ProAssurance Overview and Insurance Coverage Options

ProAssurance is a leading provider of professional liability insurance for healthcare professionals, with a history dating back to 1976. Founded by a group of physicians, the company has grown to become one of the largest and most respected names in the industry.

ProAssurance offers a range of insurance coverage options tailored to the unique needs of healthcare professionals. Their policies are designed to provide financial protection against claims of medical malpractice, errors, and omissions.

Their insurance coverage options include professional liability insurance, which provides coverage for claims of medical malpractice, and cyber liability insurance, which protects against data breaches and cyber attacks.

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ProAssurance Corporation has been around since 1975, making it a well-established player in the insurance industry.

The company specializes in healthcare liability and other insurance solutions, which means they focus on providing insurance products to the healthcare sector.

ProAssurance offers a range of products, including medical professional liability insurance, workers' compensation, and legal professional liability insurance.

They also provide risk management services to help healthcare providers manage and mitigate risks.

ProAssurance serves various sectors within the healthcare industry, including health systems, hospitals, physicians, clinics, and ancillary care providers.

Their insurance options are tailored to meet the specific needs of each sector.

The company is based in Birmingham, Alabama, which is a hub for the insurance industry.

At ProAssurance, you'll find a range of coverage options tailored to the unique needs of various medical facilities.

ProAssurance offers coverage for physicians and medical groups, which can provide peace of mind and financial security for these important healthcare providers.

Hospitals and healthcare systems can also benefit from ProAssurance's coverage options, helping to mitigate risks and ensure continuity of care.

Senior/long-term care facilities are another area where ProAssurance's coverage can make a significant difference, providing protection for these vulnerable populations.

Miscellaneous medical facilities, such as clinics and rehabilitation centers, can also take advantage of ProAssurance's flexible insurance solutions.

Allied healthcare professionals, including nurses, therapists, and other support staff, can also be covered under ProAssurance's policies.

Here are some of the specific coverage options available:

ProAssurance has made significant strides in its growth and acquisitions, solidifying its position in the industry. The company's strategic partnerships and acquisitions have helped it expand its reach and offerings.

In 2005, ProAssurance sold its personal lines insurance operations, Meemic Insurance Company, to Ally Financial for $400 million. This sale marked a significant milestone in the company's growth.

ProAssurance has continued to expand its presence in the healthcare industry through various acquisitions. In 2010, it acquired American Physicians Service Group, Inc., the publicly-traded parent company of American Physicians Insurance Company. This move enabled ProAssurance to enter the vital Texas market and expand its writings in Arkansas and Oklahoma.

ProAssurance's commitment to growth and expansion is evident in its continued acquisitions and partnerships.

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ProAssurance offers a range of traditional approaches to risk management, including first-dollar coverage, deductible options, and excess and surplus lines coverage.

These options provide flexibility and can be tailored to suit different needs and budgets. For example, first-dollar coverage means that ProAssurance will pay out for claims from the very first dollar, which can be a big relief for businesses with limited financial resources.

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A deductible option allows businesses to take on some of the financial risk themselves, which can help to reduce premiums. Excess and surplus lines coverage, on the other hand, can provide additional protection for businesses that need it.

In addition to these traditional approaches, ProAssurance also offers alternative risk programs, such as a turnkey captive solution, complex risk valuation solutions, and a loss portfolio transfer program.

These programs can be especially helpful for businesses with complex or high-risk operations. For instance, a turnkey captive solution can provide a high level of control and flexibility for businesses that need to manage their own risk.

Here are some of the alternative risk programs offered by ProAssurance:

These programs can be a great option for businesses that need more customized risk management solutions. By working with ProAssurance, businesses can get the protection they need to thrive, even in uncertain times.

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ProAssurance has a history of strategic growth and acquisitions that have positioned it as a leader in the insurance industry.

In 2005, the company sold its personal lines insurance operations, Meemic Insurance Company, to Ally Financial (GMAC) for $400 million.

ProAssurance has made several key acquisitions, including Podiatry Insurance Company of America, A Mutual Company (PICA) in 2009, which expanded its presence in the US.

PICA, founded by podiatrists in 1980, is the largest insurer of podiatrists in the US and also insures chiropractors and acupuncturists through its subsidiary, PACO Assurance Company, Inc. (PACO).

In 2010, ProAssurance acquired American Physicians Service Group, Inc., the publicly-traded parent company of American Physicians Insurance Company (API), an Austin, Texas-based insurer with roots stretching back to 1975.

This acquisition moved ProAssurance into the vital Texas market and expanded its writings in Arkansas and Oklahoma.

ProAssurance also acquired Independent Nevada Doctors Insurance Exchange (IND) in 2012, vaulting the company to a leadership position in the Nevada healthcare professional liability market.

In 2013, ProAssurance acquired Medmarc Insurance Group in a sponsored demutualization, expanding its healthcare-centric focus to medical products and life sciences, and lawyer writings.

In 2014, ProAssurance acquired Eastern Insurance Holdings, Inc., a publicly traded healthcare-centric writer of worker's compensation insurance, and became the majority capital provider to Syndicate 1729 at Lloyd's of London.

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ProAssurance also formed CAPAssurance in partnership with the Cooperative of American Physicians (CAP), a California-based insurer, in 2014.

The company formed ProAssurance American Mutual, A Risk Retention Group domiciled in Washington, D.C. in 2015, providing additional flexibility to service customers with challenging and complex needs.

In 2017, ProAssurance's subsidiary, Eastern Alliance, purchased Great Falls Insurance Company's book of workers' compensation business, expanding operations into Maine and New Hampshire.

ProAssurance Corporation endowed the University of Alabama School of Medicine $1.5 million in 2017 to establish the ProAssurance Endowed Chair for Physician Wellness.

On May 5, 2021, ProAssurance Corporation acquired NORCAL Mutual, a physician-directed insurance company based in Northern California, expanding and establishing ProAssurance as a true nationwide platform.

ProAssurance's share price has passed above its 200-day moving average, trading as high as $15.03 and settling at $14.24 on a volume of 197,380 shares.

Several analysts have weighed in on the stock, with StockNews.com upgrading it to a "buy" rating and Piper Sandler downgrading it to a "neutral" rating.

The company has a market cap of $728.46 million and a PE ratio of 17.16.

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ProAssurance's share price has passed above its 200-day moving average, reaching as high as $15.03.

Several large investors have increased their holdings in ProAssurance, with Commonwealth Equity Services LLC boosting its stake by 2.5% during the 2nd quarter.

The stock has a market cap of $728.46 million, a PE ratio of 17.16, and a beta of 0.29.

StockNews.com raised ProAssurance's rating from "hold" to "buy" on December 26th, while Piper Sandler downgraded it from "overweight" to "neutral" with a price target of $18.00.

ProAssurance's 50-day moving average price is $16.25, and its 200-day moving average price is $14.34.

The company has a quick ratio of 0.28, a current ratio of 0.28, and a debt-to-equity ratio of 0.35.

Hedge funds and other institutional investors own 85.58% of ProAssurance's stock.

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Robbins Geller Rudman & Dowd LLP attorneys and co-counsel secured a $28 million recovery for ProAssurance Corporation investors.

The case resolves allegations that ProAssurance and certain executives misled investors by concealing the company’s deviation from its purportedly conservative underwriting and reserve practices.

ProAssurance emphasized its "disciplined approach to business" to investors, highlighting its conservative underwriting, risk-averse reserve practices, and reinsurance protection.

However, the company allegedly underwrote an especially large, "unusual, particularly risky" policy for an undisclosed healthcare provider, which experienced significant losses.

Judge R. David Proctor of the U.S. District Court for the Northern District of Alabama commended counsel for the class for having "conducted the Litigation and achieved the Settlement with skill, perseverance, and diligent advocacy."

The court rejected ProAssurance's motion to dismiss the case in part in December 2021, paving the way for the $28 million recovery.