Shareholders' Equity

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity

At June 30, 2024 and December 31, 2023, ProAssurance had 100 million shares of authorized common stock and 50 million shares of authorized preferred stock. The Board has the authority to determine provisions for the issuance of preferred shares, including the number of shares to be issued, the designations, powers, preferences and rights, and the qualifications, limitations or restrictions of such shares.

ProAssurance declared cash dividends of $0.05 per share during the first quarter of 2023 totaling $2.7 million. In light of the price range in which the Company's stock traded in the second quarter of 2023, the Board decided to suspend payment of a quarterly cash dividend. Instead, the Company used available capital to repurchase shares pursuant to the existing share repurchase authorization. Any decision to pay future cash dividends is subject to the Board’s final determination after a comprehensive review of financial performance, future expectations and other factors deemed relevant by the Board. See Note 12 of the Notes to Consolidated Financial Statements in ProAssurance's December 31, 2023 report on Form 10-K for additional information.

At June 30, 2024, Board authorizations for the repurchase of common shares or the retirement of outstanding debt of $55.9 million remained available for use. ProAssurance did not repurchase any common shares during the three and six months ended June 30, 2024. ProAssurance repurchased approximately 1.4 million common shares at a cost of $20.0 million during the second quarter of 2023.

Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss)

The following tables provide a detailed breakout of the components of AOCI and the amounts reclassified from AOCI to net income (loss). The tax effects of all amounts in the tables below, except for an immaterial amount of unrealized gains and losses on available-for-sale securities held at the Company's U.K. subsidiary, were computed using the enacted U.S. federal corporate tax rate of 21%. OCI included a deferred tax benefit of $0.2 million for the three and six months ended June 30, 2024 and a deferred tax benefit of $2.7 million and deferred tax expense of $8.1 million for the three and six months ended June 30, 2023, respectively.

The changes in the balance of each component of AOCI for the three and six months ended June 30, 2024 and 2023 were as follows:

(In thousands)	Unrealized Investment Gains (Losses)		Cash Flow Hedging Gains (Losses) (1)		Non-credit Impairments		Unrecognized Change in Defined Benefit Plan Liabilities		Accumulated Other Comprehensive Income (Loss)
Balance, April 1, 2024	$	(211,345)	$	6,027	$	(466)	$	(1,177)	$	(206,961)
OCI, before reclassifications, net of tax	(597)		1,326		—		—		729
Amounts reclassified from AOCI, net of tax	872		(1,051)		374		—		195
Net OCI, current period	275		275		374		—		924
Balance at June 30, 2024	$	(211,070)	$	6,302	$	(92)	$	(1,177)	$	(206,037)

(In thousands)	Unrealized Investment Gains (Losses)		Cash Flow Hedging Gains (Losses) (1)		Non-credit Impairments		Unrecognized Change in Defined Benefit Plan Liabilities		Accumulated Other Comprehensive Income (Loss)
Balance, December 31, 2023	$	(206,327)	$	3,026	$	(11)	$	(1,177)	$	(204,489)
OCI, before reclassifications, net of tax	(6,936)		5,400		(455)		—		(1,991)
Amounts reclassified from AOCI, net of tax	2,193		(2,124)		374		—		443
Net OCI, current period	(4,743)		3,276		(81)		—		(1,548)
Balance, June 30, 2024	$	(211,070)	$	6,302	$	(92)	$	(1,177)	$	(206,037)

(In thousands)	Unrealized Investment Gains (Losses)		Cash Flow Hedging Gains (Losses) (1)		Non-credit Impairments		Unrecognized Change in Defined Benefit Plan Liabilities		Accumulated Other Comprehensive Income (Loss)
Balance, April 1, 2023	$	(254,513)	$	—	$	(11)	$	(1,454)	$	(255,978)
OCI, before reclassifications, net of tax	(16,074)		4,310		—		—		(11,764)
Amounts reclassified from AOCI, net of tax	262		—		—		—		262
Net OCI, current period	(15,812)		4,310		—		—		(11,502)
Balance at June 30, 2023	$	(270,325)	$	4,310	$	(11)	$	(1,454)	$	(267,480)

(In thousands)	Unrealized Investment Gains (Losses)		Cash Flow Hedging Gains (Losses) (1)		Non-credit Impairments		Unrecognized Change in Defined Benefit Plan Liabilities		Accumulated Other Comprehensive Income (Loss)
Balance, December 31, 2022	$	(297,142)	$	—	$	(11)	$	(1,454)	$	(298,607)
OCI, before reclassifications, net of tax	23,933		4,310		—		—		28,243
Amounts reclassified from AOCI, net of tax	2,884		—		—		—		2,884
Net OCI, current period	26,817		4,310		—		—		31,127
Balance, June 30, 2023	$	(270,325)	$	4,310	$	(11)	$	(1,454)	$	(267,480)

(1) ProAssurance entered into two forward-starting interest rate swap agreements ("Interest Rate Swaps") on May 2, 2023, which are designated and qualify as highly effective cash flow hedges. See Note 8 for additional information on the Interest Rate Swaps.