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Segment Information (Tables)
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Schedule of segment reporting information, by segment
Financial results by segment were as follows:
 
Three Months Ended June 30, 2020
(In thousands)
Specialty P&C
 
Workers' Compensation Insurance
 
Segregated Portfolio Cell Reinsurance
 
Lloyd's Syndicates
 
Corporate
 
Inter-segment Eliminations
 
Consolidated
Net premiums earned
$
127,096

 
$
42,406

 
$
16,748

 
$
21,043

 
$
—

 
$
—

 
$
207,293

Net investment income
—

 
—

 
305

 
1,126

 
16,693

 
—

 
18,124

Equity in earnings (loss) of unconsolidated subsidiaries
—

 
—

 
—

 
—

 
(25,355
)
 
—

 
(25,355
)
Net realized gains (losses)
—

 
—

 
2,606

 
529

 
16,850

 
—

 
19,985

Other income (expense)(1)
1,092

 
519

 
55

 
40

 
404

 
(415
)
 
1,695

Net losses and loss adjustment expenses
(159,559
)
 
(28,425
)
 
(7,680
)
 
(15,335
)
 
—

 
—

 
(210,999
)
Underwriting, policy acquisition and operating expenses(1)
(25,234
)
 
(13,456
)
 
(5,360
)
 
(7,293
)
 
(7,764
)
 
415

 
(58,692
)
SPC U.S. federal income tax expense(2)
—

 
—

 
(480
)
 
—

 
—

 
—

 
(480
)
SPC dividend (expense) income
—

 
—

 
(4,642
)
 
—

 
—

 
—

 
(4,642
)
Interest expense
—

 
—

 
—

 
—

 
(3,714
)
 
—

 
(3,714
)
Income tax benefit (expense)
—

 
—

 
—

 
—

 
38,686

 
—

 
38,686

Segment operating results
$
(56,605
)

$
1,044


$
1,552


$
110


$
35,800


$
—


$
(18,099
)
Significant non-cash items:
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization, net of accretion
$
1,680

 
$
922

 
$
91

 
$
14

 
$
2,378

 
$
—

 
$
5,085

 
Six Months Ended June 30, 2020
(In thousands)
Specialty P&C
 
Workers' Compensation Insurance
 
Segregated Portfolio Cell Reinsurance
 
Lloyd's Syndicates
 
Corporate
 
Inter-segment Eliminations
 
Consolidated
Net premiums earned
$
247,456

 
$
86,921

 
$
33,728

 
$
43,044

 
$
—

 
$
—

 
$
411,149

Net investment income
—

 
—

 
559

 
2,285

 
36,110

 
—

 
38,954

Equity in earnings (loss) of unconsolidated subsidiaries
—

 
—

 
—

 
—

 
(26,917
)
 
—

 
(26,917
)
Net realized gains (losses)
—

 
—

 
(601
)
 
611

 
(8,698
)
 
—

 
(8,688
)
Other income (expense)(1)
2,788

 
1,276

 
191

 
(192
)
 
1,038

 
(1,156
)
 
3,945

Net losses and loss adjustment expenses
(270,491
)
 
(58,192
)
 
(17,032
)
 
(30,116
)
 
—

 
—

 
(375,831
)
Underwriting, policy acquisition and operating expenses(1)
(54,818
)
 
(27,622
)
 
(10,439
)
 
(16,434
)
 
(12,589
)
 
1,156

 
(120,746
)
SPC U.S. federal income tax expense(2)
—

 
—

 
(702
)
 
—

 
—

 
—

 
(702
)
SPC dividend (expense) income
—

 
—

 
(4,134
)
 
—

 
—

 
—

 
(4,134
)
Interest expense
—

 
—

 
—

 
—

 
(7,844
)
 
—

 
(7,844
)
Income tax benefit (expense)
—

 
—

 
—

 
29

 
50,732

 
—

 
50,761

Segment operating results
$
(75,065
)
 
$
2,383

 
$
1,570

 
$
(773
)
 
$
31,832

 
$
—

 
$
(40,053
)
Significant non-cash items:
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization, net of accretion
$
3,260

 
$
1,848

 
$
160

 
$
23

 
$
4,533

 
$
—

 
$
9,824

 
Three Months Ended June 30, 2019
(In thousands)
Specialty P&C
 
Workers' Compensation Insurance
 
Segregated Portfolio Cell Reinsurance
 
Lloyd's Syndicates
 
Corporate
 
Inter-segment Eliminations
 
Consolidated
Net premiums earned
$
126,011

 
$
46,574

 
$
19,284

 
$
17,280

 
$
—

 
$
—

 
$
209,149

Net investment income
—

 
—

 
368

 
1,199

 
21,972

 
—

 
23,539

Equity in earnings (loss) of unconsolidated subsidiaries
—

 
—

 
—

 
—

 
(5,152
)
 
—

 
(5,152
)
Net realized gains (losses)
—

 
—

 
(94
)
 
262

 
9,140

 
—

 
9,308

Other income (expense)(1)
1,470

 
725

 
135

 
32

 
833

 
(418
)
 
2,777

Net losses and loss adjustment expenses
(106,017
)
 
(30,625
)
 
(19,973
)
 
(11,825
)
 
—

 
—

 
(168,440
)
Underwriting, policy acquisition and operating expenses(1)
(29,863
)
 
(14,368
)
 
(5,905
)
 
(7,564
)
 
(5,426
)
 
418

 
(62,708
)
SPC U.S. federal income tax expense(2)
—

 
—

 
—

 
—

 
—

 
—

 
—

SPC dividend (expense) income
—

 
—

 
7,033

 
—

 
—

 
—

 
7,033

Interest expense
—

 
—

 
—

 
—

 
(4,247
)
 
—

 
(4,247
)
Income tax benefit (expense)
—

 
—

 
—

 
304

 
(27
)
 
—

 
277

Segment operating results
$
(8,399
)
 
$
2,306

 
$
848

 
$
(312
)
 
$
17,093

 
$
—

 
$
11,536

Significant non-cash items:
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization, net of accretion
$
1,623

 
$
959

 
$
(32
)
 
$
(4
)
 
$
2,071

 
$
—

 
$
4,617


 
Six Months Ended June 30, 2019
(In thousands)
Specialty P&C
 
Workers' Compensation Insurance
 
Segregated Portfolio Cell Reinsurance
 
Lloyd's Syndicates
 
Corporate
 
Inter-segment Eliminations
 
Consolidated
Net premiums earned
$
250,079

 
$
92,512

 
$
38,787

 
$
35,920

 
$
—

 
$
—

 
$
417,298

Net investment income
—

 
—

 
815

 
2,205

 
43,337

 
—

 
46,357

Equity in earnings (loss) of unconsolidated subsidiaries
—

 
—

 
—

 
—

 
(5,962
)
 
—

 
(5,962
)
Net realized gains (losses)
—

 
—

 
2,047

 
440

 
43,444

 
—

 
45,931

Other income (expense)(1)
2,680

 
1,454

 
221

 
(114
)
 
1,738

 
(1,107
)
 
4,872

Net losses and loss adjustment expenses
(213,675
)
 
(61,068
)
 
(30,719
)
 
(22,733
)
 
—

 
—

 
(328,195
)
Underwriting, policy acquisition and operating expenses(1)
(59,480
)
 
(28,559
)
 
(11,138
)
 
(16,033
)
 
(9,997
)
 
1,107

 
(124,100
)
SPC U.S. federal income tax expense(2)
—

 
—

 
—

 
—

 
—

 
—

 
—

SPC dividend (expense) income
—

 
—

 
2,246

 
—

 
—

 
—

 
2,246

Interest expense
—

 
—

 
—

 
—

 
(8,576
)
 
—

 
(8,576
)
Income tax benefit (expense)
—

 
—

 
—

 
—

 
(6,685
)
 
—

 
(6,685
)
Segment operating results
$
(20,396
)
 
$
4,339

 
$
2,259

 
$
(315
)
 
$
57,299

 
$
—

 
$
43,186

Significant non-cash items:
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization, net of accretion
$
3,359

 
$
1,936

 
$
14

 
$
(7
)
 
$
4,351

 
$
—

 
$
9,653

(1) Certain fees for services provided to the SPCs at Inova Re and Eastern Re are recorded as expenses within the Segregated Portfolio Cell Reinsurance segment and as other income within the Workers' Compensation Insurance segment. These fees are primarily SPC rental fees and are eliminated between segments in consolidation.
(2) Represents the provision for U.S. federal income taxes for SPCs at Inova Re, which have elected to be taxed as a U.S. corporation under Section 953(d) of the Internal Revenue Code. U.S. federal income taxes are included in the total SPC net operating results and are paid by the individual SPCs.
Schedule of gross premiums by product
The following table provides detailed information regarding ProAssurance's gross premiums earned by product as well as a reconciliation to net premiums earned. All gross premiums earned are from external customers except as noted. ProAssurance's insured risks are primarily within the U.S.
 
Three Months Ended June 30
 
Six Months Ended June 30
(In thousands)
2020
 
2019
 
2020
 
2019
Specialty P&C Segment
 
 
 
 
 
 
 
Gross premiums earned:
 
 
 
 
 
 
 
HCPL
$
111,836

 
$
108,297

 
$
215,304

 
$
215,761

Small Business Unit
24,915

 
27,307

 
51,565

 
54,425

Medical Technology Liability
8,641

 
8,356

 
17,169

 
16,658

Other
155

 
1,209

 
532

 
1,342

Ceded premiums earned
(18,451
)
 
(19,158
)
 
(37,114
)
 
(38,107
)
Segment net premiums earned
127,096

 
126,011

 
247,456

 
250,079

 
 
 
 
 
 
 
 
Workers' Compensation Insurance Segment
 
 
 
 
 
 
 
Gross premiums earned:
 
 
 
 
 
 
 
Traditional business
45,524

 
50,036

 
93,008

 
99,321

Alternative market business
17,906

 
20,846

 
36,034

 
41,837

Ceded premiums earned
(21,024
)
 
(24,308
)
 
(42,121
)
 
(48,646
)
Segment net premiums earned
42,406

 
46,574

 
86,921

 
92,512

 
 
 
 
 
 
 
 
Segregated Portfolio Cell Reinsurance Segment
 
 
 
 
 
 
 
Gross premiums earned:
 
 
 
 
 
 
 
Workers' compensation(1)
17,189

 
20,229

 
34,702

 
40,726

HCPL(2)
1,723

 
1,349

 
3,400

 
2,672

Other
—

 
120

 
—

 
240

Ceded premiums earned
(2,164
)
 
(2,414
)
 
(4,374
)
 
(4,851
)
Segment net premiums earned
16,748

 
19,284

 
33,728

 
38,787

 
 
 
 
 
 
 
 
Lloyd's Syndicates Segment
 
 
 
 
 
 
 
Gross premiums earned:
 
 
 
 
 
 
 
Property and casualty(3)
26,336

 
21,997

 
54,532

 
45,825

Ceded premiums earned
(5,293
)
 
(4,717
)
 
(11,488
)
 
(9,905
)
Segment net premiums earned
21,043

 
17,280

 
43,044

 
35,920

 

 

 

 

Consolidated net premiums earned
$
207,293

 
$
209,149

 
$
411,149

 
$
417,298

(1) Premium for all periods is assumed from the Workers' Compensation Insurance segment.
(2) Premium for all periods is assumed from the Specialty P&C segment.
(3) Includes a nominal amount of premium assumed from the Specialty P&C segment for the six months ended June 30, 2019.