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Segment Information (Tables)
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment The tabular information that follows shows the financial results of the Company's reportable segments reconciled to results reflected in the Condensed Consolidated Statements of Income and Comprehensive Income. ProAssurance does not consider goodwill or intangible asset impairments, a gain on bargain purchase or transaction-related costs for completed business combinations, including any related tax impacts, in assessing the financial performance of its operating and reportable segments, and thus are included in the reconciliation of segment results to consolidated results.
Financial results by segment were as follows:
Three Months Ended September 30, 2021
(In thousands)Specialty P&CWorkers' Compensation InsuranceSegregated Portfolio Cell Reinsurance Lloyd's SyndicatesCorporateInter-segment EliminationsConsolidated
Net premiums earned$203,716 $42,235 $15,344 $10,953 $— $— $272,248 
Net investment income— — 193 431 18,654 — 19,278 
Equity in earnings (loss) of unconsolidated subsidiaries— — — — 15,244 — 15,244 
Net realized gains (losses)— — 204 35 291 — 530 
Other income (loss)(1)
860 437 — 283 1,542 (722)2,400 
Net losses and loss adjustment expenses(176,490)(31,364)(8,693)(6,846)— — (223,393)
Underwriting, policy acquisition and operating expenses(1)
(36,147)(13,521)(4,758)(3,909)(6,872)722 (64,485)
SPC U.S. federal income taxes(2)
— — (431)— — — (431)
SPC dividend (expense) income— — (1,320)— — — (1,320)
Interest expense— — — — (5,814)— (5,814)
Income tax benefit (expense)— — — — (219)— (219)
Segment results$(8,061)$(2,213)$539 $947 $22,826 $— 14,038 
Reconciliation of segments to consolidated results:
Transaction-related costs, net(3)
(1,838)
Net income (loss)$12,200 
Significant non-cash items:
Depreciation and amortization, net of accretion$1,956 $903 $397 $17 $6,973 $— $10,246 
Nine Months Ended September 30, 2021
(In thousands)Specialty P&CWorkers' Compensation InsuranceSegregated Portfolio Cell Reinsurance Lloyd's SyndicatesCorporateInter-segment EliminationsConsolidated
Net premiums earned
$487,963 $122,872 $47,500 $40,263 $— $— $698,598 
Net investment income
— — 620 1,677 49,416 — 51,713 
Equity in earnings (loss) of unconsolidated subsidiaries
— — — — 33,959 — 33,959 
Net realized gains (losses)
— — 2,772 9 17,431 — 20,212 
Other income (expense)(1)
2,800 1,730 2 864 3,786 (2,320)6,862 
Net losses and loss adjustment expenses
(417,890)(85,323)(26,560)(25,257)— — (555,030)
Underwriting, policy acquisition and operating expenses(1)
(91,369)(38,519)(15,078)(15,219)(19,050)2,320 (176,915)
SPC U.S. federal income tax expense(2)
— — (1,291)— — — (1,291)
SPC dividend (expense) income
— — (5,926)— — — (5,926)
Interest expense
— — — — (14,203)— (14,203)
Income tax benefit (expense)
— — — — (1,369)— (1,369)
Segment results
$(18,496)$760 $2,039 $2,337 $69,970 $— 56,610 
Reconciliation of segments to consolidated results:
Gain on bargain purchase74,408 
Transaction-related costs, net(3)
(19,034)
Net income (loss)$111,984 
Significant non-cash items:
Gain on bargain purchase$74,408 
Depreciation and amortization, net of accretion$7,261 $2,709 $1,074 $49 $15,473 $— $26,566 
Three Months Ended September 30, 2020
(In thousands)Specialty P&CWorkers' Compensation InsuranceSegregated Portfolio Cell Reinsurance Lloyd's SyndicatesCorporateInter-segment EliminationsConsolidated
Net premiums earned
$117,849 $42,516 $16,052 $18,142 $— $— $194,559 
Net investment income
— — 273 951 15,700 — 16,924 
Equity in earnings (loss) of unconsolidated subsidiaries
— — — — 4,853 — 4,853 
Net realized gains (losses)
— — 1,495 489 6,854 — 8,838 
Other income (expense)(1)
726 441 12 411 775 (642)1,723 
Net losses and loss adjustment expenses
(102,951)(26,455)(6,858)(9,317)— — (145,581)
Underwriting, policy acquisition and operating expenses(1)
(28,074)(14,983)(5,036)(6,938)(5,044)642 (59,433)
SPC U.S. federal income tax expense(2)
— — (871)— — — (871)
SPC dividend (expense) income
— — (3,854)— — — (3,854)
Interest expense
— — — — (3,881)— (3,881)
Income tax benefit (expense)
— — — — (2,141)— (2,141)
Segment results
$(12,450)$1,519 $1,213 $3,738 $17,116 $— 11,136 
Reconciliation of segments to consolidated results:
Goodwill impairment(161,115)
Net income (loss)$(149,979)
Significant non-cash items:
Goodwill impairment$161,115 
Depreciation and amortization, net of accretion$2,669 $923 $210 $3 $2,540 $— $6,345 
Nine Months Ended September 30, 2020
(In thousands)Specialty P&CWorkers' Compensation InsuranceSegregated Portfolio Cell Reinsurance Lloyd's SyndicatesCorporateInter-segment EliminationsConsolidated
Net premiums earned$365,305 $129,437 $49,780 $61,186 $— $— $605,708 
Net investment income— — 832 3,236 51,809 — 55,877 
Equity in earnings (loss) of unconsolidated subsidiaries— — — — (22,065)— (22,065)
Net realized gains (losses)— — 894 1,100 (1,844)— 150 
Other income (expense)(1)
3,515 1,717 203 219 1,813 (1,799)5,668 
Net losses and loss adjustment expenses
(373,442)(84,648)(23,890)(39,432)— — (521,412)
Underwriting, policy acquisition and operating expenses(1)
(82,894)(42,604)(15,474)(23,373)(17,632)1,799 (180,178)
SPC U.S. federal income tax expense(2)
— — (1,573)— — — (1,573)
SPC dividend (expense) income
— — (7,988)— — — (7,988)
Interest expense
— — — — (11,725)— (11,725)
Income tax benefit (expense)
— — — 29 48,592 — 48,621 
Segment results
$(87,516)$3,902 $2,784 $2,965 $48,948 $— (28,917)
Reconciliation of segments to consolidated results:
Goodwill impairment(161,115)
Net income (loss)$(190,032)
Significant non-cash items:
Goodwill impairment$161,115 
Depreciation and amortization, net of accretion$5,930 $2,771 $371 $26 $7,070 $— $16,168 
(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 results and are paid by the individual SPCs.
(3) Represents the transaction-related costs, after-tax, associated with the acquisition of NORCAL. Pre-tax transaction-related costs of $2.3 million and $23.5 million were included as a component of consolidated operating expense and the associated income tax benefit of $0.5 million and $4.5 million were included as a component of consolidated income tax benefit (expense) on the Condensed Consolidated Statements of Income and Comprehensive Income for the three and nine months ended September 30, 2021, respectively.
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 September 30Nine Months Ended September 30
(In thousands)2021202020212020
Specialty P&C Segment
Gross premiums earned:
HCPL$184,893 $101,785 $432,722 $317,088 
Small Business Unit
26,958 26,372 78,789 77,937 
Medical Technology Liability
9,933 8,749 28,484 25,918 
Other172 138 494 671 
Ceded premiums earned(18,240)(19,195)(52,526)(56,309)
Segment net premiums earned203,716 117,849 487,963 365,305 
Workers' Compensation Insurance Segment
Gross premiums earned:
Traditional business45,331 45,620 130,767 138,628 
Alternative market business
16,633 17,187 50,539 53,221 
Ceded premiums earned(19,729)(20,291)(58,434)(62,412)
Segment net premiums earned42,235 42,516 122,872 129,437 
Segregated Portfolio Cell Reinsurance Segment
Gross premiums earned:
Workers' compensation(1)
15,846 16,476 48,215 51,178 
HCPL(2)
1,649 1,699 5,675 5,099 
Ceded premiums earned(2,151)(2,123)(6,390)(6,497)
Segment net premiums earned15,344 16,052 47,500 49,780 
Lloyd's Syndicates Segment
Gross premiums earned:
Property and casualty13,262 22,777 50,282 77,309 
Ceded premiums earned(2,309)(4,635)(10,019)(16,123)
Segment net premiums earned10,953 18,142 40,263 61,186 
Consolidated net premiums earned$272,248 $194,559 $698,598 $605,708 
(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.