Claims Defense
  We leverage our financial strength to give our insureds the opportunity for
 an uncompromising defense of each claim
  Differentiates our product
  Provides long-term financial and marketing advantages
  Retains business and deters future lawsuits
  Increasingly important as claims data becomes public
  Malpractice outcomes now public in 26 states
ProAssurance: 78% No Paid Losses
Industry: 72% No Paid Losses
Source: Preliminary PIAA 2011
 Claim Trend Analysis,
 ProAssurance Excluded
Five Year Average
2007-2011
Source: ProAssurance,
 as reported to
 PIAA
39
 
 
 
The Ohio Example: 2005 - 2011 Data
  Comprehensive, reliable data provided by the Ohio Department of Insurance
  Broad range of competitors and business approaches
www.insurance.ohio.gov/Legal/Reports/Documents/2011ClosedClaimReport.pdf
More Claims Closed With No Indemnity
More Claims Defended in Court
2x Lower Average Indemnity Payment per Closed Claim
40
 
 
 
The Bottom Line Benefits of Strong Defense
Source: Statutory Basis, A.M. Best Aggregates & Averages
 Some totals may not agree due to rounding
ProAssurance vs. Industry
Average Loss Ratio (2006-2012)
Legal Payments as
a Percentage of
Total Loss Ratio
Loss Payments as a
Percentage of Total
Loss Ratio
64%
44%
62%
46%
42%
76%
37%
ProAssurance Stand Alone
Loss Ratio (2006-2012)
Calendar Year
25%
79%
68%
52%
58%
56%
82%
18%
21%
32%
48%
42%
44%
41
31%
55%
45%
 
 
 
42
Source: 1991-2012 A.M. Best Aggregates and Averages, Medical Malpractice Lines of Business
  Industry Average
  
  ProAssurance
Five Years: ProAssurance Average: 58.1% / Industry Average: 84.3%
Ten Years: ProAssurance Average: 77.5% / Industry Average: 94.6%
1991-2012: ProAssurance Average: 89.7% / Industry Average: 107.9%
 
 
 
ProAssurance Outperforms the Industry
 1991-2012 A.M. Best Aggregates and Averages, Medical Malpractice Lines of Business
   Weighted
 Average
  High/Low
  Industry
 Average
 
 
 
The HCPL Market Today
44
 
 
 
The HCPL Market Today
  Changes in healthcare delivery are changing the
 underlying dynamics
  Physicians are combining into larger groups
  Physician practices are being brought into hospitals through
 purchase or affiliation
  Hospitals are combining into large networks requiring
 greater insurance expertise and greater financial security
  Larger companies with geographical reach and
 financial strength will have an advantage in attracting
 new business and continuing to consolidate
45
 
 
 
Behind the Numbers
 
 
 
Historical Financial Performance
  Our disciplined, long-term approach drives
 consistent profitability
$ in millions
Net Income1
Operating Income2
47
1 Includes a gain of $35.5 million in the first quarter of 2013 in connection with our acquisition of Medmarc as a result of the value
 of the net assets acquired vs. our purchase price.
2 Excludes the after-tax effects of net realized gains or losses and one-time items that do not reflect normal operating results
 
 
 
YTD 2013 Income Statement Highlights
in millions, except per share data
48
 
June 30,
Y-OVER-Y
Change
 
2013
2012
Gross Premiums Written
$ 286
$ 273
 +5%
Net Investment Result
$ 62
$ 64
 -3%
Total Revenues
$ 366
$ 344
 +6%
Total Expenses (Includes Loss Costs)
$ 201
$ 190
 +6%
Net Income (Includes Realized Investment Gains & Losses
 and gain on acquisition)
$ 163
$ 114
+43%
Operating Income
$ 105
$ 108
 -3%
Net Income per Diluted Share
$2.63
$1.85
+42%
Operating Income per Diluted Share
$1.69
$1.74
 -3%
 
 
 
Q2 2013 Income Statement Highlights
in millions, except per share data
49
 
June 30,
Y-OVER-Y
Change
 
2013
2012
Gross Premiums Written
$ 123
$ 102
+21%
Net Investment Result
$ 30
$ 32
 -6%
Total Revenues
$ 171
$ 164
 +4%
Total Expenses (Includes Loss Costs)
$ 106
$ 84
+26%
Net Income (Includes Realized Investment Gains & Losses
 and gain on acquisition)
$ 50
$ 58
-14%
Operating Income
$ 45
$ 59
-24%
Net Income per Diluted Share
$0.81
$0.95
-15%
Operating Income per Diluted Share
$0.72
$0.96
-25%
 
 
 
Disciplined Underwriting
Five Year Premium History
50
  Consistently writing profitable business to ensure long-
 term success
  Premium driven by competition, physician consolidation
  Loss trends remains favorable
Gross Premiums Written
Net Premiums Earned
 
 
 
YTD 2013 Balance Sheet Highlights
Split adjusted, in billions, except Book Value per share
Shareholders’ Equity $ 2.3  $ 2.3 +3%
Total Investments   4.2  3.9 +6%
Total Assets  5.1  4.9 +5%
Policy Liabilities   2.5   2.3 +7%
    
 6/30/13  12/31/12 CHANGE
 
Shareholders’ Equity
64% increase since 2008
Book Value per Share $ 37.79 $36.85 +3%
51
 
 
 
Long-Term Financial Strength
  Our balance sheet is our
 top financial priority
  Financial strength
 differentiates us in
 the market
  The claims defense
 philosophy that
 differentiates us in the
 market leverages our
 financial strength
Total Assets
52
 
 
 
Capital Management Priorities
  Balancing our future needs vs. expectations from rating agencies
 and investors
  Preferred use is to support growth through M&A or new business
  Regular dividend is $1.00/share
  ~2% yield based on
 current share price
  Prudent share repurchase program
  $188 million remaining in
 current authorization
  $321 million spent to
 repurchase 6.1 million shares
 since 2005
  Repurchasing shares at prices
 that enhance shareholder value
 and build Book Value
53
Returning Capital to Shareholders
$ in millions
 
 
 
  Strong capital position us for a firming market
  We recognize the effect on ROE
  The manner in which
 capital is used has an
 effect on financial ratings
Capital Management Priorities
54
Conceptual Model of Projected A. M. Best BCAR Scores if
Excess Capital vs. Excess Capacity
Premiums to Surplus
6/30/13 Premium is annualized
(2x 6/30/13)
“A+” Rating
Threshold
 
 
 
Capital Management Priorities
  No long-term debt
  Fully secured by
 investments with higher
 yields than the
 cost of borrowing
55
Debt to Equity
No Debt Prior to 2001
 
 
 
Capital Growth: 2008-Q2 2013
in $000’s except
total equity (000,000’s)
* Includes economic cost of holding treasury shares
56
 
 
 
Inside ProAssurance’s Balance Sheet
6/30/13
57
 
 
 
Inside ProAssurance’s Income Statement
6/30/13
58
$35.5 Non-Taxable Gain on Acquisition
 
 
 
Book Value per Share History
 
 
 
Steady Return in an Unfavorable Environment
  Long-term ROE target: 12% -14%
Components of Return on Equity (in millions)
 
 
 
  The choice: chase yield or extend duration
  We are maintaining duration, looking for
 opportunities
  Pricing discipline becomes even more
 critical in a low interest rate environment
  Lack of investment yield may be a hard
 market catalyst
Return on Equity and Investment Returns
Assumes a 1:1 premium to surplus ratio for physicians
professional liability claims-made coverages
Combined Ratio Required to
Generate a 13% Return on Equity
Long-Term ROE Target is 12%-14%
The Yield Trap
Revised to reflect yields at 6/30/13
61
 
 
 
Investment Portfolio Detail
ProAssurance remains conservatively
invested, to ensure our ability to keep our
long-term promise of insurance protection
 
 
 
ProAssurance: Investment Profile
$4.2 Billion Overall Portfolio
$3.5 Billion Fixed Income Portfolio
  Average duration: 4.0 years
  Average tax-equivalent
 income yield: Q2 13: 4.3% / Q2 12: 4.5%
  Investment grade: 93%
  Weighted average: A+
06/30/13
  Tax credit portfolio not reflected in investment
 income—provides approximately $17.8 million
 in tax credits and $10.9 million in deductions in
 2013
  CUSIP-level portfolio disclosure on our website:
 www.proassurance.com/investorrelations/supplemental.aspx
63
 
 
 
ProAssurance Portfolio Detail: Asset Backed
06/30/13
Subject to Rounding
Asset Backed: $464 Million
Weighted Average Rating: “AA+”
64
 
 
 
ProAssurance Portfolio Detail: Corporate
Corporates: $1.5 Billion
Weighted Average Rating: A-
6/30/13
65
 
 
 
ProAssurance Portfolio Detail: Municipals
Municipals: $1.3 Billion / Average Rating is AA
Investment policy has always required
 investment grade rating prior to applying the
 effect of insurance
Weighted Average Rating: AA
06/30/13
66
 
 
 
ProAssurance Portfolio Detail: Equities & Other
06/30/13
67
Equities & Other: $482 Million
5.4% TE Book Yield
13% TE IRR
 
 
 
ProAssurance Portfolio Detail: Various
  Rated A1/P1 or better
  Money Markets:
  Moody’s: Aaa
  S&P: AAA
 Weighted average rating
  Moody’s: AA3
  S&P: AA-
  A. M. Best: A+
Treasury / GSE: $271 Million
Short Term: $87 Million
BOLI: $53 Million
06/3013
68