Schedule II - Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2023

Condensed Financial Information Disclosure [Abstract]

Schedule II - Condensed Financial Information of Registrant

	December 31, 2023		December 31, 2022
Assets
Investment in subsidiaries, at equity	$	1,287,347	$	1,265,389
Fixed maturities available for sale, at fair value	20,044		25,681
Short-term investments	16,495		39,119
Investment in unconsolidated subsidiaries	945		915
Cash and cash equivalents	17,731		6,122
Due from subsidiaries	11,190		3,267
Other assets	17,732		17,161
Total Assets	$	1,371,484	$	1,357,654
Liabilities and Shareholders’ Equity
Liabilities:
Dividends payable	$	—	$	2,698
Other liabilities	11,758		1,480
Debt less debt issuance costs	247,746		249,458
Total Liabilities	259,504		253,636
Shareholders’ Equity:
Common stock	636		634
Other shareholders’ equity, including unrealized gains (losses) on securities of subsidiaries	1,111,344		1,103,384
Total Shareholders’ Equity	1,111,980		1,104,018
Total Liabilities and Shareholders’ Equity	$	1,371,484	$	1,357,654

	Year Ended December 31
	2023		2022		2021
Revenues
Net investment income (loss)	$	762	$	(663)	$	(1,470)
Equity in earnings (loss) of unconsolidated subsidiaries	30		—		—
Net investment gains (losses)	(22)		—		1,159
Other income (loss)	3,955		1,970		2,359
Total revenues	4,725		1,307		2,048
Expenses
Interest expense	15,583		14,445		14,549
Other expenses	30,357		32,513		29,094
Total expenses	45,940		46,958		43,643
Income (loss) before income tax expense (benefit) and equity in net income (loss) of consolidated subsidiaries	(41,215)		(45,651)		(41,595)
Income tax expense (benefit)	(6,001)		(7,994)		(9,833)
Income (loss) before equity in net income (loss) of consolidated subsidiaries	(35,214)		(37,657)		(31,762)
Equity in net income (loss) of consolidated subsidiaries	(3,390)		37,255		175,886
Net income (loss)	(38,604)		(402)		144,124
Other comprehensive income (loss)	94,118		(314,891)		(58,943)
Comprehensive income (loss)	$	55,514	$	(315,293)	$	85,181

	Year Ended December 31
	2023		2022		2021
Net cash provided (used) by operating activities	$	(23,313)	$	(25,862)	$	2,589
Investing activities
Proceeds from sales or maturities of:
Fixed maturities, available for sale	9,289		5,800		33,443
Net decrease (increase) in short-term investments	22,624		4,151		71,928
Return of invested capital from subsidiaries	28,060		8,756		21,464
Contribution of capital to subsidiaries	(93)		(58)		(214,237)
Funds (advanced) repaid for Lloyd's FAL deposit	4,106		11,131		59,012
Other	140		14		(151)
Net cash provided (used) by investing activities	64,126		29,794		(28,541)
Financing activities
Borrowings (repayments) under Revolving Credit Agreement	250,000		—		—
Borrowing (repayments) of Senior Notes	(250,000)		—		—
Repurchase of common stock	(20,188)		(3,252)		—
Subsidiary payments for common shares and share-based compensation awarded to subsidiary employees	(657)		(928)		(307)
Dividends to shareholders	(5,403)		(10,768)		(10,758)
Other	(2,956)		(977)		(337)
Net cash provided (used) by financing activities	(29,204)		(15,925)		(11,402)
Increase (decrease) in cash and cash equivalents	11,609		(11,993)		(37,354)
Cash and cash equivalents at beginning of period	6,122		18,115		55,469
Cash and cash equivalents at end of period	$	17,731	$	6,122	$	18,115
Supplemental disclosure of cash flow information:
Cash paid (refunded) during the year for income taxes, net	$	(14,983)	$	(6,081)	$	(7,943)
Cash paid during the year for interest	$	16,522	$	14,071	$	14,176
Significant non-cash transactions:
Dividends declared and not yet paid	$	—	$	2,698	$	2,698
Securities transferred at fair value as dividends from subsidiaries	$	3,022	$	32,512	$	—
Operating ROU assets obtained in exchange for operating lease liabilities	$	—	$	3,133	$	412

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, 2023 and 2022, 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.