ProAssurance Corporation (PRA)
NYSE:PRA
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ProAssurance
(NYSE:PRA)
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Rating:56Neutral
Price Target:
$25.00
▲(1.50% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
ProAssurance (PRA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.27B
Dividend YieldN/A
Average Volume (3M)358.37K
Price to Earnings (P/E)24.4
Beta (1Y)0.28
Revenue Growth-3.35%
EPS Growth-21.82%
CountryUS
Employees1,036
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.82
Shares Outstanding51,607,727
10 Day Avg. Volume418,865
30 Day Avg. Volume358,371
Financial Highlights & Ratios
PEG Ratio-6.27
Price to Book (P/B)0.92
Price to Sales (P/S)1.13
P/FCF Ratio-42.45
Enterprise Value/Market Cap1.33
Enterprise Value/Revenue1.55
Enterprise Value/Gross Profit5.25
Enterprise Value/Ebitda15.78
Forecast
1Y Price Target
$25.00Price Target Upside1.50% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.14
Revenue Forecast (FY)$846.79M
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 ...
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 ass...
ProAssurance Key Performance Indicators (KPIs)
Any
Net Income by Segment
Shows the company's net income broken down by business unit, revealing which lines (such as medical professional liability versus other insurance or services) are driving profitability. Trends indicate whether growth is translating into real earnings, where capital for dividends or buybacks may come from, and which segments pose the biggest earnings risk.
Shows the company's net income broken down by business unit, revealing which lines (such as medical professional liability versus other insurance or services) are driving profitability. Trends indicate whether growth is translating into real earnings, where capital for dividends or buybacks may come from, and which segments pose the biggest earnings risk.
Data provided by:
The Fly
The FlyProAssurance Earnings Call Summary
Earnings Call Date:Feb 24, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant improvements in operating earnings, investment income, and strategic initiatives in both the Specialty P&C and workers' compensation segments. However, these positives were counterbalanced by challenges such as the negative impact from Lloyd's Syndicate losses, a decline in net written premiums, and increased expense ratios. While the company showed steady progress in its core operations, some financial setbacks were noted.Positive Updates
Improved Operating Earnings
ProAssurance reported its fifth consecutive quarter of improved operating earnings, highlighting progress in the medical professional liability business.
Negative Updates
Lloyd's Syndicate Loss Impact
A significant fourth-quarter increase in IBNR reserve from aviation risks reduced fourth-quarter net income by $5.3 million, affecting the Specialty P&C segment's combined ratio by about three points.
Read all updates
Q4-2024 Updates
Positive
Negative
Improved Operating Earnings
ProAssurance reported its fifth consecutive quarter of improved operating earnings, highlighting progress in the medical professional liability business.
Read all positive updates
Company Guidance
In the fourth quarter 2024 earnings call, ProAssurance Corporation reported its fifth consecutive quarter of improved operating earnings, highlighting a Specialty P&C segment combined ratio of 101%, improved by nearly nine points from favorable prior accident year reserve development. Full-year 2024 saw a nearly five-point enhancement in the combined ratio to 104%, alongside a 20-point improvement in the accident year loss and LAE ratio since 2019, due to strategic initiatives and premium increases. The company achieved a 10% renewal premium increase in standard MPL and 8% in the specialty portion, bringing cumulative increases since 2018 to nearly 70%. Retention of existing premiums was solid at 83%. In workers' compensation, net written premiums rose by $4 million, with a full-year combined ratio of 114% and a net loss ratio of 77%, reflecting strategic pricing and underwriting efforts. ProAssurance emphasized disciplined underwriting, use of predictive analytics, and investment in innovation tools to maintain a competitive edge, resulting in a full-year operating earnings of $0.95 per share and a reported book value per share increase to $23.49.ProAssurance Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
78
Positive
Cash Flow
32
Negative
| 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 | -29.22M | -19.73M | -54.67M | -34.19M | 70.13M |
| Operating Cash Flow | -25.62M | -10.71M | -49.88M | -29.84M | 73.97M |
| Investing Cash Flow | 19.44M | 10.67M | 141.14M | -62.00M | -85.53M |
| Financing Cash Flow | -12.20M | -10.97M | -55.31M | -21.80M | -60.62M |
ProAssurance Technical Analysis
Positive
24.63
Price Trends
24.51
Positive
24.30
Positive
24.08
Positive
Market Momentum
-0.02
Positive
55.19
Neutral
62.25
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 24.63 is above the 20-day moving average (MA) of 24.54, above the 50-day MA of 24.51, and above the 200-day MA of 24.08, indicating a bullish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 55.19 is Neutral, neither overbought nor oversold. The STOCH value of 62.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRA.
ProAssurance Risk Analysis
ProAssurance disclosed 35 risk factors in its most recent earnings report. ProAssurance reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ProAssurance Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.02B | 6.27 | 13.50% | 1.73% | 12.22% | 120.73% | |
79 Outperform | $978.05M | 5.15 | 37.99% | 2.18% | 4.61% | 73.40% | |
76 Outperform | $1.10B | 11.55 | 11.29% | 4.59% | 13.35% | 16.56% | |
70 Outperform | $558.57M | 5.73 | 35.67% | ― | 16.34% | -1.26% | |
69 Neutral | $645.43M | 7.74 | 12.91% | 3.51% | 0.93% | 224.95% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
56 Neutral | $1.27B | 24.36 | 3.94% | ― | -3.35% | -21.82% |
* Financial Sector Average
PRA
ProAssurance
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5.88%
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ProAssurance Corporate Events
Business Operations and StrategyM&A Transactions
ProAssurance Announces Merger with The Doctors Company
Neutral
Dec 8, 2025
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, reflect...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.