Schedule II - Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Schedule II - Condensed Financial Information of Registrant

	December 31, 2019		December 31, 2018
Assets
Investment in subsidiaries, at equity	$	1,534,367	$	1,599,486
Fixed maturities available for sale, at fair value	85,263		78,076
Short-term investments	63,992		76,347
Investment in unconsolidated subsidiaries	915		875
Cash and cash equivalents	65,956		25,757
Other assets	40,640		45,683
Total Assets	$	1,791,133	$	1,826,224
Liabilities and Shareholders’ Equity
Liabilities:
Due to subsidiaries	$	9,899	$	4,067
Dividends payable	16,676		43,446
Other liabilities	4,268		6,823
Debt less debt issuance costs	248,377		248,886
Total Liabilities	279,220		303,222
Shareholders’ Equity:
Common stock	631		630
Other shareholders’ equity, including unrealized gains (losses) on securities of subsidiaries	1,511,282		1,522,372
Total Shareholders’ Equity	1,511,913		1,523,002
Total Liabilities and Shareholders’ Equity	$	1,791,133	$	1,826,224

	Year Ended December 31
	2019			2018			2017
Revenues
Net investment income	$	2,694		$	3,495		$	7,646
Equity in earnings (loss) of unconsolidated subsidiaries	40			(325		)	(137		)
Net realized investment gains (losses)	19			(789		)	(8,606		)
Other income (loss)	795			977			921
Total revenues	3,548			3,358			(176		)
Expenses
Interest expense	14,074			14,844			16,440
Other expenses	16,653			17,092			26,351
Total expenses	30,727			31,936			42,791
Income (loss) before income tax expense (benefit) and equity in net income (loss) of consolidated subsidiaries	(27,179		)	(28,578		)	(42,967		)
Income tax expense (benefit)	(28,455		)	(7,142		)	(13,293		)
Income (loss) before equity in net income (loss) of consolidated subsidiaries	1,276			(21,436		)	(29,674		)
Equity in net income (loss) of consolidated subsidiaries	(272		)	68,493			136,938
Net income	1,004			47,057			107,264
Other comprehensive income (loss)	53,866			(35,238		)	(2,488		)
Comprehensive income	$	54,870		$	11,819		$	104,776

	Year Ended December 31
	2019			2018			2017
Net cash provided (used) by operating activities	$	20,055		$	27,981		$	67,779
Investing activities
Proceeds from sales or maturities of:
Fixed maturities, available for sale	27,974			169,822			295,035
Net decrease (increase) in short-term investments	12,603			194,035			11,811
Dividends from subsidiaries	52,499			29,395			99,694
Unsettled security transactions, net of change	—			—			1,100
Funds (advanced) repaid for Lloyd's FAL deposit	(4,894		)	(21,576		)	(25,449		)
Funds (advanced) repaid under Syndicate Credit Agreement	30,296			(11,232		)	(6,883		)
Funds (advanced) repaid under a business investment line of credit	—			—			(4,066		)
Other	(936		)	330			(2,276		)
Net cash provided (used) by investing activities	117,542			360,774			368,966
Financing activities
Borrowings (repayments) under Revolving Credit Agreement	—			(123,000		)	(77,000		)
Subsidiary payments for common shares and share-based compensation awarded to subsidiary employees	344			1,154			12,030
Dividends to shareholders	(93,204		)	(316,476		)	(315,228		)
Other	(4,538		)	(5,685		)	(6,868		)
Net cash provided (used) by financing activities	(97,398		)	(444,007		)	(387,066		)
Increase (decrease) in cash and cash equivalents	40,199			(55,252		)	49,679
Cash and cash equivalents at beginning of period	25,757			81,009			31,330
Cash and cash equivalents at end of period	$	65,956		$	25,757		$	81,009
Supplemental disclosure of cash flow information:
Cash paid during the year for income taxes, net of refunds	$	2,053		$	4,966		$	17,193
Cash paid during the year for interest	$	13,699		$	14,777		$	15,892
Significant non-cash transactions:
Dividends declared and not yet paid	$	16,676		$	43,446		$	267,292
Securities transferred at fair value as dividends from subsidiaries	$	34,897		$	98,292		$	190,709

Basis of Presentation

The registrant-only financial statements should be read in conjunction with ProAssurance Corporation’s Consolidated Financial Statements and Notes thereto.

At December 31, 2019 and 2018, PRA investment in subsidiaries is stated at the initial consolidation value plus equity in the undistributed earnings of subsidiaries since the date of acquisition.

ProAssurance Corporation has a management agreement with several of its insurance subsidiaries whereby ProAssurance Corporation charges the subsidiaries a management fee for various management services provided to the subsidiary. Under the arrangement, the expenses associated with such services remain as expenses of ProAssurance Corporation and the management fee charged is reported as an offset to ProAssurance Corporation expenses.