v3.24.3
Investments (Tables)
 9 Months Ended
Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Schedule of Available-For-Sale Fixed Maturities
Available-for-sale fixed maturities at September 30, 2024 and December 31, 2023 included the following:
September 30, 2024
(In thousands)Amortized
Cost		Allowance for Expected Credit LossesGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
Fixed maturities, available-for-sale
U.S. Treasury obligations$261,442 $— $701 $10,842 $251,301 
U.S. Government-sponsored enterprise obligations16,575 — 20 571 16,024 
State and municipal bonds482,509 — 4,807 19,537 467,779 
Corporate debt1,850,831 2,608 10,442 88,245 1,770,420 
Residential mortgage-backed securities534,605 201 5,118 45,427 494,095 
Agency commercial mortgage-backed securities8,022 — 14 785 7,251 
Other commercial mortgage-backed securities212,274 406 548 12,027 200,389 
Other asset-backed securities483,457 188 3,747 8,143 478,873 
$3,849,715 $3,403 $25,397 $185,577 $3,686,132 
 December 31, 2023
(In thousands)Amortized
Cost		Allowance for Expected Credit LossesGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
Fixed maturities, available-for-sale
U.S. Treasury obligations$259,834 $— $165 $16,474 $243,525 
U.S. Government-sponsored enterprise obligations19,752 — 2 1,030 18,724 
State and municipal bonds482,367 — 1,885 29,871 454,381 
Corporate debt1,883,308 — 4,025 136,759 1,750,574 
Residential mortgage-backed securities481,267 211 2,876 53,795 430,137 
Agency commercial mortgage-backed securities9,369 — 5 987 8,387 
Other commercial mortgage-backed securities210,469 151 60 20,904 189,474 
Other asset-backed securities412,354 193 1,104 14,870 398,395 
$3,758,720 $555 $10,122 $274,690 $3,493,597 
Schedule of Available-For-Sale Securities by Contractual Maturity
The recorded cost basis and estimated fair value of available-for-sale fixed maturities at September 30, 2024, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
(In thousands)Amortized
Cost		Due in one
year or less		Due after
one year
through
five years		Due after
five years
through
ten years		Due after
ten years		Total Fair
Value
Fixed maturities, available-for-sale
U.S. Treasury obligations$261,442 $36,542 $181,615 $30,406 $2,738 $251,301 
U.S. Government-sponsored enterprise obligations16,575 6,471 7,016 523 2,014 16,024 
State and municipal bonds482,509 39,434 154,088 155,687 118,570 467,779 
Corporate debt1,850,831 176,203 911,876 573,680 108,661 1,770,420 
Residential mortgage-backed securities534,605 494,095 
Agency commercial mortgage-backed securities8,022 7,251 
Other commercial mortgage-backed securities212,274 200,389 
Other asset-backed securities483,457 478,873 
$3,849,715 $3,686,132 
Schedule of Investments Held in an Unrealized Loss Position
The following tables provide summarized information with respect to investments held in an unrealized loss position at September 30, 2024 and December 31, 2023, including the length of time the investment had been held in a continuous unrealized loss position.
September 30, 2024
 TotalLess than 12 months12 months or longer
 FairUnrealizedFairUnrealizedFairUnrealized
(In thousands)ValueLossValueLossValueLoss
Fixed maturities, available-for-sale
U.S. Treasury obligations$198,432 $10,842 $27,703 $1,292 $170,729 $9,550 
U.S. Government-sponsored enterprise obligations13,331 571 3,592 108 9,739 463 
State and municipal bonds331,314 19,537 61,506 3,114 269,808 16,423 
Corporate debt1,273,208 88,245 342,657 25,164 930,551 63,081 
Residential mortgage-backed securities309,441 45,427 115,007 13,302 194,434 32,125 
Agency commercial mortgage-backed securities6,805 785 1,936 278 4,869 507 
Other commercial mortgage-backed securities164,264 12,027 73,422 4,891 90,842 7,136 
Other asset-backed securities170,802 8,143 57,889 2,623 112,913 5,520 
$2,467,597 $185,577 $683,712 $50,772 $1,783,885 $134,805 

December 31, 2023
 TotalLess than 12 months12 months or longer
 FairUnrealizedFairUnrealizedFairUnrealized
(In thousands)ValueLossValueLossValueLoss
Fixed maturities, available-for-sale
U.S. Treasury obligations$213,634 $16,474 $32,925 $1,364 $180,709 $15,110 
U.S. Government-sponsored enterprise obligations18,428 1,030 4,128 242 14,300 788 
State and municipal bonds378,313 29,871 48,960 2,287 329,353 27,584 
Corporate debt1,524,940 136,759 84,221 5,054 1,440,719 131,705 
Residential mortgage-backed securities313,082 53,795 74,463 10,271 238,619 43,524 
Agency commercial mortgage-backed securities7,955 987 212 1 7,743 986 
Other commercial mortgage-backed securities184,416 20,904 18,092 1,140 166,324 19,764 
Other asset-backed securities293,447 14,870 30,115 867 263,332 14,003 
$2,934,215 $274,690 $293,116 $21,226 $2,641,099 $253,464 
Schedule of a Roll Forward of Cumulative Credit Losses Recorded in Earnings Related to Impaired Debt Securities
The following tables present a roll forward of the allowance for expected credit losses on available-for-sale fixed maturities for the three and nine months ended September 30, 2024 and 2023.
Three Months Ended September 30, 2024
(In thousands)Corporate DebtResidential mortgage-backed securitiesOther commercial mortgage-backed securitiesOther asset-backed securitiesTotal
Balance, at July 1, 2024
$1,210 $203 $— $189 $1,602 
Additional credit losses related to securities for which:
No allowance for credit losses has been previously recognized1,398 — 406 — 1,804 
Reductions related to:
Securities sold during the period— (2)— (1)(3)
Balance, at September 30, 2024
$2,608 $201 $406 $188 $3,403 
Nine Months Ended September 30, 2024
(In thousands)Corporate DebtResidential mortgage-backed securitiesOther commercial mortgage-backed securitiesOther asset-backed securitiesTotal
Balance, at December 31, 2023$— $211 $151 $193 $555 
Additional credit losses related to securities for which:
No allowance for credit losses has been previously recognized2,138 — 406 — 2,544 
An allowance for credit losses was recorded in a previous period470 — — — 470 
Reductions related to:
Securities sold during the period— (10)(151)(5)(166)
Balance, at September 30, 2024$2,608 $201 $406 $188 $3,403 
Three Months Ended September 30, 2023
(In thousands)Residential mortgage-backed securitiesOther commercial mortgage-backed securitiesOther asset-backed securitiesTotal
Balance, at July 1, 2023$223 $— $196 $419 
Additional credit losses related to securities for which:
No allowance for credit losses has been previously recognized— 151 — 151 
Reductions related to:
Securities sold during the period(7)— (3)(10)
Balance, at September 30, 2023$216 $151 $193 $560 
Nine Months Ended September 30, 2023
(In thousands)Residential mortgage-backed securitiesOther commercial mortgage-backed securitiesOther asset-backed securitiesTotal
Balance, at December 31, 2022$229 $— $198 $427 
Additional credit losses related to securities for which:
No allowance for credit losses has been previously recognized— 151 — 151 
Reductions related to:
Securities sold during the period(13)— (5)(18)
Balance, at September 30, 2023$216 $151 $193 $560 
The following table presents a roll forward of cumulative credit losses recorded in earnings related to impaired debt securities for which a portion of the impairment was recorded in OCI.
Three Months Ended
September 30		Nine Months Ended
September 30
(In thousands)2024202320242023
Balance beginning of period$1,267 $57 $57 $57 
Additional credit losses recognized during the period, related to securities for which:
No impairment has been previously recognized— — 740 — 
Impairment has been previously recognized— — 470 — 
Balance September 30
$1,267 $57 $1,267 $57 
Schedule of Other Information Regarding Available-For-Sale Securities
Other information regarding sales and purchases of fixed maturity available-for-sale securities is as follows:
Three Months Ended September 30Nine Months Ended September 30
(In millions)2024202320242023
Proceeds from sales (exclusive of maturities and paydowns)$39.4 $8.0 $97.7 $31.4 
Purchases$186.5 $127.3 $650.6 $261.5 
Schedule of Net Investment Income
Net investment income (loss) by investment category was as follows:
Three Months Ended
September 30		Nine Months Ended
September 30
(In thousands)2024202320242023
Fixed maturities$34,092 $28,402 $99,150 $83,680 
Equities1,197 1,158 3,253 3,070 
Short-term investments, including Other3,167 4,473 9,718 11,857 
BOLI1,101 668 2,087 1,784 
Investment fees and expenses(2,285)(1,947)(6,481)(5,677)
Net investment income$37,272 $32,754 $107,727 $94,714 
Schedule of Investment in Unconsolidated Subsidiaries
ProAssurance's investment in unconsolidated subsidiaries were as follows:
 September 30, 2024Carrying Value
(In thousands)Percentage
Ownership		September 30,
2024		December 31,
2023
Qualified affordable housing project tax credit partnershipsSee below$298 $666 
All other investments, primarily investment fund LPs/LLCs
See below271,192 276,090 
$271,490 $276,756 
Schedule of Equity Method Investments The results recorded and tax credits recognized related to ProAssurance's tax credit partnership investments were as follows:
Three Months Ended
September 30		Nine Months Ended
September 30
(In thousands)2024202320242023
Qualified affordable housing project tax credit partnerships
Losses (gains) recorded
$451 $429 $163 $2,294 
Tax credits recognized$8 $401 $24 $473 
Schedule of Net Realized Investment Gains (Losses)
Realized investment gains and losses are recognized on the first-in, first-out basis. The following table provides detailed information regarding net investment gains (losses):
Three Months Ended
September 30		Nine Months Ended
September 30
(In thousands)2024202320242023
Total impairment losses:
Corporate debt$(1,398)$— $(2,710)$(2,984)
Asset-backed securities(403)(141)(592)(133)
Portion of impairment losses recognized in other comprehensive income before taxes:
Corporate debt— — 102 — 
Net impairment losses recognized in earnings
(1,801)(141)(3,200)(3,117)
Gross realized gains, available-for-sale fixed maturities484 254 1,156 793 
Gross realized (losses), available-for-sale fixed maturities(1,567)(285)(3,636)(1,509)
Net realized gains (losses), trading fixed maturities5 5 18 (101)
Net realized gains (losses), equity investments176 154 2,115 254 
Net realized gains (losses), other investments(245)(683)(826)(2,570)
Change in unrealized holding gains (losses), trading fixed maturities (5)(71)165 81 
Change in unrealized holding gains (losses), equity investments4,979 (4,578)1,762 (1,962)
Change in unrealized holding gains (losses), convertible securities, carried at fair value 267 (588)873 3,473 
Other(1)
(41)3,231 6,719 7,814 
Net investment gains (losses)$2,252 $(2,702)$5,146 $3,156 
(1) Includes a gain of $6.5 million related to the decrease in the contingent consideration liability during the 2024 nine-month period. For the 2023 three- and nine-month periods, includes a gain of $1.5 million and $4.5 million, respectively, related to the decrease in the contingent consideration liability. See further discussion on the contingent consideration in Note 2 and Note 7 and discussion on the Company's accounting policy in Note 1 in its December 31, 2023 report on Form 10-K.