The reserve for losses is established based on estimates of individual claims and actuarially determined estimates of future losses based on ProAssurance’s past loss experience, available industry data and projections as to future claims frequency, severity, inflationary trends and settlement patterns. Estimating the reserve, particularly the reserve appropriate for liability exposures, is a complex process. For a high proportion of the risks insured or reinsured by ProAssurance, claims may be resolved over an extended period of time, often five years or more, and may be subject to litigation. Estimating losses requires ProAssurance to make and revise judgments and assessments regarding multiple uncertainties over an extended period of time. As a result, the reserve estimate may vary considerably from the eventual outcome. The assumptions used in establishing ProAssurance’s reserve are regularly reviewed and updated by management as new data becomes available. Changes to estimates of previously established reserves are included in earnings in the period in which the estimate is changed.

ProAssurance believes that the methods it uses to establish reserves are reasonable and appropriate. Each year, ProAssurance uses internal actuaries to review the reserve for losses of each insurance subsidiary. ProAssurance also engages consulting actuaries to review ProAssurance claims data and provide observations regarding cost trends, rate adequacy and ultimate loss costs. ProAssurance considers the views of the actuaries as well as other factors, such as premium rates, claims frequency and severity, historical paid and incurred loss development trends, the expected effect of inflation, general economic and social trends and the legal and political environment in establishing the amount of its reserve for losses. The statutory filings of each insurance company with the insurance regulators must be accompanied by a consulting actuary's certification as to their respective reserves.

ProAssurance partitions its reserve by accident year, which is the year in which the claim becomes its liability. For claims-made policies, the insured event generally becomes a liability when the event is first reported to the Company. For occurrence policies, the insured event becomes a liability when the event takes place. For retroactive coverages, the insured event becomes a liability at inception of the underlying contract. As claims are incurred (reported) and claim payments are made, they are aggregated by accident year for analysis purposes. ProAssurance also partitions its reserve by reserve type: case reserves and IBNR reserves. Case reserves are established by the claims department based upon the particular circumstances of each reported claim and represent ProAssurance’s estimate of the future loss costs (often referred to as expected losses) that will be paid on reported claims. Case reserves are decremented as claim payments are made and are periodically adjusted upward or downward as estimates regarding the amount of future losses are revised; a reported loss for an individual claim equates to the case reserve at any point in time plus the claim payments that have been made to date. IBNR reserves represent an estimate, in the aggregate, of future development on losses that have been reported to ProAssurance plus an estimate of losses that have been incurred but not reported.

In addition to setting the initial reserve for the current accident year, each period ProAssurance reassesses the amount of reserve required for prior accident years. The foundation of ProAssurance’s reserve re-estimation process is an actuarial analysis that is performed by both the internal and consulting actuaries. This detailed analysis projects ultimate losses based on partitions which include line of business, geography, coverage layer and accident year. The procedure uses the most representative data for each partition, capturing its unique patterns of development and trends. In all, there are over 200 different partitions of ProAssurance's business for purposes of this analysis. ProAssurance believes that the use of consulting actuaries provides an independent view of the loss data as well as a broader perspective on industry loss trends.

For the HCPL, medical technology and workers’ compensation lines of business, the analysis performed by the consulting actuaries analyzes each partition of the business in a variety of ways and uses multiple actuarial methodologies in performing these analyses, including: Bornhuetter-Ferguson (Paid and Reported) Method, Paid Development Method, Reported (Incurred) Development Method, Average Paid Value Method, Average Reported Value Method, the Adjusted Reported and the Adjusted Paid Methods. Generally, methods such as the Bornhuetter-Ferguson Method are used on more recent accident years where there is less data available on which to base the analysis. As time progresses and an increased amount of data is available for a given accident year, management gives more confidence to the development and average methods, as these methods typically rely more heavily on ProAssurance's own historical data. These methods emphasize different aspects of loss reserve estimation and provide a variety of perspectives for ProAssurance's decisions.

For the workers’ compensation line of business in both the Workers' Compensation Insurance and Segregated Portfolio Cell Reinsurance segments, ProAssurance utilizes the Reported (Incurred) Development Method, Paid Loss Development Method and Bornhuetter-Ferguson Method, to develop the reserve for each accident year. The actuarial review includes the stratification of claims data (lost time claims and medical only claims) using different variations that allow for identification of trends that may not be readily identifiable if the data was evaluated only in the aggregate. Reported and paid loss development factors are key assumptions in the reserve estimation process and are based on ProAssurance’s historical reported and paid loss development patterns. As accident years mature, the various actuarial methodologies produce more consistent loss estimates.

Certain of the methodologies utilized to estimate the ultimate losses for each partition of the reserve consider the actual amounts paid. Paid data is particularly influential when a large portion of known claims have been closed, as is the case for older accident years. In selecting a point estimate for each partition, management considers the extent to which trends are emerging consistently for all partitions and known industry trends. Thus, actual, rather than estimated severity trends are given more consideration. If actual severity trends are lower than those estimated at the time that reserves were previously established, the recognition of favorable development is indicated. This is particularly true for older accident years where actuarial methodologies give more weight to actual loss costs (severity).



(In thousands)	2019			2018			2017
Balance, beginning of year	$	2,119,847		$	2,048,381		$	1,993,428
Less reinsurance recoverables on unpaid losses and loss adjustment expenses	343,820			335,585			273,475
Net balance, beginning of year	1,776,027			1,712,796			1,719,953
Net losses:
Current year*	765,698			685,326			603,518
Favorable development of reserves established in prior years, net	(11,783		)	(92,116		)	(134,360		)
Total	753,915			593,210			469,158
Paid related to:
Current year	(115,133		)	(117,268		)	(106,633		)
Prior years	(458,991		)	(412,711		)	(369,682		)
Total paid	(574,124		)	(529,979		)	(476,315		)
Net balance, end of year	1,955,818			1,776,027			1,712,796
Plus reinsurance recoverables on unpaid losses and loss adjustment expenses	390,708			343,820			335,585
Balance, end of year	$	2,346,526		$	2,119,847		$	2,048,381
* Current year net losses in 2019 included a PDR of $9.2 million associated with the unearned premium of a large national healthcare account in the Company's Specialty P&C segment (see Note 7). Current year net losses in 2018 included incurred losses of $25.4 million related to a loss portfolio transfer entered into during the second quarter of 2018 (see Note 4).

As discussed in Note 1, estimating liability reserves is complex and requires the use of many assumptions. As time passes and ultimate losses for prior years are either known or become subject to a more precise estimation, ProAssurance increases or decreases the reserve estimates established in prior periods. The net favorable loss development recognized in 2019 primarily reflected overall favorable trends in claim closing patterns in the Workers' Compensation Insurance and Segregated Portfolio Cell Reinsurance segments, largely offset by net unfavorable loss development recognized in the Specialty P&C segment. The net favorable loss development recognized in the Workers' Compensation Insurance segment primarily related to the 2015 and 2016 accident years and the net favorable loss development recognized in the Segregated Portfolio Cell Reinsurance segment primarily related to the 2015 through 2018 accident years. The net unfavorable loss development recognized in the Specialty P&C segment primarily related to accident years 2016 through 2018. The net favorable development recognized in 2018 and 2017 was primarily due to lower than anticipated claims severity trends for accident years 2011 through 2015 and accident years 2010 through 2014, respectively, in the Specialty P&C segment.

On January 1, 2016, ProAssurance adopted new guidance that requires detailed disclosures related to its reserve for losses and loss adjustment expenses, including significant changes in methodologies and assumptions used in the calculation of its reserve. ProAssurance establishes its reserve and manages claims activity by coverage, product or line of business and various categories of reserves have similar characteristics. Therefore, ProAssurance has aggregated these reserve categories into several reserve groups that provide a more meaningful view of the amount, timing and uncertainty of cash flows arising from the liability. At the same time, these reserve groups present a disaggregated view of the major elements of the overall loss reserve liability. The reserve groups include HCPL claims-made reserve, HCPL occurrence reserve, medical technology liability claims-made reserve, workers’ compensation insurance reserve, segregated portfolio cell reinsurance - workers' compensation reserve, Syndicate 1729 casualty reserve, Syndicate 1729 property insurance reserve and Syndicate 1729 property reinsurance reserve. All other loss reserve categories are deemed to be less homogeneous or relatively small on a standalone basis and are included in other short-duration lines in the claims development reconciliation.

time. Claims-made coverage has a short reporting pattern, with virtually all claims known shortly after the end of the policy period. Occurrence coverage claims can have an extended reporting pattern, with the time from the loss event until the filing of the claim often measured in years, at which point the claims resolution process begins. Although the resolution process and time frame is similar once a claim is reported, combining claims from claims-made and occurrence coverage types would result in distortion due to the difference in reporting lag. Medical technology liability reserves are grouped separately due to the nature of the risk, including the potential for mass torts and multiple claims arising out of the same product or service. The small amount of medical technology liability occurrence reserves are included in other short-duration lines.

Finally, claims arising from the Company's involvement in Syndicate 1729 are segregated into casualty (insurance and reinsurance), property insurance and property reinsurance groups. Property insurance claims generally have a shorter reporting and resolution time frame as compared to most casualty claims. The reporting and resolution patterns of property reinsurance claims differs from that of property insurance claims due to predominant coverage of catastrophic loss events on an aggregate basis rather than coverage of individual claims. Casualty reinsurance, on the other hand, generally provides coverage on a per-claim basis and the reporting and resolution time frame for these claims is not substantially different than those arising from casualty insurance written by Syndicate 1729. The small amount of reserves associated with Syndicate 6131 related to contingency and special property business are included in other short-duration lines.

All information prior to 2019 disclosed in the Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance, Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance and Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance tables that follow is presented as supplementary information. The “Cumulative Number of Reported Claims” in the tables that follow includes the combined number of claims for an accident year and excludes projected unreported IBNR claims. A claim is considered reported when ProAssurance becomes aware of and accepts it for coverage under the terms of the Company's insurance contracts.

HCPL loss costs are impacted by many factors, including but not limited to the nature of the claim, including whether or not the claim is an individual or a mass tort claim, the personal situation of the claimant or the claimant's family, the outcome of jury trials, the legislative and judicial climate where any potential litigation may occur, general economic conditions and, for claims involving bodily injury, the trend of healthcare costs. ProAssurance sets an initial reserve based upon the evaluation of the current loss environment including frequency, severity, economic inflation, social inflation and legal trends. The initial loss ratio for HCPL business has ranged from 87% to 106% in recent years and has recently trended towards the higher end of this range due to increased reserve estimates for a large national healthcare account as well as increases in loss severity in the broader HCPL industry, including our excess and surplus lines of business.

Healthcare Professional Liability Claims-Made



Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																					December 31, 2019
($ in thousands)	Year Ended December 31,																				IBNR*			Cumulative Number of Reported Claims
	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
Accident Year	Unaudited
2010	$	364,996	$	354,787	$	338,170	$	312,813	$	291,553	$	279,713	$	270,484	$	258,466	$	257,714	$	254,974	$	(1,161	)	3,845
2011	—		$	348,916	$	344,808	$	331,884	$	305,540	$	289,400	$	278,258	$	264,777	$	254,329	253,163		$	(1,377	)	3,530
2012	—		—		$	341,289	$	324,418	$	319,613	$	306,956	$	291,075	$	279,589	$	271,110	266,629		$	(1,040	)	3,699
2013	—		—		—		$	315,346	$	304,209	$	296,550	$	287,140	$	272,364	$	258,251	248,594		$	(4,737	)	3,767
2014	—		—		—		—		$	290,020	$	289,397	$	280,043	$	267,442	$	256,968	244,607		$	(4,466	)	3,315
2015	—		—		—		—		—		$	276,492	$	269,980	$	271,138	$	270,814	256,785		$	(13,965	)	3,267
2016	—		—		—		—		—		—		$	271,765	$	274,643	$	287,551	293,515		$	(6,524	)	3,534
2017	—		—		—		—		—		—		—		$	283,746	$	295,883	331,304		$	(3,097	)	3,869
2018	—		—		—		—		—		—		—		—		$	320,772	377,908		$	33,282		3,980
2019	—		—		—		—		—		—		—		—		—		377,242		$	225,384		3,134
Total																			$	2,904,721
* Includes expected development on reported claims



Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
(In thousands)	Year Ended December 31,
	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
Accident Year	Unaudited
2010	$	15,464	$	69,551	$	137,712	$	180,432	$	209,777	$	221,693	$	236,171	$	240,945	$	243,675	$	246,974
2011	—		$	14,417	$	71,208	$	133,004	$	177,089	$	198,112	$	214,502	$	224,982	$	233,103	237,605
2012	—		—		$	15,382	$	73,571	$	145,488	$	190,997	$	215,220	$	231,652	$	244,512	250,806
2013	—		—		—		$	16,938	$	69,657	$	127,496	$	171,681	$	197,265	$	213,879	220,402
2014	—		—		—		—		$	16,764	$	59,485	$	116,791	$	154,236	$	186,239	200,392
2015	—		—		—		—		—		$	9,172	$	55,731	$	111,741	$	161,896	195,047
2016	—		—		—		—		—		—		$	9,027	$	51,869	$	109,756	164,811
2017	—		—		—		—		—		—		—		$	16,309	$	63,171	134,787
2018	—		—		—		—		—		—		—		—		$	14,051	79,291
2019	—		—		—		—		—		—		—		—		—		17,838
Total																			1,747,953

All outstanding liabilities before 2010, net of reinsurance																			9,771
Liabilities for losses and loss adjustment expenses, net of reinsurance																			$	1,166,539



Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																					December 31, 2019
($ in thousands)	Year Ended December 31,																				IBNR*			Cumulative Number of Reported Claims
	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
Accident Year	Unaudited
2010	$	41,721	$	43,238	$	43,195	$	42,233	$	37,920	$	35,831	$	33,361	$	29,338	$	26,501	$	24,898	$	277		291
2011	—		$	45,882	$	44,956	$	41,453	$	39,917	$	37,150	$	35,004	$	32,343	$	29,784	27,533		$	21		342
2012	—		—		$	45,703	$	46,513	$	44,848	$	40,692	$	34,774	$	32,691	$	29,857	25,705		$	(778	)	398
2013	—		—		—		$	32,746	$	36,602	$	35,624	$	34,393	$	30,906	$	26,919	24,857		$	(658	)	358
2014	—		—		—		—		$	30,420	$	29,918	$	32,143	$	29,869	$	25,885	22,243		$	(352	)	346
2015	—		—		—		—		—		$	35,648	$	35,347	$	37,346	$	40,960	36,468		$	(170	)	359
2016	—		—		—		—		—		—		$	29,609	$	28,790	$	27,240	25,019		$	(349	)	357
2017	—		—		—		—		—		—		—		$	24,571	$	23,760	21,148		$	10,738		360
2018	—		—		—		—		—		—		—		—		$	38,420	41,555		$	25,403		294
2019	—		—		—		—		—		—		—		—		—		35,420		$	31,148		179
Total																			$	284,846
* Includes expected development on reported claims



Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
(In thousands)	Year Ended December 31,
	2010		2011		2012		2013		2014		2015			2016			2017			2018			2019
Accident Year	Unaudited
2010	$	285	$	1,881	$	5,647	$	9,120	$	15,147	$	21,837		$	22,804		$	23,313		$	23,832		$	23,981
2011	—		$	291	$	2,803	$	8,059	$	16,544	$	19,197		$	21,416		$	23,194		$	24,539		24,933
2012	—		—		$	363	$	2,430	$	7,705	$	12,212		$	19,275		$	21,435		$	23,095		23,600
2013	—		—		—		$	369	$	3,170	$	7,826		$	14,753		$	16,787		$	18,949		21,241
2014	—		—		—		—		$	394	$	2,260		$	7,460		$	10,519		$	14,604		17,024
2015	—		—		—		—		—		$	(350	)	$	786		$	4,854		$	11,626		15,462
2016	—		—		—		—		—		—			$	(182	)	$	(195	)	$	2,883		10,576
2017	—		—		—		—		—		—			—			$	(6,809	)	$	(5,858	)	(2,765		)
2018	—		—		—		—		—		—			—			—			$	65		2,098
2019	—		—		—		—		—		—			—			—			—			439
Total																							136,589

All outstanding liabilities before 2010, net of reinsurance																							6,998
Liabilities for losses and loss adjustment expenses, net of reinsurance																							$	155,255

The risks insured in the medical technology liability line of business are more varied, and policies are individually priced based on the risk characteristics of the policy and the account. These policies often have substantial deductibles or self-insured retentions, and the insured risks range from startup operations to large multinational entities. Premiums are established using the most recently developed actuarial estimates of losses expected to be incurred based on factors which include: results from prior analysis of similar business, industry indications, observed trends and judgment. Claims in this line of business primarily involve bodily injury to individuals and are affected by factors similar to those of the HCPL line of business. For the medical technology liability line of business, ProAssurance also establishes an initial reserve using a loss ratio approach, including a provision in consideration of historical loss volatility that this line of business has exhibited.



Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																					December 31, 2019
($ in thousands)	Year Ended December 31,																				IBNR*		Cumulative Number of Reported Claims
	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
Accident Year	Unaudited
2010	$	26,077	$	27,063	$	25,175	$	23,307	$	19,315	$	17,439	$	16,047	$	16,878	$	18,611	$	17,865	$	93	497
2011	—		$	17,249	$	20,930	$	19,166	$	15,836	$	13,794	$	12,487	$	12,358	$	8,202	7,944		$	262	522
2012	—		—		$	11,162	$	9,989	$	8,906	$	7,441	$	5,824	$	4,797	$	5,051	3,889		$	65	221
2013	—		—		—		$	9,807	$	9,955	$	9,536	$	7,226	$	4,697	$	3,566	3,504		$	318	218
2014	—		—		—		—		$	9,989	$	10,306	$	9,012	$	8,984	$	7,679	6,194		$	1,058	272
2015	—		—		—		—		—		$	9,376	$	8,757	$	7,193	$	5,929	5,081		$	1,585	155
2016	—		—		—		—		—		—		$	9,200	$	8,467	$	7,413	6,422		$	1,829	182
2017	—		—		—		—		—		—		—		$	11,049	$	10,143	8,306		$	5,782	95
2018	—		—		—		—		—		—		—		—		$	10,141	8,108		$	7,280	217
2019	—		—		—		—		—		—		—		—		—		10,072		$	8,923	310
Total																			$	77,385
* Includes expected development on reported claims



Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
(In thousands)	Year Ended December 31,
	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
Accident Year	Unaudited
2010	$	485	$	3,557	$	8,491	$	12,283	$	11,725	$	12,146	$	12,253	$	15,366	$	17,660	$	17,661
2011	—		$	118	$	2,034	$	3,846	$	5,062	$	7,376	$	7,240	$	7,799	$	7,664	7,665
2012	—		—		$	568	$	1,520	$	2,805	$	3,247	$	3,366	$	3,676	$	3,800	3,817
2013	—		—		—		$	102	$	1,029	$	1,967	$	2,599	$	3,092	$	3,102	3,102
2014	—		—		—		—		$	388	$	1,527	$	2,564	$	3,046	$	3,724	3,776
2015	—		—		—		—		—		$	25	$	440	$	1,625	$	2,097	2,567
2016	—		—		—		—		—		—		$	53	$	1,690	$	2,365	2,959
2017	—		—		—		—		—		—		—		$	56	$	1,681	2,017
2018	—		—		—		—		—		—		—		—		$	6	191
2019	—		—		—		—		—		—		—		—		—		584
Total																			44,339

All outstanding liabilities before 2010, net of reinsurance																			789
Liabilities for losses and loss adjustment expenses, net of reinsurance																			$	33,835

Many factors affect the ultimate losses incurred for the workers' compensation coverages in the Workers' Compensation Insurance segment including, but not limited to, the type and severity of the injury, the age and occupation of the injured worker, the estimated length of disability, medical treatment and related costs, and the jurisdiction and workers' compensation laws of the injury occurrence. ProAssurance uses various actuarial methodologies in developing the workers’ compensation reserve combined with a review of the exposure base generally based upon payroll of the insured. For the current accident year, given the lack of seasoned information, the different actuarial methodologies produce results with considerable variability; therefore, more emphasis is placed on supplementing results from the actuarial methodologies with trends in exposure base, medical expense inflation, general inflation, severity, and claim counts, among other things, to select an expected loss ratio.



Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																					December 31, 2019
($ in thousands)	Year Ended December 31,																				IBNR*			Cumulative Number of Reported Claims
	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
Accident Year	Unaudited
2010	$	55,852	$	55,852	$	55,852	$	54,837	$	54,779	$	55,200	$	54,600	$	54,600	$	54,600	$	54,400	$	(98	)	12,913
2011	—		$	65,665	$	65,783	$	71,521	$	72,280	$	72,420	$	72,495	$	72,495	$	72,495	72,445		$	1,658		15,244
2012	—		—		$	80,285	$	76,551	$	75,848	$	76,357	$	75,836	$	75,576	$	75,076	75,076		$	790		16,204
2013	—		—		—		$	86,973	$	85,935	$	86,928	$	88,010	$	87,260	$	87,260	89,760		$	1,420		16,429
2014	—		—		—		—		$	93,019	$	93,529	$	93,029	$	93,029	$	93,029	93,029		$	3,395		16,210
2015	—		—		—		—		—		$	100,101	$	100,454	$	98,454	$	97,654	96,354		$	5,871		16,549
2016	—		—		—		—		—		—		$	101,348	$	97,348	$	92,148	84,799		$	4,311		15,977
2017	—		—		—		—		—		—		—		$	99,874	$	99,874	99,874		$	6,274		16,077
2018	—		—		—		—		—		—		—		—		$	118,095	118,095		$	8,393		17,991
2019	—		—		—		—		—		—		—		—		—		119,752		$	39,118		17,082
Total																			$	903,584
* Includes expected development on reported claims



Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
(In thousands)	Year Ended December 31,
	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
Accident Year	Unaudited
2010	$	20,086	$	39,098	$	46,762	$	51,117	$	52,530	$	53,443	$	53,734	$	53,974	$	54,014	$	54,207
2011	—		$	21,993	$	50,900	$	62,307	$	67,945	$	70,146	$	70,934	$	71,662	$	71,856	71,927
2012	—		—		$	27,448	$	56,122	$	65,908	$	70,558	$	72,766	$	73,662	$	73,676	73,768
2013	—		—		—		$	30,554	$	63,825	$	76,813	$	82,369	$	85,689	$	86,783	87,466
2014	—		—		—		—		$	30,368	$	65,922	$	77,631	$	85,022	$	87,314	87,998
2015	—		—		—		—		—		$	32,078	$	65,070	$	78,947	$	83,483	86,528
2016	—		—		—		—		—		—		$	28,377	$	58,192	$	69,237	74,886
2017	—		—		—		—		—		—		—		$	31,586	$	70,333	82,289
2018	—		—		—		—		—		—		—		—		$	41,619	86,063
2019	—		—		—		—		—		—		—		—		—		40,994
Total																			746,126

All outstanding liabilities before 2010, net of reinsurance																			3,347
Liabilities for losses and loss adjustment expenses, net of reinsurance																			$	160,805



Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																					December 31, 2019
($ in thousands)	Year Ended December 31,																				IBNR*		Cumulative Number of Reported Claims
	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
Accident Year	Unaudited
2010	$	19,767	$	18,265	$	17,715	$	17,825	$	17,736	$	17,541	$	17,320	$	17,278	$	17,224	$	17,119	$	170	2,914
2011	—		$	18,790	$	19,360	$	19,629	$	19,282	$	18,644	$	18,725	$	18,666	$	18,606	18,522		$	339	3,154
2012	—		—		$	22,940	$	21,513	$	21,048	$	20,028	$	19,972	$	19,864	$	19,799	19,727		$	388	3,454
2013	—		—		—		$	23,809	$	25,310	$	26,758	$	26,619	$	26,260	$	26,033	25,938		$	498	3,723
2014	—		—		—		—		$	28,248	$	28,423	$	29,000	$	28,373	$	28,281	27,919		$	664	4,433
2015	—		—		—		—		—		$	36,423	$	32,519	$	28,746	$	27,548	26,720		$	819	4,949
2016	—		—		—		—		—		—		$	37,601	$	34,055	$	30,998	29,424		$	1,092	5,327
2017	—		—		—		—		—		—		—		$	42,725	$	38,594	34,246		$	2,141	5,703
2018	—		—		—		—		—		—		—		—		$	43,654	41,283		$	6,623	6,337
2019	—		—		—		—		—		—		—		—		—		48,505		$	20,653	5,965
Total																			$	289,403
* Includes expected development on reported claims



Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
(In thousands)	Year Ended December 31,
	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
Accident Year	Unaudited
2010	$	6,503	$	12,904	$	15,087	$	16,214	$	16,757	$	16,842	$	16,810	$	16,850	$	16,904	$	16,904
2011	—		$	5,940	$	14,045	$	17,197	$	17,869	$	18,054	$	18,177	$	18,176	$	18,185	18,185
2012	—		—		$	7,808	$	14,740	$	17,728	$	18,474	$	19,208	$	19,402	$	19,328	19,311
2013	—		—		—		$	8,131	$	19,054	$	24,268	$	25,209	$	25,366	$	25,489	25,440
2014	—		—		—		—		$	9,933	$	21,880	$	26,173	$	26,810	$	26,959	27,083
2015	—		—		—		—		—		$	11,257	$	21,706	$	23,977	$	24,781	25,033
2016	—		—		—		—		—		—		$	10,980	$	23,003	$	26,285	27,162
2017	—		—		—		—		—		—		—		$	12,404	$	24,791	28,853
2018	—		—		—		—		—		—		—		—		$	12,517	27,501
2019	—		—		—		—		—		—		—		—		—		15,100
Total																			230,572

All outstanding liabilities before 2010, net of reinsurance																			95
Liabilities for losses and loss adjustment expenses, net of reinsurance																			$	58,926

ProAssurance estimates initial losses using the loss assumptions by risk category incorporated into the business plan submitted to Lloyd’s with consideration given to loss experience incurred to date. These assumptions are influenced by loss results in Lloyd's historical data for similar risks. In addition, Lloyd's market data for payment patterns is utilized to develop the payout patterns in the tables shown below. As the book of business matures and additional loss information becomes available, the actual loss experience of Syndicate 1729's book of business will be utilized to a greater extent. This will occur sooner for property coverages than for casualty coverages due to the shorter claim reporting and resolution time described above.

Claim count information for assumed reinsurance coverage written by Syndicate 1729 is not meaningful in many instances. Certain reinsurance contracts provide aggregate coverage for loss events involving numerous underlying claims, resulting in a single claim count for reinsurance purposes, while other reinsurance contracts provide individual per-claim coverage. Still others may provide aggregate stop loss coverage based on the total losses or loss ratio of a class of business. As a result, claim count information is not included in the Syndicate 1729 Casualty and Syndicate 1729 Property Reinsurance tables shown below.

Syndicate 1729 writes coverage in a variety of jurisdictions and currencies, although the majority of its business is in U.S. dollars. For purposes of the tables below, ProAssurance has elected to convert losses from their original currency to U.S. dollars using the exchange rate as of the end of the current period. This provides the purest trend information with respect to loss development, since the amounts in the table are not affected by exchange rate movements. However, the amounts for prior periods shown in the tables will not reconcile to previously-issued financial statements which used existing exchange rates at the date of the financial statement.



Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance													December 31, 2019
($ in thousands)	Year Ended December 31,												IBNR⁽¹⁾		Cumulative Number of Reported Claims⁽²⁾
	2014		2015		2016		2017		2018		2019
Accident Year	Unaudited
2014	$	6,110	$	5,812	$	5,610	$	5,547	$	5,472	$	5,432	$	733	nm
2015	—		$	14,810	$	14,510	$	14,398	$	14,232	14,181		$	1,432	nm
2016	—		—		$	19,535	$	19,669	$	19,552	19,344		$	3,961	nm
2017	—		—		—		$	22,069	$	21,824	21,207		$	5,242	nm
2018	—		—		—		—		$	18,688	18,120		$	10,908	nm
2019	—		—		—		—		—		15,990		$	14,053	nm
Total											$	94,274
⁽¹⁾ Includes expected development on reported claims
⁽²⁾ The abbreviation "nm" indicates that the information is not meaningful



Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
(In thousands)	Year Ended December 31,
	2014		2015		2016		2017		2018		2019
Accident Year	Unaudited
2014	$	20	$	474	$	4,092	$	4,214	$	4,320	$	4,580
2015	—		$	724	$	6,307	$	10,313	$	10,947	11,654
2016	—		—		$	2,495	$	8,441	$	12,869	13,596
2017	—		—		—		$	2,611	$	8,301	12,871
2018	—		—		—		—		$	1,852	4,905
2019	—		—		—		—		—		1,124
Total											48,730

All outstanding liabilities before 2014, net of reinsurance											—
Liabilities for losses and loss adjustment expenses, net of reinsurance											$	45,544



Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance													December 31, 2019
($ in thousands)	Year Ended December 31,												IBNR*			Cumulative Number of Reported Claims
	2014		2015		2016		2017		2018		2019
Accident Year	Unaudited
2014	$	890	$	1,089	$	888	$	864	$	866	$	831	$	(43	)	68
2015	—		$	5,519	$	5,917	$	6,194	$	6,159	5,886		$	753		537
2016	—		—		$	11,896	$	12,984	$	12,823	12,475		$	(27	)	1,454
2017	—		—		—		$	15,018	$	17,634	19,976		$	634		2,640
2018	—		—		—		—		$	20,636	21,888		$	1,506		3,344
2019	—		—		—		—		—		18,010		$	5,887		3,053
Total											$	79,066
* Includes expected development on reported claims



Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
(In thousands)	Year Ended December 31,
	2014		2015		2016		2017		2018		2019
Accident Year	Unaudited
2014	$	267	$	1,005	$	836	$	854	$	857	$	860
2015	—		$	3,165	$	4,022	$	4,808	$	4,869	5,018
2016	—		—		$	7,751	$	10,939	$	12,343	12,400
2017	—		—		—		$	8,221	$	16,439	19,404
2018	—		—		—		—		$	9,918	17,248
2019	—		—		—		—		—		5,575
Total											60,505

All outstanding liabilities before 2014, net of reinsurance											—
Liabilities for losses and loss adjustment expenses, net of reinsurance											$	18,561

Syndicate 1729 Property Reinsurance



Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance													December 31, 2019
($ in thousands)	Year Ended December 31,												IBNR⁽¹⁾			Cumulative Number of Reported Claims ⁽²⁾
	2014		2015		2016		2017		2018		2019
Accident Year	Unaudited
2014	$	831	$	929	$	989	$	989	$	1,125	$	1,120	$	—		nm
2015	—		$	2,788	$	2,825	$	2,275	$	2,328	2,377		$	—		nm
2016	—		—		$	4,497	$	4,050	$	3,368	2,832		$	438		nm
2017	—		—		—		$	6,861	$	7,832	6,868		$	(1,935	)	nm
2018	—		—		—		—		$	8,840	6,398		$	5,215		nm
2019	—		—		—		—		—		10,977		$	3,994		nm
Total											$	30,572
⁽¹⁾ Includes expected development on reported claims
⁽²⁾ The abbreviation "nm" indicates that the information is not meaningful



Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
(In thousands)	Year Ended December 31,
	2014		2015		2016		2017		2018		2019
Accident Year	Unaudited
2014	$	79	$	917	$	984	$	984	$	1,125	$	1,120
2015	—		$	1,313	$	1,804	$	1,996	$	2,234	2,267
2016	—		—		$	613	$	1,667	$	2,136	2,192
2017	—		—		—		$	4,147	$	7,300	8,947
2018	—		—		—		—		$	547	1,644
2019	—		—		—		—		—		4,974
Total											21,144

All outstanding liabilities before 2014, net of reinsurance											—
Liabilities for losses and loss adjustment expenses, net of reinsurance											$	9,428



(In thousands)	December 31, 2019
Net outstanding liabilities
Healthcare professional liability claims-made	$	1,166,539
Healthcare professional liability occurrence	155,255
Medical technology liability claims-made	33,835
Workers' compensation insurance	160,805
Segregated portfolio cell reinsurance - workers' compensation	58,926
Syndicate 1729 casualty	45,544
Syndicate 1729 property insurance	18,561
Syndicate 1729 property reinsurance	9,428
Other short-duration lines	102,997
Liabilities for losses and loss adjustment expenses, net of reinsurance	1,751,890

Reinsurance recoverable on unpaid losses
Healthcare professional liability claims-made	184,645
Healthcare professional liability occurrence	45,827
Medical technology liability claims-made	31,771
Workers' compensation insurance	62,314
Segregated portfolio cell reinsurance - workers' compensation	35,200
Syndicate 1729 casualty	1,724
Syndicate 1729 property insurance	10,754
Syndicate 1729 property reinsurance	12,826
Other short-duration lines	5,647
Total reinsurance recoverable on unpaid losses and loss adjustment expenses	390,708

Reserve for the future utilization of the DDR benefit	74,200
Unallocated loss adjustment expenses	103,600
Loss portfolio transfers ⁽¹⁾	16,983
Premium deficiency reserve ⁽²⁾	9,200
Other	(55		)
	203,928
Gross liability for losses and loss adjustment expenses	$	2,346,526
⁽¹⁾ Represents the reserve for retroactive coverages, net of any applicable deferred gains, related to loss portfolio transfers during entered into during 2019 and 2018 (see Note 4).
⁽²⁾ Represents the estimated premium deficiency associated with the unearned premium of a large national healthcare account in the Company's Specialty P&C segment (see Note 7).