ProAssurance Corporation reported a net loss of $6.2 million in first quarter of 2023, compared with $3.6 million in Q1’22.
The specialty insurer posted an operating loss of $8.1 million, compared with $7.7 million a year ago.
The gross premiums written (GPW) for the first quarter of 2023 fell by 5.9% to $315.8 million, while net premiums written (NPW) fell by 8.4% to $284.9 million.
It posted a combined ratio of 113.9% in Q1’23, compared with 105.8%. The operating ratio was 101.3%, while it was 98.1% in Q1’22.
Net investment income showed substantial growth this quarter, increasing by 48% to $30 million, the specialty insurer said.
“In this time of uncertainty for medical professionals, it is more important than ever that they have a professional liability carrier who will stand behind them and assist in finding solutions to the challenges they face. At ProAssurance, we are working to develop those solutions and to play a critical role in addressing the issues. Our data science and predictive analytics strategy is one of the areas we will focus on to uncover solutions,” Ned Rand, President and Chief Executive Officer of ProAssurance, commented on the challenging market environment.
“The results for the quarter reflect our continued caution in assessing reserves in prior years; in our loss ratio selections for the current year; and in reserve increases on a handful of claims, some of which resulted from excess verdicts against our insureds in the quarter. MPL carriers and their insureds are facing an environment in which in large verdicts are too commonly rendered without regard to the facts of the case regarding liability or a reasonable assessment of damages,” Rand added.
