ProAssurance (PRA) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: N/A
• Average Volume (3M): 358.37K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 0.32
• Revenue Growth: -3.35%
• EPS Growth: -21.82%
• Country: US
• Employees: 1,036
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.82
• Shares Outstanding: 51,413,643
• 10 Day Avg. Volume: 418,865
• 30 Day Avg. Volume: 358,371
• PEG Ratio: -6.27
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 1.13
• P/FCF Ratio: -2.82K
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 1.54
• Enterprise Value/Gross Profit: 5.22
• Enterprise Value/Ebitda: 15.69
• 1Y Price Target: $25.00
• Price Target Upside: 1.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.16
• Revenue Forecast (FY): $848.08M

• Rating: 56 Neutral
• Price Target: $25.00 ▲(1.83% Upside)
• Action: Reiterated Date: 02/24/26
• Date: Action: Reiterated 02/24/26

The score is held back primarily by multi-year negative operating/free cash flow and contracting revenue despite an earnings rebound, with KPI trends indicating underwriting pressure and reserve-driven volatility. Balance-sheet de-risking in 2025 and mildly constructive technicals provide support, but valuation looks expensive at a ~37 P/E with no dividend yield provided.

Positive Factors

Improved Balance Sheet / Deleveraging

Material deleveraging in 2025 meaningfully reduced reported debt relative to equity, increasing financial flexibility. A stronger balance sheet improves capacity to absorb reserve shocks, buy reinsurance, fund claims, and support integration or strategic investments without immediate capital raises.

Strategic Merger Increases Scale

The announced merger with The Doctors Company is a structural shift that should deliver broader distribution, greater scale and product breadth in healthcare professional liability. Scale can lower fixed-costs, diversify risk pools and strengthen market position long-term if integration preserves underwriting discipline.

Earnings Recovery

Return to positive earnings in 2024–2025 after earlier losses shows underlying underwriting and/or investment improvements. Sustained profitability supports capital rebuild, reduces reliance on external funding, and provides a foundation for disciplined growth if reserve development and underwriting trends remain controlled.

Negative Factors

Persistent Negative Cash Flow

Multi-year negative operating and free cash flow indicates accounting earnings are not converting into durable cash. This constrains internal funding for claims, reinsurance and investments, increases reliance on external capital or asset sales, and elevates long-term funding and liquidity risk.

Contracting Revenue

A roughly 12% revenue decline in 2025 after flat 2024 erodes premium scale critical to specialty P&C economics. Persistent premium contraction reduces expense absorption, pressures unit economics and limits the durability of margins absent successful new business growth or distribution expansion.

Underwriting Pressure & Reserve Volatility

Notable underwriting pressure and reserve-driven volatility, including Workers' Comp losses, point to long-tail claim and reserving risk. Such volatility can rapidly deplete capital, force rate increases or reinsurance changes, and makes multi-year earnings less predictable absent sustained underwriting improvements.

ProAssurance Business Overview & Revenue Model

Company Description

ProAssurance Corporation, through its subsidiaries, provides property and casualty insurance, and reinsurance products in the United States. The company operates through Specialty Property and Casualty, Workers' Compensation Insurance, Segregated Portfolio Cell Reinsurance, and Lloyd's Syndicate segments. It offers professional liability insurance for healthcare providers and institutions, and attorneys; liability insurance for medical technology and life sciences risks; and workers' compensation insurance, such as guaranteed cost policies, policyholder dividend policies, retrospectively rated policies, and deductible policies, as well as alternative market solutions that include program design, fronting, claims administration, risk management, SPC rental, asset management, and SPC management services for individual companies, agencies, groups, and associations. The company also participates in Lloyd's of London Syndicate 1729, which underwrites property and casualty insurance, and reinsurance. It markets its products through independent agencies and brokers, as well as an internal sales force. The company was founded in 1976 and is headquartered in Birmingham, Alabama.

How the Company Makes Money

ProAssurance generates revenue primarily through insurance premiums collected from policyholders in its various segments. The company underwrites policies for healthcare providers and organizations, charging premiums based on the assessed risk associated with each insured party. Additionally, ProAssurance earns investment income from its portfolio of invested premiums, which is a significant contributor to its overall earnings. The company also benefits from reinsurance agreements that help manage risk exposure and stabilize financial performance. Strategic partnerships with healthcare associations and professional organizations enhance its market reach and credibility, further supporting its revenue generation.

ProAssurance Financial Statement Overview

Summary

Earnings have rebounded in 2024–2025 and leverage improved materially in 2025, but revenue is contracting and operating/free cash flow have remained negative from 2022–2025, raising concerns about earnings quality and sustainability. KPI insights also point to underwriting pressure (notably Workers’ Comp losses) and reserve-driven volatility in Specialty P&C.

Income Statement

Profitability has recovered versus the 2022–2023 losses, with 2024 and 2025 returning to positive earnings and net margins around the mid-single digits. That said, the top line is shrinking (down ~12% in 2025 after a flat 2024), and profitability remains well below the stronger 2021 level, indicating a less durable earnings profile and higher sensitivity to underwriting/investment swings.

Balance Sheet

Leverage improves materially in 2025, with debt falling to a very low level relative to equity, which strengthens financial flexibility. However, equity and assets have trended down from 2021 peaks, and prior-year leverage (2022–2024) was meaningfully higher, suggesting balance-sheet strength has improved recently but stability over the full period is mixed.

Cash Flow

Cash generation is the weak spot: operating cash flow and free cash flow are negative in 2022–2025, including near-breakeven but still negative in 2025. While 2020–2021 produced solid positive cash flow, the multi-year stretch of cash outflows raises questions about earnings quality and the consistency of internal funding.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.10B	1.13B	1.13B	1.10B	1.08B
Gross Profit	432.61M	253.34M	195.11M	191.86M	212.58M
EBITDA	106.60M	103.17M	10.02M	52.22M	203.57M
Net Income	50.91M	52.74M	-38.60M	-402.00K	144.12M
Balance Sheet
Total Assets	5.45B	5.57B	5.63B	5.70B	6.19B
Cash, Cash Equivalents and Short-Term Investments	322.12M	3.89B	65.90M	3.75B	4.19B
Total Debt	446.46M	442.26M	444.31M	446.99M	445.83M
Total Liabilities	4.10B	4.37B	4.52B	4.60B	4.76B
Stockholders Equity	1.35B	1.20B	1.11B	1.10B	1.43B
Cash Flow
Free Cash Flow	-440.00K	-19.73M	-54.67M	-34.19M	70.13M
Operating Cash Flow	-440.00K	-10.71M	-49.88M	-29.84M	73.97M
Investing Cash Flow	18.05M	10.67M	141.14M	-62.00M	-85.53M
Financing Cash Flow	-11.54M	-10.97M	-55.31M	-21.80M	-60.62M

ProAssurance Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRA, the sentiment is Positive. The current price of 24.55 is above the 20-day moving average (MA) of 24.43, above the 50-day MA of 24.25, and above the 200-day MA of 23.85, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 60.50 is Neutral, neither overbought nor oversold. The STOCH value of 59.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRA.

ProAssurance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UVE	82 Outperform	$986.48M	5.57	39.59%	2.18%	4.61%	73.40%
UFCS	80 Outperform	$991.79M	8.67	13.72%	1.73%	12.22%	120.73%
SAFT	76 Outperform	$1.16B	11.53	9.97%	4.59%	13.35%	16.56%
DGICA	69 Neutral	$637.76M	8.05	13.38%	3.51%	0.93%	224.95%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ACIC	65 Neutral	$555.44M	5.31	29.35%	―	16.34%	-1.26%
PRA	56 Neutral	$1.26B	24.98	2.66%	―	-3.35%	-21.82%

ProAssurance Corporate Events

ProAssurance Announces Merger with The Doctors Company

On March 19, 2025, ProAssurance announced a merger agreement with The Doctors Company, where ProAssurance will become a wholly owned subsidiary. The merger includes provisions for executive compensation adjustments to mitigate tax impacts, reflecting the company’s strategic alignment with its performance targets for 2025.

The most recent analyst rating on (PRA) stock is a Hold with a $24.50 price target. To see the full list of analyst forecasts on ProAssurance stock, see the PRA Stock Forecast page.