Commitments and Contingencies

ProAssurance is involved in various legal actions related to insurance policies and claims handling including, but not limited to, claims asserted by policyholders. These types of legal actions arise in the Company’s ordinary course of business and, in accordance with GAAP for insurance entities, are considered as a part of the Company’s loss reserving process, which is described in detail under the heading "Losses and Loss Adjustment Expenses” in the Accounting Policies section of Note 1.

ProAssurance has funding commitments primarily related to non-public investment entities totaling approximately $164.6 million. Of these funding commitments, $1.2 million is related to qualified affordable housing project tax credit investments and is expected to be paid as follows: $0.3 million in 2018, $0.3 million in 2019 and 2020 combined, $0.5 million in 2021 and 2022 combined and $0.1 million thereafter.

As a member of Lloyd's, ProAssurance is required to provide capital to support its Lloyd's Syndicates through 2022 of up to $200.0 million, referred to as FAL. At December 31, 2017, ProAssurance is satisfying the FAL requirement with investment securities on deposit with Lloyd's with a carrying value of $123.9 million (see Note 3).

ProAssurance has issued an unconditional revolving credit agreement to the Premium Trust Fund of Syndicate 1729 for the purpose of providing working capital. Permitted borrowings are £20.0 million under an amended Syndicate Credit Agreement executed in April 2016. Under the amended Syndicate Credit Agreement advances bear interest at 3.8% annually, and may be repaid at any time but are repayable upon demand after December 31, 2019. As of December 31, 2017, the unused commitment under the Syndicate Credit Agreement approximated £6.0 million (approximately $8.1 million as of December 31, 2017).

ProAssurance is involved in a number of operating leases primarily for office space and office equipment. The following is a schedule of future minimum lease payments for operating leases that had initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2017.



Operating Leases
(In thousands)
2018	$	5,021
2019	4,508
2020	3,777
2021	3,353
2022	2,530
Thereafter	9,212
Total minimum lease payments	$	28,401

ProAssurance incurred rent expense of $6.7 million, $5.9 million and $5.1 million in the years ended December 31, 2017, 2016 and 2015, respectively.