ProAssurance (PRA) investor relations material

Executive summary

• Net income for Q1 2026 was $8.5 million ($0.16 per diluted share), reversing a net loss of $5.8 million in Q1 2025, driven by improved underwriting and investment income.

• Non-GAAP operating income was $12.7 million ($0.25 per diluted share), up 86.7% year-over-year.

• Consolidated net premiums earned decreased 5.4% year-over-year to $223.5 million, while net premiums written were $258.6 million.

• Specialty P&C renewal premiums increased 6%, with segment retention at 83%, as the company prioritized rate adequacy.

• The pending merger with The Doctors Company is progressing, with most regulatory approvals obtained and anticipated closing by June 30, 2026.

Financial highlights

• Net premiums earned: $223.5 million, down from $236.3 million year-over-year; net premiums written: $258.6 million.

• Net investment income rose 8.2% to $40.0 million, benefiting from higher average book yields.

• Net investment losses were $3.4 million, compared to $1.7 million in the prior year.

• Underwriting expense ratio improved to 32.5% from 35.2% year-over-year.

• Combined ratio improved to 110.4% from 115.6% year-over-year; Non-GAAP combined ratio improved to 109.9% from 112.2%.

Outlook and guidance

• The company expects to close the merger with The Doctors Company by June 30, 2026, pending final regulatory approvals.

• No dividends are expected to be paid in 2026 prior to the merger closing.

• Management continues to focus on rate adequacy and underwriting discipline in a competitive market.